Is franchising right for you? That was the question posed by The Franchise Council of Australia’s Mark Fernandez recently in a seminar at the Perth Franchising and Business Opportunities.
Fernandez explained potential franchisees need to ask questions of the franchisor before investing and he stressed the importance of seeking independent legal, business and accounting advice from professionals that specialise in franchising.
Checklist
Here’s a checklist of questions that Fernandez said must be asked before signing on the dotted line:
- How long has the system been in business?
- Is it trade marked and protected?
- What training is involved for new franchisees?
- What is the scope of ongoing support?
- Do franchisees get an exclusive territory?
- How is advertising and marketing support for the brand managed?
- How much is the upfront fee?
- How much are the ongoing fees?
- Is there an operations manual and/or support online?
An insight into McDonald’s
Bert Cotte, national franchise manager for the fast food giant McDonald’s, also attended the show over the weekend, presenting a seminar which shed light on what life is like as a McDonald’s franchisee.
He said that while the franchise has often had the reputation of being a closed book, it has always been interested in recruiting.
“We’ve never really been a closed book. We’ve always had an appetite for new licensees, but I will admit that we haven’t really been great at talking about it,” Cotte said. “We’re very excited about franchising. We’ve been doing it for 55 years.”
Visitors to the show were able to view franchise and license opportunities that included Crazy Johns, Crust Gourmet Pizza, Residential Garage Doors, Tutti Frutti Frozen Yoghurt and RP Vending.
- The next Franchising and Business Opportunities Expo is in Brisbane.
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