Expand Your Franchise to Australia
Interview with Mr Evan Foster, National Director of United Franchise Group, Australia.
How did you get started as a franchise consultant?
The company that I was employed by took over a franchise network as a means of solidifying their distribution channels. I was asked to play a role in managing Franchise Services – a steep learning curve, but one from which I’ve never looked back.
What are the current trends on the franchising market in your country?
There is a growing trend towards multi-unit and cross-brand ownership. As credit and finance has become harder to come by in the Australian economy since 2008, many franchisors have found the recruitment of new franchisees tougher than previously. Growth has started to come from franchisees purchasing additional locations and developing staff into ownership roles; others have diversified into additional brands that may complement their existing franchise business.
How many companies in your country offer franchises?
There are currently just over 1,000 different franchise systems in Australia with close to 70,000 franchise units. Australia has one of the highest incidences of franchising around the world and the sector is a significant contributor to the Australian economy.
Which are the best Franchises by growth, branch and demand? What makes them different?
The current sectors experiencing the fastest growth are in business services, such as bookkeeping, signage and business coaching. With the continued aging of the Australian population, aged care service franchises are also gaining in popularity. Growth trends in the food sector are in frozen yoghurt and many European concepts.
What's the average startup investment in money and time for a franchise?
The investment levels for a franchise vary widely. Some home-based or mobile franchises can have an investment as low as $10,000, up to some major retail and food franchises well in excess of $500,000. There are certainly opportunities for people of any investment level!
What is the profile of the people who choose to buy a franchise?
The franchising sector is so broad in Australia that there are opportunities for almost anyone to buy their own franchise. The investment level can range from $10,000 up to $1,000,000 depending on the franchise system, the lifestyle choices of the franchise candidate, and the return on investment that the candidate is looking for.
Who are your clients?
In our franchise, SIGNARAMA, we have franchisees that have come from all walks of life. Because, like most franchise companies, we provide a full training program, prior industry experience is not necessary. We have franchisees that were previously engineers, accountants, air traffic controllers, police officers and sales managers, amongst many others.
What should a franchisor know before coming to your country? Any specific requirements, legal restrictions.. etc?
The Australian franchise industry is very well regulated via the Franchising Code of Conduct. The industry is well represented by the Franchise Council of Australia, ensuring that the sector is highly regarded. Each franchisor looking to enter the Australian market needs to develop a Franchise Disclosure Document that is provided to every prospect that joins their franchise. There are many companies that can advise on the steps needed to be taken to enter the Australian market.
