If you’re considering buying a business, it could be worth considering whether a franchise is right for you, or whether you’d prefer to run an independent business.

There are pros and cons to both styles, and the best fit for you depends on a variety of factors. It’s important to consider what you hope to get out of your business and what’s most important to you.

We’ve compiled some information and advice about the advantages and disadvantages of franchising.

The Pros of owning a franchise

Tried and tested: When you buy into a franchise, much of the early grind of starting a business has been done already. Processes, pricing, procedures and products have all been developed, tested and refined. This helps you hit the ground running, and you can launch straight into your business venture with some confidence that it’s all be done, successfully, before.

You’re not alone: Operating a franchise means there’s always someone there to support you. From training to stock, form marketing to HR, a good franchisor will help you access and maximise the resources available. They want you to succeed, and will offer ongoing support. Being part of a franchise group also provides you with an immediate network of other business owners to learn from and lean on. 

A known quantity: Buying into an already established brand through a franchise can help take advantage of an already established customer base, even in a new location. Buying into a big brand with a good reputation can be a great way to give your business a kick start. 

The Cons

Limited autonomy: Buying a franchise means you have to be prepared to relinquish some control. Signing a franchise agreement commits you to following guidelines and requirements set out by the franchisor. While you own the business, you won’t have control of every decision. This might range from the locations in which you can operate your business to the pricing structure you use. If you crave maximum creativity and flexibility in running your business, franchising might not be for you. 

The money stuff: The ongoing support and guidance a franchise offers comes at a cost. There are usually ongoing fees on top of the upfront price you will pay. They might be for training and marketing, along with a franchise fee and other levies. If business slows down or you have a quiet patch, these fees still need to be paid. Franchisor requirements may also reduce your ability to make savings in other areas, such as marketing, when times are tough. 

Reputational risk: When you’re part of a franchise group, your business is exposed to the brand’s collective reputation. Poorly performing franchises can reflect badly on an entire brand, putting the reputation of your business out of your control. This is a critical factor for many when choosing a franchise. 

If you’re someone who is looking for ongoing support, trusted and tested systems and want to get your business up and running quickly, then a franchise might be for you, especially if you choose a brand you can get behind. Someone looking for control, creativity and autonomy might be less attracted to this way of doing business. No matter what you decide, be sure to do your homework and carefully consider your strengths, your personal values and your lifestyle. 

You’ve done your research, considered the pros and cons  and decided that franchising is for you.  But how do you choose the best franchise to buy? With so many options available, it’s important to consider some key questions when making your decision.

There are franchise businesses to suit everyone – no matter your interests, skill levels and budget. But these elements can play a critical role when choosing your franchise. 

With a franchise, you get the benefit of a proven product or service while still being your own boss. Even after the turmoil of the past year and the impact of Covid19, franchise business networks are feeling confident and optimistic about the coming year. 

According to the latest Australian Franchise Pulse Check, released in March 2021, more than 33% of respondents reported a 10% increase in December quarterly revenues.  Quick service restaurants, maintenance, health, courier and freight industries were most likely to show positive trade. Sit down restaurants and cafes, fitness clubs and accommodation businesses were hit harder, impacted by lockdowns and border closures.

Although the post-Covid recovery is underway, with 75% of respondents feeling optimistic about business conditions over the next six months, it shows the importance of making the right choice when it comes to buying a franchise. The Covid19 pandemics has created some shifts in how Australians work, socialise and do business, which potential franchisees should consider in their research.

Take-away food 

Covid19 drove a significant shift in people’s eating habits, with many turning to delivery services as an alternative to dining out during lockdown restrictions. They also offer increased flexibility around social distancing requirements – it’s particularly worth considering food trucks or trailers to take advantage of outdoor spaces. 

Home-based

With the growth in remote working, the appeal of home-based franchises is increasing too. Many franchisees are looking for opportunities that offer the comfort of working from their own home and choosing hours that best suit their needs and lifestyle. Examples of home-based franchises include pool-cleaning, tutoring and bond cleaning. These types of services are always in demand, and can often be acquired at a reasonable price, requiring minimal training. 

Retail

If you’re a people person with a dream of running a big branded store, a retail franchise might be right for you. One advantage of choosing a franchise in retail, whether it’s technology, stationary or fashion, is that finance for these established ventures can be easier to access. 

Health and Fitness:

There is a huge focus on health and wellbeing among Australians so health and fitness franchises could prove a valuable investment for the savvy entrepreneur. Customers were clamouring to get back into their gyms and fitness classes during the Covid10 restrictions, proving the popularity of these businesses. Gyms and fitness studios have a market share of around $2 billion and there’s a range of options including yoga, Zumba, pilates, meditation, kickboxing and martial arts, for example. 

Maintenance/gardening:

These franchise businesses can be a great option for those wanting maximum flexibility in the volume and timing of their work, and for those who want to work outdoors. Most come with branded vehicles, large territories and an established reputation and contracts. Training and support provided is often excellent as well. If you’re the outdoors type and love to choose your own hours and workload, this type of franchise could be an excellent choice. 

These are just a few of the major options available when choosing the best franchise to buy in Australia. It’s a major decision, so take the time to research the options that best suit your budget, skills and lifestyle.