What does a franchise buy you?

By Nick Hall | 13 Mar 2019 View comments

Franchising models are all inherently different, that’s why it is important to get the basics right. While you may have a grip on the big brands in franchising, the model itself can be a little confusing.

So, what does purchasing a franchise actually enable a prospective entrepreneur to do?


Essentially, when a franchisee signs on to a franchise venture, they are purchasing the rights to operate a business under the framework provided by the franchisor.

All franchise business are required to comply with the Franchising Code of Conduct and all franchisees are bound by the operational procedures put forward in the franchise agreement.

Make sure you understand this document well, it is the structure that your business must take, and outlines your responsibilities.

Once signed on, franchisees will operate their business for a predetermined period of time, usually five years. That being said, there will generally be an option to renew or exit the network.

If a franchisee opts to exit, they have no further rights over the business and will be expected to vacate.

It’s important to remember that compliance is critical to your success and this key element of operation is your responsibility.

Take the time to understand what you are getting yourself into.