Beginners Guide to joining a franchise | Bedshed

The beginner's guide to joining a franchise.

The beginner's guide to joining a franchise.

A lot of work goes into starting a new business venture, and franchising is no exception. If you’re considering joining a franchise and looking for information, you have made the first step. However, finding the full franchise information that you need can be a minefield, and it can be difficult to know what you need to know and what to do next. Here’s our beginner’s guide to get you up to speed.

Consider your capital outlay

It’s important that you’re crystal clear on your financial position. What sort of a capital outlay can you afford? Are you in a position to borrow money from the bank? Some franchise networks offer vendor finance if you’re a suitable candidate. Others are accredited by banks like CBA, making obtaining a loan for that franchise easier. Consulting your accountant and/or financial planner is a smart first step.

Do your homework.

One of the benefits of living in today’s world is the wealth of information you have access to. Industry publications, social media, and online forums are great places to start. When you’ve found a franchisor that interests you, research them directly, both on their site, on social media, and in the media. While researching different franchise networks, you can reflect and scrutinise, and red flags, if any, will come up pretty quickly.  

Look for a history of proven success.

The good thing about joining a franchise is that you can buy into something with a proven track record. While researching different franchise opportunities and networks, look out for the ones with longevity in the market. You want to feel confident in what you’re investing in, and a tried and tested franchise model is your best bet.

Talk to existing franchisees.

You’ll never really know what a network is like until you join. However, chatting with existing franchisees should give you a good idea of what it might be like. There are several ways you can go about this – whether it’s reaching out via social media, picking up the phone, or politely asking to have a conversation in-store. Can you get a sense of their satisfaction with the network? Do they have a good work-life balance? What tips can they provide you when starting?

Ask the hard questions.

Have an idea of what it is you want and expect from a career in franchising, and don’t be scared to ask your potential franchisor any questions. If you’re looking for a comfortable work-life balance, ask the potential franchisor how they’ll help you to achieve this. If you’re hoping for a certain level of support and guidance, ask the franchisor what training programs they can offer you. Want to know how much money you’ll make? Ask the franchisor to give you a rough idea of existing profitability.

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