General Information on Franchising
Becoming a franchisee can be a rewarding journey, but it’s not a decision to be taken lightly.
Both Franchisee’s and Franchisor’s commit time and energy so it’s important that there is a solid, committed fit before a partnership is established.
Franchising is not for everyone, make sure franchising is right for you and your aspirations before making the commitment.
It only ends in tears if you lose passion and your new business struggles, so take the time upfront to conduct your due diligence.
At Elite Myotehrapy – we don’t accept failure. Everyone that becomes part of our family must deliver on our values being PASSION and commitment required to ensure SUCCESS.
Our recruitment process is very particular to find the right business partners and we really try hard to educate you on franchising and get you thinking about your abilities and life priorities prior to the recruitment process. We are 100% committed to each and every franchisee, we want to make sure they are too!
So how do you know if franchising is right for you?
The opportunity to build your own business, ‘be your own boss’ and find that delicate ‘work life balance’ is an enticing one. Being a franchisee and part of a larger family who has the industry experience, brand awareness and established systems to follow in a ‘turn key’ fashion is certainly one way to achieve this.
But it’s important to understand that franchising is not risk free and it takes commitment and persistence through the tougher times to be successful – like anything else in life!
A franchise like any other business takes time to get established and gain traction in the local market.
Questions to ask yourself include:
- Are you prepared to work long hours to service customers and grow your business?
- Do you have the emotional stamina and determination to drive through the hard times?
- Are you prepared to work as part of a team and follow established proven systems?
- Do you have the support of your family and do they understand the sacrifices that both you and they may need to make in order to make your business a success?
- Do you have adequate working capital to get through the early stages?
- Do you really care about doing the job well?
Good business operators take pride in their work for its own sake, not the financial reward.
A strong brand is what makes a company valuable for both franchisor and franchisee. To make it powerful, the brand needs to be applied consistently so that the community knows exactly who you are and what you stand for.
As a franchisee, you are the face of the brand, so ensuring you always represent your brands identity and culture positively is important. You must align yourself with a brand you respect and can represent.
Answer these questions honestly and talk to other franchisees to make sure you are comfortable that franchising is the right career path for you.
Who makes an ideal franchisee?
The type of people who make successful franchisees exhibit the following characteristics and desires:
- They want freedom in terms of flexibility of working hours so that they can find a better work/ life balance around family commitments. They understand though that running a business requires a significant time commitment and ultimate success takes more than 40 hours per week
- They want control over their destiny and greater job security then being an employee offers.
- They must be disciplined with a desire to follow a proven system. If you are the kind of person who gets restless every 6 months or wants to reinvent the wheel all the time, don’t become a franchisee. Franchising is about following a system already established, not trying to change it.
- There’s no point joining a franchise system if you constantly buck against it.
- They want to fit into a team and be part of something bigger in order to leverage knowledge, buying power and branding.
- They have a deep desire to work hard for greater pride. Running your own business and being self-employed are proud achievements that impress family and friends and brings with it a greater sense of self-worth and contribution to the community. It’s a status that others respect and admire.
- They love to communicate with and service others by being at the front end of customer service, happy for the franchisor to manage the back end of the business.
Not everyone is cut out to be in business for themselves, assess yourself honestly.
Franchisee’s must possess dedication, the drive to succeed, a strong work ethic and a passion for the brand.
What are the benefits of franchising?
Creating your own business and watching it grow can be one of the most satisfying experiences in a person’s working career. It’s because it’s YOURS, you own it, it’s your sweat and tears that went into it and your responsible for how successful it turned out to be.
Franchising splits the responsibilities of running a business in two, the franchisee role and the franchisor role, freeing both parties up to focus on MASTERING their craft.
Benefits include:
- Flexibility of time
- Family can all be part of
- In control of success, results and destiny
- Taxation advantages for long term wealth creation
- Status, pride and level of contribution back to community
- Building an asset for future capital gain
- Connection to a family of like minded people for support
- Faster pathway to success then going it alone
Everyone in a system contributes to its success and if everyone has ‘skin in the game’, by working together to solve problems, encouraging new ideas and attracting and retaining people that approach their work with heart and enthusiasm, success is a given.
Conducting Your Due Diligence
Before investing in a franchise it is imperative that your explore each of the following areas:
The Financials
Ensure the business is a sound financial proposition and that the financial data you are given makes sense. Ensure a business plan exists. Break down the numbers so that you know exactly what you must sell in products and services each day and how many clients you must service. Know your break even point.
Your Commitment
How much time commitment does the business require and are you prepared to meet that commitment. Will you have to work weekends and public holidays and are your family OK with that.
Trading Cycles
Is the business seasonal, are sales consistent all year round.
Assess The Documentation
Examine all documentation provided by the franchisor to ensure you know what is and isn’t on offer. What training is provided, how is support delivered, what marketing does the franchisor do and what is done by the franchisee.
Cultural Fit
Is the cultural fit of the franchise network right for you. The average franchisee term is 7 years in a system so you need to make sure that you are aligned with the company’s vision and that you support the values and can work with the people running the system.
Get Verification
Ask plenty of questions and get answers. Talk to franchisees past and present to determine their experience working in the system.
Disclosure Document – DD
The DD lists the experience of the directors, any litigation past and present, franchisee contact details and trademark registrations. Study this carefully and satisfy yourself of the integrity of the system.
Operations Manual – OM
Lists minimum performance criteria and other legal obligations on the franchisee. It is important you read this as a breach of the OM is a breach of the franchise agreement.
Leases
If purchasing an existing franchise that has a leased property, check that there is enough time remaining on the lease to make a return on investment. Check also that there are no plans by the landlord to demolish the building. The DD should list this but check with the landlord as well.
Fit Out Costs
Are fit out costs fixed or variable in cost and when are they next due.
Franchisor Interview
Your interview should be a two way question and answer session, not all one way. Ask plenty of questions surrounding support, business plans etc
Franchising Code of Conduct – FCOC
The FCOC is in place to protect all parties in the partnership. Ensure you get legal and financial advice. It may cost a few thousand dollars, but in the scheme of the investment, it’s well worth while.
