whichfranchise.au - whichfranchise guide to franchising in Australia

Benefits of franchising in Australia

If you are set on working for yourself in business but are not sure whether you should attempt it on your own or buy an Australian franchise business, you should weigh up all the 'pros and cons'. The table below highlights the advantages of franchising compared to starting a business from scratch. This should help you to make your mind up with regards to if franchising is right for you.

Consideration	Franchise business	Independent business
Trade name	In franchising you will have the right to use an established trade name, marks, logo and style. The Australian franchise business will be indistinguishable from others in the network. Customers could be made aware of local ownership.	You will need to establish your own name, which requires time. The name will not be National, but customers will be aware of local ownership.
Known product or service	Your product/service will have public acceptance in Australia. It is a major benefit if the franchise network as a whole has a sound reputation, but is a drawback if other franchisees perform badly.	It takes a long time to establish a product/service and build up public acceptance.
Training	Training is essential if you are changing career, by providing you with the ability to use new technology, financial and staff management and the skill required to operate an Australian franchise business initially and on-going.	Your business will be based round your skills or hobbies. The management will depend on your own capability.
Proven business	The franchise business should have worked well elsewhere, but this does not however guarantee it will work in your region or, if an inbound master franchise, in Australia as a whole. Not all franchisors have carried out pilot tests on their franchise.	Your business will be totally unproven.
Package	You're buying a complete Australian business franchise format	As you will have little external support, your business will start small and will require time to develop
Advertising	National advertising in Australia will be undertaken by the franchisor and local franchise advertising is up to you. You will be given guidance and materials for this.	This is entirely down to you. You have to devise and produce your own material and select the best media.
Sourcing	Franchisors will specify material and some may be the sole source of certain supplies. In some cases you can take advantage of bulk discounts.	You are free to specify your own materials and to shop around to get the best deals. Initially you will be buying in small quantities and therefore the discounts will be small.
On-going Help & Support	You will have the benefit of a trouble shooting service from the franchisor as and when required. Field staff may also visit franchisees and help prevent the build-up of problems	You're on your own and there are no preventative visits
Location	The franchisor should select or advise on location in Australia that is right for the franchise business	You are free to make good or bad choice of location. Expert advice can be obtained but can be expensive.
Ownership	There may be limitations on your ability to sell or dispose of the Australian franchise business as the franchisor may have rights to purchase and terminate your contract under terms defined in the franchise agreement. You must remember that you own the franchise business for a fixed period of time with the right to renew.	You are totally free to sell or dispose of the business at any time to anyone. No one else has the right to terminate the business whilst it is solvent.
Selling the business	The franchisor may have a buyer lined up	You have to find your own buyer.

Print page

Text Size

Featured Franchises

Franchise Resources

Austrailan Franchise Directory

Australian franchise resales

As franchising in Australia matures, a growing number of Australian franchisees are looking to sell their franchise business. Read more about franchise resales

Regional franchise oppertunities

Franchising in NSW

Franchising in ACT

Franchising in Victoria

Franchising in Queensland

Franchising in South Austrailia

Franchising in Northern Terriority

Franchising in Western Austrailia