Franchising

Franchise businesses can be highly successful but there are many pitfalls and each opportunity must be carefully evaluated. Withers Tsang have experienced staff who will guide you through the purchase of a franchise. We assist clients to identify and evaluate the advantages and disadvantages of the potential franchise opportunity.

Some Advantages can be:

• No need for trial and error, everything is run according to pre-established systems and procedures
• The business will enjoy a well developed consumer image and goodwill with proven products and services
• Chain buying power
• Opportunities for ongoing training and development, continued assistance from experienced management in proven business methods
• National or regional promotion and publicity

Some disadvantages can be:

• The business is not the creation of the owner, rules and procedures are predetermined
• Profits must be shares with Franchisor
• The Franchisor nearly always charges a royalty on a % of gross sales. These fees can be high
• Contracts may be slanted in favor of the franchisor

If you are interested in advice on a potential franchise purchase or franchising your existing business, please contact Stephen Tsang at stephen@wt.co.nz or 09 376 8860.