is my business able to be franchised?

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Is your business franchisable? The answers may surprise you

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Franchising enable you to leverage your success while

maintaining control

The Australian franchise industry

turns over in excess of

There are approx. 1500 franchise systems in Aus

$130,000,000.00

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SOME OF OUR RECENT CLIENTS INCLUDE:

SALTS OF

THE EARTH

RESIDENTIAL

GARAGE

DOORS

IT’S BIN

CLEANED!KUBARZ

BEVERAGE

CATERING

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Why franchise?

Because it’s one of the most cost effective and efficient methods of growing a business

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Franchising offers business owners:

capital with which to expand

network of motivated owners operators

group buying and advertising power

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The franchisor (business owner) is paid an

upfront fee in exchange for granting the rights to

another party (franchisee) to operate a new

business using the franchisor’s name, business

systems, knowledge and experience.

What is a franchise?

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The franchisor also receives ongoing royalty

fees, weekly monthly or yearly, for the duration

of the franchise agreement. Usually 4-5 years +

4-5 yr option.

Ongoing income

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• Regulated by a mandatory Franchising Code of Conduct.

• There are compliance costs – but regulates industry

• Easier to sell as they offer total turn key solutions

• Franchisor retains control of the business

• Great for building a brand in multiple locations

THINGS YOU SHOULD KNOW…

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What the difference between franchising and licensing?

Licensing is OK but NOT if your main reason is to

avoid costs and compliance

If your business has these 4 criteria then the LAW

deems it as a franchise & it MUST comply with the

Franchise Code of Conduct.

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1. An Agreement between the parties, written or oral.

2. A payment either up front or ongoing for the

provision of goods or services.

3. A marketing plan determined or controlled by the

franchisor.

4. Use of trademarks ,brands or names owned by the

franchisor.

WHEN IS IT A FRANCHISE?

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What does franchising a business involve?

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1. Franchise offering

2. Documentation of business systems

3. Training program

4. Code Compliant Legal documents

5. Franchise recruitment strategy

6. Marketing plan & collateral

7. Protect IP

8. Correct structure and model.

Every franchise business that turn over millions of dollars started off as an idea or a

small business (think McDonalds, Boost Juice or Jim’s

Lawn mowing).

Could your small business or business idea be the next big thing?

Is my business franchisable?

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profitable track record

market demand

long term potential

business systems - easily taught

franchisor has leadership skills

Is my business franchisable?

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20% Aus bus – trade day 1 as a franchise

19% franchise within 1st 12 months

Set up as company owned franchise - pilot

New businesses can also franchise

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Find out by having a Franchise Feasibility Review Process conducted for your business.

Is YOUR business franchiseable?

www.thefranchiseinstitute.com.au

1300 855 435www.thefranchiseinstitute.com.au

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