Be your own boss as a Paint Pinot Partner

Find out about the ins and outs of owning a franchise

So, you’re thinking about becoming a Paint Pinot Partner? Excellent! Becoming a franchise partner is a great way for you to be your own boss.

But you have questions. Like, what is a franchise partner? What is a franchise? What is a franchise agreement?

We understand that you may not be an expert in all things franchising. As such, we want to give you an overview of how franchising works to answer those questions.

First things first.

What is a franchise partner?

If you buy into a franchise, you become a franchise partner. The other term you’ll hear is “franchisee”, franchisee and franchise partner really mean the same thing. You can use them interchangeably. In fact we prefer the term Paint Pinot Partner!

The other word you’ll need to understand is “franchisor”. The person you buy the franchise from is the franchisor.

Pretty straightforward, right?

So, what else do you need to understand?

Let’s take a look.

What is a franchise? Or what is franchising?

Franchising is a business model. Under this kind of business model, the franchise partner is permitted by the franchisor to operate a business and sell particular products or services using their name, brand, systems, and processes.

You might look at it a bit like this. The franchisor is the umbrella, and all the franchisees are the individual businesses operating under that umbrella.

Franchising as a business model has been a well-recognised way of doing business in Australia since the 1970s. It is a business model that is both recognised and well regarded.

Think about it. You’d be hard-pressed to leave your home without seeing or purchasing from some type of franchise. Whether it be a retail clothing store, service or petrol station, car yard, or fast-food outlet, franchises are everywhere.

The pioneers of franchising include the likes of McDonalds and KFC. You might not have even realised it, but a different franchisee usually owns each McDonalds and KFC you enter.
Franchising provides a way for brands to grow and expand nationally and even internationally. It also provides franchisees with the ability to own a relatively small business that competes with big multi-national corporations.

Nearly every industry, product or service is represented by at least one franchise.

Franchising has the potential to benefit both the franchisor and franchisee significantly if it’s done the right way. The Franchise Council of Australia was established to ensure that franchisors do things properly and ethically. They encourage franchisors to aim for the highest standards of franchising conduct. As such, if you’re considering buying a franchise, you should ask the franchisor if they’re a member of the FCA. Paint Pinot are proud members of the FCA and aspire to achieve the standards set down by it.

How do I know if I’m buying into a franchise?

There’s a simple three-point checklist you can use to determine if the business you are buying into is a franchise.

1. Is one person (the franchisor) granting another person (the franchisee) the right to conduct business supplying goods or services under a particular system or marketing plan?

2. Is the business you are buying into associated with a specific trademark, advertising or commercial symbol that is owned by the franchisor?

3. Is the franchisee required to pay an agreed amount to the franchisor before operating the business?

If you answered yes to all these questions, you are buying into a franchise. And just to make it completely clear, Paint Pinot is a franchise.

What is a franchise agreement?

This is where the legal stuff comes in. A franchise agreement is a contract between a franchisor and franchisee that sets out everyone’s rights and responsibilities. It essentially outlines what you can and can’t do when running a franchise.

A franchise agreement will generally include information about:
• The relationship between the franchisor and franchisee
• The length or duration of the franchise agreement
• What it will cost to buy into the franchise
• Any continuing/ongoing fees
• Your assigned territory
• Ongoing training and support
• The use of the intellectual property
• Advertising/marketing
• Insurance requirements
• Recordkeeping
• What happens in the case of a default
• How the agreement can be terminated
• Dispute resolution
• Resale and transfer rights
• Sources of supplies

A franchise agreement is formalised when it is written and signed by both parties.

You and your legal representative should look at a franchise agreement carefully before you decide to sign on the dotted line.

Before you enter into a franchise agreement, the franchisor is required to provide you with the following documents:
• An information statement
• The Franchising Code of Conduct
• A disclosure document that will help you to make a reasonably informed decision about whether you should buy the franchise
• The franchise agreement in its full and final form

You should be given 14 days to read these documents.

So, there you have it, the ins and outs of franchising. If you’re feeling overwhelmed with all the information provided, feel free to ask questions of us, your legal representative or to carry out your own research.

It’s a lot to take in and quite technical.

But don’t despair.

The fun starts when you get the go-ahead to start operating your Paint Pinot franchise.

Fill in our enquiry form and take the first step towards spreading the joy of creativity across Australia.