Sip smart: how to spot a franchise worth your time (and money)
Thinking about investing in a franchise? It’s an exciting move, but before you dive in, it’s essential to ensure your time, money, and energy are directed toward something not just popular but proven.
Franchising isn’t merely about choosing a brand you like; it’s about understanding the full picture. You need to know how the business operates, the support it offers its franchisees, customer perceptions, and whether the brand is built for long-term success. In other words, reputation matters.
At Chatime, we understand that making a smart investment starts with asking the right questions. That’s why we’ve created this guide to help you assess any franchise’s reputation before committing. If you’re ready to explore a franchise opportunity backed by years of growth, community love, and a booming category, check out our franchise opportunities.
Why is this important? According to ASIC’s latest insolvency data, the number of Australian companies entering external administration increased by 36.2% in the nine months to March 2024. This highlights the importance of thorough due diligence to ensure your investment is built on a solid foundation.
Whether you’re just starting your journey or looking to expand your business portfolio, these 7 key steps will help you uncover the signs of a strong, trustworthy franchise—so you can invest wisely and build something great.
1. Research the Franchise’s History and Track Record
Before you invest in any franchise, you want to make sure the brand has a story worth believing in—and a track record that backs it up. This isn’t just about how long the company has been around. It’s about how it’s grown, how it’s adapted to change, and whether its business model has proven to work across different locations and markets.
A franchise with a solid history shows that it’s survived the ups and downs of business and still come out strong. This kind of long-term performance is one of the clearest indicators of reputation. It tells you the company knows what it’s doing—and that customers, franchisees and industry partners trust the brand enough to keep coming back.
Here’s what to look for:
Founding date and growth milestones: How long has the brand been in business? How many outlets have opened (and stayed open)? Has the brand expanded nationally or internationally?
Consistency in performance: Has the brand shown steady growth, or are there patterns of closures and high franchisee turnover?
Adaptability: Did the franchise innovate during tough times, like COVID-19? Has it evolved with customer trends and tech?
Why this matters
A newer franchise might have a great product or idea, but if there’s no solid performance history, you’re taking on more risk. On the other hand, a franchise that’s been around for 10 or more years with proven results shows it has a system that works—and that’s exactly what you want when you’re investing.
Chatime as a proven example
Chatime launched globally in 2005 and quickly became one of the most recognised bubble tea brands in the world. Since arriving in Australia, it has grown to over 165 stores across the country, earning a loyal customer base and a strong reputation for consistency, quality, and fun. That kind of sustained growth doesn’t happen by accident—it’s the result of a well-designed business model and a product people love.
In fact, Chatime’s expansion in both metro and regional areas shows that its franchise model works across a wide range of markets. That’s a strong vote of confidence for anyone considering an investment.
So before you go any further with a franchise, ask yourself: does this brand have the kind of history and momentum I’d feel confident being part of?
If it doesn’t, keep digging. If it does, like Chatime, you might be looking at a truly smart investment.
2. Gauge Customer Perception and Brand Image
Reputation isn’t just built behind the scenes—it lives in the hearts (and phone screens) of everyday customers. Before investing in any franchise, it’s important to ask: What do people really think about this brand? Because no matter how great the business model is, if the public doesn’t love the brand, selling it becomes an uphill battle.
Strong customer perception is a major indicator of a franchise’s staying power. People talk, post, rate and review more than ever before. If a franchise consistently delivers a great experience, you’ll see that reflected in glowing Google reviews, social media tags, and an active online fanbase. That kind of brand love often translates directly to foot traffic and repeat business—key ingredients for franchise success.
Where to look (and what to look for)
Google and Facebook reviews: High average ratings are good, but what matters more is consistency and tone. Do customers mention great service, product quality, or store vibes?
Social media sentiment: Check Instagram hashtags, TikTok mentions, and tagged posts. Are customers showing off the product? Is there excitement around seasonal items or new launches?
Brand engagement: Do people respond to the brand’s posts with comments, likes, and shares? Is the brand replying? Active engagement shows a brand that genuinely connects with its audience.
Patterns to note: One or two bad reviews is normal. But repeated complaints about poor service, inconsistent products, or unhappy staff can be red flags.
Why this matters
Customers don’t just buy the product—they buy the brand experience. If the public image is vibrant, loved, and widely trusted, you’re walking into a business that’s already ahead. A franchise with a strong brand reputation gives you a head start, instead of needing to build trust from scratch.
Chatime as a case study in customer love
Scroll through #ChatimeAustralia on Instagram and you’ll see it—colourful drinks, smiling faces, and captions like “my weekly treat” or “favourite place for bubble tea.” Chatime has built a reputation for more than just amazing drinks. It’s created an experience people want to share, both online and in person.
From students to professionals to families, Chatime fans span every demographic. And it’s not just about looks—reviews frequently highlight friendly service, consistent quality, and the sheer variety of flavours that keep customers coming back. That kind of loyalty and excitement builds a powerful brand halo that benefits every franchisee.
A strong franchise doesn’t just have customers. It has fans. And when you’re part of a brand that people are proud to post about, you’re not just running a business—you’re riding a wave of momentum that’s already in your favour.
3. Talk to Current (and Former) Franchisees
When it comes to evaluating a franchise’s reputation, there’s no better source than the people who’ve already walked the path. Talking directly to current—and even former—franchisees gives you the kind of insights you’ll never find in a brochure or flashy promo video.
These are the people who’ve lived the experience. They’ve launched stores, worked with the franchisor, hired staff, navigated busy seasons, and grown their customer base. They know where the brand shines and where it could improve. And more importantly, they can tell you whether they’d do it all over again.
Why this step is so important
Franchisees are your front-line reality check. A strong reputation is built on consistent, positive franchisee experiences. If most partners are thriving, feel supported, and speak highly of the brand, that’s a major green flag.
On the flip side, if you hear stories of poor communication, lack of training, or unrealistic expectations, those are things to take seriously. One bad experience might be a one-off—but a pattern of similar complaints could signal a deeper issue.
What to ask
Whether you chat over the phone, meet in person, or connect via LinkedIn, here are some valuable questions to ask:
How would you describe your experience with the franchisor?
Was the training and onboarding process thorough and useful?
Do you feel supported in your day-to-day operations?
Are you happy with the financial performance of your store?
Would you invest in this franchise again?
If there were any challenges, how did the franchisor help you overcome them?
And if you get the chance to speak with a former franchisee, don’t be afraid to ask why they left. Sometimes it’s personal (like relocation or retirement), and sometimes it’s a sign of larger concerns.
Chatime’s franchise community speaks volumes
One of the reasons Chatime continues to grow is the strength of its franchise network. Franchise partners across Australia often describe their experience as collaborative, supportive, and energising.
Chatime franchisees receive not only comprehensive training but also ongoing access to Business Development Managers who genuinely care about their success. Whether it’s marketing support, product updates, or navigating day-to-day challenges, partners know they’re never doing it alone.
Many Chatime franchisees even refer their friends or family to the network—which says a lot about the confidence they have in the brand. After all, people don’t recommend something unless they truly believe in it.
If you’re seriously considering a franchise investment, make this step a priority. A 15-minute chat with a current owner could give you more valuable insight than hours of online research. And if you’re talking to someone in the Chatime network, don’t be surprised if you hear phrases like “part of the Communi-Tea” or “one of the best business decisions I ever made.”
That’s the kind of reputation you want to invest in.
4. Examine Industry Reputation and Accolades
While customer reviews and franchisee feedback are vital, it’s also worth zooming out and asking: What does the broader industry think of this brand? Recognition from professional bodies, business media, and franchise organisations can be a huge indicator that a franchise is playing in the big leagues.
Think of it like this—when a franchise starts getting noticed outside its own network, it’s usually a sign that it’s doing something right. Whether it’s rapid growth, operational excellence, innovation or leadership, external recognition adds another layer of confidence to your investment decision.
What to look for
Awards and rankings: Has the franchise been named among Australia’s top-performing or fastest-growing franchises? Has it won any industry-specific awards, such as Franchise of the Year, Innovation in Food & Beverage, or Best Customer Experience?
Franchise Council of Australia (FCA) membership: This isn’t just a badge. Being a member of the FCA shows that the franchisor follows ethical practices and is committed to best-practice franchising standards.
Media coverage and expert recognition: Has the brand been featured in trusted publications like Inside Franchise Business, SmartCompany, or the AFR? Is it being talked about in industry conversations?
Why this matters
Industry accolades offer something unique: external validation. They aren’t just about branding—they reflect how well the franchise performs under scrutiny. If a business consistently shows up in top-tier franchise rankings or receives awards for innovation or growth, it sends a strong signal that the brand is not only reputable but respected.
On the flip side, a lack of presence in these spaces doesn’t necessarily mean the franchise isn’t great—but if you’re comparing two options and one has a trophy shelf while the other doesn’t, it’s usually a good indicator of trustworthiness.
Where Chatime stands out
Chatime continues to gain recognition across Australia’s food and beverage franchise landscape. With over 165 stores nationwide and growing, it’s frequently cited as one of the leading bubble tea franchises in the country. Its innovative product range, seasonal campaigns, and high-performance franchise model are just a few reasons why industry insiders take note.
While bubble tea itself has seen explosive growth in the past decade, Chatime has led the charge in Australia—not just in store count, but in brand presence and market share. This success has caught the attention of business analysts, franchising publications, and even major banks who view the model as low risk and high potential.
Being part of a franchise that’s recognised and respected by the industry gives you more than peace of mind—it also positions your business as part of something that customers, suppliers, and partners already trust.
When researching your next move, don’t just ask what customers think—ask what the industry’s saying to
5. Review Financial Performance and Transparency
Let’s talk about the dollars and cents. You can fall in love with the product, the people, and the brand—but at the end of the day, this is still a business decision. Understanding a franchise’s financial performance and how open they are with that information is absolutely critical before you sign on the dotted line.
A reputable franchise won’t make you guess. It’ll be upfront about what it costs to get started, what you can expect in terms of revenue, and how long it typically takes to turn a profit. In contrast, vague answers or reluctance to share numbers should be a flashing red light.
What to look for
A clear cost breakdown: This should include the franchise fee, fit-out and equipment costs, initial stock, ongoing royalty and marketing fees, and any training or software charges.
Performance benchmarks: Look for data on average turnover per store, typical break-even timelines, or even ranges of franchisee income (not always disclosed publicly but often available during the formal process).
Ongoing support and ROI expectations: Are you supported in hitting those financial goals? Does the franchisor help with marketing, pricing strategies, or supplier negotiations that impact your bottom line?
The role of disclosure documents
In Australia, every franchisor is legally required to provide a Franchise Disclosure Document (FDD). This document is a goldmine of financial and operational information—think of it as your investor cheat sheet. It should detail fees, turnover rates, number of openings vs closures, and whether franchisees have historically renewed their agreements. If the numbers don’t stack up, or if important details are missing, proceed with caution.
Pro tip: Always get a qualified accountant or lawyer to help you review the disclosure documents and financial modelling before making a final decision.
What a transparent brand looks like
Strong franchises aren’t afraid to talk money. In fact, they’ll often walk you through the full investment journey with clarity and confidence, knowing their model holds up. Some will even introduce you to existing franchisees so you can hear about performance directly from the source.
A big green flag? When the franchise is recognised by major banks. That means lenders trust the brand’s model, which can make it easier for you to secure finance and gives you added peace of mind.
How Chatime leads by example
Chatime provides all prospective franchisees with a detailed, easy-to-follow investment breakdown. From initial setup to ongoing operational costs, nothing is hidden or glossed over. Once you’re inside the process, you’ll receive real financial performance data, business planning tools, and access to experienced team members who can guide you through it.
Even more reassuring? Chatime is accredited by major Australian banks, including ANZ. That endorsement speaks volumes. When banks are willing to lend against a franchise model, it’s because they’ve assessed the risks—and found them low.
In a market full of promises, transparency is your best friend. Chatime’s open-book approach reflects the kind of franchise partner you want to align with: one that’s honest, proven, and committed to helping you succeed.
6. Evaluate the Franchisor’s Support System and Values
A great franchise isn’t just about products and profits. It’s about people, processes and purpose. Even the strongest brand can fall short if its franchisees aren’t supported properly. That’s why it’s so important to look beyond the surface and ask: What kind of support will I get, and do the brand’s values actually align with mine?
This is where the franchisor’s reputation really takes shape—from how they train you, to how they treat you, and how they show up when you need them most.
What to look for in a support system
Comprehensive training: How long is it? What’s covered? Are you just handed a manual, or do you get real, hands-on experience? Strong franchisors offer structured onboarding that sets you up for day-one success.
Ongoing support: Is there someone to call when things get tough? Are you supported with store performance reviews, marketing help, or staffing advice?
Marketing and promotions: Are you part of national campaigns? Do you get toolkits, seasonal ideas, or digital assets to boost sales?
Technology & systems: Smooth operations rely on smart tools. Check what platforms the franchisor uses for point-of-sale, reporting, inventory and scheduling. Modern, easy-to-use systems make your life easier.
Values that make a difference
Beyond support, a franchise’s values and culture play a huge role in long-term success. Do they foster community, diversity and sustainability? Do they make you feel like a valued business partner, not just a number?
Franchisors who prioritise their people—and who lead with integrity and collaboration—build stronger, longer-lasting networks. And the more you connect with the brand’s purpose, the more passionate and driven you’ll be running your store.
Why this matters for reputation
Franchisees who feel supported tend to perform better. They’re more likely to renew their agreement, speak positively about their experience, and become advocates for the brand. On the other hand, lack of support or misaligned values can lead to frustration, burnout and even early exits—none of which help the brand’s reputation.
How Chatime sets the bar
Chatime is well-known for its structured and proactive support model. New franchisees go through a three-week training program that covers everything from operations and customer service to marketing, stock management and product knowledge. But the support doesn’t stop there.
Every franchisee is assigned a dedicated Business Development Manager—someone who’s there to offer strategic guidance, problem-solving, and personalised support throughout the life of the business. Plus, Chatime’s national marketing team runs regular campaigns, seasonal launches and digital promotions that drive customer engagement and foot traffic year-round.
Even more importantly, Chatime’s brand culture is built on values like inclusivity, creativity and what they proudly call “Communi-Tea.” Whether it’s supporting franchisees with growth planning, staying ahead of food and beverage trends, or championing sustainability initiatives, Chatime’s leadership team is always looking forward—and they bring their franchise network along with them.
Bottom line?
You’re not just joining a business. You’re joining a brand family that wants you to thrive.
Before investing, make sure the franchisor is offering more than just a logo and a starter pack. Look for real, ongoing support and values that match your own. When you find a brand like Chatime that ticks both boxes, you’re setting yourself up for long-term success.
7. Investigate Legal and Ethical Track Record
By now, you’ve looked at the franchise from almost every angle—brand love, financials, franchisee feedback and support systems. But before you take that final step, there’s one more box to tick: making sure the franchisor plays fair.
No matter how polished a franchise appears on the outside, if it’s been involved in shady legal battles or dodgy dealings behind the scenes, that’s a major red flag. Your investment doesn’t just come with a store—it comes with the reputation of the brand as a whole. And that reputation must be clean.
What to research
ACCC or ASIC investigations: Has the franchise been involved in any breaches of the Franchising Code of Conduct or consumer law? A quick search on the Australian Competition and Consumer Commission (ACCC) or ASIC website can reveal any concerning history.
Franchisee disputes: Check the Franchise Disclosure Register for insights into disputes, franchisee turnover, and exits.
Lawsuits or negative press: A Google News search using terms like “Franchise Name + lawsuit” or “Franchise Name + complaints” can be eye-opening. Pay attention to repeated legal or ethical concerns.
Transparency during onboarding: Are you given clear access to disclosure documents? Does the franchisor encourage legal advice and provide a cooling-off period? Ethical brands won’t pressure you—they’ll support informed decision-making.
Why this matters
Joining a franchise means stepping into an existing system and brand identity. If that identity has been tarnished by poor treatment of franchisees, deceptive practices or compliance issues, your business could suffer by association—even if you do everything right.
Reputation issues can affect store performance, customer loyalty, staff morale and even the resale value of your business down the track. Taking the time to investigate legal history now protects your future.
What a clean record looks like
Few to no legal disputes involving franchisees
Open communication about past challenges and how they were resolved
Respect for franchisee rights under the Franchising Code of Conduct
Encouragement to seek legal and financial advice before signing
How Chatime maintains a clean, ethical reputation
Chatime is committed to running a fair, transparent and franchisee-first business model. There are no sensational headlines, no class action lawsuits, and no controversy clouding the brand’s reputation. That’s not by chance—it’s a result of clear communication, fair expectations, and genuine partnership.
Franchisees are given time, space and information to make their decision. They’re never rushed. In fact, Chatime encourages prospective partners to seek their own legal and financial advice, and provides a comprehensive Franchise Disclosure Document outlining all fees, obligations and support processes upfront.
It’s this kind of integrity that reinforces Chatime’s reputation as one of the most trusted and respected franchises in Australia.
In summary
Before you sign any agreement, do a deep dive. Protect yourself by understanding not just how the brand operates on the surface, but how it behaves behind closed doors. Because ethical business practices don’t just protect you legally—they create the kind of environment where businesses thrive and reputations grow stronger year after year.
Conclusion: Invest with Confidence, Backed by Reputation
Choosing to invest in a franchise is a big move—and the best decisions are the informed ones. You’re not just buying into a business model; you’re aligning with a brand, its culture, and its track record. That’s why evaluating a franchise’s reputation is one of the smartest steps you can take.
By following the 7 key steps we’ve outlined—looking into brand history, understanding customer sentiment, speaking to real franchisees, checking for industry recognition, reviewing financial transparency, evaluating support, and confirming ethical credibility—you’ll be well equipped to make a confident, future-focused decision.
And if all roads are pointing to Chatime? You’re in great company. From our fast-growing footprint across Australia to our energetic community of franchise partners, we’ve built something special—and we’re just getting started.
🎯 Ready to take the next step?
Start your Chatime journey today by visiting our Become a Franchisee page. Fill in the quick enquiry form, and our team will be in touch to guide you through everything you need to know.
Because when you back a brand with a trusted reputation, you’re not just opening a store—you’re opening the door to long-term success.
