Buying a franchise

What you need to know about the new look Franchising CodeEvery franchise buyer needs to know about the mandatory Franchising Code of Conduct, which governs the relationship between franchisors and franchisees, and this vital document has just been rejigged - in format and content. So as a franchise buyer, what do you need to know?

The at-home caring market is packed with potential: we are living longer and by 2058 it is projected there will be more than 1.5 million over-85-year olds living in Australia.In this podcast we look beyond the statistics and discuss what services at-home care provides, what it takes to succeed in business, and why a franchise delivers so many benefits to a business owner.

If you're buying a franchise you're almost certainly signing up to pay franchise fees. So what can you expect?In this podcast we discuss why franchise fees are an integral part of a franchise system, what fees you may have to pay and what format they take, how to find out the value and appropriateness of the fees, and what happens if you don't pay them.

Buying into a brand with strong marketing is a major reason for franchisees to invest. The franchisor plays a key role in marketing the business, promoting the brand for the benefit of the franchise group. So what can you expect when it comes to marketing within a franchise network?National marketing is the franchisor’s responsibility but unlike non-franchise brands, there is another element of marketing that is crucial to small business - local area marketing. Franchisees are responsible for their own local area marketing, which involves engaging with the local community and promoting their business.Understanding marketing responsibilities and investing in marketing are important for franchisees to achieve strong resultsIn this podcast we discuss the national marketing approach, the marketing fund and its rules, local area marketing, common mistakes franchisees can make and where to find information about the brand’s marketing.

How can you fund your franchise purchase? It’s common for franchise buyers to approach a bank for a loan to help boost their savings.What happens though if you want to source money from elsewhere? Franchisees may turn to their family for a loan, or consider remortgaging their home.In this podcast we discuss some of the pros and cons of both options.This short podcast is neither intended to be an exhaustive commentary, nor can it be taken as financial advice.Every franchise buyer should seek independent financial advice before deciding on which franchise funding option best suits their circumstances.

In this podcast we reference Greg Nathan’s Franchise Relationships Institute (FRI). Greg is a globally-recognised psychologist, former franchisee, and a regular contributor for Inside Franchise Business on the connections formed in franchising, boosting performance and good franchisor habits. Check out our podcasts on the Franchise Agreement and Disclosure Document, helpful conversations to help you cut through the key elements of these important documents. You can find out the relevance of the Code of Conduct in franchising too.

Have you heard of the Franchising Code of Conduct? It creates a framework for the relationships between franchisor and franchisee in Australia.What’s important to know is that this is a mandatory code and it applies to both franchisees and franchisors.Our quick guide will point you in the right direction so you can make sense of why the Code is relevant to you.

It’s the mantra in real estate but what does getting the right location look like if you’re buying a business? When it comes to developing any service or retail business that is not purely online, location is an important part of the mix that can lead to success. Even the best operator with a popular brand can struggle to achieve their goals if the business is poorly located.

Buying a franchise can be an affordable purchase, or a major investment. Franchise brands operate right across the price spectrum so it’s a matter of matching your budget to what’s available.However the sale price is unlikely to be the final figure that you will spend. The key is to find out what’s included in the upfront cost of the business, and there are a number of factors that determine that. Then there will be the added extras…

What is a franchise agreement and why is it different from a business contract? Essentially a franchise agreement is the basis of the business relationship between the franchisee and franchisor. If you’re considering a franchise as a business opportunity, you’ll need to know how it differs from a standard business contract. Not sure what your obligations will be? Unsure what the franchisor will provide in exchange for a franchise fee? You can start your research here by listening to this podcast. And as always, we encourage you to seek legal advice when reviewing business documents.