FRANCHISING Q & A

The 3 key points to buying a franchise are as follows.

• Evaluate yourself.
• Evaluate the system.
• Seek professional advice.

In evaluating yourself and the system, it can help to answer the following questions.
1. Has sufficient testing of the system taken place?
2. What is the selection criteria?
3. Does the franchisor have sufficient capital to allow for growth, profit lead times and other contingencies?
4. What are the franchisor’s credentials?
5. What is the background of the franchise system?
6. What are your financial expectations?
7. Is the agreement fair, reasonable and legal?
8. How do I finance my business?

Once you’ve answered as many of these as you can, then it’s time to move to the next steps!

It’s very important to have appropriate advice when reviewing any new business opportunity. If you wish to engage a solicitor, you need to find one experienced in franchise agreements to work with you to assess the fairness of the proposed franchise contract. In most cases much of the contract may be non-negotiable. You need to evaluate whether the terms and conditions of the contract are acceptable to you and to identify areas that may need to be addressed with the franchisor.

Firstly you must find out if you can afford to buy the franchise. Ask the franchisor if they have any affiliations with lending institutions and if so what are they. There are many financial institutions that provide franchisee funding and advice.

Yes. A franchise business can be sold like any other ongoing concern.

No. Like all businesses a franchised business can also fail. To be successful a franchisee must follow the franchise business system; with commitment and enthusiasm. Being part of a franchise group makes being in business a lot easier. A franchisor provides the tools, know how, support, business system and brand, it is up to the business owner to make that work to their advantage. There is no doubt that joining a proving winning business greatly increases your opportunity for success!

Legal Considerations
A prospective franchisee must seek professional advice from qualified and experienced advisors. There are several legal and regulatory areas that impact on franchising. Generally, franchising is regulated under the same general law provisions that govern all commercial activities The Competition and Consumer Act 2010 is the primary legislation governing franchising. Franchising is regulated by the Franchise Code and monitored and regulated by the A.C.C.C.

The Franchising Code of Conduct
Introduced in 1998 to regulate the franchise sector and introduce standard protections for franchisees. Requires franchisors to provide a mandatory disclosure of information about the business. Potential franchisees should read the Franchise Manual provided by the ACCC as it summarises the Code and will help you to understand how it works before buying a franchise. We supply this to you as part of our business information pack.

The Disclosure Document
A franchisor must provide a prospective franchisee with a copy of the code of conduct and the disclosure document.
The information disclosed covers issues relevant to the commercial aspects of the franchise and relevant history that you need to know about your new business partners.

We typically use 2/3 less water than washing your dog at home. Our Hydrobath system uses a warm water and shampoo mix during all washes, providing a deep, quality cleansing experience for your dog.

Bio Degradable Products:

Our Authorised Products are made from natural ingredients and are fully biodegradable to enable the wastewater to be safely used on a garden.

In line with EPA guidelines and our care for the environment, our team are aware that they must never dispose of water into a gutter or storm water drain, and that discharged water must be run onto lawn or garden.

Marketing funds require audits and oversight that does not always benefit contributors in the long term. We include national marketing in our franchise fees and provide ongoing promotional support.

We train our team that effective marketing doesn’t mean wasting dollars. By following our system, much of your marketing is low cost or free. More importantly, new franchisees typically earn their expected incomes within 3-6 months, negating the need for lengthy marketing fund contributions. Why pay into a fund for years beyond the point of benefit? You keep more of what you earn.

We let our eye-catching trailers directly market your services. Our goal is getting your business off the ground quickly while providing ongoing training and cost-efficient marketing.

Income guarantees often have limiting conditions. Franchises that offer income guarantees typically count any new customer lead as income, even if the franchisee declines the lead or takes it, but the customer then declines service.

Franchisees may decline leads due to distance from their home base. Dog owners may decline service if dissatisfied with pricing or offerings. Declined leads count toward the income guarantee. Taking further away leads results in lost income from increased travel time.

In essence, income guarantees often benefit the Franchisor brand more than individual franchisees. For example, franchisees may be offered work in another franchisee’s area within the same brand, creating in-system competition. With a guarantee, one franchisee could lose a customer to another franchisee offering lower prices, but the brand still counts this as guaranteed income.

We do business differently.  Dash Dog Wash franchisees join a collaborative team invested in everyone’s success. Your achievements lead to brand growth and this helps you and your fellow Dash DogWashers. Our groomers operate as one team,  protecting each other’s income potential by maximizing local presence and pricing.

Income guarantees expire, but our goal is setting you up for long-term profitability, working close to home. Most franchisees meet their income goals in 3-6 months without needing guarantees.

We prioritize building sustainable businesses over short-term income possibilities.