Australian Franchise Sector Provides Opportunity, Security
Anyone considering a small business venture in Australia should look closely at opportunities within the franchise sector.
A Multitude of Opportunities
Australia is a world leader in franchising, with 900 separate systems, 53,000 franchised businesses operational over half a million people directly employed and turnover exceeding AUD 80 billion.
Opportunities range from small, husband and wife service providers to retail business models offering potential in the millions of dollars. Some provide a staged ‘career path’ enabling franchisees to start small and move up through structured tiers.
Local Market Knowledge Important
The common denominator is the security provided by moving into a proven business with training, support, centralised buying and other business resources on tap.
This is especially valuable to people coming into the country with capital and skills, but little knowledge of the Australian market, tastes and the commercial environment.
Interestingly, few Australian franchise systems are imported from other franchising strongholds like the USA. 92% are ‘home grown’ concepts centred on specifically Australian needs, tastes and lifestyles and therefore, well in tune with the home market.
Legislative Safeguards
Security is enhanced by a Franchising Code of Practice legislated in 1998, requiring franchisors to operate within strict guidelines, including full disclosure to intending franchisees.
It is further boosted by a voluntary code of Member Standards under the auspices of the Franchise Council of Australia. If you are considering a franchise system that does not display the FCA logo, it is wise to ask why not.