Franchising is becoming more and more popular in Australia. The marketplace is now filled with a vast array of franchise systems over a wide range of industries. More and more entrepreneurs are choosing franchise businesses over the traditional format of starting from scratch. This is because franchisees benefit from the established business models and training programmes provided by many franchisors.
Starting your own franchise is a huge step if you’re venturing into it for the first time. Transitioning from a corporate job into self-employment can be intimidating, but not if you have a guide!
Here are Signarama’s six key steps to investing in a franchise:
Step 1: Self-Evaluation
Remember: a franchise is an investment. Just like any business, you need time to consider if this venture is the best setup for you. Weigh the pros and cons carefully before signing any formal agreements with a franchisor. You also need to decide whether you’re ready to commit to running your own franchise, including meeting the company standards. Be sure to learn all about the policies and procedures of the brand you’re thinking of franchising with and carefully consider how well you’ll be able to implement them.
Step 2: Research
Narrow down your choices and learn as much you can about your potential franchisors. If a franchisor has brochures or websites, take the effort to browse them. Read their conditions carefully and ask existing franchisees about their experience with your chosen franchisor. Review disclosure documents to get a complete understanding of the franchisor’s business. A sign of a great franchisor is how much information they provide for potential franchisees. At Signarama, we’re proud to have developed a whole website dedicated to franchise information. Check it out!
Step 3: Look for a Potential Site
If you currently live in a low-traffic area with a few businesses, try searching for sites that will be likely to bring in favourable revenue and foot traffic. What kinds of businesses are well-established in your community? What kinds of businesses are missing? One of the benefits of franchising with Signarama is our business-to-business model that capitalizes on the needs of the businesses in your community.
Step 4: Secure Funding
Financial security is important when going into franchising. Some entrepreneurs save up for their investment capital before starting their business. Others prefer securing a loan. If you opt to apply for a loan, present your business plan to your potential lender. Given Signarama’s experience and ANZ accreditation, we may be able to help some of our franchisees to secure financing.
Step 5: Visit the Franchisor
Pay your franchisor’s headquarters a visit if you can. This is a great opportunity to get firsthand answers to your questions, as well as meet the people who will guide you in your next business venture. Keep in mind that they will also be evaluating you as their potential franchisee. Acquire all the information you need while putting your best foot forward. If visiting your franchisor in-person isn’t an option, reach out to them remotely! You can get in touch with Signarama both by phone at 1300-616-786 and online to learn more about franchising with us.
Step 6: Sign the Agreement
The final step is making the decision. If you’ve determined that the franchise business matches your financial resources, has a portfolio of satisfied franchisees, provides you with the guidance that you need and will help you achieve your dreams of business ownership, it is time to sign the agreement!
Signarama is a sign franchise with over thirty years in the industry. In 2015, Signarama was ranked the #1 Sign Franchise and #74 overall in Entrepreneur Magazine’s Franchise 500. We are a powerful brand that provides our franchisees with an incredible franchising opportunity. With Signarama, building your own franchise is more rewarding than ever.
Learn more about our business model today!