Home – New Forums Starting your journey Easyway franchise Reply To: Easyway franchise

#1130615
Kennethti
Member
  • Total posts: 415
Up
0
::

Franchising can be tough work, so before you jump into it, make sure you do plenty of research. As previously mentioned you have to look into the location of the place, your competition, your products, your suppliers, you have to understand how the shops are being managed, labour costs, rental, and so forth. Some of them also limit what you can do, and to this extent they may even say that you cannot do any advertising (sorry Solly!) as this is all managed by head office (if this is so, then they will also ask from you an advertising contribution fee).

Understand this – franchisors do not necessarily care about how well your store does. Franchisors make money off you by selling you the franchise, levying on you a franchise fee, levying you with advertising contribution fees. In addition to this, franchisors often say that you must purchase all ingredients and supplies from them.

You must very quickly figure out what your margins are, what sort of volume of sales you need (as you cannot determine what prices to charge), and profit from that.

Because it’s such a big risk franchisors must provide you with enough information to make a fully informed, business decision. This information is mandated under the franchising code of conduct. You can find out more about this here: http://images.thewebconsole.com/S3WEB1401/files/4ced9f337b373.pdf

My suggestion is that as soon as you get that information you should follow up and talk to other Easyway franchisees, and carefully find out whether this is suitable for you.

My principal has previously written on this subject on our business blog – http://www.business-lawyer.com.au/2012171/want-to-be-a-franchisee-are-you-buying-yourself-a-job/ . Check it out if you are interested.