Franchising can be a fantastic path to business ownership in Australia, offering the support of an established brand while allowing you to take control of your career. But buying a franchise isn’t a decision to rush into. With over 1,100 franchise systems operating in Australia, according to the Franchise Council of Australia, the choices—and the stakes—are high. Before committing your time, money, and energy, ask yourself these seven key questions to set yourself up for success.
1. What Are My Personal and Financial Goals?
Start with a deep dive into why you want to own a franchise. Are you seeking more flexible hours? A higher income? A way out of corporate burnout? Understanding your motivations will help you evaluate if franchising is the right path and what kind of model aligns best with your lifestyle.
Also ask yourself:
- Do I want to be hands-on or hire staff to manage operations?
- How much income do I need to support my lifestyle?
- Am I looking for a quick ROI or a long-term investment?
A mismatch here can lead to frustration down the line.
2. Can I Afford the Startup and Ongoing Costs?
Franchise investments in Australia vary widely. Some mobile service franchises can cost as little as $50,000, while established food chains may exceed $500,000 or more. You’ll need to budget for:
- Initial franchise fees
- Equipment and fit-out costs
- Training
- Working capital for 6–12 months
- Ongoing royalties and marketing levies
According to the Australian Competition and Consumer Commission (ACCC), franchisors are legally required to provide a disclosure document that includes these costs. Make sure you understand every figure before proceeding.
3. Do I Understand the Industry I’m Entering?
Whether it’s food, fitness, retail, or home services, each franchise industry comes with its own customer expectations, competitive pressures, and operational challenges. For example:
- Food franchises often require long hours and strict health compliance.
- Service-based franchises may require technical expertise or licensing.
- Emerging sectors like disability care or eco-friendly businesses offer growth potential but may involve navigating regulations or complex customer needs.
Do your homework. Read industry reports, visit other franchisees, and talk to customers. IBISWorld and the ABS are great places to start.
4. How Strong Is the Franchise Brand and Support System?
A major benefit of franchising is built-in brand recognition and support. But not all franchises offer equal backing. Investigate:
- Brand reputation in your target market
- Ongoing training and operational support
- National and local marketing strategies
- Supply chain efficiency and pricing power
- Technology platforms (POS, CRM, etc.)
Ask current franchisees: Do you feel supported by the franchisor? Would you invest again?
A good franchisor treats franchisees as partners—not just fee-paying operators.
5. Have I Read and Understood the Legal Documents?
Every franchise purchase in Australia is governed by the Franchising Code of Conduct. You’ll receive a Franchise Agreement and a Disclosure Document at least 14 days before signing.
These documents can be complex and packed with legal jargon. Be on the lookout for:
- Termination clauses
- Territory rights
- Performance expectations
- Restrictions after exit
- Dispute resolution procedures
Engage a lawyer or advisor who specialises in franchising. General business solicitors might miss red flags that could cost you later.
6. Am I Ready to Commit to This Lifestyle?
Owning a franchise is not passive income. It’s a full-on commitment, especially in the early stages. You’ll be responsible for:
- Hiring and managing staff
- Handling customer complaints
- Hitting sales targets
- Meeting compliance standards
- Marketing your location
Even with franchisor support, success depends on your dedication and resilience. Are you prepared for the workload—and the emotional rollercoaster?
7. What’s My Exit Strategy?
No one likes to think about the end before they begin, but planning your exit is smart business. Ask:
- Is the franchise easily resellable?
- Are there conditions or penalties for exiting?
- Can I pass the business on to a family member?
Understanding your long-term options helps you make better decisions from the start.
Final Thoughts: Franchising Is a Business, Not a Shortcut
Franchising in Australia continues to grow, with sectors like health, home services, and speciality food leading the way. But even a successful brand can’t guarantee your success. It comes down to research, preparation, and alignment between your goals and the business model.
Whether you’re an aspiring entrepreneur or a corporate escapee, asking the right questions now will help you avoid costly mistakes later.
Ready to take the leap into franchise ownership? Explore vetted opportunities at Growth Hive or join the conversation in our Facebook community to learn from others on the same journey.
