The prospects of buying a retail or business broker franchise in Australia seem to be rosier in the next 12 months, based on a survey that estimated the industry’s sales revenue of $146 billion.
Franchised businesses, including Transworld Business Advisors Australia, in the country currently comprise around 1,120, which means that the expected revenue isn’t only huge just because there are many franchises around the country. This could increase further since buyers now have more options for their preferred business.
If you’re interested in being your own boss, you should consider how much you’re willing to spend in buying a business.
The Franchise Council of Australia (FCA) said that a franchise system that doesn’t require a store front costs between $5,000 and $50,000.
You will need to spend up to $250,000 or more if you plan to buy a business that has a physical shop. The expenses include shop fittings, product supplies and human resources, and a new location for those who aren’t buying an existing franchise.
Aside from lower costs, an advantage of buying an existing franchise involves the period of the term based on your contract with the franchisor. You may only be obliged to under their system for a year or even in perpetuity if you are convinced about the business’ profitability.
The non-food segment in the retail industry accounts for most of the franchises in Australia. Accommodation and food rank next, followed by administration and support services. Overall, the franchising sector currently employs around 472,000 permanent, part-time and casual workers.
Some franchise systems provide support in recruitment, and this is useful if you only want to focus on running a business. However, this may increase the franchising fees that you will pay over time.
A franchise business has been a good way to ride on the industry’s success, but it requires you to be prudent in making investment choices. You should consider seeking advice from a franchise consultant or broker before signing a life-changing deal.