woman owning a clothes shopIf you’ve been thinking about buying a T-shirt franchise in Australia, the cost may reach at least $50,000 according to the Franchise Council of Australia (FCA). Fully Promoted adds that this will still depend on the type of business.

The FCA said that other common expenses of retail franchise purchases include a fixed shop-front and store fittings. Before signing a deal, experts said that you should conduct your own due diligence, especially now that some brands aren’t performing well.

Cost Considerations

Those who want to buy a service franchise may invest for as low as $5,000. As these businesses don’t require a store front, most people can operate at home or in a mobile unit. Prices would vary for a store-based or service franchise, but remember that you would spend more when buying a franchise from a more popular brand.

In case your savings won’t be enough, the FCA suggests taking out a loan from a bank or a franchise lender that has an accredited franchise system. This means that institutions have faith in the profitability of the business. You may also benefit from lower interest rates and the amount of property security by doing so.

Due Diligence

If a franchise system already shut down hundreds of stores, it could be a red flag for not buying a business. Be wary of acquiring existing franchises since you may be assuming more liabilities than assets.

An existing franchise riddled with loans and payables is an example. That’s why some people still do their research on a retail franchise, even if the system has grown to include more brands.

READ  Home Plumbing: Does Yours Need Repairs or Replacement?

The cost of a franchise primarily encourages or deters buyers from becoming a part of a franchise network. Think carefully if you can meet your desired franchisor’s requirements. Not all established brands are always profitable for the same reason that smaller franchises aren’t always a bad venture.