If you feel nervous about launching a start-up, the answer might be to strike a compromise: buy a franchise. You get the benefit of a ready-made business model and access to the nous of other franchisees, and the franchisor’s professional team.
Australia is the world’s most franchised nation on a per-person basis, with three times as many franchises per head compared with the United States, IBISWorld research shows.
The appeal of a franchise is clear. On paper, investing in one brings you turnkey convenience twinned with recognition. Still, you need not bust the budget – the industry has its share of low-cost opportunities that could prove to be bargains if you are canny and lucky and you do your homework: the more the better.
Here, two industry insiders assess five proven low-cost franchises that it is possible to buy for under $100,000, and explain what you get for your money. Read at the Sydney Morning Herald..
Australia is the world’s most franchised nation. It has three times more franchises per head compared with the United States, according to IBISWorld, which describes the $180 billion industry as “booming”.
If you are keen to join the boom by buying a franchise, you’d better be careful. A recent watchdog report found that some franchisors inflate potential income.
Here’s some expert intel on how to spot a legitimate franchise opportunity.
Read more at the Sydney Morning Herald..
THE consumer watchdog is urging would-be franchise buyers to watch out for inflated franchise-income claims. The warning follows complaints to the Australian Competition and Consumer Commission from franchise owners who say they were promised a minimum “guaranteed” income from their franchise but had earned little or nothing. Many complaints involved cleaning and home services.
”The ACCC is investigating whether a number of franchisors in this industry engaged in misleading or deceptive conduct by making claims about potential earnings,” acting ACCC chairman Michael Schaper said, adding the watchdog was particularly worried about franchisors targeting people from non-English speaking backgrounds. Read more at the Sydney Morning Herald..
Thinking of buying a franchise? The good news is that franchises usually work, says three-time franchise owner Jane Lombard, now a franchise consultant.
“I am a huge advocate of franchising,” Lombard says, adding that she has only had positive experiences of franchise ownership.
But if you are looking to buy a franchise, she adds, take a long look at yourself. Decide what skills you already have, what skills you must learn and what franchise model will support your talent, she says.
Read more at the Sydney Morning Herald.