Buying a Franchise
Buying a franchise may, on the surface, seem exactly the same as buying a business. Principally they are the same, except with a franchise the brand and business operational model has been systematised. There also may be some additional more complex requirements you have to consider and meet.
Interested in buying a franchise?
JPAbusiness can assist you to buy a franchise, whether in the franchisor assessment and negotiation process, planning and due diligence, or with commercial finance, shop fit-out and premise lease options.
There are 2 ways of purchasing a franchise:
- Buying an existing franchise
- Setting up a new franchise (a greenfield opportunity)
When you are looking at buying an existing franchise, along with negotiating acceptable purchase terms with the current franchisee you must also meet all the Franchisor's requirements and execute the Franchise Agreement.
JPAbusiness offers expert advice for both existing and greenfiels franchises. We assist you work through the specific requirements set out by the Franchisor as well as assisting with negotiations with existing franchisees and franchisors.
Important questions to consider when weighing up the options on buying a franchise:
Selecting a Franchise:
- Is there a franchise available that suits my strengths and weaknesses and/or industry experience?
- Is the franchise well known and branded?
- Have I noticed the franchises marketing campaigns?
- What are the setup costs for a greenfield site?
- Is there an existing franchise available in the location I am attracted to?
Franchise selected – next steps:
- What requirements does the franchisor have before granting me a franchise?
- What are the ongoing costs, fees and contributions for this franchise?
- What are the specific terms and conditions of the Franchisor Agreement?
- For existing franchises – why is the business for sale?
- Is the franchisor profitable?
- Is there a specific period that the franchise needs to be operating for?
- Are there any specific requirements for an existing franchise to be relocated, or re-fitted?
- How much assistance will the franchisor provide for setup and ongoing financial and marketing support?
Often another attraction to buying a franchise is the support you’ll receive from the franchisor and also from the network of likeminded business people who are other franchisees. This can be a distinct benefit versus owning a business without a franchise. As part of your due diligence and business planning before you commence purchase negotiations, make sure you meet with other franchisees in the same franchise network and ask them about the pros and cons of the opportunity and what they have experienced.
Contact JPAbusiness for an obligation-FREE consultation on buying a franchise.