How to Franchise Business, Buy Franchise Businesses, Franchise Business Ideas

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Do you know How to Franchise? Want to Buy a Franchise Business? You've decided to go into a new business by Buying a Franchise Business, may have completed your market research, and may have written your business plan.

To Buy a Franchise Business can mean a significant financial investment, so it's important to have all the relevant facts and more money than you anticipate before you enter into a Franchise Business agreement.

Now you're ready to take the next step, but where do you begin? Here is some information to help you get started. Consider the issues on this page before you go into Franchise Business .

When you are ready with your Franchise Business, you will need a good Business Accounting Software, you can get that here on our website, our ShopMate Business Accounting Software just may do the job for your Franchise Business.
You may also brush up and read on Accountancy Theories...

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The Franchising Code of Conduct helps you to make more informed decisions by requiring franchisers to disclose specific information and to follow rules in their dealings with you.

Assistance for small business operators who are buying, extending or renewing a Franchise Business, or who need help with resolving disputes is available from state and territory governments.

For advice and protection in buying a business or Franchise Business you should seek the services of a solicitor, accountant or Franchise Business adviser.

When prospective customers had a business or had it on their mind, traditionally, Softhard Solutions was able to provide them with accounting software (often also hardware) to run their Small Business the way they do the business.

There were, at many times, Softhard Solutions' customers who did not quite have a clear picture of the Small Business they wanted to do or undertake.

This page is dedicated to such people. Its all tips and 'need to know' about a Franchise Business and what to do before a beginning.

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What is the Franchising Code of Conduct?

All Franchise Businesses are required by law to comply with the Franchising Code of Conduct. This Code protects the rights of franchisees and sets out the obligations of franchisers. The Code also provides a mediation procedure where disputes cannot be resolved within the franchise system.

The Australian Competition and Consumer Commission (ACCC) is responsible for the administration and enforcement of the Franchising Code of Conduct. It provides small business consumer information for people buying, extending or renewing a Franchise Business .

What to do...

Entering into a franchise agreement

Before entering into a Franchise Business agreement, you should obtain the following information:

  • A complete description of the Franchise Business.

  • The track record of the franchiser and current motives for franchising.

  • Evidence of the franchiser's strategic plan - where is the business heading.

  • What the franchiser offers under the agreements, such as name, product, reputation/goodwill, site location, advertising budget and back-up assistance.

  • Intellectual property rights and obligations.

  • Fees involved, including up-front capital and percentage of takings payable to the franchisor.

  • Terms of sale of goods supplied by the franchisor and if you can purchase from outside the franchise network.

  • Success/failure of other franchisees in the same business.

  • Obligations upon termination of franchise.

  • Guidelines for sale of the franchise.

  • A franchise operations manual, if available.

  • The franchise agreement document and the period of Franchise Business.

What to do...

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Franchising and taxation

When you buy, sell, transfer or terminate a franchise there may be Capital Gains Tax (CGT) and Goods and Services Tax (GST) consequences to consider.

In most cases all payments received by a franchiser from a franchisee will be assessable income. They will also involve GST.

What to do...

OH & S obligations for franchises

If you're in a Franchise Business you have the same occupational health and safety (OH & S) obligations and responsibilities as any other business.

What to do...

Mediation services for franchises

The Office of the Mediation Adviser (OMA) helps franchisers and franchisees to resolve their problems and disputes without going to court. The OMA has a specialist panel of mediators across Australia who are trained in mediation and have commercial experience. There is a fee once the mediator is appointed.

What to do...

  • Find out what assistance is available from the Office of the Mediation Adviser.

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Business Tips

Some tips on how to avoid business failure:

  • Don't underestimate the capital you need to start up the business.

  • Understand and keep control of your finances - income earned is not the same as cash in hand.

  • More volume does not automatically mean more profit - you need to get your pricing right.

  • Make sure you have good software for your business , software that provides you with a good reporting picture of all aspects of your business operations.

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