Franchising in Australia

The concept of Franchising is not new. Around 700 - 800 years ago the Franks, Germanic people who populated parts of France and Germany, negotiated the first recorded "franchise" arrangement in dividing the use of land and the sharing of the harvest.

This arrangement granted the "Franchisee" to be exempt from the normal tariffs and taxes of the day, one of the first contracted Win / Win's in history.

From this, the derivative of The Granting Of Rites In The Frankish Way became "Franchising".

Franchising in Australia began almost as soon as the colony began.

The first franchised product was rum, which resulted in the building of a hospital in exchange for the rum franchise. Australia's first Franchisor was the Governor Lachlan Macquarie.

In 1863 Singer Sewing Machines granted the World’s first commercial franchise granting the rites to sell its products and use its brand name. Later, Ford and other automotive manufacturers followed.

This successful formula for distribution and marketing was adopted by corporations like Coca Cola and various oil companies.

The modern Franchise era began in Australia in 1967 when Kentucky Fried Chicken began its operations.

In Australia: Estimated Employed in the Franchise Sector – 592,180

Annual Turnover in the Franchise Sector within Australia - A$80 Billion (12% of the GDP) Australia is the most franchised nation per head of population in the world.

That is, there are more franchise systems in Australia than any other country; Australia has at least three times as many franchise systems per head of population than the United States (see World Franchise Council).

What’s Good & Bad about being a licensee?

Does being a Franchisee suit your Personality?

These questions may help you in decision making:

  1. Can I operate within someone else's guideline?
  2. Would my friends and partner say I am capable of being adaptable and willing to listen?
  3. Do I have the attitude necessary for success? Have I achieved success previously in ANY field?
  4. Am I able to communicate professionally and present a product to middle and senior management?
  5. Do I feel good about being part of a team?
  6. Am I able to handle decisions made by others that may impact on my business?
  7. Am I physically fit to handle the drive needed to succeed?
  8. Am I willing to stay open minded about things I believe I know everything about - particularly on selling?
  9. Do I have the support of family / partner?
  10. Do I want to conduct business in a Win / Win environment.
  11. Am I realistic in my expectations?

What's not so good about being the owner of a Franchise?

It’s a two edged sword, on one hand you get experience, help and professional advice while on the other you need to comply with a well thought out and proven method of conducting business, particularly around selling and marketing.

You need to comply with the paperwork systems put in place and work within the bounds of the Franchise Agreement.

Purchasing a Franchise requires a serious commitment; you are not just investing your money but also your time and energy ...which may well affect your personal life and family.

How does Franchising Work?

There are two key elements within Franchising.

  1. A product with a proven business methodology.
  2. A trademark or copyright.

The proprietor of the trademark / copyright and the business methodology, "The Franchisor" grants the rights to a "Franchisee" to utilise the trademark, copyright and the business methodology within a specified area.

This is outlined within a Franchise or Licence Agreement, which clearly defines the rights of both parties.

Specific reference is made to the obligations of both parties with reference as to how the income of the franchised business is to be shared.

Being a Franchisee: One of the best indicators of future results - is past performance.

Fast tracking experience is one of the major benefits of being a franchisee.

When the Franchisor has a proven track record of success and experience gained from time and capital invested in perfecting a product relative to its sale, distribution and customer acceptance, the Franchisee can capitalise on this without having to spend years of trial and error in finding out what works.

Support and interaction creates a synergetic environment where both the Franchisees and the Franchisor have the opportunity for greater success in their business and personal growth.

Ask anyone who has been in business for themself for a number of years and you will inevitably hear that one of the things that wasn't so pleasant was not having anyone they could talk to, share successes with or go to with new ideas or difficulties.

There is great benefit from knowing that there are other like-minded people who are capable and motivated working towards a common goal with a worthwhile purpose.

The strength of the overall group will only enhance the credibility and success of the individual.

Market presence will be fast tracked, something that independent businesses will not be able to achieve as quickly.

The Franchisee should contribute to the system in a positive manner, as such contributions will strengthen the system and the group’s overall place in the market.

The Licence Arrangement:

The territory is the Commonwealth of Australia

What the job requires.

This is the bottom line…

  1. We have exceptional, proven products purchased by hundreds of experienced business leaders in many varied industries
  2. There are tens of thousands of potential prospects, from individuals to major corporates
  3. Using various methods, we contact potential clients, go see them and sell them
  4. We then create an ongoing relationship through coaching or selling further programs.

Steps: Corporate Training

Prospect for prospective clients - There are dozens of ways to do this.

  1. Present the programs to the relevant contact.
  2. Sell the program - either as hard copy, coaching, a seminar, book customising or as a corporate in house training.
  3. Deliver the program organise training / coaching.
  4. You can perform these functions yourself or have others do all, or some of them for you.

eg: Some people are great salespeople and perhaps not so effective at coaching - they either become effective in the coaching role or do what they do well, sell lots of business and hire a trainer.