While many people, young or old, will often struggle over career decisions, and in finding a pathway to good employment, franchise business has proved to be a mainstay of economic growth and stability - Provided you enjoy close contact customer service.
In my own neighborhood (Newcastle, Australia), there are well over 50 Franchising prospects at any one time offering the opportunity for career stability for those willing to put in the effort. Among them are well-known brands like Anytime Fitness, Go Sushi, Mr Mint, Snap On, Electrodry, Kwik Kopy and V.I.P. and Home Services.
Franchising: For Those Who Love Their Customers
Starting out, or moving into a franchise career means going into business for yourself but not by yourself. Franchise opportunities give those with motivation and focus an opportunity to work for themselves but with all of the proven and established recognition, structure and skill of a successful brand.
Moreover, purchasing a good franchise may not be as difficult as you might at first think. It is possible to purchase a good franchise for under $100,000 and even below $50,000.
According to the Franchise Council of Australia, over 460 000 people employed directly in an Australian franchise business with a combined sales turnover estimated at at $144 billion.
The Council itself provides plenty of resources for those who really enjoy customer service retail and are willing to take the bull by the horns and buy their first franchise.
Australian franchise business Electrodry began its journey in Newcastle in 1983. Today it is Australia's largest carpet dry-cleaning specialist with well-established franchise businesses from Sydney to Perth.
Michael Nicholas, a young entrepreneur unsatisfied with his career in the hotel industry, came on board with Electrodry as a franchisee in 2006.
"I love my work. I enjoy the freedom to run my business on my terms and yet have the backing and infrastructure that comes with a franchise business like Electrodry", says Michael, whose face has become well-known through Electrodry's television and print advertising.
A franchise business will usually come, not only with a solid client or customer base but with the critical and proven marketing and business structure that is so critical to the success of any new venture.
The benefits of having a pre-sold customer base is something that would usually take years to establish.
Battery World, The Coffee Club, Jims Mowing and Baker’s Delight are all outstanding examples of a ready market for the right kind of entrepreneur.
Starting up with an established franchise business will also mean the possibility of shared marketing costs and the opportunity for training, mentoring and ongoing support from the franchisor and the broader network of franchisees.
"Becoming a franchisee with Electrodry has been a really good decision for me", says Michael. "And, if you have the drive, I would certainly encourage younger guys to consider becoming a franchisee and to see it as an excellent opportunity for a stable career."
For those considering a Franchise as a potential career, here are a few things to consider before you make your investment.
Understand what a Franchise is
A franchise is a business model in which the owner (called the franchisee), for an ongoing fee, is given the opportunity to distribute or provide goods and services under a system set up by the business founder - the franchisor.
The responsibilities of the franchisor usually include supporting the franchisee with the structure, channels of distribution, product acquisition and training needed to operate a business.
The franchisee needs to take into consideration the scope of the business, the time required for operations, the expertise required and the need to pay the associated costs and fees of doing business as a franchise.
Know Why You Want to Run a Franchise
Owning a franchise is an entrepreneurial responsibility. You need to have the same clear mission and business goals as any other entrepreneur.
Franchisee needs to be willing to take responsibility for all aspects of the business and be capable of overseeing day-to-day operations as well as meeting the obligations of the franchisor.
Do Your Homework
Not all franchises are created equal. Some franchises are larger in scope and more demanding than others.
A franchise like Gloria Jeans will have very different needs and expectations compared to a franchise in home services, such as Jim's Mowing.
So, it is important to assess each franchise independently and to find a franchise that suits your lifestyle, and expertise.
You will also need to determine the financial liability involved in establishing yourself as a franchise.
It’s important to talk to your accountant and a legal advisor to ensure that all disclosure material is properly evaluated and that you are in a financial position to carry the cost of setting up your business and covering the initial operating costs.
A Franchise offers a good amount is independence, requires less experience and typically has a higher success rate than other business models.
However buying a franchise involves a commitment and legal agreement with the founder or the franchisor.
These agreements include how you govern and operate your business as well as how you market it. So it is a good idea to look into all these aspects of the business before you bite the bullet.
Image Credit: Pexels CC0 License
About David Trounce
David is a small business consultant based in Australia. David has worked in small business tourism and retail and also writes for Business.com, GrowMap and Born2Invest.