4 steps to buying a franchise business
25 Oct 23
You’ve decided a franchise business is for you. You’re in good company! But perhaps you’re wondering how it all works? To help you get a clearer view of what’s ahead, here are 4 steps to buying a franchise business in Australia.
Step 1: Choose the right franchise for you
If you’ve already picked the perfect franchise for you, you can skip ahead to the next step. If not, this is the time to research all your options. Some things to think about are:
- What business type matches my interests, skills and experience? (Although keep in mind that for franchise businesses like cleaning, you’ll be provided with training.)
- What franchise matches my budget? Bear in mind that the cheapest franchise business isn’t necessarily the best. It’s worth investing in an established, recognised brand with a proven model.
- What’s available in my area? Take a look at your local newspaper, business association or Facebook groups. See if there are any upcoming franchise expos or events you could attend. Or simply hop online and search for options that look like they could be a good fit for you.
Step 2: Meet with the franchisor
This is perhaps the most important step, because it will give you a really good idea of what the franchisor is like to deal with. After all, you don’t want to sign the contract only to later realise that you’ve been left to figure everything out yourself!
A reputable, established franchisor like V.I.P. will take as much time as you need to figure out whether their system is right for you and your family. They should be happy to answer any questions you may have, provide clear and easy-to-understand financial information, and help you get a solid overview of what it will be like to run your business day-to-day.
Things you’ll want to discuss include:
- What’s included in your franchise fees
- What the brand and culture is like
- What’s their vision for the future and what are they investing in for growth?
- What ongoing training will be provided?
- What systems of support will be offered?
Bonus tip: check if they offer a ‘day in the field’ like we do here at V.I.P. – it’s a great way to shadow a franchisee and see what it will be like to run your business.
It’s likely that your chosen franchisor will have a list of franchises for sale in your area. If that’s the case, you’ll probably already know what you can expect in terms of customer load, work hours and how much money you can expect to make from day one.
Step 3: Apply & check the agreement
If you’ve had all your questions answered and have decided the franchise is right for you, the next step is to apply to buy a business!
Typically, at this stage your franchisor will go through the draft agreement with you to make sure you’re fully informed and prepared before signing it.
Your franchise agreement is a legally binding contract between you and the franchisor, so it’s really important to check it thoroughly. It will cover things such as franchise fees, rules, pricing, hiring staff, training, insurance and any other support you can expect.
This is a good time to consult a professional who specialises in franchising, such as a lawyer, accountant or business advisor, to make sure you know what you’ll be agreeing to.
Step 4: Get started in your new business!
Once you’re at this point, you’re likely ready (and excited!) to get going in your business.
Your franchisor will likely arrange training for you at this stage, as well as make sure you have everything you need to run your business – such as equipment, signage, uniforms, products and software.
At V.I.P. we also take this opportunity to do some final checks such as helping set up your personalised website, bank accounts, police checks, customer audit (if you’re buying an existing V.I.P. franchise business), and providing your local area marketing kit so you can begin promoting your business.
Ready to buy a franchise business?
At V.I.P. we like to make sure you feel supported from the very first step. To get started and have an initial chat about whether buying a franchise is right for you, simply send an enquiry or call our friendly team on 1300 305 941.