WHY SHOULD ONE BUY A FRANCHISE?
- Written by Ester Adams
The franchise industry in Australia has been booming since the 1980s, as many emerging entrepreneurs find immense scope in this rapidly growing sector. The total number of franchised outlets in Australia is significantly higher than all other countries globally with an annual turnover of around $146 billion.
Additionally, the franchise sector employs over 4,50,000 in Australia. It is interesting to note that food franchises are gaining tremendous popularity in the country as around 20% of all the franchising brands in Australia belong to the food and accommodation sector, making them favourite franchises to buy.
However, one needs to do a lot of homework before deciding which franchise to buy. One must consider several factors such as personal ethics, values, feasibility, etc., before taking this decision.
Besides, before signing a franchise agreement, one needs to ensure and be very careful that the agreement does not breach the Franchising Code of Conduct.
Advantages of Buying a Franchise
The identity forged by the franchisor in the market over the years will benefit the franchisees to a large extent. The logo, the branding, and related identification marks of the franchisor play a massive role in attracting customers and stimulating growth in a shorter period.
The franchisor's standards worldwide guarantee the customer that they can experience similar services in all of the brand's outlets across the world. The customers' previous experiences with the brand will also play a key role in maintaining stronger bonds with them and help them retain customers.
Every new start-up requires phenomenal advertising to survive, and it can be a costly affair for emerging entrepreneurs. Even if the new outlet is at a prime location, customers always prefer experience over novelty.
The amount one spends on advertising in a franchise system is worth investing as people's trust in the brand will work wonders. The franchisor offers both regional and nationwide advertising programs before the outlet begins to function. This factor will help to draw in a lot of customers.
The marketing strategies, operating procedures, and technical innovations of the franchisor will benefit the franchisee. The new franchisee can also seek advice from other franchisees within the system to enhance their working efficiency.
Since many franchisees work within the system; the network is flexible when it comes to testing the latest products. A few branches usually carry out a trial round or test marketing before making them available in the whole franchise system.
An autonomous start-up might have to encounter many legal complications, especially in the initial phase of formation. On the contrary, a franchisee enjoys the franchisor's legal protection since they cover several inevitable areas like labour issues, grievances, and related problems.
To master the particular field's specificities where one desires to start a business, on-field training is required. The advantage of starting a franchise is that the franchisor will provide all the necessary training right from technology to billing.
The franchisor wants their franchisees to succeed as a healthy success ratio can only keep them running in the market.
The main reason many entrepreneurs enter into franchising is that it saves them from the risk of initial debt and expands without too many complications. Since the franchisee meets the capital requirements to operate an outlet, it nourishes the companies' growth by using other resources.
Author Bio: Ester Adams is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.