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 Franchise Opportunities Why SIGNWAVE® Franchising
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What is franchising?
Franchising is a method of distributing products or services. At least two levels of people are involved in the franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. Technically, the contract binding the two parties is the "franchise," but that term is often used to mean the actual business that the franchisee operates.
How big is franchising?
Franchising contributes 10% of Australia's GDP each year, and creates over 500,000 jobs in around 45,000 workplaces.*
What are some of the advantages of franchise ownership?
- Established operating systems
- Nationally known brand name
- Complete training programs
- Thorough and ongoing business support
- Protected territories
- Research and development of products and services
- Network of peer owners
- National marketing initiatives
- National buying power
Franchising allows you to be in business for yourself, but not by yourself. You can avoid many of the pitfalls of new business ownership if you follow the proven systems of a franchise concept.
*Franchise Coucil of Australia, 2005
How should I begin evaluating a franchise opportunity?
The first place to start is to evaluate the franchisor.
- You will be able to get a great deal of important information from their Disclosure Document (DD). In this document, you will see a company’s financial position, litigation history, and a list of the franchisor’s directors and officers with their business experience. In some cases, you will also see average store earnings and expense items, although franchisors are not required to disclose this information.
- Asking questions of current franchisees within the system is a necessary component of your due diligence process. You want to find out if they are satisfied or not, and why. They will let you know whether the support and training is valuable and comprehensive. They can give you insight into return on investment and break-even timeframes.
As you continue through your due diligence with SIGNWAVE®, we will send you a comprehensive franchising checklist of important items to investigate prior to purchasing any franchise.
Visit the Franchise Council of Australia (FCA) website at www.franchise.org.au to view more information about franchising. |
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