Do You Want to be a Franchisee? Consider These Three Things

Becoming a franchisee is a great way to step into the business world. It can help you to understand how a business is run with the help and guidance of a bigger company. Though you will need to buy into the franchise, it can also be more cost-effective than setting up your own business from scratch.

For these reasons, many people choose to become franchisees, and with franchises becoming more and more popular across Australia, it couldn’t be a better time to dip your toes in the franchising world.

However, there are some things you need to ask yourself before you decide to dive right in and we have taken a look at them below.

Top 3 Questions to Ask Yourself Before Becoming a Franchisee

So, you want to be a franchisee but you’re not sure if you’ve got what it takes? Maybe you’re wondering if this is the right decision for you, or maybe you just want to be sure. Whatever it is, we're going to help. Start by asking yourself these questions first.

Can You Afford to Invest?

The reason this should be your first question is quite simple: franchisors ask franchisees to buy in and this means having the necessary money to do so. If you can’t afford to invest then you can’t afford to be a franchisee yet.

This doesn’t mean you will never be able to be a franchisee though. It just means you need to consider ways to raise capital by saving your own funds, partnering with someone, or looking for a cheaper investment.

Are You Ready to Follow Someone Else’s Rules?

One of the main parts of being a franchisee is sticking to the wider company rules. This could be marketing rules, regulations on products, or other things that you wouldn’t necessarily do yourself. For this reason, you’re going to have to be ready to take guidance and follow the rules of those above you.

If you want to run your own business and you have some pretty strong ideas about what you want to do, then it's possible that being a franchisee isn't right for you. While it’s a good way to learn the ropes, you are essentially still working for someone else - just not as their employee. Consider whether you may be better off buying an independent business instead.

Do You Want To Manage a Business?

This probably seems redundant since you’re looking to get into the world of business, but if you want to be a business owner then you shouldn’t be looking to become a franchisee. While franchisees do run and own their branches, they don’t own the entire company.

If you want to have complete creative control over the entire business, then you may be disappointed by being a franchisee.

3 Things to Consider

Once you’ve asked yourself those questions, there are still some things you will need to take into consideration. These are summarized below.

Your Strengths and Weaknesses

Assessing whether you’re capable of running a franchise starts with your strengths and weaknesses. One of the first strengths you’re going to need is being able to take orders. Though you will be in charge of your franchise, you are still going to be taking orders from the franchisor on big-picture things. If you don’t think you can do this, then being a franchisee might not be for you.

You will also need to assess other areas, like leadership, management, and delegation. There is a lot that goes into running a franchise, and as such, you’re going to need to be ready. You could start by making a pros and cons list to work out if you’re ready to take this on.

The Industry You're Looking At

You’ve got to know the industry that you’re going into, so doing your due diligence and getting to know it by heart is a really good idea. Whether you’ve worked in the industry before or you’re totally new to it, becoming a franchisee will put you in a different position than any you have been in before.

Getting to know the industry, what works and what doesn’t, new trends, and even how the franchisor you’re working with fits in, is all incredibly important. Do your research before signing anything to make sure you know what you’re getting yourself in for.

Other Franchisees

If you’re still unsure about becoming a franchisee, one of the best sources of information is current franchisees of the brand. You could get in touch with those local to you to get more information on how they have found becoming a franchisee and whether they have any advice.

Meeting with other franchisees will also give you a sense of how happy they are. While not every day of work will be perfect, it is best to find one that makes you generally happy, so if other franchisees aren’t happy then this could be a huge red flag.

Benefits of Becoming a Franchisee

While there are many things to consider and questions to ask yourself, you should also try and remember the benefits of becoming a franchisee. All the considerations you have to make may feel like we’re trying to put you off. Check out the benefits of becoming a franchisee below to see how great an opportunity it could be.

• You get business assistance: This means if you are new to the role of leader, you’re going to have support in doing it.
• Established brand: Starting a new business is difficult. Getting your brand out there takes a lot of work, but with a franchise, the brand is already out there.
• Much lower failure rate: Fortunately, much fewer people fail at being a franchisee than they do setting up their own businesses. It is a lower-risk opportunity to run a business.
• Be your own boss: Though this comes with some caveats, in general, you are your own boss.

Final Thoughts

Before becoming a franchisee, you should take some time to consider if you’re ready for the challenge. Being a franchisee can be an incredible opportunity, you’ve just got to be ready.

If you’re looking to become a franchisee in Australia then there is no better place to find new opportunities than the Eden Exchange platform. With thousands of active buyers, sellers, and franchisors, we’re your one-stop shop for all things franchise in Australia. Get in touch today to find out more.

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Eden Exchange is an integrated multi-channel platform, simplifying business buying and selling. We match, refer and connect business buyers, sellers & brokers in an ecosystem that facilitates frictionless franchise, business and finance transactions. Visit www.EdenExchange.com and connect with our engaged and multidimensional transaction network today.