Owning a franchise business: advantages and disadvantages

FAQs: February 17, 2020

Learn about franchise business advantages and disadvantages

Have you thought about buying a franchise business

If so, you’re not alone. Franchising is an increasingly popular way to own a business in Australia. According to the Franchise Council of Australia, there are over 80,000 franchised businesses across virtually every product and service sector. 

Buying a franchise business has definite advantages and disadvantages. And just like investing in any business, it’s not a decision to be made lightly.

Is a franchise business a good idea for you? Let’s look at what you need to consider. 

What is a franchise business?

Franchising is a business model where one company (the franchisor) owns a business or brand and offers a license to others (franchisees). Franchisees can then sell the products or services associated with that brand for a defined period of time.

The franchisee operates their own small business and pays a fee to use the branding of the franchisor like logos, slogans, signage and designs. They must offer the same products or services as all the other franchise stores, sticking to the same quality and price-point. To achieve that standard of quality, they’re required to use the systems and processes of the franchisor.

The franchise business structure offers the best of both worlds. You can be your own boss but still have the support of your franchisor’s years of expertise and knowledge. And you benefit from the recognition and existing customer base of a well-loved brand. 

What’s it like to be a Chicken Treat franchise business owner?

Chicken Treat started with one Western Australian store in 1976 and has since grown to 60 stores across WA and QLD. The brand carries a great deal of nostalgia for West Australians with many great childhood memories formed at Chicken Treat. Most of our franchisees remember the restaurant fondly from their youth and, indeed, for many, working at Chicken Treat was their first job. 

Multi-store owner, Michael Chidlow, summed up what it’s like being a Chicken Treat franchisee, “I chose to invest in Chicken Treat as I was looking for a brand that was successful, one that I could trust, and one that I’d be proud to represent as a franchise partner.”

That pride in the brand is consistent across Chicken Treat franchise business owners. They’re passionate about the Chicken Treat brand and love getting to know their regular customers. 

Chicken Treat franchisees are impressed with the company’s business model. Being a smaller brand, Chicken Treat can move fast and adapt to customer’s needs quickly. 

Chicken Treat franchise business ownership: Pros and cons

Franchising can be a great way to start a business with a proven higher success rate than starting from scratch. There are so many franchise business ideas that you’re sure to find one to suit you.

Let’s look at whether a  Chicken Treat franchise is the right decision for you. 

What makes us stand out from other franchisors?

  • Iconic brand

We’re an iconic home-grown Australian brand, particularly in Western Australia. We’re trusted and known, giving you a loyal base of customers. 

  • Induction training

Our franchisees are provided with extensive, high-quality training before you open your store. We teach you everything you need to know to hit the ground running.

  • Ongoing support

The support doesn’t stop after the induction training. You have access to a Business Consultant and State Operations Manager. You even have a direct line to the CEO, Mimma Batista.

  • Innovation

We’re focused on improving all aspects of our business to provide quality and fun products. Since 2014, we’ve introduced a new menu and refreshed our uniforms, packaging and store design. This new look has led to record sales growth.

Things to consider 

Is a franchise business a good idea? It may not be for everyone, so it’s important that you carry out due diligence and research.

  • Are you willing to be hands-on? 

To be a successful Chicken Treat franchisee, you need to be prepared to work in the business, not just on it. Working alongside your team lets you model best practice and motivate your team. You can be aware of any potential issues and make decisions quickly.

  • Are you prepared to follow the formula? 

The success of the Chicken Treat model relies on everyone following the processes and produces that have been tried-and-tested. There’s limited room for you to experiment or run things your own way; but luckily you don’t need to in order to be successful.

  • Are you passionate about it? 

You’re likely to spend many hours immersed in your business over the course of your franchise agreement. Are you passionate about the Chicken Treat brand and keen to share that passion with your team and customers alike?

The importance of the franchise business plan

We believe that having a franchise business plan is vital to your success as a Chicken Treat franchisee. That’s why you’ll spend a great deal of the initial 10-week training learning how to make your plan.

A franchise business plan lays out your goals for your business, along with a plan of how you’ll achieve those goals. It helps you to:

  • focus on your larger goals rather than getting caught up in the day-to-day issues
  • track your progress towards your goals and make necessary adjustments to meet them
  • keep your team working towards the same goals.

It isn’t a document to create once and then put away in your bottom drawer. We recommend looking at it every three months to see how you’re tracking against your goals, as well as keeping a one-page summary visible for your whole team.  

At Chicken Treat, we update our long-term strategy every year. We encourage you to revisit your own business plan then as well to align your goals with the broader brand goals. 

And of course, we give you the support to keep your business plan updated and your franchise on track with your goals. Our Business Consultants and State Managers are there to help.  

What’s in the Chicken Treat franchise business plan?

Our Chicken Treat franchise business plan is super simple and succinct so you can easily keep it up-to-date. 

It has pages that cover:

  • Core initiatives

The actions you want to focus on for your first year.

  • SWOT analysis 

A strengths, weaknesses, opportunities and threats analysis of both yourself personally, and your business.

  • Franchisor strategy

A one-page summary from your franchisor with the overall brand’s strategy for the period ahead.

  • Plan on a page

A one-page executive summary of your vision and the goals you’re aiming to achieve for the next 12 months.

  • Steps to reach strategic objectives

The measurable steps and actions you’ll need to take to meet your goals.

  • Location analysis

A look at the neighbourhood around your franchise store to outline your target audience and competitors.

  • Local area marketing plan 

A plan of local area marketing initiatives to appeal to your area.

  • P&L snapshot

A profit and loss snapshot for your financial year.

  • Financials

A record of your financial goals and actuals for the financial year.

Ready to see if Chicken Treat is for you? 

We give you every support to help make your franchise a success. But it’s still important to do your research about franchise business advantages and disadvantages.

Leisha from our Franchising Team is keen to help and can talk to you about whether a Chicken Treat franchise could be a good fit. Get in touch today. 

Leisha Fontana 


0408 927 750