Is joining a franchise

right for you?

At Gutter-Vac we are serious about helping

you decide if franchising is right for you and if

Gutter-Vac is the right business for you.

We believe that when a franchisee joins the

Gutter-Vac team, they are our partner in

business.

Before you decide to join a franchise, there

are some questions and details you should

obtain before making a decision.

So what is franchising?

The Franchise Council of Australia (FCA) defines franchising as:

• An innovative method of distributing goods and services.

• A business relationship between a franchisor and a franchisee, granting the franchisee the right to operate a business using a trademark and business system for a fixed period of time.

• An extremely successful and rapidly growing way of doing business in Australia.

• Franchising is not a type of business, but a way of doing

business.

Franchising in Australia

• 1180 franchise systems

• 73,000 franchisees

• 400,000 employees

• $131 billion sales turnover

• Retail trade is the most popular form, making up 38% of systems in Australia

• The average term of a franchisee agreement is five years

Survey by Griffith University “Franchising Australia 2012”

To make a franchise work, we believe there are a couple of key points . . .

• There must be teamwork between the franchisor, franchise and with other franchisees. Being a TEAM PLAYER is essential.

• Franchisees need to have an ongoing commitment to brand culture and direction of the group as a whole.

• Communication is key. Open and honest communication between the franchisor, franchisees and the support team will allow greater success for everyone.

• When joining a franchise, a key benefit is that there is a proven system so new franchisees must have the ability and desire to

follow the system for success.

Before becoming a franchisee, ask yourself . . .

• Do you enjoy self employment?

• Are you a team player?

• What are your strengths and weaknesses?

• What kind of business is for you?

• Are you financially set for start-up and future challenges?

• What kind of lifestyle are you looking for?

• Can you follow a proven system?

What do we look for in a prospective franchisee?

• Are you financially stable to be able to start up and continue running their business?

• Do you have the motivation and drive to work for yourself?

• Do you have a realistic expectation of the work involved in running your business?

• Do you have the ability and desire to work as part of a team?

• Are you passionate about our brand?

• Will you fit our culture both professionally and personally?

Questions you should ask us . . .

(or any Franchisor prior to joining a franchise group)

• How long has the brand been established?

• Is the brand trademarked and protected?

• What training is given to franchisees?

• What are the up-front fees? What are the ongoing fees?

• Is there an operations manual and/or online support?

• How is advertising and marketing support for the brand managed?

• What is the scope of ongoing franchisee support?

We can and will answer all of these questions for you – so give us a call.

What does a good franchisor look like?

We have been in franchising for over 15 years and we have seen

many franchisors come and go. Whether you are looking to join us

or another group, there are some key points to look for to see if the

franchisor is good or not.

• They have financial stability – a long term plan for solidification

and expansion

• They are established with a recognisable brand

• They have a plan for moving forward

• They have great training and support in place to help you

• The business has good margins and group buying power

• There is transparency and open communication

• They are great people with desire to help you and the other

franchisees in the group

What support is available?

A key benefit of joining a franchise group is the support that is available to you. Basically, you are in business for yourself, but not by yourself. Here at Gutter-Vac we place a significant amount of time and effort towards ensuring the best possible support to our franchisees whilst still giving them the freedom to own their own business.

When looking at a franchise business, some key support items to look for are:

• A well established and accessible head office team

• Field support – technical and business

• Franchisee representative committee

• Initial training

• Ongoing training/coaching

• The ability to network with other franchisees

• Conferences

• Manuals

• Systems/Programs/Websites

Before you sign any documents . . .

The Franchisor must give you:

• Disclosure Document

• Franchise Agreement

• Copy of the Franchising Code

This must happen at least 14 days prior to entering into any agreement or making a non-refundable payment.

What is the disclosure document about?

This document contains important information such as:

• Start-up costs

• Ongoing expenses

• Whether you have an exclusive territory or not (you do with Gutter-Vac)

• What happens when your agreement comes to an end

• Contact details for current and former franchisees

When looking at a franchise agreement . . .

We recommend that you should ALWAYS get your own independent

legal and professional advice.

This is very important that you understand what you are signing and what your commitments are to this

agreement.

Would you like more information?

Feel free to contact us at the Gutter-Vac Head Office and some other great places to gain more information are:

• ACCC Small Business Helpline - 1300 302 021

www.accc.gov.au/franchising

• Franchise Council of Australia

www.franchise.org.au

• OFMA

www.franchisingmediationadviser.com.au

• ASIC

www.asic.gov.au