Do I need to franchise my business?

Do I need to franchise my business?

Your business is doing well, and everyone is happy. You start to wonder if franchising is a good idea for your business. We will help you make this strategic decision in a strategic and well-informed manner.

What is a franchise?

According to the Australian Government, franchises are business relationships that consist of three components:

  1. Use of a trademark or common name
  2. Significant operating assistance or control
  3. Franchisee must pay a fee

Franchise For Sale Sydney allow you to open more locations or outlets by selling franchise rights to investors (franchisees). In a sea of competitors, restaurants are a particularly risky business. Even if you obtain funding through a business loan, you may be asked to sign a personal guarantee that leaves you partially liable if your business should experience financial hardship or close its doors altogether. 

That’s why you should start a franchise. Because the business model has already been proven effective, there in return, franchisees can use your name and the franchise system for an initial fee. Franchisees are granted the following:

  1. Create a prototype

The franchising process requires a prototype of your business. It is a real-life model of your business that allows potential franchisees the opportunity to imagine running their location.

A location that is not yet in use can be used to train Australian franchisees. There are many opportunities to test new services, products, and techniques before they are rolled out in all locations.

  1. Protect your trademark

New franchisor often make the common error of failing to protect their trademarks. A trademark is a representation of your brand and identity. This is why it is so important in franchising.

The first step is to create a name that can be approved by the Australian Patent and Trademark Office. Although franchising can be initiated before some companies fully register a trademark, it is important to ensure that the process is in full swing.

  1. Create a manual for franchise operations

A well-written and comprehensive franchise operations manual is another important aspect of a successful franchise system. An Australian franchise manual guides the training and ongoing operations of new franchises. It includes detailed written procedures, sales tools, and procedural references.

To avoid legal problems in the future, you will likely need to have a professional write your manual. Your manual is recommended to be reviewed by an experienced franchise consultant and expert attorney.

  1. Create a marketing plan

You must create strategic marketing tools such as videos, brochures, and websites to sell your franchise opportunity. A strategic marketing plan will be created with recommendations and a budget based on your sales goals.

  1. Prepare the Franchise Disclosure document

When preparing the certain guidelines must be followed. You must have it prepared by a qualified franchise attorney. To protect potential investors, the Australian Government must be submitted and approved by all states that regulate franchising. Before you can speak to potential investors about your franchise program, Australian Government approval must first be obtained. An attorney with experience in drafting Australia law is essential. This includes reviewing them for franchisees.

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