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.

Franchise For Sale Wollongong – Explain the Royalty Fee in Franchise

Becoming a franchisee comes with its perks and cost. In general, franchising a business allows you to sell products and services using the franchisor’s brand. Along with it, you will run your local business for the term of the agreement.

As for well-known brands, you may encounter royalty payments, which you will have to pay for using the brand. In other words, while you’re profiting from the brand itself, the franchisor also earns through the royalty fee. If you’re worried about royalty fees, this article will help you understand what it is all about.

- What is a Royalty Fee?
  A royalty payment is a regular fee that you have to pay to the franchisor, so you can continue to use its intellectual property. This could be a percentage of the revenue earned by the franchisor. As the business picks up and you earn more, the payment increases fairly. The royalty payment is not something you have to worry about. Even this payment is regulated by laws and contracts, and it must be cost-effective between both parties.

- How is the Royalty Fee Calculated?
  The most common way to calculate fees is through a percentage of the franchisee’s revenue. The percentage can range between 1-10 percent depending on which jurisdiction you’re in. It can also be different according to the franchisor’s business model and industry. Bigger franchises and internationally well-known brands may have higher royalty fees because they are expected to make more.

How do you make profits despite paying the royalty fees?
The first thing you do is to understand your numbers. Study the franchise disclosure document and see its financial performance. If the franchise has a proven market and good revenue record, you can use this information to calculate your potential gross sales, and fewer liabilities including the royalty fees. The result would be your potential profit.

The second way is to open multiple locations. If you have a bigger capital, you could choose to open multiple locations. Opening multiple locations at the same time will not only have a tremendous impact on customers and your marketing strategy, but it can help speed up sales. It also expands your market outreach and penetration.

Of course, the most important way to make profits is to manage your finances well. Once you start earning, you should set aside a budget to pay your liabilities. Follow marketing efforts and do your part as a businessman. That way, you can generate more income. The more income you generate, the earlier you can pay your obligations.

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

Franchise For Sale Wollongong – Explain the Royalty Fee in Franchise