Choosing the right franchise or marketing group is a significant decision for any newsagency owner. While the promise of collective buying power and marketing support can be appealing, it’s crucial to delve into the details before committing. As the saying goes, the devil is often in the detail – detail that can be buried within a lengthy contract you might not have the time to scrutinise thoroughly.
To help you navigate this important process, we’ve compiled a list of 20 key questions you should ask any prospective newsagency franchise or marketing group before you sign on the dotted line or renew an existing agreement. Taking the time to seek clear and comprehensive answers can save you considerable headaches and financial strain down the track.
Here are the questions we believe are essential:
- Product Obligations: Will I be required to accept any specific products? If so, what are these products and what is the frequency of supply? What exactly does your contract stipulate regarding mandatory product? newsXpress does not obligate you to take any product.
- Unsolicited Deliveries: Is it possible for products to be sent to my newsagency that I haven’t directly ordered? If this has occurred in the past, could you please provide a list of such products sent within the last year? newsXpress does not arrange or support unsolicited deliveries.
- Business Sale Autonomy: When I decide to sell my business, am I free to sell to any buyer of my choosing without your group having the first right of refusal or requiring advance notification? What are the specific clauses in your contract regarding business sale? newsXpress does not interfere in the sale of your business.
- Supplier Freedom: Can I source products from any supplier I choose, or am I obligated to purchase exclusively through suppliers approved by your group? Please specify the relevant terms outlined in your contract. With newsXpress you can buy from anyone.
- Preferred Supplier Pricing: Regarding your preferred suppliers, do they inflate the product price before offering a discount to your group members, or is the discount genuinely applied to the standard wholesale price that other independent newsagents would pay? newsXpress deals are a discount off regular wholesale.
- Recent Closures: Could you please provide a list of all newsagencies trading under your banner that have closed down or entered bankruptcy within the past two years? newsXpress will provide this.
- In-Store Business Support: Do you offer an in-store business advisory service? If so, how often and for what duration are these visits conducted? What is the background and experience of the individuals providing this advisory service? newsXpress will help in the manner in which you prefer.
- Stationery Supply Support: Does your group actively support the newsagency-owned GNS for stationery supply? If not, which stationery supply organisation do you endorse and what are the reasons for this preference? newsXpress supports.
- Lease Negotiation Assistance: Do you provide a lease negotiation service? If so, are there any additional costs associated with this service? Furthermore, will the lease agreement be solely in my business name, without any reference to your group’s entity? newsXpress offers free lease negotiation assistance and advice.
- Mandatory Software: Am I required to use a specific newsagency software program? If so, what assurances can you provide that I will receive this software at a preferential price, better than what I could obtain independently? newsXpress does not require you to use any specific software.
- Ownership Structure: Who are the owners of your franchise or marketing group? newsXpress discloses this.
- Direct Contact with Owners: Am I able to contact the owners of your group directly at any time should any issues arise? With newsXpress you can.
- Territorial Protection: What guarantees do you offer that you will not permit another newsagency to join your group in close proximity to my existing business? Is this assurance provided in writing within the contract? newsXpress supports you.
- Post-Contract Freedom: Upon the expiry of the contract, am I immediately free to join another franchise or marketing group, or are there any restrictions or waiting periods? With newsXpress you are.
- Central Billing Requirements: Am I obligated to use a central billing service to access supplier discounts or rebates, or can I maintain control over my own business cash flow? newsXpress proffered extended terms through central billing.
- Business Closure Liability: In the event that my newsagency is forced to close, will I still be liable for ongoing franchise or marketing fees? With newsXpress: no.
- Sales Data Sharing: Am I required to provide you with my newsagency’s sales figures? If so, what is the purpose of collecting this data and how is it utilised? newsXpress data sharing is voluntary.
- Conference Attendance: Am I mandated to attend your group’s conferences, and if so, what are the associated costs of attendance? newsXpress members are welcome at our optional national conferences.
- Initial Joining Costs: What is the complete and total cost associated with joining your franchise or marketing group? Please provide a breakdown of all initial fees. newsXpress has no additional joining fee.
- Ongoing Monthly Costs: What is the total monthly cost of being a member of your franchise or marketing group? Please itemise all recurring fees and charges. newsXpress has a single low monthly cost.
By asking these pertinent questions and carefully reviewing the contract, you can make a more informed decision and choose a newsagency franchise or marketing group that genuinely aligns with your business goals and provides the support you need for long-term success. Don’t hesitate to seek clarification on any point that is unclear – your future in the newsagency industry may well depend on it.