What is franchising?

Franchising is a method of marketing and distributing products or services. At least two levels are involved in the franchise system, (1)  the franchisor, who lends the trademark or trade name and the business system, to (2)  the franchisee, who pays a fee for the right to do business under the franchisor’s name and system.

How can I be sure that the information provided in the disclosure documents is truthful and accurate?

The mandatory Franchising Code of Conduct places very strict conditions on disclosure of franchise offerings, with remedies for breach available under the Trade Practices Act and recourse to the full force of the ACCC.

How do you explain the success rate for the franchised businesses?

The franchising system is designed to provide franchisees with a pre-tested formula for success, ongoing advice and training.

Most independent businesses fail due to poor leadership and management. The key difference with a franchised business is that your franchisor provides leadership and support when problems arise. Your hard work and the franchisor’s expertise spell a strong partnership. The vast majority of franchise owners are satisfied, successful business people.

What is the best advantage that franchising has over independent small business?

Franchisees are never alone, which is one of the best benefits that one could hope for in a competitive business environment. On one hand you have the franchisor to support you and on the other you have the franchisees who are having parallel business experiences. Furthermore, as a franchise matures and grows in numbers, the multiplication of sites creates a stronger market presence, which benefits all franchisees.

How much does it cost to set up a new NightOwl?

The total set-up cost for a brand new NightOwl is between $350,000 and $400,000 (AUS) plus GST. This includes stock and all equipment used in the store excluding a few items provided by suppliers.

What other costs will I have?

All of the legal costs associated with the Franchise and Disclosure Documents as well as leases and/or sub leases are your cost. Plus any costs you may have setting up your corporate structure and any costs associated with accounting or financing of your investment.

How much working capital will I need?

An average working capital of $50,000 (AUS) is recommended.

How much support will I receive?

The NightOwl philosophy is one of complete support. You will be assisted in every aspect of your new career as a NightOwl Franchisee. From site selection, staff recruitment and training to landlord relations and store layouts and ranging, we are with you every day and every step of the way.

How much training will I receive?

Your training never really stops. From the day you decide to become a NightOwl franchisee for as long as you are with us, we are always looking for opportunities to improve your training, your staff training and the efficient way your business operates. The NightOwl training system is comprehensive and will ensure you are well equipped to profitably run your NightOwl franchise.

Do you help me find staff?

NightOwl will provide guidance for placement of job advertisements and interviewing procedures. We will also assist you with the induction and training process of your staff.

How often will I see someone from NightOwl in my store?

Depending on your location, you can expect to see someone from NightOwl at least monthly, generally on a fortnightly basis and in some instances every week. From the initial opening of your store, we are very focused as an entire business, on you. It is vital to us that you are successful and so we ensure you receive more than enough support and encouragement.

How much can I expect to make from my NightOwl business?

Because of the many variables involved including store model, customer demographic and franchisee enthusiasm, it is not possible to quantify the profitability of any new NightOwl store.

Do I hold the head lease?

No, the franchisor holds the head lease.

Does my NightOwl business require me to be involved 24/7?

No, NightOwl has developed proven systems that allow the store to operate without the need for constant Franchisee involvement.