The benefits of an experienced franchisor
Chris Hanlon | General Manager | Muzz Buzz
Franchising in Australia has been embraced like no other country by a population of people looking to invest and obtain financial security. The franchise sector is growing at a rapid rate with over 1000 franchises to choose from, the question is which one to choose.
People have this image of being able to work when they want for as long as they want, be their own boss and be in total control, no worries. The reality is very different. You often work longer hours, are under more pressure and work life balance goes out the window.
Franchising is often an attractive option for people that want to work for themselves. But if you are afraid of hard work, or think life as a franchisee is easy, then think again. Some people look at franchising the wrong way; they tend to think of buying a franchise as providing them a job.
That's a dangerous attitude, definitely one way to get you into trouble. One of the biggest mistakes people make is they think they can run a franchise remotely, simply appoint a manager to open the doors and the business will run itself. That's a mistake and if I was investing money in a business I would be working hard to ensure it was a success.
I've seen it plenty of times. You have two identical stores and one franchisee is involved in the business and the other isn't. You know which one is going to make money. You can run a business under management as long have you have regular input.
This where the real value of having experienced franchisor support staff can benefit your business and avoid some of the mistakes in the first place.
At Muzz Buzz, we want prospective franchisees to have as much information about our business and what is expected of them as a franchisee before they decide to purchase a franchise. We encourage them to talk to as many of our existing franchisees as they can, do as much research as possible by consulting the Franchise Council of Australia and reading the results of surveys such as those conducted by topfranchise.com.au.
Before deciding on a franchise, I would consider the following points:
- Is the franchisor going to assist with helping you find your franchise location?
- Are you going to have your own franchise territory?
This is a very important point as it helps protect your investment long-term.
- Do they do lease negotiations?
- Are supplier contracts already set up?
- Do they have a detailed franchise operation manual with hands on operations support?
- After the initial training do you receive ongoing training from qualified people?
- Is there assistance with local store marketing and does the franchisor support your business with corporate marketing initiatives?
- And more importantly are the people working for the franchisor experienced?
Muzz Buzz provides all of the services mentioned above and more.
At Muzz Buzz, we are fortunate to have some very experienced personnel starting with our executive Chairman Warren Reynolds who has had a very diverse career including a lengthy period of successfully running recruitment companies as well as establishing new ones. Warren now holds directorships in several companies with diverse interest including the Muzz Buzz Coffee Chain which he is passionate about.
Our General Manager of Operations, Geoff Elias, has been involved in many aspects of food retailing since 1985, including running a store himself as well as looking after multisite operations. He also has done extensive training such as running a restaurant, training and leading a team, train the trainer and operating multiple sites. Geoff is a hands-on person and has extensive knowledge of Muzz Buzz operations and training.
As for myself, I have had over 30 years experience in retail and wholesale, with over 20 years experience in the highly competitive music industry. Most recently I worked at the Subway Development office in Melbourne for 4 years which involved locating sites, franchise sales and great deal of my role was assisting franchisee with marketing. I've been at Muzz Buzz for 2 years now as General Manager and I'm very excited about the future of our business.
To sum up, you should do your homework and spend as much time as possible talking to your franchisor prior to making a commitment. Once you are confident you have chosen the right business opportunity for you, continue to listen to your franchisor, use their expertise and resources after all that is what they are there for.
If you do your research you can have a successful franchise business with a good work life balance.
If you're looking to do your research go to the Top 10 In Different Categories page to see the top franchises in seven key performance areas.