How to Open a Franchise in Australia
The franchising boom in Australia started in the 1970's with the arrival of companies such as McDonalds, Pizza Hut, and KFC. The industry has continued to grow steadily since then, and over the last twenty years franchising in Australia has developed and expanded to include virtually every product and service-based business.
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Things You'll Need
- An Australian Visa (several types are available depending on your qualifications)
- Capital
- A business plan
- Determination!
Instructions
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DO YOUR RESEARCH-
First, it's important to assess your own reasons for wanting to own a business, as well as the lifestyle and income implications of owning and operating a business.
You must also take some time to educate yourself on the basics of franchising in Australia. A resource that can be very helpful is the "Australian Franchising Handbook," published by Richard Evans.
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Complete a thorough search of available franchising opportunities in the area you wish to operate in. The Franchise Business Directory (www.franchisebusiness.com.au) is a comprehensive web based listing of more than 400 franchise systems in Australia.
Once you have narrowed your search down to the 5-10 systems best suited to you, request information and become an expert on each one.
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BE AWARE OF COSTS AND FEES-
Franchisors charge franchisees for the right to use their brand and participate in their systems. Fees range in price from as little as $5,000 to as much as $1,000,000, or more. Often times, franchisees are also required to pay ongoing support fees. In addition, a percentage of turnover fee may be charged to support the costs of marketing for the entire franchise group.
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GET EXPERT ADVICE-
Once you have selected a franchise system to apply for, be sure you evaluate all disclosure material before submitting your final application. Seek out legal and financial advice from lawyers and accountants with franchise experience before making a final commitment. A good resource for finding such experts is the Franchise Council of Australia.
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TAKE THE PLUNGE-
Once you've done your research and consulted with legal and financial experts, and you feel confident of your knowledge of the business you are entering, you're ready to get started. Like any business, a franchise requires dedication, intuitive business sense, and long-term planning to be successful. Many franchises fail before they're even out of the starting gates because franchisees think they can 'ride the coattails' of an established brand. Having a brand that is already known and recognized is an obvious benefit to opening a franchise, but YOU have to work to make your franchise a success, so don't fall into this trap. Work hard, play smart, and your franchise will reap you all the rewards you hope for. Best of luck ;-)
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