What to Know Before Buying a Franchise – And How Testel Supports You Every Step

Starting your own business can be one of the most exciting—and daunting—decisions you’ll ever make. For many Australians, franchising looks like an appealing pathway. You get the benefit of an established brand, access to proven systems, and ongoing support, without needing to start from scratch.

But franchising isn’t the same as running an independent business. While the rewards can be significant, there are also risks and commitments you need to be aware of. At Testel, we believe that informed franchisees make the best franchisees. That’s why we’re committed to giving you all the information and guidance you need before you take the leap.

Here are some key areas every potential franchisee should investigate—along with how Testel helps you navigate them.

Understanding Franchising and the Legal Landscape

Before signing any franchise agreement, it’s essential to know exactly what you’re committing to. In Australia, franchising is regulated by the Franchising Code of Conduct and overseen by the Australian Competition and Consumer Commission (ACCC). You’ll be provided with a disclosure statement and franchise agreement, and these are legal documents filled with detail that can impact how you operate your business.

At Testel, we encourage all potential partners to seek independent advice from an accountant or lawyer. We also make sure you fully understand your obligations, rights, and the level of control you’ll have within our model. Our team is available to answer questions honestly, so you’ll never feel left in the dark.

Financial Considerations

Running any business involves financial risk, and franchises are no exception. It’s important to look beyond the initial buy-in cost and think about ongoing expenses, from equipment to royalties. Some franchisors also require you to make changes to your fit-out or systems over time, which can create unexpected costs.

We’re upfront about financial requirements. Testel provides clear breakdowns of fees, operating expenses, and potential revenue so you can plan properly. Because our business model has low overheads and strong repeat work, franchisees often enjoy healthier profit margins compared to many traditional franchises.

Training and Support

Not all franchises provide the same level of training or ongoing assistance. Some leave franchisees to sink or swim once the contract is signed.

At Testel, support is one of our cornerstones. We provide comprehensive initial training on test and tag procedures, compliance requirements, and business operations. Beyond that, we offer ongoing marketing support, scheduling tools, technical updates, and compliance reminders. You’re never on your own—our network is built on collaboration and shared success.

Your Exit Options

No one stays in business forever. That’s why it’s important to understand what happens when your franchise agreement ends or if you want to sell. Some franchisors impose restrictions or make it difficult for franchisees to exit, which can reduce the resale value of the business.

At Testel, we believe in transparency. We explain exit options clearly from the beginning, so you can plan with confidence and know what flexibility you’ll have in the future.

The Balance Between Autonomy and Guidance

One of the biggest trade-offs in franchising is balancing independence with following a system. Franchisors often set pricing structures, marketing strategies, and service standards to ensure consistency across the brand. The key is finding a model that gives you the right amount of freedom while still providing the safety net of proven processes.

At Testel, we’ve built a system that prioritises both. You benefit from national branding, compliance expertise, and streamlined processes, but still enjoy the flexibility of running your own business day to day. For many franchisees, that balance is exactly what makes the model so rewarding.

Buying a franchise is a big step, and it should never be taken lightly. From financial risks to legal obligations, there’s a lot to consider before signing an agreement. The good news is that when you choose the right franchisor, you don’t have to figure it all out on your own.

At Testel, we’re committed to equipping you with the knowledge, training, and ongoing support you need to thrive—not just in the early stages, but for the long haul. If you’re serious about building a business that combines low overheads, repeat work, and the backing of an experienced national brand, Testel could be the right franchise opportunity for you.

www.testel.com.au/franchises/

1300 881 116