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Buying A Franchise in Australia
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Franchising In Australia
Franchising is the licensing out of a business name, product, technique, philosophy, trademark, etc, for a percentage of the income. Instead of setting up new outlets as part of your expansion, you license your existing business blueprint out to franchisees who then set up and manage it for you.
The benefits of franchising your business in Australia include: more freedom, as the franchisee takes on major responsibilities; minimal expense; lower cost and higher profits; potential for fast growth; brand building.
Disadvantages of franchising a business in Australia: although few, rely predominantly on your franchisees. They include: poor quality franchisees; franchisees not declaring all income; poor performance.
In Australia today there is a franchise operating in almost every type of business category, with varying levels of complexity and cost. The sector is estimated to worth $130 billion. The Franchise Council of Australia Limited (FCA) is the peak body for the representing franchisees, franchisors and service providers to the sector (www. franchise.org.au). Have a look at it before expanding a business in Australia.
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