Now is the perfect time to buy a franchise
Franchising allows a business to operate under the established brand of another business. You (the franchisee) can sell their products and/or services for a specified period in return for payment to the franchisor.
Buying a franchise means you’re buying the rights to run a business under an already established brand name. Often these rights are subject to conditions that are set out in a franchise agreement.
Risks of buying a franchise:
- Restrictive compared to other business types. The franchisor will control what you sell and how you sell it under a franchise agreement.
- Upfront and ongoing costs.
- Must comply with the franchising code of conduct.
- Starting any type of business comes with inherent risk. Most small businesses fail within the first 5 years of operation.
Benefits of buying a franchise:
- Training and development – Franchisors often provide extensive training and assistance towards qualifications. This allows the franchisee to change careers or enter into a new industry and learn along the way.
- Reduced risk – With the support and backing of an already established brand with a proven track record of the risk of starting a new business is drastically reduced.
- Franchisor support – Your franchisor will help get your business up and running with branding, signage, location etc.
- Marketing – Marketing is expensive and time-consuming if you start a business from scratch. As a franchisee, you have the benefit of leveraging off a mature brand.
- Business success – Franchises are 3 times as likely to succeed than a starting a business on your own.
Why now is the perfect time to buy a franchise:
- There is currently less competition due to adverse market conditions brought on by COVID-19
- The Australian government is offering huge tax concessions for small business.
- Buying a franchise will support the Australian economy with investment and job creation.
- Your career has likely been affected by the economic downturn. Whether you have lost your job or had your hours/wages reduced, if you are over 40, finding work can be very difficult. Buying a franchise offers an opportunity to ‘be your own boss’ and continue the career that you love or start a new career on your own terms.
- Flexibility to work your own hours and from home if need be. With COVID-19, many Australians have no choice but to work from home and manage family at the same time.