Buying a Franchise?

Thinking about buying a franchise? Before you get to enthused over that shiny logo or start dreaming of matching polos with your name embroidered on them, hit pause and ask the most important question of all:

Why do I want to buy a franchise?

Owning a franchise isn’t for everyone—and it certainly isn’t a shortcut to freedom, riches, or four-day workweeks. But for the right person, with the right system, it can be a launchpad to a profitable and rewarding business journey. We have many clients who have owned franchises and done very well .

Let’s explore what you need to know before taking the leap into franchise ownership.

Are You Escaping Something or Building Something?

Some people view buying a franchise as a way to escape a 9-to-5 job. Others see it as an opportunity to build a business of their own with a safety net. Both are valid—but your motivation will affect your commitment, risk tolerance, and resilience. Assess your own reasons for wanting to buy a franchise .

Ask yourself:

• Am I just over my 9-to-5 job, or do I genuinely want to run a business?
• Do I want to serve customers, manage staff, clean toilets, and deal with weekend rostering?
• Do I like following systems and playing inside someone else’s rules?

If your idea of business ownership is total control, franchising may not be your best fit. But if you value a proven system and track record, a franchise can offer comfort, direction, and support.

Can You Actually Afford to Buy a Franchise?

Money makes or breaks most franchise stories. Many would-be franchisees underestimate the financial capacity required—not just for the upfront purchase, but also for surviving those early months when the business may not yet be profitable.

Expect to budget for:

• Franchise fees and setup costs
• Fit-out, signage, and equipment
• Initial stock and inventory
• Marketing fund contributions
• Training, travel, and professional advice (lawyer/accountant)

Oh, and have a cash buffer for 6–12 months of living and operating expenses

Many franchise agreements require royalty payments, even if you’re not yet profitable. That’s why cash flow planning is critical. Review the Franchise Disclosure Document, consult a franchise lawyer, and engage an accountant who is familiar with franchise systems. Talk to us, we can certainly help and have many clients with franchise businesses.

Franchising in Australia is regulated by the Franchising Code of Conduct. FCA monitored by ACCC .When signing up you will sign up to a initial agreement of typically 5 – 10 years with options and clauses for non-performance . Make sure you find a lawyer that can explain your obligations etc.

The Real Cost vs Lifestyle Impact

It’s tempting to look at the “headline cost” of a franchise—say, $150,000—and think you’re ready. But what if the real cost ends up double?

Now imagine:

• You’ve mortgaged your home.
• You’ve quit your job.
• You’ve poured your savings into your new smoothie bar.

But business is slow. Rent is high. Staff leave. You’re working 60-hour weeks, and your family hasn’t seen you in daylight for months.

Ask yourself: Can I afford this—financially and emotionally?

Because buying a franchise isn’t just a financial investment—it’s a lifestyle choice that affects your family, friends, and sanity. There will be up front and ongoing costs to the Franchisor for royalties and marketing. These are normally determined by a % of revenue.

Is Your Family on Board in or along side of your business?

Owning a franchise is not a solo sport. Your family will be on this rollercoaster with you—emotionally, financially, and physically. If they’re expecting you to be more available, they might be surprised when you’re scrubbing fryers at 9 p.m. on a Tuesday.

Have a proper conversation. Get their buy-in. Set realistic expectations. And while you’re at it, check the exit clauses in your agreement. What does it cost to sell or transfer your franchise? Can you pass it on to family members? Build a strong relationship with your franchisor early, so when the time comes to exit, you can do so smoothly.

Action Step: Do a “Franchise Fit” Audit on your intentions

There are hundreds of franchises out there. Do you homework and narrow down to a handful and then ask for more information about them, the upfront and ongoing financial commitment and also their systems.

Here’s a quick franchise readiness checklist:

• Do I have access to the capital needed to start AND run the business for 6–12 months?
• Am I prepared to follow someone else’s system, even if I disagree?
• Do I enjoy customer service and managing people?
• Can I handle stress, long hours, and problem-solving without burning out?
• Is my family supportive of this decision?
• Am I OK not being “the boss of everything”?
• Have I explored other business models (not just franchises)?

If you tick most of these, you’re in a good place. If not, more preparation may be needed before signing.

For ideas on a franchise system, check out Loved Brands. They have some cool resources on how the process works from their perspective! SO whats hot :

Franchises in home services which provides a huge range of services from NDIS to lawn mowing. Jims Group and VIP home services dominate the franchise in this sector. Other businesses in and out of a franchise structure include , takeaway , dog grooming and gyms.

Final Thoughts: Buying a Franchise Can Be Your Launchpad—If You’re Ready

Buying a franchise isn’t about taking a shortcut—it’s about backing yourself with the right tools, brand, and support system. It’s still your effort, time, and leadership that make it thrive.

Yes, there’s fine print. Yes, there are costs. And yes, you’ll probably find yourself doing things you never imagined—like fixing a milkshake machine late at night. But there’s also immense satisfaction in watching your shop open, your team grow, and your customers return because you made it work.

If you’ve done your research, understand your “why,” and are ready to follow a proven system while bringing your own passion and hustle—then you may have found your perfect path. Franchising can be that blend of structure and entrepreneurship where you leverage brand power while still building something that’s genuinely yours. Some of our clients even expand into multiple outlets or territories once they’ve mastered one. Should i talk to other franchisees? Yes, many are only too willing to share their experiences but use your own judgement if it appears ok but definitely assists in the process

From burger joints to bed stores, the world is full of opportunities. The key is clarity, preparation, and choosing the franchise that aligns with your lifestyle and goals.

The right franchise + the right mindset = a powerful combination.

Your journey starts with clarity—and may end with your name on more than one shopfront, van, or location. Reach out if you need us.