Australia: Franchising

Most prospective franchisors are focused, reasonably enough, on the beginning; the first territory, the first franchisee, the first year of trading. The exit is, at best, a distant abstraction. But the decisions made at the outset of a franchise system shape the value of that system more than almost any other factor, and by the time a founder is actively preparing for sale, most of the choices that will determine the valuation have already been made. The exit is not an event at the end of the journey. It is a design principle that either runs through the system from day one, or does not.

For most successful business owners, franchising sounds like a natural next step. The business works, the brand has traction, and the margins look sound enough to share. What the growth plans rarely account for is that franchising is not simply an expansion strategy. It is a change in what you do for a living.

A profitable business is not the same as a franchisable one. This is the point at which many prospective franchisors stumble, they assume that because the model works in their hands, it will work in the hands of someone they have never met. The leap from one to the other is not small, and it is not bridged by enthusiasm or capital. It is bridged by evidence.

No two dealerships are alike… Each dealership operates under its own unique set of circumstances, and even those within the same franchise group can differ markedly in financial performance and business structure.

Credit licensees that provide home loan services to consumers are subject to a range of compliance obligations.

Franchisors to comply with their obligations under the Franchising Code to annually update their information on the Franchise Disclosure Register.

Insights and guidance for those considering buying a business and operating within a franchise group.

The review of the code comes with 23 key recommendations for the franchising industry.

Discusses the role of franchising & key findings & strategic recommendations. Trends impacting the sector.