In Australia, buying a franchise is one of the most dynamic and enterprising ways to conduct business. Franchising, overall, is one of the most profitable sectors to be a part of.
However, before one invests in a franchise, one should be assured that one is taking the right step forward in business. If one has any doubts in mind, one should consult with the franchisor and get clarification on any matters that call for the same.
Let us take a look at a few questions that one should definitely ask the franchisor before one takes a franchise. This allows a franchisee to progress confidently.
How much will my earnings be as a franchisee?
It will be difficult for a franchisor to give you the exact number. But they should be in a position to provide a rough estimate for the same. Franchisors are legally not required to give any estimates to a franchisee.
Details of upfront fees and ongoing costs
All franchises require an investor to make an upfront investment before they take a franchise. Similarly, one is also required to pay an ongoing fee to a franchisor, which varies from one franchise to the other. Make sure you’re aware of all the fees you are expected to pay when you invest.
How many franchisees fail to make the mark?
It is a franchisee’s right to know of the number of franchisees that have failed earlier. The failure may have been caused due to the concerned person’s shortage of aptitude for running a franchise. If you come to see that most of the franchisees have succeeded, it goes to show that the business concerned is in high demand, and the franchisor is committed toward ensuring that the franchises succeed.
Will I get a disclosure agreement?
The franchise Code of Conduct in Australia requires all franchisors to provide their franchisees with a disclosure agreement. The disclosure agreement will include vital information associated with a franchise, such as territory rights, payments, and cost. Similarly, the disclosure agreement should have contact details of current and past franchisees.
How much liquid capital would I be required to maintain for the franchise while it breaks even?
Franchises frequently require sufficient operating capital for the initial few months, while they break even. A franchisor should be able to advise a franchisee over how much time will the franchise take to break even and how much funds should a franchisee maintain with him in the meantime.
The support that is made available beyond training?
A majority of franchisors make initial training available for franchisees, which set their businesses up and keep them operational. But a franchisee should still know about the nature of ongoing support that is made available, and how it compares to the offerings made by other franchisors.
When a franchisee is comfortable with the degree of ongoing support that is made available, he would be more willing to take a franchise.
When one decides upon the sectors in which one intends to take a franchise, one characteristically has a range of choices available before oneself. A tutoring franchise is among the low investment opportunities for a franchising business.
Success Tutoring is one of the best tutoring company in Australia. It is a reliable and trusted name for business and franchising opportunities.
By taking a franchise from Success Tutoring, you fast track your franchise tutoring business on the road to success. The parent company provides ongoing market support for your franchise and you work on a tried and tested business plan even as you work for my own.
All these factors cumulatively make it a good decision to take a franchise from Success Tutoring, and enhance the odds of your franchising business finding success. If this sounds like something you’re interested in, learn more about franchising with Success Tutoring by downloading our information booklet today!