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Anyone bought a business or franchise?


legoman

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  • 3 weeks later...

Not yet, but looking. So far have found nothing of real value, very much overpriced and in line with the housing boom it seems, especially if it involves shop premises, like food etc. Other service based franchises seem to be very biased towards the franchisor (of course). Currently I would say that everything is at peak prices so personally I will wait a couple of years to see what happens.

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Guest Jackie Smith

My brother came to Australia in 2002. He bought a Pure & Natural franchise. He came over on a 457 visa so had to get a business going to get his permanent visa. He thought it would be better to buy a franchise as he would have a brand already in place. But the purchase of the franchise is only a small part of the investment needed. He had to rent premisis, buy equipment and stock etc. He got his visa in the end but he lost a fortune in the process. The business never made a profit from week to week over the whole 2 year period he owned it.

I think buying a frnachise is a good idea cos you do get a recognised brand, but that doesn't mean you will necessarily make sales. Location of the business is really important and if you want a good location, the price of rent will go up. Basically do your research before you go into anything. It's probably worth getting a good accountant to look at the books before you buy anything. May cost a bit but could save a fortune in the long run.

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Thanx, i remember before talking to a 'jims fencing' guy and he was quite busy and said he had not taken a lead from jims office for 2 years ( these had to be paid for of course). What did alarm me was that although his work came through word of mouth he still had to pay $400 a month as he used the jims name. he didnt seeem bothered by it.

i used chipaway here recently, the gave up plumbing to repair cars, and loves it, which just set me thinking.

 

As you and peeps have said, good research would be needed

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Thanx, i remember before talking to a 'jims fencing' guy and he was quite busy and said he had not taken a lead from jims office for 2 years ( these had to be paid for of course). What did alarm me was that although his work came through word of mouth he still had to pay $400 a month as he used the jims name. he didnt seeem bothered by it.

i used chipaway here recently, the gave up plumbing to repair cars, and loves it, which just set me thinking.

 

As you and peeps have said, good research would be needed

 

I believe the 'Jims' group of franchises recently doubled their flat ongoing fees and there is a bit of a legal case going on right now. Worth just doing word searches on google re what ever franchise you are looking at, may get some interesting feedback.

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