Business Franchise Australia


Franchising in Australia – Frequently Asked Questions

It would be hasty for any potential business owner to settle for any business models without conducting research and having queries about the same. This applies to Australians with business ownership aspirations that are considering the prospects of success with franchising. Buying a franchise in Australia should be preceded with many questions on the subject of franchising and the franchise business model. Some of these questions are likely to be more common than others. Bearing this in mind; this blog aims to answers some of the most frequently asked questions on the subject of franchising in Australia. Read further to know more.

FAQ 1 – What is Franchising?

Franchising is a popular business model wherein an established corporate brand in any industry vertical; authorises a small business owner to sell a product or deliver a service on its behalf. The franchisor or the corporation collaborating with the business owner gives said business owner this authority in exchange of a contract fee, and in keeping a revenue-sharing agreement based on products sold or services delivered. The contract signed between the franchisor and the franchisee (business owner), is time-bound and performance-based.

FAQ 2 – How does one buy franchises available in Australia?

There are multiple conditions for franchise ownership that are subject to varying franchisors in the country. One of the primary requirements of attaining franchisee status is ownership of a commercial space from wherein franchisor products or services can be retailed or delivered. Based on the stipulations of a franchisor, a contract must be entered into, contract fees must be paid, and miscellaneous fees may also apply.

FAQ 3 – Can a first-time business owner be a Franchisee? 

Most franchisors do not require that potential franchisees must have extensive experience in running a business. The top franchise opportunities in Australia are often defined by the willingness of a franchisor to extend comprehensive support to a franchisee. This includes in-depth training in franchise operations and management, employee training, product and service knowledge training, marketing training, and more. Many franchisors are also extensively involved in setting up a franchise in a given location. 

FAQ 4 – How is Territorial Exclusivity relevant to the success of a Franchise?

A commercial product or service is not likely to generate huge revenues in a saturated market. Losses in revenues are further aggravated by the easy availability of the same product or service at multiple franchises close to each other. To ensure maximum profits for a franchise, the top franchises available in Australia offer territorial exclusivity to franchisees. This means that the franchisee has the benefit of setting up shop in a location which is not close to other franchises of the same brand.