This is what happens when the business is not your original idea but rather an extension of a major brand based on an agreement between both parties. Franchising has its own peculiar rules. Franchising makes it possible for a business to operate using the brand of an established business, which means you can sell products or deliver services of that established brand in exchange for payments to the brand. This is a great alternative to establish a unique venture.
If you are planning on franchising, it is important to consider it and ensure that you follow the correct procedures. The primary law guiding franchising in Australia is the Franchise Code of Conduct. Understanding the franchise is totally different from all other businesses, it is very restrictive, and you’ll have less control on the decision making or even what you sell or offer as most franchisors will have a say on this. There are also the costs to consider. The cost of a franchise includes;
- The upfront fees,
- Cost of establishing the business and maintaining it,
- Any other significant expenditure.
Compliance with Franchise code
Buy a franchise
Franchise your business
You can expand your own business too by franchising it. If you have a successful business, this is a good way to widen its reach. Make sure you have a franchise model that will work, and you can try it first to confirm that. While there is no specific registration or approval, creating a franchise is a legal process so you should use a professional.