How to Start a Franchise in Australia – All Details Revealed

According to the Franchise Council of Australia, over 94,000 outlets and 1,200 franchise networks exist throughout the country solely under this organisation. Experts agree this business could be profitable, provided you plan everything to the smallest details.

If you’d like to learn how to start a franchise in Australia, our guide is here to help. Here are the crucial tips to understand before entering this business type!

Understand the Basics

A franchise is a business model that includes a franchisor and franchisees. The franchisor is usually an established company in the industry, and it’s ready to offer its support and resources to jump-start the franchisee business.

The franchisee agrees to operate by using the brand, equipment, services, and other relevant asses of the franchisor. The two parties sign a contract where the franchisee pays the agreed sum to use those resources and support. The deal often includes other charges, such as a sale percentage or royalty fees.

Australia’s most popular franchises include Kentucky Fried Chicken, Jollibee, Krispy Kreme, and Body Fit Training.

Choose the Industry for the Franchise

You could say the world is your oyster, and choosing a franchise business depends on your preference. However, aim to be rational and focus on the industry you know well.

For example, if you are a casino business owner, you might consider setting up an online gaming franchise. Internet casinos are cheaper to operate than physical gambling facilities. Licensing is fairly easy, and once the time comes, you can expand to the global market with millions of players and a huge chance to succeed.

How to achieve success in this sphere? If you check out platforms like Casinos Analyzer, you’ll notice that most platforms offer welcome bonuses and other incentives to their players. For example, Highway casino no deposit bonus codes are one of the most sought-after promos that allow testing casino games without risk. It’s all about having the right strategy to attract customers and expand your user base, which will increase your revenue.

Some franchise businesses that are always popular include restaurants, cafés, retail shops, and hotels. The current trends show a popularity increase in health and wellness franchises, as well as those that leverage digital tools and eco-friendly practices.

Coming Up with a Strong Business Model

Designing a business plan and researching the market are two crucial aspects of your path to starting a franchise in Australia. The general rule is that an existing (small) business you want to take to the next level is the perfect candidate for franchising.

Your initial focus should be on the actual company and the business model. How do you imagine the franchise in several years? Is there a number of outlets you are targeting?

Now, consider the target customers. What audience will use your services and products? Are they primarily for a certain age group or sex, or do you have a wide target audience? You can also suggest the best locations for franchisee outlets. Does it seem like your business would have the most success in shopping centres or near a school?

Next, don’t forget the financial part. The operating costs should be lower or similar to yours. The idea is for each opened outlet to know what to expect in terms of expenses. Your business model should also offer a clear explanation of how it’s possible to reach the targeted revenues for the outlet to be profitable.

Finally, don’t forget the importance of market research. Define the competitors and look at uncovering similar franchises. You want to be special and offer something unique to attract the target audience.