Franchises
#1
Just Joined
Thread Starter
Joined: Feb 2011
Posts: 5
Franchises
Hi,
Does anyone have any experience of buying any type of franchise in Oz?
We are moving to the Sunshine Coast, hopefully by the end of the year. My work prospects there are limited (Mechanical CAD Drafter), so I am exploring other ideas
We have the option of releasing equity or selling our UK property for funds for this
Any advice at all would be appreciated, which are the most profitable? which to avoid? etc etc
Thanks
Does anyone have any experience of buying any type of franchise in Oz?
We are moving to the Sunshine Coast, hopefully by the end of the year. My work prospects there are limited (Mechanical CAD Drafter), so I am exploring other ideas
We have the option of releasing equity or selling our UK property for funds for this
Any advice at all would be appreciated, which are the most profitable? which to avoid? etc etc
Thanks
#2
Re: Franchises
Worthwhile noting that there are more one man band shops in Australia, and that rents on properties are frankly silly.
Not sure I'd be looking in this area at all, but if I were, I'd be looking at mobile solutions if possible. Not sure how those mobile dog washing services make money, but they seem to survive.
Not sure I'd be looking in this area at all, but if I were, I'd be looking at mobile solutions if possible. Not sure how those mobile dog washing services make money, but they seem to survive.
#3
Forum Regular
Joined: Jun 2006
Posts: 80
Re: Franchises
Hi Kimbodia
We live in Perth and took on a fast food franchise in 2009. From our own experience i would not touch one with a barge pole in hindsight. We found that all the franchisor was really interested in was increasing your sales, so they get a greater income, we had to pay a 6% advertising fee and 6% franchise fee, this was on gross sales before GST (VAT) was calculated (another little con). We felt that they were not at all concerned whether it was profitable business for you. We stuck at it for just over 3 years, they give you the patter that you go in and set the business up, then put a manager in to run things, but that was unsustainable so my wife would end up working 60+ hours a week, while i carried on my job as a sparkie and working any spare time i had. As i said after 3+ years of no holidays or social life we got out for the sake of our sanity and relationship, accepting a loss of over a 100k. Again compounded by the fact that the franchisor is entitled to 10% of the selling price. Once we were in the shop we got to know many other franchisees in the shopping center, and a vast number were having the same issues as ourselves. As a side-note the shop we opened has now closed down center management closing due to non payment of rent. What i would say is think very very carefully about going the franchise way, they do not really have a good reputation. That 12% we were paying them was the difference between us keeping our heads just above water and making a decent profit.
Rob
We live in Perth and took on a fast food franchise in 2009. From our own experience i would not touch one with a barge pole in hindsight. We found that all the franchisor was really interested in was increasing your sales, so they get a greater income, we had to pay a 6% advertising fee and 6% franchise fee, this was on gross sales before GST (VAT) was calculated (another little con). We felt that they were not at all concerned whether it was profitable business for you. We stuck at it for just over 3 years, they give you the patter that you go in and set the business up, then put a manager in to run things, but that was unsustainable so my wife would end up working 60+ hours a week, while i carried on my job as a sparkie and working any spare time i had. As i said after 3+ years of no holidays or social life we got out for the sake of our sanity and relationship, accepting a loss of over a 100k. Again compounded by the fact that the franchisor is entitled to 10% of the selling price. Once we were in the shop we got to know many other franchisees in the shopping center, and a vast number were having the same issues as ourselves. As a side-note the shop we opened has now closed down center management closing due to non payment of rent. What i would say is think very very carefully about going the franchise way, they do not really have a good reputation. That 12% we were paying them was the difference between us keeping our heads just above water and making a decent profit.
Rob
#4
BE Enthusiast
Joined: Jan 2017
Posts: 392
Re: Franchises
Why swap employment for unpaid employment.
Franchising is not getting into business for yourself
Its not choosing your own hours
Its not getting what you put into it
Your better to research existing stand alone businesses for sale using a registered broker. Look for a business you can add value both from a revenue and capital point of view.
Franchising is not getting into business for yourself
Its not choosing your own hours
Its not getting what you put into it
Your better to research existing stand alone businesses for sale using a registered broker. Look for a business you can add value both from a revenue and capital point of view.
#5
Re: Franchises
Hi,
Does anyone have any experience of buying any type of franchise in Oz?
We are moving to the Sunshine Coast, hopefully by the end of the year. My work prospects there are limited (Mechanical CAD Drafter), so I am exploring other ideas
We have the option of releasing equity or selling our UK property for funds for this
Any advice at all would be appreciated, which are the most profitable? which to avoid? etc etc
Thanks
Does anyone have any experience of buying any type of franchise in Oz?
We are moving to the Sunshine Coast, hopefully by the end of the year. My work prospects there are limited (Mechanical CAD Drafter), so I am exploring other ideas
We have the option of releasing equity or selling our UK property for funds for this
Any advice at all would be appreciated, which are the most profitable? which to avoid? etc etc
Thanks
There are some good franchise operations and there are a lot of crap ones
We know someone who owns 9 Dominos Pizza franchises and is doing very well (he is one of the best franchisees for Dominos internationally) but many of their other franchisees really struggle (maybe a majority). Someone else we know had a home maintenance franchise and nearly lost his house
Be careful and go into it with your eyes wide open. Get expert advise
Good luck
#8
BE Enthusiast
Joined: Jan 2017
Posts: 392
Re: Franchises
1.securing an appropriate location for your café
You get tied to a lease the previous franchise was trying to avoid
If you cant select and use a solicitor to help with lease agreements?
Review foot traffic (you can get stats for this or do it yourself)
2.comprehensive, hands-on pre-opening training
Is post training for what they forget to tell you?
3.arranging relevant information technology and training that will help you efficiently run your business
Refer 5 Here is all you need:
- Xero (Accounting - link to your bank account and code transactions - keep it simple close to cash accounting)
- Unleashed (inventory mngt)
- Multitude of time and attendance systems and payroll - Flexi time for example
- Vend for POS (point of sale)
4.assisting you to plan your opening promotional activities and training you in identifying and executing local area marketing opportunities
There are better equipment marketing partners that can do this
5.providing systems and procedures to support your business success
Yes on top of your franchise fee we charge you thousands for cloud based systems you can get better and cheaper
6.supplying ongoing support and training once you’ve opened your store
Prefer training before opening thank you
7.providing an ongoing network marketing program including the tools implement to the programs in store
What the F@@K?
8.the opportunity to grow your business and build a saleable asset
Ahh isn't that with any business?
#9
Re: Franchises
Shingle Inn offers you a comprehensive franchise package including:
1.securing an appropriate location for your café
You get tied to a lease the previous franchise was trying to avoid
If you cant select and use a solicitor to help with lease agreements?
Review foot traffic (you can get stats for this or do it yourself)
2.comprehensive, hands-on pre-opening training
Is post training for what they forget to tell you?
3.arranging relevant information technology and training that will help you efficiently run your business
Refer 5 Here is all you need:
4.assisting you to plan your opening promotional activities and training you in identifying and executing local area marketing opportunities
There are better equipment marketing partners that can do this
5.providing systems and procedures to support your business success
Yes on top of your franchise fee we charge you thousands for cloud based systems you can get better and cheaper
6.supplying ongoing support and training once you’ve opened your store
Prefer training before opening thank you
7.providing an ongoing network marketing program including the tools implement to the programs in store
What the F@@K?
8.the opportunity to grow your business and build a saleable asset
Ahh isn't that with any business?
1.securing an appropriate location for your café
You get tied to a lease the previous franchise was trying to avoid
If you cant select and use a solicitor to help with lease agreements?
Review foot traffic (you can get stats for this or do it yourself)
2.comprehensive, hands-on pre-opening training
Is post training for what they forget to tell you?
3.arranging relevant information technology and training that will help you efficiently run your business
Refer 5 Here is all you need:
- Xero (Accounting - link to your bank account and code transactions - keep it simple close to cash accounting)
- Unleashed (inventory mngt)
- Multitude of time and attendance systems and payroll - Flexi time for example
- Vend for POS (point of sale)
4.assisting you to plan your opening promotional activities and training you in identifying and executing local area marketing opportunities
There are better equipment marketing partners that can do this
5.providing systems and procedures to support your business success
Yes on top of your franchise fee we charge you thousands for cloud based systems you can get better and cheaper
6.supplying ongoing support and training once you’ve opened your store
Prefer training before opening thank you
7.providing an ongoing network marketing program including the tools implement to the programs in store
What the F@@K?
8.the opportunity to grow your business and build a saleable asset
Ahh isn't that with any business?
10. If you don't make what we say you will make you wil have to give us our cut regardless. Enjoy bankruptcy bitches!
Paraphrasing obviously.
#11
Re: Franchises
Great for the franchisor, cr*p for the franchisee.
#12
Re: Franchises
Shingle Inn offers you a comprehensive franchise package including:
1.securing an appropriate location for your café
You get tied to a lease the previous franchise was trying to avoid
If you cant select and use a solicitor to help with lease agreements?
Review foot traffic (you can get stats for this or do it yourself)
2.comprehensive, hands-on pre-opening training
Is post training for what they forget to tell you?
3.arranging relevant information technology and training that will help you efficiently run your business
Refer 5 Here is all you need:
4.assisting you to plan your opening promotional activities and training you in identifying and executing local area marketing opportunities
There are better equipment marketing partners that can do this
5.providing systems and procedures to support your business success
Yes on top of your franchise fee we charge you thousands for cloud based systems you can get better and cheaper
6.supplying ongoing support and training once you’ve opened your store
Prefer training before opening thank you
7.providing an ongoing network marketing program including the tools implement to the programs in store
What the F@@K?
8.the opportunity to grow your business and build a saleable asset
Ahh isn't that with any business?
1.securing an appropriate location for your café
You get tied to a lease the previous franchise was trying to avoid
If you cant select and use a solicitor to help with lease agreements?
Review foot traffic (you can get stats for this or do it yourself)
2.comprehensive, hands-on pre-opening training
Is post training for what they forget to tell you?
3.arranging relevant information technology and training that will help you efficiently run your business
Refer 5 Here is all you need:
- Xero (Accounting - link to your bank account and code transactions - keep it simple close to cash accounting)
- Unleashed (inventory mngt)
- Multitude of time and attendance systems and payroll - Flexi time for example
- Vend for POS (point of sale)
4.assisting you to plan your opening promotional activities and training you in identifying and executing local area marketing opportunities
There are better equipment marketing partners that can do this
5.providing systems and procedures to support your business success
Yes on top of your franchise fee we charge you thousands for cloud based systems you can get better and cheaper
6.supplying ongoing support and training once you’ve opened your store
Prefer training before opening thank you
7.providing an ongoing network marketing program including the tools implement to the programs in store
What the F@@K?
8.the opportunity to grow your business and build a saleable asset
Ahh isn't that with any business?
#13
BE Enthusiast
Joined: Jan 2017
Posts: 392
Re: Franchises
Not sure why you thought I wanted to know any of that considering I said "if I was to consider a coffee franchise (and I wouldn't)" i have 0 interest in buying a franchise of any sort. If I were to open a coffee shop it would be serving my baking in the location I choose with the opening hours I want.
#14
Re: Franchises
Not sure why you thought I wanted to know any of that considering I said "if I was to consider a coffee franchise (and I wouldn't)" i have 0 interest in buying a franchise of any sort. If I were to open a coffee shop it would be serving my baking in the location I choose with the opening hours I want.
I agree. Coffee is one of those things where a franchise is not needed - the woman from Iowa is a perfect example
There's a Dome in Kalamunda (which I'm assuming is a franchise) that does good business but the very nice fitout (old police station) would have cost a fortune and their ongoing costs would be huge. Also not really relevant but their food is shit and totally overpriced
#15
Re: Franchises
It was a bizarre reply
I agree. Coffee is one of those things where a franchise is not needed - the woman from Iowa is a perfect example
There's a Dome in Kalamunda (which I'm assuming is a franchise) that does good business but the very nice fitout (old police station) would have cost a fortune and their ongoing costs would be huge. Also not really relevant but their food is shit and totally overpriced
I agree. Coffee is one of those things where a franchise is not needed - the woman from Iowa is a perfect example
There's a Dome in Kalamunda (which I'm assuming is a franchise) that does good business but the very nice fitout (old police station) would have cost a fortune and their ongoing costs would be huge. Also not really relevant but their food is shit and totally overpriced