Article was published in Business Franchise AU & NZ Magazine Jan/Feb 2014
Where should I go?
How do I know my territory is sufficient to support me? Do I get what I am paying for?
Service franchises have a great range of entry costs, from free entry and a high level of royalties, to a high entry cost, with lower royalties, or a medium entry cost and a flat weekly or monthly payment. No matter which model you are working with, over a period of time you can estimate the payments to your Franchisor, and is this value for what you receive?
In the Service businesses, we often see large areas set out with very strict boundaries. The Financial institutions such as ANZ, Mortgage Choice, Aussie and CBA all have models like this, as they then allocate leads, and it needs to go to the right franchisee (who has paid for that area).
Peter Buckingham is the Managing Director of Spectrum Analysis Australia. He is a certified Management Consultant, and a Fellow of the FCA and IMC.