5 Questions to Ask Before Purchasing a Franchise

Planning to start a business? Where are you located? If you're living somewhere in Australia, you may have multiple business options. Remember, owning a business is always a good idea. However, starting a business involves a fair amount of struggle. It's not easy to grow a start-up into a profit-making company. So, how can you start a business that can help you to become successful from the very beginning?

One of the best ways to do that is to purchase a franchise. However, this has its own challenges. There are many things you need to keep in mind when purchasing a franchise. You should be focused on finding the best franchise opportunities to ensure that you can make your new franchise profitable.

Here's a quick look at some of the questions you should ask if you're planning to purchase a franchise in Australia.

1. What is the business about?

What kind of franchise are you purchasing? How do you feel about the product or service that it offers? Are you an expert in the subject? Remember, if you're planning to make your franchise profitable, you need to like the topic of business. Otherwise it might be difficult for you to continue focusing on it for a long time.

2. Does it have a strong enough following?

If you're thinking of buying a franchise, you will want it to be successful – and for that, you have to ensure that the franchise is profitable. In order to achieve this, you need to have access to enough customers. So, at the very beginning, you should find out who your target audience is. When you're buying a franchise in Australia, make sure you check out the top franchises in Australia. Look for a business that has a good number of customers in your locality, and a strong brand.

3. How much will you need to invest?

Similar to the process of establishing a start-up, starting a franchise involves a significant investment. As a franchise owner (franchisee), you will need to pay the parent company (franchisor) a fee to use their brand name and marketing. It’s important to find out how much it will cost to buy the franchise. Once you know the price, you can compare this to the amount of profit you might expect to make once your franchise is in business.

4. What is the Unique Service Proposition (USP)?

When you’re purchasing a franchise, you need to weigh up your chances of success. It’s not always easy to have a profitable franchise, as the amount of competition can be high. If you find a business that has a unique USP, this can mean lower competition, which will help your franchise to succeed in the long run.

5. Does it offer free initial training?

If you want to be a franchise owner, you will need to have a good amount of knowledge about the product or service that you are offering. And that’s not going to happen if you don’t get any training. When choosing your franchise, ensure that you select a business that offers initial training and ongoing support for franchisees.

Conclusion

If you’re planning to buy a franchise in Australia, you need to consider the pros and cons. Asking a few questions can help you to be prepared, and you can proceed once you feel that you’ve received satisfactory answers.

Business Franchise Magazine is a bi-monthly publication which offers the latest news, expert advice, and franchise information from across Australia and New Zealand.