Franchise New Zealand - Year 30 Issue 04 – Summer 2022 Published on December 10, 2021

Page 44

Buying A Franchise

JUST CUTS NEW ZEALAND A CUT ABOVE THE REST

RISK ver Philip Morrison has evaluated more franchises than most. Here he shares some of his experience

W

henever I tell anyone that I’m a specialist franchise accountant, I always get asked the same question: ‘What’s a good franchise to buy, then? You must know, you’ll have seen heaps.’ So what sets Just Cuts apart from the rest, and keeps happy Clients coming back for our Style Cuts? Backed by a global hair brand Even as the largest hairdressing group in the southern hemisphere, Just Cuts doesn’t cut any corners when it comes to style. Just Cuts Clients know they are only served by fully qualified hairdressers. Integrated support from the award winning Academy Team Just Cuts just won the prestigious 2021 Global Franchise Award for Best Lifestyle Franchise, adding another accolade to a list that stretches back three decades. However, nothing about the Just Cuts model is dated, we’re constantly refining and evolving our model and completely digital support. Work life balance and culture You don’t need to be a hairdresser to become a Just Cuts Owner, with support available for every business and operations function of your salon. In the same way we make haircare easy for Clients, we simplify your business. In fact, over half of Just Cuts Owners run more than one salon.

Well, yes, I have seen hundreds of different franchises, and I’ve seen thousands of different franchise buyers, too. And that’s why my answer is always rather unsatisfactory: ‘It depends.’ You see, what defines a ‘good’ franchise depends as much on the individual buyer as on the franchise itself. Everyone has different skills, everyone wants different things from a business and everyone’s financial profile is unique to them. That means what works for one person may not work for another.

Benefits and drawbacks Franchising offers a lot of potential benefits for a new business buyer. You’ll be selected for your ability to run the business; trained how to run it successfully; given proven systems to follow; benefit from group buying power and group marketing; and have ongoing support to help you maximise sales and profitability. But at the same time, any business – franchised or not – has risks, and you have to evaluate those, too. You also have to be aware that franchises have some specific limitations: you can’t usually change the system or the products to suit your own desires, you may have a limited marketing area and, of course, you will have to pay ongoing fees in one way or another to fund that support. Whether the advantages outweigh the disadvantages is something you need to weigh up with the help of an experienced professional advisor.

Unicorns don’t exist

There are currently 12 NEW business opportunities available across the North and South Island.

Of course, what everybody is ideally looking for is a high reward, no-risk business. I’m sorry to tell you that, like unicorns, they don’t exist. If you want no risk, put your money in the bank or in government bonds, but be prepared to get a very low rate of return. As the old saying goes, ‘Without risk there is not, and cannot be, any reward.’ It’s therefore important that, when choosing a franchise, you have realistic expectations around risk and reward and can find a balance that you are comfortable with. As far as the risk side goes, there are two areas to consider: your own level of comfort with risk, and the risk profile of the business you are looking at.

Your appetite for risk

Get in touch today to find out more! 0800 100 114 |

bdm@justcuts.com |

www.justcuts.co.nz

Exclusive stockist of

44

If you haven’t been self-employed before, moving from the ‘safe haven’ of a job to the excitement and uncertainty of owning your own business can involve a major leap of faith. It can be a time of great personal growth when you leave your comfort zone and put your trust in your own abilities. If you are buying a franchise, you are also putting your trust in the franchise system, people and process. Franchise New Zealand

Summer 2022

Year 30 Issue 04


Articles inside

Equal Opportunity article cover image

Equal Opportunity

2min
page 58
Tips For Great Franchising - Part 8 article cover image

Tips For Great Franchising - Part 8

2min
page 54
Top Marks  article cover image

Top Marks

3min
page 39
Inspired By Passion article cover image

Inspired By Passion

3min
page 29
Taking It From The Top  article cover image

Taking It From The Top

4min
page 27
Love Kids? Love sKids article cover image

Love Kids? Love sKids

4min
page 15
New Deal - changing times bring more opportunities in franchising article cover image

New Deal - changing times bring more opportunities in franchising

7min
pages 5-7
The Grass Is Greener article cover image

The Grass Is Greener

4min
page 65
Hot Property article cover image

Hot Property

4min
pages 63-64
Performance Enhancing article cover image

Performance Enhancing

4min
page 67
Micro Roastery, Maximum Return article cover image

Micro Roastery, Maximum Return

4min
pages 55-56
In A Good Space article cover image

In A Good Space

4min
page 59
The Time Is Now article cover image

The Time Is Now

3min
page 57
A Reputation To Bank On article cover image

A Reputation To Bank On

3min
page 53
All Together Now article cover image

All Together Now

7min
pages 50-52
Live The Life You Want article cover image

Live The Life You Want

7min
pages 42-43
Healthy Profits article cover image

Healthy Profits

4min
pages 47-48
Call The Accounting Specialists article cover image

Call The Accounting Specialists

4min
pages 37-38
Too Good To Sell article cover image

Too Good To Sell

4min
page 49
Chain Saw? Chain Store article cover image

Chain Saw? Chain Store

3min
pages 35-36
Partners In Pizza article cover image

Partners In Pizza

4min
pages 33-34
Business Funding For Franchise Buyers article cover image

Business Funding For Franchise Buyers

6min
pages 24-25
Finding A Better Way article cover image

Finding A Better Way

3min
pages 11-12
Natural Grow article cover image

Natural Grow

2min
page 20
Beyond Covid-19 article cover image

Beyond Covid-19

4min
pages 21-22
The Path To Success article cover image

The Path To Success

3min
pages 13-14
Live Wires article cover image

Live Wires

4min
page 9
Gone Fishing article cover image

Gone Fishing

2min
page 10
Drawing On Experience article cover image

Drawing On Experience

4min
page 23
For The Love Of Pies article cover image

For The Love Of Pies

3min
page 19
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