Business Franchise Australia & New Zealand — May-June 2017

Being a franchisee often means meeting the
franchisor’s business targets and following the
franchisor’s marketing strategy.

Franchisors may also be involved with site
selection and shop fitting, outlet design and
equipment purchasing, market research,
advertising and merchandising, and/or
securing finance.

If you haven’t run a business before and have
limited business experience, this involvement
may be very welcome, but depending on
the conditions of the individual franchise
agreement and your own personality, you
may feel restricted by the established business
model and the limited opportunity to operate
outside set boundaries.

“the Franchising code of

conduct, most recently

updated in 2015, sets the

groundwork for fair dealings

between franchisors and

franchisees but the onus

is still on both parties to

be willing and able to meet

their obligations under the

franchise agreement and the

code of conduct.”

• david eaton

In purchasing any business, it is imperative

to check that the figures being offered are

realistic and achievable. Most franchisors are

honest and genuine in their dealings with

franchisees, but some are not.

Sophie was a hairdresser who had

been told about a mobile hairdressing

franchise. She met the representative who

provided her with a copy of the franchise

agreement, a disclosure document and

some information about the average

earnings for the franchisees. Sophie’s

brother told her to read the disclosure

document carefully and contact some

past and present franchisees to talk

about their experiences working with

the franchisor, and to verify the earnings

information.

Too excited about the prospect of

working for herself, Sophie signed

the documentation, without speaking

to other franchisees or checking the

earnings.

Two weeks into her new business, she

realised her profitability was limited as

she had to buy all shampoo, conditioner

and colour from her franchisor at his

prescribed prices (more expensive than

her usual supplier) and she couldn’t

charge more than his price list for her

services.

She also discovered that ten former

franchisees had reported the franchisor

to the Australian Competition and

Consumer Commission for his

misleading behaviour.

try before you buy

Knowing what’s involved with franchising

before deciding which franchise to buy, or

whether the model is right for you, is a sound

course of action.

For current and potential business owners

in Western Australia, the SBdC can

provide free, independent and confidential

advice and guidance on all aspects of

buying, starting and running a franchise or

other small business. Call 13 12 49 or visit:

http://www.smallbusiness.wa.gov.au.

The Griffith University Asia-Pacific Centre

for Franchising Excellence offers a range

of free online courses on choosing and

evaluating franchises: http://www.franchise.edu.

au/home/education/for-franchisees/how-to-

choose-a-franchise-that-is-right-for-you

hAve Your sAY

http://www.7elevenfranchise.com.au

START YOUR SUCCESS STORY TODAY

FRANCHISING

LEADER OF

YOUR OWN

SUCCESS

Be the

Welcome to a world of opportunity,

brought to you by 7-Eleven, the

brand that’s world famous.

A 7-Eleven franchise is a

partnership in success.

When you buy a 7-Eleven franchise,

you buy two things. Firstly, a brand

name that’s recognised around

the world, and secondly a business

system that works, one that

provides more support than most

other franchise networks.

Contact Details

Franchise Development Managers

Brett Reading

Queensland

E-Mail: [email protected]

Mobile: 0407 877 674

Peter O’Hara

Victoria / Western Australia

E-Mail: [email protected]

Mobile: 0408 175 534

Shayne Boogaard

New South Wales

E-Mail: [email protected]

Mobile: 0418 136 156

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE

Our stores are open 24/7, so we’re with you 24

hours a day, supporting you in every part of

your operation.

From setup, to training, to marketing, and

even to book-keeping, we’ll help you turn your

new business into a solid investment.

ƒ We set up shop for you and give you

full training

ƒ We take payroll admin off your hands

and help with the book-keeping

ƒ We deal with suppliers to get you the

best products

ƒ We manage the fuel

ƒ We have brands you won’t find anywhere

else

ƒ We provide advertising and promotional

support

Financials

An initial investment of between $400,000 and

$1,000,000 + is what is required to become

a 7-Eleven Franchisee, so it’s certainly a big

decision to make.

The 7-Eleven franchised business model is one

with a difference, because we tie our financial

success to the success of our Franchisees.

7-Eleven shares in the profits, so it’s in our

interest to ensure that we continually work

with you to meet the needs of your customers

to grow sales, and to grow profits.

Our gross profit split is determined

progressively, and there are other shared

income stream profits, such as commissions.