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Benefits of franchising in Australia

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If you are set on working for yourself in business but are not sure whether you should attempt it on your own or buy a franchise business, then you should weigh up all the ‘pros and cons’ before you make a decision. 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. 
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 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.
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
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.
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
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.
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.