Business Franchise Australia


Ultimate Guide to Buy a Franchise In Australia

Franchising in Australia is an emerging industry. According to the Franchise Council of Australia, there are over 1200 franchise systems in Australia, making it an excellent choice for business people. 


Some of these famous franchises are McDonald’s and Jim’s Mowing. But there are franchises in almost every industry you can think of, including food and drink, shops, fitness, home services, real estate, money lending, financial planning, car services, car rental, pet care, hotels and restaurants, pharmacies, building services, delivery services, beauty, and more. 


However, the question is how to buy a franchise effectively and what you should consider before deciding. If you’re struggling with this question, you’re on the right post. This ultimate guide will discuss the franchise buying procedure in Australia. Let’s have a look!


What Is a Franchise?

First of all, you need to understand what a franchise is. Franchising is when someone buys the right to run a business. You use the name, brand, products, and services of a big company called the franchisor. The franchisor helps them with different things they need.

Before buying any franchise, the person pays the franchisor a fee for the rights. Sometimes, they also pay the franchisor money regularly, like a part of their sales or a fixed fee. But this process isn’t as easy as it seems to be. There are a lot of things involved in buying a franchise in Australia. For example, you are already running a small factory and want to switch toward a franchise. In that case, you must consider many things, from Factory relocations services to ongoing support. 

So, let’s have a look at how this procedure will work!


5 Things to Consider Before Buying a Franchise In Australia


Here are the essential things to think about when you want to buy a franchise in Australia:


1. Research the Market 

You must research the Australian market carefully. You must analyze and identify industries according to your mission, vision, and preferences. You must also research competitor analysis, market trends, and demand-supply statistics for your chosen business. 

2. Communicate with Experienced Business Owners

After doing market research, it is better to talk with people who have experience running a franchise business. To get different views, you need to shortlist at least 10 people who used to run a franchise and 10 who are running one now.

Your franchisor should give you a list of contacts for these franchisees when they give you documents with information. Remember one thing: you don’t have to ask for permission from the franchisor to talk to these franchisees.

3. Choose Your Desired Franchise

Once you have done what you should do, it is time to choose a franchise. But before selecting any franchise, you must confirm from the franchisors what kind of help they offer, the training they provide, and the rules in the franchise agreement. If you don’t have enough knowledge, it is recommended that you visit the Australian Competition and Consumer Commission (ACCC) site, where you can learn more about the rules and regulations. 

4. Choose the Right Location 

Location matters a lot when it comes to buying a franchise in Australia. You must choose the location with maximum foot traffic, access to local areas, and demography. If you don’t focus on this factor, you might face problems in the future. 


5. Consider Legal Documentation, Fees, Compliance, and Licensing 

Many people lack legal knowledge, so hiring legal counsel is better to avoid legal issues. But if you don’t want legal help, you must check the fee and the rules from the franchisor. Besides, you need to register your business and get the necessary permits.  For this, you should visit the government business website of Australia and read the following acts:

  • Franchising Code of Conduct
  • Australian Consumer Law (ACL)
  • Fair Work Act
  • contract law


Advantages of Buying a Franchise In Australia 

  1. Get a well-known product or service 
  2. Established supply chain and equipment 
  3. Lawful SOPs
  4. Brand name and trademarks 
  5. Advertising agreement 
  6. Standard shop fit-out


Disadvantages of Buying a Franchise In Australia 

  1. The franchisor might change the amount you pay 
  2. The franchisor has the right to change the ways of franchise maintenance 
  3. No renewal and reselling of franchise 
  4. The franchisors have more legal rights than you to some extent 


Summing Up

Buying a franchise in Australia is a developing move, but you must consider things carefully. In this guide, we have discussed the most important things that can improve your chances of buying a franchise in Australia without serious problems. However, it is recommended that you 

get the help of experienced people and lawyers to make your franchise business in Australia successful.