Not Hot in Franchising

franchising advice australia

When writing my What’s Hot article for Business Franchise Australia magazine, I also touched on ‘What’s Not’. To be a franchisor or a franchisee takes responsibility, commitment and hard work. Doing things the right way the first time is our mantra – it helps you establish good foundations and practices from the outset.

Here are some key points worth considering:

Due Dilligence

Not to be underrated, this is an investigation of a business prior to signing a contract. Potential franchisees must request specific information from the franchisor in order to make an informed decision. Many people get caught up in the excitement of the concept without having all the facts.

Take advantage of the many credible resources available – we highly recommend visiting Franchising Council of Australia as a source of excellent and up to date franchising information.

Rudderless Direction

It’s up to the franchisor to set the direction of the business. Communication and cohesion, franchisees require support, evaluation, education and an understanding of the strategic direction of the ‘mothership’. Lack of leadership and poor engagement can take the wind out of the sails, leaving the business going nowhere fast…

Finances

It is essential that key business metrics are in place for measuring, benchmarking, transparency and accountability. Without them the business may fall into a financial wilderness. Create triggers to measure and reset to assist with your goals for success. Apply this process to all elements of business including, revenue, general expenses, stock, marketing and HR.

Deal only with Franchise Council of Australia Members

Members of the Franchise Council have committed to following the mandatory Franchising Code of Conduct, plus any FCA designated member Code of Conduct. This, in addition to common law rights, increases protection for franchisees from unscrupulous operators. All intending franchisees should ensure that they deal only with members of the Franchise Council of Australia, and ask for proof of an organisation’s membership of the FCA.  To see a copy of the latest Membership List visit the current FCA Membership page on their website.

Got questions? Franchise Right has the answers – contact us today for more information on how you can make a success out of franchising in Australia.