EDITORIAL

Franchise change is needed but potential franchisees must do their bit too

How far along are you in your search for a franchise? Perhaps you’re poised to sign up to your dream business. Perhaps you have just started to think about the opportunities that investing in a franchise could give you.

Buying a franchise is a major commitment - very often a major financial investment too.

It isn’t something to be taken lightly, and that’s why at Inside Franchise Business we are so keen to emphasise the importance of research before you buy.

A successful franchise provides a good income for the franchisee and their family. It may also allow flexibility to manage their lifestyles to suit; it will deliver plenty of highs and some lows and it will push franchisees to achieve their goals.

A franchisee and an independent business owner have the same responsibilities; a franchisee however is given a head start to business success with the existence of a business format, marketing, branding, training, admin tools, uniform...the list goes on.

If you pick the right franchise - and there’s no one-size-fits-all, this is a personal choice - you will gain a competitive edge.

So it’s absolutely crucial to ensure that the business you select will deliver what you expect, that you and the franchisor both understand each other’s expectations, and that your expectations are reasonable.

In the high profile parliamentary inquiry last year it was apparent that mismatched expectations, lack of due diligence and frankly, some very poor franchisor behaviour, led to franchise failure.

You can read a quick overview of the report findings (published in February) on page 16.

While on the one hand franchisors must now make some changes and develop greater transparency, franchise buyers too must commit to properly investigating the business opportunity that interests them.

The franchisor will provide a heap of information. But should franchisees look elsewhere for more? In this edition of Inside Franchise Business one franchisee shares her experience in researching a franchise: Can a franchisor tell me everything I need to know? This is part of our Myth Busters series.

This issue also features legal advice about due diligence and documentation and expert insights on getting a good deal.

Our Franchise Basics includes top tips for the early days of business ownership: cashflow, marketing, networking and boosting staff performance.

And of course there are inspirational stories from successful franchisees and franchisor tales of business growth and development.

Sarah Sarah Stowe Editor