Understanding the Benefits of a Franchise

Posted in: Platinum Business Inspiration

Platinum Electricians offers you the opportunity of a franchise so that you may leverage off Platinum’s success. But what exactly is a franchise and is it the right move for you? Let’s take a look…

What is a franchise?

Franchising is a business relationship in which the franchisor assigns to independent people (you) the right to market and distribute the franchisor’s product or service. You get to use the name of the franchisor for a fixed period of time and with this comes a ton of support.

Different franchise models

There are a number of different business models that can be classed as “franchising”. These include:

Manufacturer-Retailer: Where the retailer as franchisee sells the franchisor’s product directly to the public. (eg. New motor vehicle dealerships).

Manufacturer-Wholesaler: Where the franchisee under license manufactures and distributes the franchisor’s product (eg. Soft drink bottling arrangements).

Wholesaler-Retailer: Where the retailer as franchisee purchases products for retail sale from a franchisor wholesaler (frequently a cooperative of the franchisee retailers who have formed a wholesaling company through which they are contractually obliged to purchase. eg. Hardware and automotive product stores).

Retailer-Retailer: Where the franchisor markets a service, or a product, under a common name and standardised system, through a network of franchisees. This is the classic business format franchise.

At Platinum Electricians, we use the classic business format franchise, the “retailer-to-retailer”. We provide you with format, a comprehensive system for the conduct of the business. This includes such elements as business planning, management systems, location, appearance and image, and quality of goods. Standardisation, consistency and uniformity across all aspects are hallmarks of our business format franchise model.

What to expect from a business format franchise

If you’re looking to start a business, buying into a franchise can be a great alternative to starting a unique venture. Buying a franchise gives you the right to run an already established business and sell its products/services according to the requirements set out in the franchise agreement.

In our case, these requirements centre around our core values, which are not just pretty slogans but values we actually live by. We believe in:

  • Creating satisfaction through customer service
  • Radical honesty and communication that builds relationships
  • Healthy work/life balance
  • Commitment to excellence in everything we do
  • Personal growth and pursued learning
  • Having fun and smiling
  • Being generous and helping others in need
  • Being humble and having a go

From the inside out we’re a family, and with this you’ll get a ton of tools to help you flourish. By entering a franchise agreement, expect to get:

Business support and coaching

A business can only grow as fast as the business owner does and our business support and coaching can develop you and your business fast. That said, we’ll also teach you the skills that set you up for a good work/life balance. We believe that successful business shouldn’t come at the expense of time away from friends, family and hobbies.

Hundreds of systems, procedures and templates

We give you direct online access to every system, step-by-step procedure, document and template that’s helped make Platinum a success. You’ll get everything from employment agreements for staff and employment termination checklists to cash flow spreadsheets, vehicle tracking tools and job management software.

Triple certification

Platinum gives you the competitive edge by setting you up to quickly and easily gain triple certification. Save hundreds of hours of hard work under the Platinum brand and take workplace safety and business management to the next level.

Access to big business

We might not spoon feed you work but our competitive and quality reputation does attract large national companies with work all over Australia. By default this means we give a lot of ‘big business’ work to our franchise owners. Call it a great bonus!

Power in number and savings

On top of the head office support you’ll receive, there’s comradery amongst fellow franchise owners. Help is never far away and there’s always someone to bounce ideas off. This support network also comes with benefits of group discounts, saving you money on all kinds of business aspects.

Advantages and disadvantages of franchises

Like any business decision, franchising must be considered carefully and the right processes should be followed. With this in mind, consider consulting a business adviser, accountant or solicitor before deciding whether to buy a franchise or go out on your own. At the very least, weigh up the pros and cons.

Cons

Buying a franchise means entering into a formal agreement in which you are bound to. Franchise agreements mean that the franchisor can dictate how you run your business, where you operate, which products you sell and what suppliers you use. If creativity is something you look for in your working life, a franchise might not be for you.

A franchise is seen by many as a simple way to enter business for the first time but franchising doesn’t always guarantee success. The same principles of good management – hard work, time management, customer service, informed decision making – still apply and serve as the deciding factors of your success.

Remember too that buying a franchise means ongoing sharing of profit with the franchisor and the risk that other franchisees can affect your franchisor’s reputation.

Pros

Franchises offer the independence of small business ownership supported by the benefits of a big business network. If you don’t have a wealth of business experience, the support you receive can be a wonderful thing. Choosing a reputable big business name in which to trade under can also make securing finance for your new business easier too.

Franchisees don’t need to have years of good management understanding to run a business. They simply have to share the same values as the franchisor and be willing to learn the franchisor’s ways. Franchisors generally provide the training you need to operate the business model and they are usually happy to keep guiding you throughout the lifetime of your contract.

As a franchisee you commit yourself to a purchase price or share of profits but the advantages of franchises can far outweigh the minimum royalties you pay. Franchises offer you a strategic identity that is not only effective but has cumulative market impact. Mega brands like McDonald’s and 7 Eleven have spend millions on their branding and franchisees can take full advantage of this.

Established franchisors have already spent years figuring out your respective industry and they’re easily identifiable to the public. You can take advantage of the fact that a family from out-of-state who previously enjoyed the franchise system’s service will seek out your business because it’s what they know and love.

Other benefits include national advertising campaigns that are included in your franchise fee and increased purchasing power, resulting in lower costs for supplies, inventory and other goods.

So what are you waiting for? You’re just steps away from joining the Platinum family and starting your own business success story. Submit an expression of interest form today and in as little as 8 weeks you could be a franchisee benefiting from all that Platinum delivers.