Everything you need to know before entering a franchised business in Australia?

Franchising is one of the most popular business models across the continents, especially in Australia.

Definition what is a Franchised Business?

A franchised business is a business that operates under a franchise agreement. A franchise agreement in Australia is drafted mainly based on the Franchising Code of Conduct. Franchise business could be applied in any type of business including retailing, consulting, services or beauty industries.

What is the documentation involved?

The Franchise document requirements are varied depending on each Franchisor. But the two main documents are the Franchise Agreement and the Occupancy Agreement.

Who are the parties involved?

• Franchisor
• Franchisee

Although multiple types of franchised businesses are available, the basic parties remain the same. Each Franchise Agreement may include more than one entity for the Franchisor or the Franchisee.

Key Features 

The first step is to do research for your options and assess your interest. What type of business do you want to run, who is offering that type of Franchise business in the current market, how are they performing? Next is to contact the Franchisor to register your interest. At this stage, they may ask to you fill in a few forms as per their policy and set up a meeting to find out more about you. Here franchise consulting services NSW will assist you.

Tips: Come to the meeting prepare, write down your questions and find out more details about how the business is normally conducted.

After that, the Franchisor representatives will walk you through the process including training, finance options, and paperwork completion timeline.

Conclusion 

Franchised business offers the value of the established brand and corporate support system, which save you from starting from scratch if you don’t have a business background in the first place. However, sometimes things may get complicated due to the lack of understanding of the Franchise Agreement and its terms.

Contact Brydan Woods – Business Consultant for assistance with your Franchised Agreement and gain more understanding about the process.