Fantastic!  Now here’s the hard part. You have more than 1160 franchised systems to choose from; probably even more now, because everyday in Australia there are people working to franchise their business. So how do you negotiate this minefield? Easy! Here are three tips to help you choose the right franchise system for you.

Now before we start let me tell you a secret. You, right there, are a platinum commodity in the franchising world. With so many franchise systems available in Australia, finding franchisees – people just like you – to invest in a franchise system is hard.

Good franchisors look for people that are a fit with their brand, have passion for their brand and who are committed to running a successful business. If you have these qualities then you will be highly sought after by franchisors.

Don’t be rushed to make a decision, there are always new opportunities available. Do your due diligence on more than one opportunity and on more than one franchise brand because once you have signed the franchise agreement you are in for the long haul: the length of your lease and the franchise agreement.

So you need to be sure that you can work in this system, no matter how it turns out, for the entire journey.

1. Know WHY you are doing this

What are your passions, goals and skill set?  This sounds a little obvious doesn’t it but it is really important that you clarify with yourself and your business partner WHY you are going on this journey. Is it to attain freedom and flexibility from the nine to five grind, is it to build wealth, is it to change the way people look at the world.

It doesn’t matter what it is, what does matter is that you know WHY so that you can check your goals against those of the franchise system you are entering.

2. Know the opportunities

Once you are clear on your WHY and where you want to be, it is time to find the system for you. So where do you look?

Well firstly this website is a great place to start. List all the brands that you feel an alignment with. Research these brands on the Internet.

Visit other stores in these brands and watch how they work. Not just for a couple of minutes but settle in and watch their staff and the type of customer that visits. What are the staff doing? Can you picture yourself doing this every day? Look at the product they are selling. Would you use it? Do you feel a connection with it? Would you be proud to sell it?

One thing I know for sure, if you have any doubts now about what you are seeing, this will be the one thing that will cause friction in a franchise relationship.

You as a franchisee cannot change any of the core products or the system. You are the face of the brand in your local area so you have to be as passionate about the product as the franchisor is.

Once you find a brand that fits you then make an enquiry. The franchisor’s website will always have the process detailed for you. Chat with the salesperson. Attend an information evening or get the information pack.

Don’t be rushed, take your time, read all the information, see where the next opportunity is and speak with other franchisees in that system.

3. Do your due diligence

Whenever I speak with franchisees in crisis the one thing they always say is that they wished they had done better due diligence. People get excited with the opportunity, the next phase in their life and they rush in.

I call this the ‘excitement head’. If you have it then lose it. Take as much time as you need here and ask as many questions as you need. Delve deep to find out more about the franchisor. What is their experience, what operational support do they offer and what training is provided to the franchisee?

What is the business model? Work out the potential profit that you can achieve in the time frame of the franchise agreement and absolutely know the key performance indicators (KPIs) that you need to meet every day from the very first day you trade.

Can you grow your empire by having multiple sites in this brand? Look into the business case on offer to you. Just because the franchisor is excellent, does not mean that every opportunity they offer is sound. You have local knowledge of the area you are purchasing your franchise in and this is why the franchisor is choosing to franchise. They could potentially own all the stores and set up all over Australia, but they have chosen to take on partners (franchisees) to grow with them.

Skills you bring to the table are local knowledge and the ability to manage, in detail, your particular store.

To do this due diligence you must work with professionals. Find a lawyer and accountant who understand franchising and engage a business mentor with franchising experience to take you through the process.

Franchising is different from owning your own business. It is governed by the Australian Competition and Consumer Commission and has its own code of conduct, which details how the franchise relationship should work.

Trust me, however many questions you ask here will never be too many and will ultimately lead to your successful journey as franchisee.

So as you start your franchise journey, remember this is a big decision. It is not to be taken lightly. I often compare it to getting married. Go on a lot of first dates, have a few flings and fun along the way but be careful when entering into the long term relationship be sure it is the one for you.