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Always wanted to own a franchise business? There are many advantages of franchising – it’s a great way to test the waters of business ownership while receiving support and guidance, without necessarily committing huge amounts of money. Becoming a franchise partner is still a big decision, so it’s important to know exactly what you’re getting into.
If you’re eager to learn more about franchising, this article will put you on the right track.
The Basics – What is franchising and what are the benefits?
Franchising allows you to operate a business under an established brand for a set period. It’s a popular alternative to buying a business outright or starting your own. The franchisee pays a fee to use the franchisor’s business model and trademarks. Some of the most successful businesses in Australia are franchises.
These are some of the key benefits of franchising.
Less Capital Required
Starting any kind of business can be expensive, but franchises tend to cost less to get off the ground than many other business models. By becoming a franchise partner you’ll enjoy the independence of being your own boss and, depending on the system you choose, not having to provide as much capital.
Never run a business before? You don’t necessarily need relevant experience to become a franchise partner. Sleepy’s will provide you with all the necessary training to successfully operate the business.
Although franchises aren’t 100% risk-free, they have higher rates of success than independent businesses due to extensive training and proven disciplined systems. Continuing to work closely with the Franchisor also minimises the risks involved.
Sourcing quality stock is often a major challenge for independent businesses, whereas franchises can rely on an established relationship with suppliers. With a dependable chain of supply already in place and continuing innovation of the product range, you’ll be able to source stock easier as a franchise partner.
If starting a business by yourself sounds too daunting, franchising is a more supportive model. By becoming a franchise partner, you’ll qualify for ongoing assistance from the franchisor. They’ll help you train employees, teach you how to sell and order stock, expand your product knowledge, and more.
Building a business from the ground up takes time, particularly if you’re trying to stand out in a competitive market. The path to success is typically much shorter for franchises, as there will be a higher level of familiarisation with the brand.
Financials and Business Plans
Buying into a franchise business is an investment. You’ll need to spend money to get the business started, but this initial outlay will translate into ongoing income.
At Sleepy’s, the approximate capital outlay required for a new store can range from $180,000 to $250,000, depending on the size of the store and fit out requirements. Company-operated stores are also available for franchising.
You’ll get everything you need to run a Sleepy’s franchise in exchange for your investment, including:
- A simple selling system that’s proven to work
- A professionally styled and fully stocked retail store
- A product range that’s continually being updated. You’ll always have something new to offer customers
- Participation in and access to national and local advertising campaigns.
Partnering with Sleepy’s means you’ll get to build your franchise business in a stable industry with healthy margins.
Questions to Ask & Legal Advice
Choosing to become a franchise partner is a serious commitment. Ask yourself these questions to ensure it’s the right choice for you.
Would a franchise system suit my personality?
Franchising isn’t for everyone. Essential personality traits include a good work ethic, patience, a willingness to learn and great communication skills.
Do I have what it takes to run my own business?
It takes drive and ambition to run a franchise. Being your own boss isn’t as easy as it might sound, so you’ll need to be self-motivated and willing to work hard.
Why am I doing this?
Are you buying a franchise because you have an entrepreneurial spirit? Or because you think it’s an easy way to make money? Getting into franchising for the wrong reasons will limit your chances of success because your heart won’t be in it.
Do I understand the financial and legal implications of franchising?
There’s a lot to learn about franchising, particularly when it comes to finance and legalities. Do you know your rights and expectations as a franchisee? Do you understand your franchising fee responsibilities? The ACCC and Australian Government have resources on franchising laws that will help you understand your financial and legal obligations.
What are the ongoing fees?
Most franchisors require fees to be paid regularly in exchange for ongoing assistance. At Sleepy’s, franchise fees are charged monthly.
Application Process and Franchise Agreement
To become a Sleepy’s franchise partner, you’ll need to complete an application process. This will confirm your suitability for running a franchise business. If your application is approved, you’ll be required to sign a franchise agreement.
A franchise agreement is a contract between a franchisor and franchisee. It outlines your responsibilities as a franchisee and what you’re permitted to do while running the business. You’ll enter into the franchise agreement by signing a written document.
What to Expect
Want to find out what it’s really like to run a franchise business? You could read some of our success stories, or speak with other franchisees to better understand the pros and cons of joining the business.
To learn more about franchising opportunities with Sleepy’s, please contact our National Franchise Manager Guy Elliott on 0434 254 154.