Frequently Asked Questions

Over the years we have had many questions in relation start up franchise systems. Here are a few of the top question and answers that we hope will assist you when developing your Franchise System.

A: Generally there three types of fees:

  • Initial Franchisee Fee – where in the new Franchisee pays a sum to the Franchisor. This fee can be anywhere from $5,000 – $75,000 and is usually used by the Franchisor to assist you in setting up your business.
  • Ongoing Franchisee Fee or Royalty Payment – this is usually in the form of either a percentage of sales or as a fixed amount. Chargeable either weekly or monthly and normally in arrears.
  • Marketing Fee or Levy – this is where the Franchisee pays into a separate account held by the Franchisor for Marketing Activities. This is usually in the form of either a percentage of sales or as a fixed amount. Chargeable either weekly or monthly and normally in arrears..
A: There is a science to calculating the appropriate Franchise Fees payable. The right ROI (Return on Investment) needs to be calculated as part of the equation. BDA has the formula for calculating your fees, contact us today to find out more.
A: Maybe you can, however, the parameters of what makes your business unique and successful will need to be determined. Then we will scope State by State a conservative Growth Plan.
A: There are many factors that need to be considered here when deciding who should or shouldn’t hold the Head Lease. Come Strategise with BDA today and determine your best scenario and risk profile of who should and why.
A: Firstly they cannot legally withdraw from your franchise prior to expiry of the term without your consent. You would have recourse against them if they did. Secondly they will not be able to compete with you for some time after leaving your system without your consent, providing there are the appropriate ‘restraint’ clauses in place.
A: The term of the franchise for retail businesses generally follow the term of the lease with options for renewal built in. for ‘service type’ franchises, the term can be longer. It all comes back to the ROI for both parties.
A: The simple answer is yes and no, within the provisions of the laws relating to Competition and Consumer Act 2010. We will need to build your protection into the system to give you the product control you need. It maybe all about the ‘quality and the supply’ to the whole network that allows for the delivery of a ‘consistent product to the consumers.There are some challenges but they can be dealt with.
A: The real question is how much should I spend on Recruiting Franchisees? Our experience says that you should allow around $10,000 to $20,000 for each new Franchisee that you wish to get on-board. There are some ‘free’ marketing activities that you can undertake as part of your campaign, but a well-designed plan with a modest budget will ensure the best return for your recruiting dollar spend.
A: That’s easy, we do everything franchising so why not ask us today how we can help.

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Testimonials

What our clients say about us.

  • "A quick one to say thanks for Tuesday night. I thought it was a great venue, great atmosphere and a bunch of knowledgeable and colourful business people. Hats off mate!" 

    Chris WalkerWriter & Editor, Wordfox

  • "Mark has extensive franchising and business experience and combines this knowledge with great enthusiasm and drive. He is a brilliant person for bouncing ideas around and always brings creativity and a fresh perspective to the table. Would recommend Mark for his wide ranging abilities in policy, strategy, industry knowledge and innovative thinking."

    Jackie DihmOwner, FitChips

  • "Mark and I always seem to catch up at just about franchising event around the country. He is deeply immersed in the business community and is a great source of help and advice when required. He is exceptionally knowledgeable and a really nice guy who is always a pleasure to catch up with."

    James ScurrManaging Director, Cashflow It

  • "Mark brings a sense of energy and positivity to everyone he meets. I have total trust in him as a fellow consultant, and together we are able to get great outcomes for a client we jointly work with. He has an instinctive understanding of how businesses work, and is able to bring structure and systems which enable businesses to replicate and grow. He is comfortable working with financials, whilst his greatest strength is probably his insight into people. Mark is supportive and encouraging, yet not afraid to be honest and forthright when required. I look forward to working with Mark on future projects."

    Jayne GriffithsHR Director, My Hr Adviser

  • " I must say you put things in a way that made me understand things and I really got lots from our session and plan to be making changes in the future. I look forward to the next steps in our meetings." 

    Sandy AndersonManaging Director, Spruce Ups

  • " On behalf of Legalwise Seminars, we wanted to thank you for chairing our Franchise Law seminar. We are extremely appreciative of your significant contribution. Overall, the feedback received from the seminar has been excellent and we are delighted with the outcome." 

    Sintija DobrotinsekProgram Manager, Legalwise

  • " Mark has an extensive franchise consulting and business development practise in WA and beyond, and is an active contributor to the franchising industry through his membership of the Franchise Council of Australia WA Chapter Committee. Mark is a diligent and hard working adviser and he generously shares the benefits of his knowledge and experience with others for the betterment of franchising as a whole. Amongst Mark's outstanding qualities as an adviser are his willingness to rigorously pursue improvement and challenge the status quo, and to be honest and direct in his advice."

    Veronica JumeauxPartner, HWL Ebsworth

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