Investing in a franchise isn’t for everyone. There’s less wiggle room for your own creative input into decor and menus, and you have to follow a ready-made template for the day-to-day running of your business.

That said, the upsides do outweigh the negatives. This ready-made template is a recipe for success. Presumably, your new franchise has already established a loyal client base and has built a positive name for itself in the Australian market. Those small details have been ironed out, and it’s down to you to run an already well-oiled machine.

If you’re thinking of purchasing a franchise, follow these tips to get you on your way to success.

Check the history of the franchise

Franchises with a solid track record are a safer investment than new ventures. While brand new businesses are only 50% likely to make it past 5 years, franchises have a better survival rate. Look further into the history and growth predictions of your particular franchise of interest. Don’t just take the company’s word - use the internet and other resources and feel free to request extra information and documentation before a purchase.

Consider all costs

The great thing about buying a franchise is that almost everything is covered, from fitouts to staff

to training and marketing. Though, there are upfront and ongoing costs that you have to pay in return for the rights to the brand name. The initial purchase fee depends on the brand and potential opportunities, and you may need to pay ongoing operation investments to cover equipment and other requirements. You may also have to pay royalties to your franchisor, so make sure you’ve considered all bases before signing.

Assess your own situation

Conduct a self-assessment before you do anything. What are you hoping to gain from this investment? Think about the time you’ll be able to dedicate to the business and how flexible you are in terms of working hours. Make sure you have enough capital and you know exactly which sort of business model would suit you.

Consult a lawyer

Speak to a specialist to have them look over any documents and contracts, preferably find one that specialises in franchise law. They can help you to identify any red flags and make sure you understand all implications and the full cost of running the business. This will incur a fee, but it will be worth the money in the long run.

Every situation is unique, and you should never jump into the purchase of any business without proper research and professional advice. Any Business provides a complete directory of businesses for sale across Australia, including well-known franchises and other existing businesses.