What To Look for When Searching for a Handyman Franchise for Sale in Australia
The handyman sector in Australia is booming, with an estimated revenue of $943.1 million. Industry profits by 3000+ businesses are predicted at $105.6 million.
If you’re considering entering this lucrative market, buying a handyman franchise can be a smart business move. But, before you take the plunge, there are crucial factors to consider to ensure your success. In this blog, we’ll explore considerations before buying your own franchise.
Main Considerations Before Buying a Handyman Franchise
Do You Have the Essential Requirements for Starting a Business?
Before embarking on your journey, it’s vital to ensure that you have all the requirements. The requirements for starting and operating a business in Australia include:
- Australian Business Number (ABN)
An Australian Business Number (ABN) is a unique identifier for your business entity. It’s necessary for tax purposes. It also plays a crucial role in establishing your business’s legitimacy.
To get an ABN, you’ll need to register your business with the Australian Taxation Office (ATO).
You can use the ABN for various business-related activities. This includes invoicing, tax reporting, and interactions with government agencies.
- Established Brand Recognition
Choosing a franchise group with a recognized business name is crucial for your venture’s success. This established brand name serves as the foundation for your handyman services and customer interactions.
When considering a franchise, prioritise one with a well-known and reputable business name. This recognition not only instils trust in potential customers but also sets you apart in a competitive market.
It’s essential to select a franchise with a brand identity that aligns with your business goals and values. Additionally, the franchise’s established brand ensures that you’re not sharing your business name with competitors in the industry.
- Separate Bank Account for the Business
A clear separation between your personal and business finances is a legal requirement. Opening a separate bank account for your business is crucial for financial clarity and compliance.
It helps you track income and expenses related to your handyman franchise accurately. Additionally, it simplifies tax reporting and ensures that your personal assets are protected in case of business-related liabilities.
Criteria for Picking a Franchise Brand
In selecting the right franchise brand, it’s essential to evaluate several key criteria. These considerations help you make decisions that aligns with your goals and aspirations:
1. Easy-to-Understand Business Structure
Understanding the business structure a franchise offers is a fundamental consideration. It’s not just about knowing how the franchise operates. It’s also about whether the franchise provides clear documentation and guidance on its structure.
Will the franchise assist you in creating a comprehensive business plan? Moreover, do they offer seminars and hands-on exposure? Ensuring you have a full grasp of how the franchise functions?
Some franchises take this a step further. They empower their franchisees with significant decision-making power within the business structure.
An excellent example is Jim’s Group. They stand out by granting franchisees the right to veto changes to the operating systems of the franchise. This level of involvement is unique and contrasts with other franchises. Most brands prioritise investor interests over those of the franchisees.
This ability to veto changes holds immense significance. It means that as a franchisee, you have a say in critical decisions that directly impact your business. You’re not merely a passive player; you have a voice in shaping the franchise’s direction.
This level of involvement not only instils a sense of ownership. It also safeguards your interests. It ensures that changes align with your vision and goals as a handyman franchisee.
2. Support in Handling Legal Matters
Navigating the legal aspects of starting and running a business can be a complex and time-consuming task. When evaluating a franchise, consider the support they offer in handling legal matters.
Are they willing to help you create a comprehensive business plan tailored to your franchise location? Do they assist in navigating insurance, tax obligations, and business registration costs?
Moreover, do they provide templates and guidance for essential agreements? This includes Non-Disclosure Agreements (NDAs), Non-Compete Clauses, and Professional Services Agreements?
Having robust legal support from your franchise ensures that you start on a firm legal foundation. It saves you time, reduces risks, and guarantees compliance with regulatory requirements.
Established franchises like Jim’s Group prioritise legal assistance. This allows franchisees to focus on delivering exceptional handyman services. Franchisees don’t have to deal with the complexities of the business.
By receiving comprehensive legal support, you can operate your franchise with confidence. You know that you have the necessary legal documentation in place. You have peace knowing that your business complies with laws and regulations.
This level of support not only streamlines your business setup. It also shields you from potential legal challenges. This allows you to concentrate on providing top-quality services to your customers.
3. Wide Range of Services
In the handyman industry, versatility is key. The range of services a franchise offers can significantly impact your ability to attract a diverse clientele. Consider your own preferences—whether you want to specialise in specific handyman services. You could like carpentry or plumbing. Or, you’d like to provide a comprehensive suite of services.
A franchise that offers customization options for your service offerings is invaluable. For instance, if you decide to focus exclusively on carpentry work, ensure that the franchise accommodates this choice.
Alternatively, if you aim to offer a wide array of handyman services, the franchise should support this ambition.
The advantage of a diverse service portfolio is evident. It broadens your customer base and increases revenue opportunities. Customers often prefer a one-stop solution for their various handyman needs.
By choosing a franchise that aligns with your service goals, you position yourself to meet these demands effectively. This makes your business an attractive option for clients seeking comprehensive handyman services.
4. Ample Training to Do the Job
Comprehensive training is the cornerstone of success for a handyman franchisee. When evaluating a franchise, delve into the depth and quality of the training programs they offer.
Is the training system well-structured, covering essential aspects of the handyman trade? Does it incorporate hands-on experience?
This allows you to gain practical skills in real-world scenarios?
Moreover, does the franchise provide guidance and support in obtaining certifications? Especially if certain services require them?
Top-tier franchises, such as Jim’s Group, prioritise thorough training. This ensures their franchisees are well-prepared for the job. They go beyond theory, offering immersive training experiences that simulate real working conditions.
Furthermore, they assist franchisees in obtaining necessary licences when required for specific services.
Training equips you with the skills and knowledge necessary to excel in your handyman role. It also instils safety practices and industry insights. Regardless of your prior experience, comprehensive training ensures you start your franchise journey with confidence.
It allows you to offer high-quality services from day one. This earns the trust of your customers and builds a strong reputation in the market.
5. Honest Upfront Costs
Transparency in financial matters is paramount when considering a franchise. Understanding the upfront costs involved in launching your franchise is essential. This helps you avoid financial surprises down the road.
Franchises employ either a percentage-based or flat rate fee structure.
For example, Jim’s Group adopts a transparent flat rate fee structure. This stands out for its fairness and predictability. Unlike percentage-based fees that fluctuate with your turnover.
A flat rate fee allows you to accurately forecast your expenses. This predictability is vital for effective budgeting and financial planning.
Moreover, Jim’s Group enhances the value proposition by including a small lead fee in the low flat rate. This fee directly contributes to lead generation, facilitating your access to potential clients.
With the franchise itself aiding in securing leads, you can focus on delivering services. Rather than dedicating extensive resources to marketing and customer acquisition.
6. Inclusive Package
When assessing a franchise, inquire about the comprehensiveness of the package they offer. Does the franchise package encompass essential equipment and resources?
Some franchises, like Jim’s Group, go the extra mile by providing a holistic package. This includes various components such as training, equipment, business setup, and insurance.
The presence of an inclusive package streamlines the startup process. It ensures that you have all the necessary tools and resources at your disposal from day one.
This not only saves time but also minimises initial investment requirements. Making it easier to initiate your handyman franchise.
Additionally, consider whether the franchise brand imposes restrictions on equipment choices. Some franchises mandate the use of specific affiliated equipment.
In contrast, franchises like Jim’s Group grant franchisees the freedom to select equipment. This means you can pick brands that align with your preferences and requirements.
This flexibility enables you to tailor your equipment to your unique business needs. It also enhances your efficiency and effectiveness as a franchisee.
7. Franchise Income Structure
Understanding how the franchise income is structured is crucial for prudent financial management. Franchises may use different income models. Some opt for a percentage-based franchise fee.
This system deducts a part of your turnover for the services and support they provide. Others offer a flat rate fee, providing a more predictable cost structure.
For instance, Jim’s Group utilises a transparent flat rate fee. This flat fee is not only lower than industry standards, but it also simplifies cost prediction. Knowing your franchise costs upfront allows for better financial planning and resource allocation.
Jim’s Group further enhances its income structure by including a small lead fee. This fee directly contributes to acquiring leads, a critical aspect of your business.
With the franchise supporting your lead generation efforts, you can secure work more efficiently. This reduces the challenges typically associated with acquiring clients independently.
8. Financial Support
Evaluate whether the franchise brand offers financial support options. Some franchises may require full upfront payment. While others, like Jim’s Group, provide financing options and assistance in securing funding.
Financial support can be a game-changer, especially if you have a limited budget. It can significantly lower the barriers to entry into franchise ownership. This makes your entrepreneurial dreams more accessible.
By exploring this criterion, you can assess whether the franchise brand aligns with your financial capabilities and goals.
Additional Things To Can Consider
Is Full Marketing Support Available?
Marketing can be expensive and time-consuming. Franchises that offer full marketing support ease the burden on franchisees. With a company handling marketing efforts, you can focus on providing quality service instead of worrying about ads.
Do They Support Lead Generation?
Some franchises, like Jim’s Group, handle lead generation. They generate leads through their brand recognition and pass them on to franchisees based on location.
This is especially valuable for franchisees with limited entrepreneurial experience. It ensures a steady stream of work without the need for extensive local lead generation efforts.
Conclusion
Investing in a handyman franchise in Australia can be a lucrative venture, given the thriving industry. However, success depends on careful consideration of the franchise brand and its offerings.
Ensure that you meet the basic business requirements and select a franchise that aligns with your goals. Look for brands offering comprehensive support, such as Jim’s Group, which stands out with its unique franchise benefits.
By making informed choices, you can pave the way for a prosperous future in the handyman industry.
Want more information about handyman franchise opportunities in Australia? Visit our own a franchise page or call us at 131-546.
