Why should I franchise my business?

Franchising a business offers many benefits. By joining The Local Guys, you have the opportunity to grow your business to a national scale. Franchise partners will be buying into your business, as opposed to you employing them. This means a higher standard of work, as franchise partners are wanting to grow and take pride in their business.

Can I still run my own business?

Yes! We encourage you to still run your own business in the background. However, this will need to be rebranded to The Local Guys group.

How do I earn money as a Divisional Franchise Partner?

Divisional Franchise Partners can earn money by onboarding, training and supporting Regional and Unit Franchise Partners. For every Franchise Partner you onboard, you will receive a large upfront sum. Additionally, you will also receive ongoing royalties for supporting them. You can also earn an income from your own services and clients.

I don’t know anything about franchising, can you help?

Of course! Through our experiences, we have been on both ends of the spectrum as franchisees ourselves, as well as franchisors. We understand every aspect of franchising and will pass this knowledge onto you.

Do you help find new franchise partners?

Similar to finding clients, we utilise Google Adwords and search engine optimisation to build our site traffic. In addition to these, we also advertise on Seek and other franchising sites to target those who are interested in a career change or to start their own business.

Do you help train and onboard new franchise partners?

One of the main benefits of joining a franchise is to receive ongoing support. Here at The Local Guys, you can contact us anytime during business hours to gain assistance on the onboarding process. We are there with you throughout the process. We also have our online training platform for additional assistance.

How long does the process take?

As you are franchising your existing business under The Local Guys brand, the onboarding process is dependent on the division. However, it is likely it will take between 6-8 weeks.

Do you help with marketing and sales to find clients?

Through Google Adwords and targeted search engine optimisation, we build up the traffic to our website, which ultimately brings in more clients. We also utilise the marketing fund to create targeted advertisements for your territory and surrounding suburbs. In addition to the ongoing leads you will receive from the Support Centre, you will also receive the Local Area Marketing Plan during your marketing training, which has been designed to assist you in finding your own clients.

I have heard it costs $150,000 or more to start a franchise. How much will it cost?

Yes, it can cost a lot of money to franchise your business with your own brand. Typically it will cost between $55,000 – $150,000. However with the local guys it costs only $25,000 ex. gst plus training.

What are your financing options to pay for your franchise?

Franchising is a crucial investment but franchisees who are short on capital should not be discouraged. With a little strategy, you can find the right mix of funds that will help you own a franchise. In this article, let’s deep dive into the different ways to get finances for your capital.

Whether you’re just about to commit to buying your first franchise business or you’re a seasoned franchisee, finance is going to be a crucial requirement when opening your location. There are several ways to obtain financing for your franchising journey. Having a greater understanding of finance will put you in a better position in making decisions and dealing with the initial steps of franchising.

- Liquid Capital
  In finance, the term liquid capital refers to money that is readily convertible into cash. It is often used as a synonym for working capital. It can be some assets that you can leverage like home equity or cash infusions from family or silent investors. Or it could be your personal savings that you can withdraw immediately. The main essence of being liquid is that you have cash on hand that you can readily provide as capital for your business. In this case, you don’t have to loan money anymore.

- Traditional or SBA-backed Loans
  Small bank loans can be obtained from banks and credit unions, which are typically smaller than traditional banks. These lenders usually offer a lower interest rate than larger lenders because they believe that their customers will be more likely to pay back their debts in full. They also tend to offer less expensive services than larger institutions such as credit unions or banks, so it might be worth considering applying for one if you are looking for a small loan.

- Leveraging of assets to self-fund
  There are two ways to leverage assets to self-fund. First, is by loaning, and second is by cashing out your assets. Leverage itself is an investment strategy where you use borrowed money from the bank or from your property. If you want to get money from your properties, you can either mortgage or sell them out. However, take note that leveraging assets can be quite tricky. Since you’re investing the money for business, you are expected to return the capital once you earn revenue. Hence, when you start making sales monthly, a portion of your sales must go for loan payment so you can get your capital back.

- Partnerships with other funders
  Another way to generate funds for capital is through partnerships. A partnership is a legal form of business where partners contribute property, money, or labor to form a partnership and share profits. This is an ideal way to get money if you want to have the capital for your business but do not have enough funds. This decreases the burden of having to shoulder the capital alone. You can form a partnership with your friends, colleagues, and other family members where you put up capital on the condition that you will pro-rate the profits later on. Another way to obtain partnerships is through other funders. However, most franchises will require any shareholders to sign the franchise agreement as a legally binding commitment.

Credit Cards
Credit cards are usually the easiest option for getting money but it’s more ideal for buying additional supplies for your small-scale food business. The good news is that most credit cards offer a flexible loan repayment term. Take note, the amount you can obtain is based on your credit limit, which is probably less than you could get from your bank.

Venture Capital
Like angel investors, venture capitalists take equity in your business in exchange for financing. Venture capital funds represent mutual funds usually pooled from different other investors. In the same way that different business individuals can form a partnership, companies can form a venture to put up a fund for business investments. Think about how much money you need and what you’re willing to give up in exchange for the funding. This will help you decide the best way to forward with your franchise.

We Have Franchise Opportunities In
Every Australian State!

With franchises across Australia, we have opportunities available to Franchise Partners across the country! If you’re looking for a new and exciting business venture with the support of a national company, you’re in the right place. Learn more about our Franchise Opportunities or get in touch to learn more today

What are your financing options to pay for your franchise?