FranchiseMart makes sure you do your homework
Recent reports of franchise churning1 highlight the need for a renewed emphasis on quality research, due diligence and good old fashioned matchmaking tools. In a first for the franchising industry, the newly launched FranchiseMart are just that - a matchmaking service for both franchisors and franchisees.
“Helping both parties take the time and care to match-up correctly in the first place is the key to diminish issues associated with churning and a way to strengthen the industry,” says Gareth Grant, Director of FranchiseMart . In Australia, there are over 960 franchise brands that generate more than $128 billion each year and employ 600,000 people in 70,000 work places, and with an encouraging success rate estimated at some 2½ times that of a non-franchised business, it’s a structure that launches both new and experienced investors into an established and successful business environment.
“I’ve never seen evidence of churning in my 18 years in the industry,” says David Ciantar who has been with companies like McDonalds, New Zealand Natural and Telstra. Currently the General Manager of Cookie Man, Ciantar believes “the whole thing about getting into a franchise is to build a long term relationship, and it’s really about both parties doing their homework.”
"We encourage interested parties to talk to existing franchisees and ask all the tough questions first. This process can sometimes be lengthy, but it’s crucial for them to also review us as a Franchisor,” states Ciantar. “FranchiseMart assist this process by offering an un-bias view on a system, as well as covering a large part of the due diligence process.”
Former Federal Minister for Small Business, Fran Bailey, commented that “the majority of disgruntled franchisees have themselves to blame for not conducting enough due diligence before buying franchises”. In a move to address such a problem, FranchiseMart have developed a comprehensive Checklist to help both parties navigate through the selection process and start with a solid foundation.
“When a franchisee makes a decision to buy into a franchise network, it can often be the biggest financial and personal decision of their life,” notes Grant. “The Franchisee Checklist (see attached) not only helps them pinpoint key aspects of themselves, but also gives guidance on how to carry out essential research and due diligence.”
Questions includeL:
- Do you think you would like this business better than what you are currently doing?
- Does the business match your skills set and personality?
- Plus, Have you gone incognito? Anonymously visit, shop or get a quote from a franchise of your choice”.
FranchiseMart act as independent consultants who do not recommend any particular franchise over another, and analyse each franchise in areas of product or service, marketing, training, systems and ongoing support in order to best represent a franchise system and match-make to suitable franchisees.
They help with legal, accounting, and superannuation by putting potential franchisees with experienced franchise professionals.
With over 100 franchises being offered, options include a cross section of industries from home based, telecommunications, automotive, retail, mobile, food and professional business services. Businesses vary from Fantastic Lighting for $14,900, 1800-Got Junk for $125,000, through to Australian Master License Opportunities including Planet Beach Contempo Spa Master franchise for over $750,000.
Following on from the initial free consultation a client receives ongoing guidance and access to a FranchiseMart consultant for a flat fee of $150.
Contact FranchiseMart
Suite 1, Madison Place
385-389 Pacific Highway
Crows Nest
NSW 2065
Tel: 1300 761 157
Fax: 1300 761 158
