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With 1,500+ franchisors and 65,000 franchise units, the franchise sector is flourishing
01
Up to 90% of franchises are Australian brands, with US franchisees representing 3-5% of the market
02
Australia has more franchising outlets per capita than any other country except our NZ neighbours
03
Franchise opportunities are growing in the non-food retail industry, accounting for more than 25% of franchise systems
04
Franchising contributes 4% to the country’s GDP, generating over half a million new jobs and a whopping 181.8 billion in revenue annually
Sector in the Spotlight
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So you’re gearing up to ditch your 9-5 for a career 180, but you’re still not sure whether it’s a cracker career move.
Before diving headfirst into your next venture, read our list of questions to start those early conversations with your franchisor.
If your goal is to work smarter, not harder, you’ll want to know what the working week of a fully-fledged business owner looks like. At the early stages in the process, ask the franchisor what a typical working week looks like, and what time you’ll be clocking on and off. Friday night knockoffs might become a thing of the past, or your hot new diary date.
When buying a franchise, the franchisor will usually charge an up-front fee along with a regular “management service fee”, which is basically a percentage of turnover (in a retail business) or a flat fee (in a service business). Once you know the financial basics, you need to find out what other costs you might be up for. You should also know whether you’ll need to splash your cash on new equipment, or fork out for capital purchases, during the term of the franchise.
If your business is your baby, and it takes a village to raise a baby, then you’d be a fool not to ask for support. Your franchisor should be able to tell you what support and training is offered as part of the agreement, and whether they’ll take on pre-launch marketing. And on the subject of the village, people, you should ask whether there are fellow franchisees in the network or industry mentors you can lean on for support.
Whether you’re just dipping your toes in the water or ready to take the leap, chances are you’ll have heard a thing or two about territories in your franchise foray. Most territories are exclusive to the franchisee, meaning no other franchisee within the network can muscle in and open their branch on your turf. When negotiating your franchise agreement, make sure to ask if you get a defined geographic territory to avoid potential argy-bargy down the track.