Franchising in Australia is big business. There are about 960 franchise systems across the country, employing over 426,000 people in over 60,000 outlets. Australia is the most heavily franchised nation in the world with greater than 14% of our gross domestic product coming from franchises and the Franchise Council of Australia estimates its size at $128 billion.  And there is another good reason why franchising is proving a popular choice for those that want to be their own boss. A franchisee has a success rate of 2.5 times greater than stand-alone or small business.

They’re all significant business benefits – particularly when they go hand-in-hand with business recognition and brand awareness.

Things to consider before you buy
Like any business, the viability of a franchise must be researched thoroughly before a commitment is made. If you’re ready to make the commitment, franchising can be a rewarding, and often highly lucrative enterprise.

But before you take the decision, it’s essential to first dive into the minds of the experts and make sure you thoroughly address the issues below with your accountant, lawyer and bank.

Selecting a franchise
Purchasing a franchise is like any other investment: it comes with risk. When you think about a particular franchise, think about the demand for the products or services it offers, competitors that offer similar products or services, the franchisor’s background, and the level of support you will receive.

Demand
Is there a demand for the franchisor’s products or services in your community? Is it seasonal or evergreen? Could you be dealing with a fad? Does the product or service generate repeat business?

Competition
What’s the level of competition—nationally, regionally, and locally? How many franchised and company-owned outlets are in your area? Does the franchise sell products or services that are easily available online or through a catalogue? How many competing companies sell similar products or services? Are they well-established or widely recognised by name in your community? Do they offer a similar product at a similar price?

Your ability to operate the business
Sometimes, franchise systems fail. What will happen to your business if the franchisor closes up shop? Will you need the franchisor’s ongoing training, advertising, or other help to succeed? Will you have access to the same suppliers? Could you conduct the business alone if you have to cut costs or lay anyone off?

Before you invest in a particular franchise system, think about how much money you have to invest, your abilities, and your goals. Be brutally honest.

Name recognition
Buying a franchise gives you the right to associate with the company’s name or brand. The more widely recognised the name, the more likely it is to draw in customers.

Franchisor’s experience
Many franchisors operate well-established companies with years of experience both in selling goods or services and managing a franchise system. Some franchisors started by operating their own business. There is no guarantee, however, that a successful entrepreneur can successfully manage a franchise system.

Growth
A growing franchise system increases the franchisor’s name and brand recognition and may enable you to attract customers. But growth alone doesn’t ensure successful franchisees. Indeed, a company that grows too quickly may not be able to support its franchisees with the support services it promises them. Investigate the franchisor’s financial assets and resources; are they sufficient to support the franchisees?

After you've done all your research you will be in the position to make a potentially life-altering decision.

At Frontline, we are more than happy to help you do the research.  We are confident that when we do give you the answers your decision will be easy. With Frontline Recruitment Group the answer is easy! Contact us today