Feature Supplement: Franchises in Your Price Range
F ROM DREAM TO REALITY: SELECTING THE RIGHT FRANCHISE
AFFORDABLE FRANCHISES IN YOUR PRICE RANGE FRANCHISE
SUCCESS IN 2025: NAVIGATING NEW FRONTIERS
DO YOU KNOW WHAT YOU ARE GETTING AND THE COSTS INVOLVED?
Poolwerx: With Gary, Grace & James howden from Poolwerx
50 Foodco: Kick-start Your café Dream with Jamica blue & Muffin break
40 Tony Meredith: from Dream To reality: selecting the right franchise
44 Robert Toth: affordable franchises in Your Price range
48 Brian & Prue Keen: franchise success in 2025
52 Stewart Germann: Do You Know What You are Getting and The costs involved ?
Building a Legacy: m eet aussie h urstville’s New Franchisee
Alya Manji is stepping into an inspiring role as the new franchisee of Aussie Hurstville, continuing a family legacy that spans nearly three decades. For Alya, this milestone isn’t just about running a business—it’s about building on a foundation her father, Mehboob Manji, laid as Aussie’s longest-tenured broker.
Mehboob, who will celebrate 30 years with aussie in 2025, has dedicated his career to helping families achieve their property dreams. n ow, he’s passing the torch to alya, who has spent the past decade immersed in the business. a s a high-performing broker with strong community ties, alya is ready to scale the business, having already added a new broker to her team with plans for future growth.
This transition exemplifies what makes aussie unique: the opportunity to not only build a thriving business but also create a legacy. a s an iconic australian brand, aussie champions families— both those searching for homes and those building businesses.
With Mehboob remaining as a store broker to support a smooth transition, aussie hurstville is poised for continued success under
alya’s leadership. This story is proof that with aussie, you’re not just joining a business—you’re building something meaningful for generations to come.
Every day in Australia and New Zealand, our franchisees help children in their local communities to help children develop fundamental skills in mathematics and English.
“The skills i learnt in Kumon, such as reading comprehension and basic mathematics concepts, will help me apply my knowledge wherever i go,” explains harry, 11 years old, a Kumon english programme completer and currently studying Kumon Mathematics more than five years of his school grade.
“Kumon has taught me self-discipline as i have to practise every day, which will be helpful later in life when i enter university and the workforce.”
a s our franchisees instruct and nurture students like harry, they have the autonomy to be their own boss within the Kumon franchise model, benefiting from intensive office support to ensure business success.
Our franchisees come from a diverse range of professional and personal backgrounds. and in 2025, all new franchisees will have
the opportunity to offer KuMO n cO nnec T. Through allowing students to study our world-class mathematics and english worksheets on a tablet device, KuMO n cO nnec T blends tradition and innovation.
if you are considering a career change in
2025, why not become a Kumon franchisee? For details and to register, visit https://www.kumoninstructors.com.au/ Franchise.
Or, contact our recruitment team at: info-au@kumon.com.au.
> Bigger floorplans
> Expanded visitor promotion
> New theatres on show floor
> Stand bookings now open
Sydney 24-25 May 2025
Brisbane 26-27 July 2025
Melbourne 30-31 August 2025
From d ream t o r eaLity: seleC ting t he r ight
Fran C hise
Was one of your New Year’s resolutions to start your own business? If so, the opportunity to turn that dream into reality could be closer than you think with franchising.
Franchising allows you to step into the entrepreneurial world with the backing of a trusted brand, proven systems, and ongoing support. Whether you’re working with a modest budget or ready to make a significant investment, there’s a franchise to suit nearly every financial situation.
That said, success in franchising isn’t just about picking a business within your price range. It’s about aligning the franchise with your goals, understanding the total costs, and preparing for the challenges ahead.
In this article, I’ll share five key considerations for starting a franchise that fits your budget while setting you up for longterm success.
1Understanding your Financial capacity
Franchises come in all shapes, sizes, and price ranges, which is why clarity on your financial capacity is the first step. There’s no point teasing yourself with the thoughts of owning a major fast-food restaurant initially, when a mobile services business may be more within your reach.
• Low-Cost Franchises: Investments between $10,000 and $50,000, often for mobile services or home-based businesses with minimal overheads.
• Mid-Tier Franchises: Ranging from $50,000 to $250,000, typically covering sectors like boutique fitness, food trucks, or retail.
• High-Investment Franchises: $250,000 and above, including major fast-food chains and premium retail stores.
Remember, the initial franchise investment is only part of the financial picture. Factor in setup costs, ongoing royalties, marketing contributions, and working capital. Align these costs with your financial goals. Are you looking to supplement your income, become your own boss, or create a thriving, scalable enterprise? Clarity here can make or break your decision.
2selecting the right Franchise for you
Once you’ve set your budget, narrow down your options to franchises that align with your interests and goals. Just because you can
afford a type of franchise, doesn’t make it the right choice. The right choice is the franchise that aligns with your passions, values, and has market demand.
• Food & Beverage: From coffee carts to gourmet restaurants, food franchises cater to a range of budgets and tastes (pardon the pun).
• Education: Learning centres and tutoring businesses are booming, often falling within the mid-tier range.
• Service-Based Businesses: Pest control, cleaning, or repair services are often lowcost, high-demand opportunities.
Buying a franchise is a big decision, therefore select a franchise that you can bound out of bed for, even on those (inevitable) challenging days. Research thoroughly and ask, “Can I see myself growing this franchise over the long term?”
3Leverage the power of support and training
One of the greatest advantages of franchising is the built-in support. When evaluating opportunities, consider the quality of the franchisor’s systems:
• Comprehensive Training: Does the franchisor equip you with the knowledge to be technically proficient and run your franchise effectively? Running a successful franchise is different to being skilled at a particular task.
• Marketing Support: How will they help you attract and retain customers? Generating demand is the biggest opportunity as most new franchises start with zero customers.
• Operational Guidance: Are there systems to streamline day-to-day management and operations?
Support doesn’t end with onboarding. Many franchisors offer ongoing development programs, which are invaluable as your franchise scales. By choosing a franchise model that invests in the growth of its franchisees, you will reap the rewards and benefits over time.
4assessing growth potential
Whilst a number of franchisees want to buy a lifestyle business, there are others who want more than a job, instead seeing a franchise as a springboard for growth. If you are one of the latter then it’s important that you evaluate the scalability of your chosen franchise:
• Multiple Revenue Streams: Can you diversify your offerings to increase income?
tony meredith Coaching focuses on helping business owners grow Sales, Increase Profits, and Regain Time. Tony Meredith Coaching started in 2018 and works with hundreds of small-medium businesses across Australia, in the areas of Franchising, Retail, Services, Manufacturing, and Trades. Tony has over 25 years’ experience working for some of the world’s largest corporations in a variety of senior sales and leadership roles. Contact Tony and his team if you want to grow an outstanding franchise business. info@tonymeredithcoaching.com.au https://tonymeredithcoaching.com.au/ https://www.linkedin.com/in/tony-meredith-coach/ https://www.facebook.com/tonymeredithcoaching
• Market Expansion: How easy is it to grow your customer base, hire staff, or open additional locations?
• Brand Strength: Does the franchise have a solid reputation that supports scalability?
Growth requires preparation. Many successful franchisees invest in business coaching or advanced training to develop their leadership, marketing, sales, and business acumen, enabling them to tackle challenges and seize new opportunities effectively.
5conducting due diligence
Finally, thorough research is nonnegotiable. Before signing on the dotted line, do your homework:
• Speak with existing franchisees to gain insights into their experiences, profitability, and challenges.
• Review the franchisor’s financial performance and the average earnings of franchisees.
• Identify red flags, such as high franchisee turnover (Not money. Franchisees leaving the group) or vague profitability claims.
• Seek independent advice. Create your
‘A’ team of professionals around you, i.e. lawyer, accountant, commercial broker, financial planner.
Be patient! While the allure of owning your own franchise can be exciting, the costs of rushing into the wrong opportunity can be significant. This is where a comprehensive due diligence process is imperative.
summary
Franchising is a fantastic pathway to business ownership, offering the safety net of an established system while allowing you to build something of your own. By carefully considering your financial capacity, aligning with the right franchise, and leveraging available support, you can set yourself up for sustainable success. Remember, the franchisor provides the system, but your success ultimately hinges on your ability to follow this system and trust the process.
Whether you’re exploring your first franchise or looking to expand your portfolio, the journey is yours to shape. With the right tools and mindset, franchising can be more than just a business, it can be the foundation for a thriving future. v
Gary, you grew your Poolwerx Horsham store to $1 million in revenue within its first year— what do you attribute to this success?
It all comes down to hard work, building strong relationships, and delivering a consistent service that our clients can rely on. When we started the Horsham store, we knew we were filling a real need in the community for expert pool care. We focused on quality, building trust, and delivering on our promises every time. Being part of the Poolwerx network, with its industryleading support, also gave us the tools and confidence to hit the ground running.
You’ve described succession planning as an important part of your business journey. Why is this a priority for you?
For me, the best inheritance I can give my children isn’t just financial—it’s a blueprint for success. Building a strong business with Grace and James alongside me means I’m preparing them for the future. One day, they’ll take the reins of Poolwerx Horsham, and I want to ensure they have the skills, knowledge, and passion to keep the business
with G ARY, G RACE & JAMES H OWDEN fro M p oolwerx
thriving. It’s not just about today; it’s about creating long-term stability for our family.
Grace and James are key players in the business. How has it been working alongside your children?
It’s incredibly rewarding. Grace and James bring fresh perspectives, new ideas, and energy to the business while sharing the same values I’ve built it on. Grace’s recent recognition as the Retail Team Member of the Year at the Poolwerx Convention shows the dedication and talent she brings to her role. I’m proud of what they’ve both achieved and excited for what’s to come as they step up to lead the business one day.
What’s the secret to balancing family and business, especially when you’re working so closely together?
It’s all about communication and
boundaries. When we’re at work, we focus on the business, and when we’re at home, we make time to enjoy being a family. We respect each other’s roles and strengths, and we’re always open to feedback. I think that mutual respect, combined with our shared goal of success, helps us work well together without crossing those family-business lines.
What advice do you have for other business owners considering succession planning?
Start early and involve your family in the process. Succession planning isn’t something you can leave until the last minute— it’s about gradually building the skills, confidence, and leadership abilities of the next generation. Be transparent about your vision, set clear expectations, and provide opportunities for growth. For me, succession planning has been about future-proofing our family’s wellbeing, and that’s a gift I’m proud to pass on. v
A FFORDABLE F RANCHISES IN YOUR PRICE RANGE
There are so many low-cost franchises on offer in the sector these days that may be attractive to someone who has been made redundant or just tired of their existing career path.
You may want to be your own and have some flexibility in the hours you work.
Many of these franchises are home services or mobile franchises.
You may picture yourself in your own van, wind in your hair, dog in the back coffee in hand heading off to your next job rather than being tied to a retail shop or office.
Many of these franchise opportunities are also affordable and you don’t need to mortgage your home to get into one.
The full-fledged franchise with a retail footprint can set you back from $300,000 to $600,000 with all of the start-up costs. A big investment and a big risk!
An affordable franchise such as a mobile franchise in sectors such as lawn mowing, home maintenance, car repairs, house cleaning, roof cleaning, courier services or home care are generally lower cost and means you don’t have to mortgage the house to enter into it.
These franchises also avoid large, fixed overheads such as rent, and staff costs
as opposed to a owner operator mobile franchise.
A low cost or mobile franchises can be a great option for many people!
Recent events such as business closures redundancies and cost of living pressures have in fact boosted the interest in franchising and many fixed site franchisors realised that they can cut overheads and be more profitable without fixed premises!
We are seeing a “franchise frenzy” across the whole franchise sector particularly at the low-cost franchise model end, but there are still risks involved and franchisees need to do their research and choose wisely.
benefits of a low cost /mobile franchise
There are a great many benefits to taking up a low cost /mobile franchise as opposed to a fixed site franchise which includes:
• Avoiding the high up-front costs of a retail franchise such as occupancy costs and security deposits -rent and rates ;
• Usually only modest stock levels are needed as opposed to sock in a fixed site;
• Often there is no need to employ other staff;
• Flexible work hours;
• Operational costs are generally lower;
• Less working capital needed for the first 12 months of operation
• Social media marketing for leads.
Taking the business to the consumer’s home or office is also a great way to generate work and build the brand in the market and utilise marketing via social media and Instagram.
the size of the franchise market
The Franchise sector has over the last 5 years grown at 2.4% to around $169.5bn.
The mobile franchise sector accounts for a large share of this revenue which makes sense when you consider the huge array of mobile franchises on offer from Jim’s Mowing with over 1,500 franchisees, VIP Home Services over 1,000 in (AU + NZ), Cleantastic over 900, couriers such as Aramex (ex-Fastway) 900+, Couriers Please over 700 and Hire A Hubby with over 300 franchisees and the list goes on.
While many large format franchised business profits are down due to increased operational and supply costs the good news is those same cost pressures do not impact as greatly on the smaller franchises although with inflation and higher interest rates and cost of living pressures we are seeing an increase in business insolvencies.
Enough of this doom and gloom!!
With change comes opportunity and as some
businesses fail this can open up the same market to a successful brand or operator who can pick up greater market share !
Mobile and fixed site franchise costs
Let’s talk real dollars ! Ok here comes the song reference, which had to come there are no lack of songs about money here are my top 3 Jame Brown - I got Money, Pink FloydMoney and Abba- Money Money Money .… Abba liked to keep singing it and it seemed to work for them!
With a mobile franchise, the up-front franchise fee is usually the biggest cost (it could be as low as $8,000 up to $25,000.00 apart from the need to lease a vehicle, branding and equipment costs.
Franchise Fees
The Franchise Fee is the upfront Fee charged by the Franchisor for the grant of the rights. The trend has been for Franchisors to reduce this fee to make it more attractive to franchisees due to the competitive franchise market.
The Franchise Fee for a mobile franchise may be as low as $15,000 and up to $30,000 so the overall cost to set up and run a mobile franchise may be in the range of $60 to $100,000 (high end) to get moving. The vehicle and equipment can usually be leased, which reduces the up-front capital outlay.
robert toth is Special Counsel and Franchise Specialist at Sanicki l awyers with over 35 years of experience in franchise, licensing and distribution law.
Robert is also an Accredited Commercial l aw Specialist and regularly publishes articles on franchising in Australia and overseas journals and acts for a number of overseas, local and master franchisors and acts in dispute resolution and mediations.
contact robert@sanickilawyers.com.au or even call him on mobile 0412 67 37 57 www.sanickilawyers.com.au
“ We are seeing a “franchise frenzy” across the whole franchise sector particularly at the low-cost franchise model end, but there are still risks involved and franchisees need to do their research and choose wisely.”
The Franchise Fee for a fixed site franchise may be $30,000 to $80,000 plus fit out costs, stock and a myriad of other costs so the startup costs could be well over $200,000.00 up to $350,000.
Even though a smaller low cost or mobile franchise has less up-front cost (which means less risk) that may also mean a smaller income or return. You could be simply buying yourself a job and there is nothing wrong with that of course if that is your intention. It just may be that you do not then have a capital asset or much goodwill to sell when you want to exit.
ongoing Fees – royalties and marketing
Some mobile and small franchise systems charge a fixed weekly or monthly fee instead of a royalty based on gross turnover which for a fixed site franchise can range from 6% to10% plus a marketing fee of between 2% to 4% .
Therefore, the amount payable from a franchisee’s gross turnover (not their profit ) can range from 10% up to 14% all up.
A weekly fixed fee with a smaller franchise can be positive if the business is successful and growing but can otherwise be a fixed cost that becomes a debt to the franchisor if you are not actively working the franchise.
The working capital requirements for a mobile franchise are also more cash flow affordable than for a fixed site franchise over the first six or twelve months of operation .
all in all, a low cost or mobile franchise may be a great option but it won’t suit everyone
Things to look out for:
a. Will you get an allocated and exclusive territory, or will the franchisor or other franchisees be able to sell to customers in your territory?
b. What is the franchisors “on line” policy as far as directing leads to you, in your territory? Is it fair and clear how that works?
c. Is the territory near where you live? as travelling across town to service your territory may become tiring and costly.
d. Do you have to travel long distances within your territory to service clients for a small
“ You should ensure the franchisor provides you adequate training up front and ongoing training and support, and that they have the latest booking and CRM software for ease of bookings and payment.”
fee in which there may be little profit in each job?
e. Can you still take time off and have a break without impacting on the business if you are a sole trader?
f. What is the franchisors policy if you want to go on leave?
do the numbers work?
Even though there may be lower entry costs you still need to do your own financial due diligence and cash flows (with the assistance of your accountant and financial advisor) to see if the business is sufficiently viable to at least pay you a reasonable salary. If the numbers don’t work, then don’t commit, as mobile franchises can be di fficult to sell.
As I said you may be buying yourself a job but you need to ensure you can take a reasonable salary for your effort along the way.
There is always a risk that at the end of your franchise term you have nothing to sell .
The new Franchise Code that kicks in in April 2025 will benefit franchisees as it further restricts the ability of a Franchisor to enforce any non compete or restraint of trade at the end of a franchise term.
training and support
You should ensure the franchisor provides you adequate training up front and ongoing training and support, and that they have the latest booking and CRM software for ease of bookings and payment.
There is really no excuse these days for franchisors having outdated software or a franchisee having to fax sales details at the end of each week!
We are living in a new digital age and if the franchisor is not up to speed with technology I would move on!
Does the franchisor have a social media presence, and do they charge a marketing fee which is spent on misplaced and expensive advertising, that’s not really that effective?
Talk to other franchisees in the system to get a gauge on their happiness level with the
franchise and its support. If the feedback is negative that’s a red flag.
your exit plan
Most mobile franchises have a limited life span of say 4 to 6 years after which you will likely want to move on, therefore, you need to look at what the transfer or assignment costs are and any restrictions on selling the franchise and any restraint clauses that may restrict you from carrying on a similar business when you sell or get to the end of your franchise term.
If things don’t go to plan it can be di fficult to get out and sell a mobile franchise and you may still crystallize a loss if you walk away during the franchise term.
There are lots of tricks and traps when looking to become a franchisee so before you get on the road again get advice from a Franchise Law Specialist who is a member of the FCA as we know the good, the bad and the ugly in franchising.
That way you will limit your risk and make an informed decision before you hit the road! v
Franchise s uccess in 2025: n avigating new Frontiers
Emerging trends and critical insights shaping the future of franchising in the year ahead.
It’s no secret that the business climate is changing today at a faster pace than ever before, and the franchise sector is not immune.
In fact, because franchising is a business structure within which the franchisor is responsible for setting up and helping franchisees do business better, it can be said franchise groups should be leaders in embracing the best in new business trends. The best and most successful franchise groups certainly do.
So, what are these trends and how will they impact on the everyday business of franchising in Australia.
embracing technology:
aI, automation, and digital transformation
This is probably top of the list. We have been chatting about the need for franchisors to embrace a digital way of doing business for several years now. Adopted intelligently, digitisation means the group and your franchisees in particular can more easily and consistently run their side of the business, giving them time to focus on what matters, serving your customers and bringing in the money.
“ Those who embrace these advancements early will gain a competitive edge, while those who lag may struggle to stay relevant in an increasingly digital marketplace.”
In 2025 this must include AI, and automation must work to make the job easier for customers and franchisees. From customer service chatbots to supply chain management, technology will continue to streamline processes, reduce costs, and enhance customer experience. AI-driven data analytics will also provide valuable insights, enabling franchise owners to make smarter decisions.
And yes, this means investment in cybersecurity will be crucial to protect sensitive data.
Those who embrace these advancements early will gain a competitive edge, while those who lag may struggle to stay relevant in an increasingly digital marketplace.
(We had a blunt reminder about security recently when Brian suffered Identify Theft engineered through a very clever MyGov interception. That smart that it fooled the ATO as well. A chance discovery stopped the fraud – but took nine, yes nine hours to attend to. So be warned.)
evolving customer expectations: personalization and convenience
Hand in hand with the increasingly digital business world, customer expectations are evolving rapidly, with personalization and convenience becoming top priorities. Don’t let the digital world mean you forget the human touch.
Face to face is still important so leave room for that to happen. But also recognise that within the digital world people must feel they are unique. Leverage data you have on each customer to offer a tailored experience, such as personalised promotions and localised products. Even Amazon, Subway and Maccas recognise that need by offering different services and products in different markets. Customers also look for improved service such as great speed of service, easy payment options, and omnichannel accessibility, which will become more critical.
And things such as loyalty programs need to feel personal and meaningful.
By focusing on customer-centric trends, franchisees can focus on developing deeper connections with their clientele, boosting retention and long-term loyalty in a competitive landscape.
sustainability as a core value
Sustainability is no longer optional—it’s a competitive necessity.
In 2025, franchises must prioritize ecofriendly practices, from sourcing sustainable materials to reducing waste and energy consumption. Consumers are increasingly supporting brands that align with their values, and franchisors must set clear environmental goals.
Implement green initiatives, such as packaging alternatives or carbon-neutral strategies, can also enhance brand image. It’s important though to be true to these values. Customers are sophisticated and can see through slick marketing without substance. Painting the service centre forecourt green will no longer count as having a green business.
So, don’t be shy or modest, shout about it by letting everyone know what you’re doing. Transparency in sustainability efforts will build trust and loyalty, attracting increasingly environmentally conscious consumers.
Workforce dynamics: retention, upskilling, and employee wellbeing
Franchise success in 2025 hinges on retaining and developing a skilled workforce. Both franchisees and staff (theirs and yours) need to be looked after. And if the digital environment is to work, franchisors must focus on upskilling everyone to meet the demands of a tech-driven environment as it sweeps forward at an alarming pace.
Employee well-being will also be a critical factor, with mental health support and a strong workplace culture enhancing retention. Investing in people is not just a moral imperative but a strategic advantage in maintaining operational excellence.
Offering flexible work options, competitive benefits, and robust training programs will continue to be essential.
There’s also a growing trend towards avoiding “heart sinkers”—the employees who drain energy and dampen morale. The US calls it a “No Jerks Policy,” the UK calls it “No Arseholes,” and in Australia... well, let’s just say we’ve come up with something a bit blunter.
regulatory shifts: staying compliant and agile
It is no secret that the franchise sector has been the subject of significant change over the past few years with Parliamentary Committees examining the way business is run and reflecting their deliberations in
Brian Keen has been involved in the franchise industry for more than 30 years and prue has been involved with systems and business for as long. Together they founded Franchise Simply, Systems2grow and Microloan Foundation Australia. Brian’s on-the-ground business experience as a multi-unit franchisee, franchisor and consultant helping many of the big names create their own franchise systems and growth over the years combined with Prue’s structured approach has been fed into Franchise Simply, helping today’s SMEs and Franchisors grow their business by franchising.
www.franchisesimply.com.au | www.systems2grow.com
changes to the Franchise Code of Conduct. Other business legislation has also changed, look at the Fair Work Act which puts more responsibility on franchisors to see their requirements are met.
Change at this level will not go away. Franchise businesses must stay vigilant as regulatory landscapes evolve.
In 2025, more changes in labour laws, tax policies, and data protection regulations could significantly impact operations. Franchisors and franchisees must stay informed and agile, adapting their practices to remain compliant. Engaging legal and compliance experts will help navigate complex regulations. Membership of a leading industry body such as the Franchise Council of Australia (FCA) can keep you well informed on this front. Building flexibility into franchise agreements and staying proactive in addressing policy changes will position franchises for sustainable growth amidst an ever-changing legal environment.
Conclusion: Setting the Course for Success
The future of franchising in 2025 is brimming with both challenge and opportunity. Franchisors that embrace digital transformation, personalise customer experiences, commit to sustainability, support their workforce, and stay ahead of regulatory change will be the ones to watch.
These trends aren’t just “nice ideas”—they’re essential for success. By staying agile, futurefocused, and people-centred, franchise groups can do what they do best - thrive in a rapidly evolving world. The most successful will be those who lead the way, not follow it. v
Brian and prue Keen
KICK-START YOUR CAFE DREAM with jamaica B lue & muffin B reaK!
Foodco offers franchisees $30k incentive to launch new Jamaica Blue or Muffin Break cafés
Foodco, the parent company behind beloved Australian café brands Jamaica Blue and Muffin Break, is excited to announce a limited time offer to prospective franchisees. Starting 1 December 2024, those who successfully sign on to purchase a new franchise in Australia before 31 March 2025, will receive a generous $30,000 excluding GST (Credit) to help kick-start their business.
This incredible opportunity applies to both Jamaica Blue, the renowned café known for its relaxed yet stylish atmosphere and expertly crafted coffee and Muffin Break, the popular bakery café offering fresh, delicious muffins and café fare. This incentive will be applied directly to their royalty account, reducing royalty payments for the early stages of their franchise journey.
key offer details:
• $30,000 excluding GST credit to be applied to new franchise royalty accounts
• This will be applied by way of Royalty Fee Credit which reduces royalty payments equivalent to $30,000
• This offer is available to new franchisees who sign a Franchise Offer and pay a deposit of $1,000 for a new location before 30 June 2025
• Full Store Development Investment must be covered by new franchisee prospects
This is a unique chance for aspiring entrepreneurs to step into the café industry with strong brand support and a proven business model. Whether you’re passionate about coffee, freshly baked goods, or both, Jamaica Blue and Muffin Break offer a compelling business opportunity with the support of Foodco’ s extensive franchise industry experience.
Terms and Conditions apply including but not limited to the requirement that franchisees cover the full Estimated Store Development Investment. The Credit will be applied to the franchisee’s account and will reduce their royalty payments until exhausted. Once the Credit is used, regular royalty payments will resume. The credit is non-transferable, non-redeemable for cash, and subject to the franchisee’s continued compliance with their franchise obligations.
Don’t miss out on this exciting opportunity to own a Jamaica Blue or Muffin Break café. Contact the Foodco Franchise Team today to learn more and take the first step toward turning your dream café into a reality.
E reception@foodco.com.au www.foodco.com.au
do you know what you are getting and the costs invo Lved?
Franchising is exciting and is a method of marketing goods and services. The franchisor owns the name, idea, secret process or piece of equipment together with the goodwill and know-how associated with it. The franchisor grants a licence or franchise to another person called the franchisee and that person can use the name, idea and process but a franchise agreement must be signed.
Franchises can involve transactions between manufacturers and wholesalers, manufacturers and retailers, wholesalers and retailers, and retailers and retailers.
What should you consider when buying a franchise? You must meet with the franchisor and find out the company’s financial health and history, whether training is an extra cost, the total cost of taking up the franchise, the long term viability of the product or service, whether there is an exclusive territory and what that means, types and amounts of advertising support, the need or otherwise to buy products from the franchisor, realistic profit and loss figures, open end restrictions, and royalty payments.
For a new or Greenfields franchise, you will have to pay upfront franchise fee. If you are buying a second-hand franchise from a franchisee who wishes to sell, then there would be a goodwill component payable to the seller as well as stock and equipment costs.
You must consider the ongoing costs. For example, you will have to pay a percentage of gross sales by way of royalty to the franchisor, a percentage of gross sales for marketing, local advertising and most likely purchase the products.
stewart g ermann founded Stewart g ermann l aw Office (Sgl) in 1993 as a boutique law firm at Auckland, new Zealand, specialising in franchising, licensing and business law.
Stewart has over 40 years’ experience in franchising law and acts for franchisors in new Zealand, Australia, USA and the UK. Sgl also acts for franchisees and provides legal advice. Stewart has spoken at franchising conferences in new Zealand, Australia, Italy, South Korea and USA and he was on the Board of the Supplier Forum of the International Franchise Association (“IFA”) for 6 years until March 2007. email: stewart@germann.co.nz | web: www.germann.co.nz
franchisor, restrictions on the franchisee’s conduct of business, a level of franchisee’s personal participation, the number of existing franchisees and their success rates, the franchisor’s right to select or approve sites, training and support guaranteed to the franchisee, financial data on the franchisor, current number of franchisees, the value and appeal of the product or service, and the renewal/termination terms.
obligations to the franchisor, including buying supplies and services, the right to renew or extend the contract beyond the original term, terms and conditions under which you may terminate the contract, description of exact training and support the franchisor must provide, precise definition of price, commissions, rental fees, leases needed to own and operate the franchise, and the precise boundaries of the territory awarded to you.
You must request a copy of the franchise disclosure document which will provide key information including the business experience and personal background of the directors, the franchisor’s track record, description of the franchise, the initial investment required, any other payments due to the
You will be asked to sign a franchisee agreement. This will set out your rights to sell or transfer ownership of the franchise in the future, a description of your heirs’ rights in the event of your death, the geographical area and types of customers to whom you may sell, the nature and extent of your
In conclusion, franchise is exciting but you must be very careful to choose an appropriate system, ascertain all of the fees payable and, most importantly, talk to at least 5 or 6 existing franchisees about the support and professionalism of the franchisor. v
