Franchising simply put, means multipleduplication of an already successful business.
The owner of the business (the NationalFranchisor) grants Franchisees (through the Regional Franchisor) the rights toown and run a copy of the initial business model using the same branding,administration, training systems, products and/or services as the originalbusiness.
The National Franchisor supports theRegional Franchisor who in turn supports the Franchisees business withmarketing, ongoing training, business advice and administration assistance.This helps reduce the risk factor out of starting your own non-franchised business.
If you were to start your own business (nota Franchise), statistics tell us that many new businesses fail in the first 5years, whereas a high percentage of franchised businesses succeed. Likeanything in life, franchising does not offer you a guarantee of success. Whatit does offer is a formula that is not available to those who go into businessalone. Buying a franchise means you are not starting out from scratch byyourself.
As Franchising is one of the fastestgrowing business sectors in Australia it’s great to know that it is alsoprotected by the Federal Governments ‘Franchising Code of Conduct’. TheFranchising code of Conduct is a mandatory code, which assists both Franchiseesand Franchisors in making informed decisions prior to entering into a franchiseagreement. It also provides a standard framework for operating within thefranchising industry.
So, should you decide that a Jim’s BinCleaning franchise is for you, you can have the confidence that you’re not onlyentering into the largest franchise group in Australia but you are protected bythe Federal Governments ‘Franchising Code of Conduct’.
So, what are some of the benefits ofFranchising over stand-alone forms of small business?
- Detailed Industry training
- As a Franchisee you have the incentive of owning your own business but not having to do all on your own. You gain the support of your Franchisor, your own Business Mentor.
- As a Franchisee you will operate under a well-recognised Jim’s Group brand which is already well established and well known by the public.
- A franchisee receives the benefit of the franchisors advertising and promotional activities at a lower cost than if you were to attempt such marketing yourself.
- A franchisee gains the benefit of linking into the bulk purchasing power and negotiating capacity made available by the franchisor by reason of the size of the franchised network in areas such as vehicles, uniforms, supplies and stationary.
- A franchisee can call on the specialised and highly-skilled knowledge and experience of the franchisor, while remaining self-employed in your own business.
- The support and benefits provided by a Franchise system greatly reduce a franchisee’s business risks.
- A franchisee has the benefit of the franchisor’s on-going research and development programs, which are designed to improve the business and keep it up-to-date and competitive.
- The franchisor provides a knowledge base developed from their own experience, as well as that of all the franchisees in the system, which would otherwise be very difficult and/or expensive for a non-franchised business to access.
- A franchisee can always speak to their franchisor or a fellow franchisee to discuss their business challenges or problems – something a non-franchised business can almost never do.
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