Franchising is a growing business sector worldwide. It continues to attract many people wanting to start a new business with little investment and one that’s already known in the market.
Today, almost all kinds of business are being franchised. From the mortgage brokering, food and laundry service to salons, clothes shops, sports shops and facilities as well as courier services.
Among the countries in the world, Australia has been found to be the most franchised nation on a per-person basis. An IBISWorld research showed that compared to the U.S., Australia has three times as many franchises per person.
Those who choose to become a franchisee often consider several vital factors. These include an established business name, affordability and fast return on investment with minimal risks involved.
A 2012 survey of 600 franchisees in Australia found that more than half of aspiring franchisees prefer to invest $100,000 or less while 30 percent of respondents expected to earn between $50,000 to $100,000 in their first year. Buyers were also found to be interested in gym, beauty and training franchises.
The official directory of the Franchise Council of Australia, FranchiseBusiness.com.au, revealed low-cost franchises are now widely available to people particularly with the growth of the service sectors that do not require the setting up of a retail shop or stock. This applies when one is purchasing intellectual property and brand only. With this type of business model, one only needs a good business plan, a phone and a laptop.
Franchising offers many benefits not only for the seller but also to the buyer. Primarily, it allows people to have their own business that relies on an existing brand and is being promoted through the franchisor’s money. It is easy to start as one only pays the fee and ongoing royalties while the other aspects of the business are well taken care of.
Initial training and ongoing support are provided while national and regional advertising campaigns are handled by the headquarters. Franchisees also get assistance in finding the right location for their business hence no additional leg work is necessary.
Additionally, the existing websites of the brand and centralized call centers are able to help in customer lead generation.
Photo via strategic franchising
About the guest author:
Sean is a franchisee who now owns three branches of his shop. Those who want to start a business can also search for a franchise for sale in line with their interest.
Originally posted on March 15, 2013 @ 2:00 pm