Moving Company Franchise Melbourne – Franchising Made Simple
Growth and expansion are common organizational goals. The path to growth can hit a stumbling block due to lack of financial and non financial resources. The way out is to look for people and organizations that can become business partners and take the growth story forward. In the world of business, franchising helps realize such growth plans. For the uninitiated, the terms used under the ambit of franchising may appear to be esoteric. Nonetheless, it is important to learn about these terms and have a clear understanding of what they mean before inking the franchising agreement.
Before we get into the nitty-gritty of the issue, let us understand the concept of local franchising which entails a single Australian master franchisor. Bull18 is in the packing and moving business and is currently offering local franchising opportunities. The franchisor would, as part of the franchising agreement, would get rights to use the Bull18 Trademark and become a moving company franchise.
Some of the commonly used franchising terms are described below in a clear, easy-to-understand manner. A clear understanding of these terms would rule out any miscommunication and would enable the franchisor as well as the franchisee focus on the core job.
Franchise Agreement
The moving company franchise agreement is the most important document in the franchising process as it delineates the roles, duties, obligations and rights of each of the parties involved in the contract.
Franchisor and Franchisee
The Franchisor is an organization that owns the business, trademarks and other Intellectual Property Rights. The franchisor allows another organization, known as the franchisee, to use the trademarks and conduct the business in another location. The franchisee is also referred to as franchise owner or licensee.
Franchising Fee
The franchisee gets a running business by virtue of the franchising agreement. In lieu of this, the franchisor pays an upfront fixed amount to the franchisor.
Fixed Service Fee
The franchisor may opt to take a fixed amount of fee from the franchisee on a weekly or monthly basis or may opt to take a certain percentage of revenue subject to a minimum payout. The fixed service fee constitutes the income of the franchisor.
Franchise Term
The duration for which the franchisor and the franchisee enter into the agreement is the franchise term. Generally, the franchise term is for a period of 3 to 5 years and is extendable on the consent of both parties.
Marketing Levy
The franchisor and the franchisee are essentially sailing in the same boat. If business grows, both parties tend to flourish and vice-versa. In order to generate leads, the franchisor normally resorts to marketing and advertising for which the franchisee pays a marketing levy to the franchisor.
The Franchise Council of Australia Ltd (FCA) is the nodal agency comprising of franchisors and franchisees is Australia. Established in 1982, the agency has been regularly holding exhibitions and conventions to assist franchising.
To wrap up, it can be said that franchising is a different way of doing business. It is applicable to most industries including the moving and packing industry. If you are on the lookout for a moving company franchise opportunity in Melbourne Australia, do get in touch with Bull18 for stimulating business opportunities.
