Bradburns

Hi everyone, was looking at some franchices for sale last night and we found a couple that were perfect for us. We haven't got our visa yet, but are just keeping our options open. Have any of you bought a franchise in oz, if so how did it go/ how's it going?

alipally

We haven't done it but it's something we've thought about.

When we were there last month, we picked up a Businesses for sale magazine. If you would like to have a look at it just PM with your addy and I'll post it off to you!

Bradburns

Cheers allipally, that would be great, how do i pm you?

alipally

Click on my name and get the dropdown menue saying send private message and go from there!

Bradburns

Thanks for that, I've just sent you a pm. Lisa Bradburn.

JAJ

Why pay money for a franchise - and accept franchise restrictions - when you could just set up in business yourself? (if you know what you are doing)

tyke

There is some "comfort" in buying a ready made business such as a franchise.
Be very careful of the ongoing fees and training though.

A friend of mine seemed to get little support when he took a pool franchise ( Blokes name on the company).Another friend bought it off him and he seems happy so far though.

I do see the appeal but I also see the wisdom of JAJ'S reply.
Paying say $15000 for a garden round is OK but why not spend a huge $5000 on good advertising??

Hopefully playing Devil's Advocate here

Shakmaty

I bought a franchise and it's going ok

check out this thread...

http://britishexpats.com/forum/showthread.php?t=437768

SKIPPI79

I was looking at a franchise, but have now opted against it. Why spend, say $20.000 to buy one and then pay an X amount each week or month to have it? when you set up your own business for nothing, and that X amount could be your rent, or cars or supplies for that week or month.
Spend the original set up fees on good advertising, like local papers, local radios, yellow pages, car stickers/signs. posters, leaflets, T shirts.

You name it, and stick ur name on it and give it away for free at a market or the beach.
You'll get alot of people ringing your bell if they've been given something for free.

Bobcat

My sentiments exactly.

I keep getting inundated with requests for me to join the Ray White group; or REIMAX.

Thank you ............ but no thank you......... at this point in time I'm quite happy to remain as plain old John Mason Real Estate.............. we've been in business now for the last 18 months and despite the market still being somewhat slow...... we are doing okay without the added expense of Franchise Fees.

Bradburns

Thanks for that JAJ, you are right. Anything we do find interesting, we will find out if the set up costs for the same sort of business are reasonable enough to buy for ourselves and not through a franchise, but like some of the others have said, it is good to have a well known and established business name and the customers waiting, i suppose it depends on what type of franchise you are looking at. Some businesses are easier to set up than others. Lisa.

Bradburns

Thanks everyone for you advice, it's obvious really, why pay someone else for a business then continue to do so when you can set up one for yourself. It's definitly something to think about. Will speak to a financial advisor when we get to oz and see what makes the most sense for us. Lisa.

kegsta

It's not quite that simple... Why do you think Macdonalds and Bang & Olufsen and even the Bank of Queensland successfully sell franchises and have people queuing up to buy them? You're paying for an established business brand (hopefully).. and an entree into what might already be a very crowded market. Anyone who has set up in business themselves knows that doesn't come for free, and many of the things you'd spend money on would already be there in the franchise (logo, graphics, customer network blah blah)... there are of course lots of pretty useless franchises. The key is to do your homework, just as you should if you're setting up a business from scratch, or buying an existing business. I could go on, but hopefully have made the point!

JAJ

Two things to consider.

Firstly, it's not just a question of fees with a franchise. There also may be significant restrictions on how you run your business, territory you can service etc. And look out for "hidden" costs as you may have to use specific suppliers. Some franchise agreements are so strict that they can be described as de-facto employment.

Secondly, there are some people out there who as a rule prefer to use non-franchise operations. Why? Because there is a view that those who are expert at what they do would generally not pay good money for a franchise, but would instead set up their own business.

alipally

We are all thinking about Franchises when buying a business, but there are more businesses for sale than franchises....

the thing that particularly interested me was the management rights to holiday units along the QLD coast....
You manage the lettings of other people's holiday units (we stayed in this sort of accomodation all the way up the coast, it was gorgeous!) and make money from the cleaning of the apartment, management of bookings, arrangement of trips, car hire etc...)
The contract usually comes with accomodation, however, all but 1 had a property elsewhere.

All the people we met were lovely, enthusiastic and friendly and made our holiday loads more interesting as they were able to recommend the best places to visit, and which trips were worthwhile and which were best left alone!
It's something that we've been considering!