Are you thinking about buying into a franchise?
Buying into a franchise system can be confusing and there are a variety of things to consider before committing to a purchase. With over 1300 franchise systems in Australia alone, choosing an investment that suits your needs is imperative. It’s important to do your homework and know what you are getting yourself into.
To help, Franchising Director Jason Daniels breaks down the financial aspects that you should consider before buying a franchise.
to assess the financial viability of a possible franchise investment, consider the following:
- The return on investment over the course of the franchise.
- Your ability to repay the bank.
- Your ability to earn a benchmark wage.
- The break-even profit over the life of the franchise
other things to think about:
- Does it suit your lifestyle?
- Does it meet your earning expectations?
- Does it meet your risk appetite?
- Do you understand the implications of taking on a lease? And do you understand your obligations under the franchise agreement?
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general advice disclaimer
The information provided on this website is a brief overview and does not constitute any type of advice. We endeavour to ensure that the information provided is accurate however information may become outdated as legislation, policies, regulations and other considerations constantly change. Individuals must not rely on this information to make a financial, investment or legal decision. Please consult with an appropriate professional before making any decision.