10 key tips for franchisee business migrants
- Review the Australian government’s Department of Immigration and Multicultural Affairs website.
- Make contact with a migration agent in Australia registered with the Migration Agents Registration Authority (MARA).
- Enquire through your migration agent about state-sponsored visas and visit the relevant state government websites.
- Look at Australian websites of brands that would otherwise interest you in your home market, and research online directories for franchises in Australia. A Google or Yahoo search using the keywords “franchise directory Australia” will provide many options for further research. Look mainly for retail businesses, as most service franchises won’t meet the required investment level for a business visa application. Shortlist two or three different franchises.
- Develop your knowledge of franchising by attending any seminars available in your home country.
- Be prepared to make several trips to Australia to research the market, the franchise, etc, and meet with the franchisor, your migration agent, immigration officials and advisors.
- Be aware that franchising in Australia is governed by a national set of regulations, the Franchising Code of Conduct. The Code requires franchisors to provide essential information about themselves in a disclosure document, along with a copy of the franchise contract (agreement) and a copy of the Code itself at least 14 days before you can sign a franchise agreement. Use this time to get advice on the agreement and the business proposition from your advisors.
- Be wary of the temptation to buy an established business, franchised or not. The extra price you pay for an existing business compared to a start-up franchise can quickly be lost if you are not able to immediately operate at the same or higher level of performance as the previous operator. As most business migrants do not have the same social and cultural frames of reference (and often do not have the same language skills) as the previous owner, there is a real risk that their business’ performance will decline rapidly. This can lead to a serious loss of value in the business and consequently, a loss of faith by the new owner in their decision to relocate to Australia.
- Avoid rushing into any decision you may later regret. Take time at each step in the process to ensure you are comfortable with the choices you are making for yourself and your family.
- Use Australian advisors. Use Australian accountants, lawyers and business advisors to assist you in assessing the franchise and preparing yourself for business.
-Written by Jason Gehrke, Franchise Advisory Centre
Jason Gehrke is the director of the Franchise Advisory Centre, and has been involved in franchising for 18 years at a franchisee, franchisor and advisor level. Jason helps potential franchisees and business migrants to understand the nature of the franchise relationship and how to identify suitable franchise opportunities. He also conducts public education programs on franchising, including a one-day introduction for potential franchisees and franchisors, teaches franchising at Griffith University, and writes extensively about franchise issues for online and print media.
Copyright © Jason Gehrke, 2009
