Franchising allows you to run a business by buying into a ready-made business with an existing brand, systems and offering. In some ways, it is a low-risk way to buy a ready-made income.
Small Business Answers has written a complete guide on buying a franchise.
A franchise does indeed come with its own risks and challenges. Many of these risks and challenges can be avoided by doing your homework before you sign on the dotted line.
According to the Australian Competition and Consumer Commission (ACCC), they receive around 500 contacts in a typical year. These enquiries are about people trying to understand their rights and understand if something is within the law. To help small business, the ACCC has produced a new webpage with helpful franchising tips.
The ACCC covers the following topics:
- Can you make an income from a franchise
- understanding what flexibility you may have and will you really be your own boss
- franchising does not guarantee profitability
- Will the law protect me if something goes wrong
- Franchising agreements are for fixed terms, and then what happens
The page also looks at several case studies, which help put everything into perspective.
The ACCC tips website “Franchising: Is it for you?” can be found here.