If you have never owned or managed a business before, the thought of buying a fully-fledged franchise might feel like you are biting off more than you can chew. You couldn’t be more wrong.Besides from taking on a well-known brand, the whole point of a franchise is that you also receive:
- Access to established business systems
- Initial and ongoing training,
- Business consultation; and
- Marketing support
From the technical skills required to provide the service of the franchise (eg. serving customers and/or producing goods for sale) to staff training tools, the support of a franchise system provides significant guidance and support to potential franchisees.
Sounds easy right? Not so fast.
Before you even get that far, there are a number of decisions to make in your buyers journey that will determine the ease at which you transition into the ‘franchise world’.
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What fees are associated with purchasing a franchised business?
The support you receive as a franchisee is considered one of the greatest advantages of franchising. But it does come with some costs.
In addition to your business investment, Franchisors charge a set of initial and ongoing fees. Typically, initial fees include: franchise fee plus training, store design, construction and legal fees, while ongoing fees include royalty and marketing fees.
It is important to understand the initial and ongoing fee structure and costs of the various franchisors you are comparing, and understand what you will, or in some case won’t receive as a result of this fee structure.
In the case of the initial franchise fee, any price variance between Franchisors is often reflective of the level of initial training and support and the standing of the particular brand recognition; there is usually a correlation between brand recognition and the time it takes a new franchise outlet to reach breakeven.
This also tends to reflect greater support and business systems to ensure your business success. Likewise, the same holds true for low franchise fees. If it only costs $40,000 to buy a franchise, the level of initial support, training and availability of established business systems may be limited.
Before you sign, make sure you fully understand all the fees you are required to pay and the level of initial and ongoing support and training.
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Which Franchise?
The level of support offered by Franchisors across the industry varies considerably. Where many would-be entrepreneurs go wrong, is by throwing money at a trendy new business. Before diving in, you should be asking Franchisors a number of questions;
- How frequently will I receive visitations from the Franchisors team?
- How many days is the initial training, and what is the content of the training?
- How many days of pre-opening and opening support are provided, and by how many people?
- What national and local area marketing programs are available?
- What staff induction and training tools are available?
- What programs are in place to ensure ongoing product/business innovation occurs?
- What are my expected financial returns?
Being able to get answers for each of these questions will place prospective franchisees in a better position to continue their franchising journey.
Talking to Forbes magazine, Sean Kelly, publisher of Unhappyfranchisee.com, advised prospective franchisees to avoid this kind of ‘hot new franchise’ saying,
“The benefit of a franchise is really to buy something that’s been proven over a period of time. Hopefully something that’s been proven over different economic climates. So it’s done well in good times and in bad.”
An older franchise company is actually a good thing. It’s proof that the business model works and the brand is stable, well-established, sustainable, and is still relevant in the industry with a strong following and growth.
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Am I Experienced Enough?
Do you need industry experience to buy a franchise? Yes and no; this depends on the type of business and/or the training offered by the Franchisor.
Whilst some Franchisors look for people with industry experience, especially large restaurants or specialist franchises like solicitors and real estate, others are willing to accept those with no experience at all. If you are looking for a complete career change, don’t let past unrelated work experience hold you back.
Like we said earlier, the biggest benefit of buying a franchise is that it allows you access to training, support, business systems, and marketing; in many cases, without any need for prior business or hospitality experience.
Jamaica Blue™ – Your First Franchise?
A Jamaica Blue caf franchise offers those with little or no experience in hospitality or running a business, the opportunity to try something new, whilst being supported and guided along the journey.
Owned by the Foodco Group, one of Australia’s most successful and established retail franchise companies, Jamaica Blue are fortunate enough to be able to offer new franchise recruits accredited training programs, delivered in a state of the art Training Academy, online and through in-store training. The Jamaica Blue support team consists of range of passionate specialist consultants in the areas of: development, store design, operations, business consultancy, training, product, IT, marketing, customer service.
Having been in business for over 20 years, Jamaica Blue is a well-established franchise system with a wealth of experience behind them. Additionally they have established business systems and are respected in the caf and coffee industry.
As a franchise partner, you will have access to accredited training, established business systems, and ongoing support, whilst sharing a reputation for delicious and seasonal menus and great coffee
With a number of opportunities currently available with Jamaica Blue, there has never been a better time to invest.
For more information on becoming a franchisee, click here.