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Considering running a franchise? Then you’re in good company. The Franchising Australia 2016 survey reveals that 4% of all Australian small businesses are franchises, generating over $146 billion in annual sales revenue, while employing close to half a million people. With over 1120 franchise brands to choose from, how do you know which one will provide the best return on your investment?
“As someone who’s experienced in all aspects of running a franchise, I can confidently tell you what you need to look for if you want to grow a profitable franchise” – Murray d’Almeida
[Want to hear more from Murray d’Almeida? Then buy your ticket for our 18 July Business Breakfast]
The first thing you need to look for when considering a franchise opportunity is the cost. Yes, this might seem obvious, but many franchises market themselves as turnkey opportunities, only to lump you with unexpected costs down the line. An opportunity that is upfront about what you need to put in, is one that you can budget for, and one that is more likely to be profitable down the line.
The second thing you need to look for is ongoing support. Many franchises don’t require you to have the experience and knowledge specific to the industry you are entering. Will you get the training required to come up to speed? Will you have access to a peer or mentor network to get feedback and have questions answered? This kind of support is invaluable to your franchise’s success.
The third thing to look for is a full disclosure of information. Can the franchise tell you how many of their franchisees succeed or fail? Can you speak to other franchisors and even former franchisors freely about their experiences with the brand? If you cannot get access to this information, this should be a major red flag about the future profitability of your business.
These are just a few insights that can help you judge the future profitability of your business, and of course there are many more, which I will be sharing at the next Business League Business Breakfast, and I look forward to seeing you there!