Information for franchisors:
Franchising a business:
The nature of a franchise network is such that often the major problems are results of what was done or omitted at the very beginning. Thus, the most important stage of a franchise system is complete before you grant the first franchise.
The franchise model:
Franchising is a unique distribution channel for goods and services. It can be an efficient manner in which to grow your business b y including sufficiently motivated operators to maintain the standards required to operate the business.
Types of franchisees:
Franchising in Australia has been effectively implemented in several different business relationships, including: the Business Format Franchise, agency arrangements, dealer relationships, distributorship and licensing or manufacturing.
Seeking the right advice:
Franchising is a distribution model and it is important to note that this model requires a unique system created for the particular business. Often businesses do themselves harm by choosing to franchise a successful small operation.
Franchising in Australia:
Franchising in Australia is regulated by the Trade Practices (Industry Codes – Franchising) Regulations 1998 (“ Code ”) which is a code of conduct, prescribed pursuant to Section 51AE the Competition and Consumer Act 2010 (“Act”).
Advantages of franchising:
The advantages of franchising include: The negation of the need for capital to expand by leveraging the access to the resources of individual franchisees, rapid, less complex market penetration and the potential to gain market share.