One of the ways to expand your business presence in Australia is franchising. You can grow without having to personally oversee all the new places that you have added to your list. However, there are always some obstacles as we speak of franchising. What follows is a rundown of how you can avoid some of the challenges inherent to franchising in the country. If you are worried about ‘how do I franchise my business successfully in Australia?’ then read this blog.
1. Knowledge of the Law
Australia has severe laws regarding the practice of franchising. The franchising code of conduct of Australia has to be followed by you. This code sets the terms for the franchisor and the franchisee. It contains provisions on the rules for disclosure, marketing fees as well as how the disputes arising therefrom are to be solved. The services must be taken from a franchise lawyer. They will assist you in knowing your responsibilities and prevent you from having legal issues. Failure to take the right legal measures means that your franchise may run into penalties.
2. Finding the Right Franchisees
Therefore not everyone is suitable for running your franchise. That means you have to look for end users and business partners who appreciate the worth and vision of your company. This can be a challenge. To some people, some franchisees may seem good to invest in on paper but they will make poor decisions when it comes to the nitty-gritty of running the business. To avoid this ensure that you have the best selection criteria in place. Be very selective in the kind of candidates you are interviewing. Ensure that you search for the respective skill set or experienced persons in your industry you are in. Training is also still a consideration and is also pertinent by requiring proper training.
3. Maintaining Brand Consistency
One of the challenges of franchising is how to maintain the standard of the business throughout the franchise. The problem with multiple outlets is that while there are several franchisees, every single one of them may come up with his way of managing the company. Subsequently, there may be disparities in service or product quality. To avoid this, set out good and proper brand standards. These should include all aspects from the marketing side of the business to the customer service side. As for your franchisees, it may be a good idea to train them now and then or have periodic meetings to avoid this problem.
4. Managing Growth
It is possible to rely on franchising as a fast-growing business strategy. However, it can also create issues for both parties if not well planned for. You should know how to operate systems to accommodate a multiplicity of locations. These include - day to day support, support team, and appropriate communication. But often such franchisees will lack support and therefore could be overwhelmed. In some cases, consider hiring employees who have a speciality in franchise management. They assist you in dealing with the operational issues of managing a growing franchise system.
5. Dealing with Disputes
Litigation is a regular occurrence between the franchisor and the franchisee. These can be over-fee, area of operation, or performance. One can not do without a procedure for handling disagreements. The basic legal document guiding franchising is The Franchising Code of Conduct, which mandates that legal disputes be preceded by mediation. Another way to mitigate risks is also proper written contracts and reporting about companies’ activities.
Stop worrying about ‘how do I franchise my business successfully in Australia?’ There are tremendous opportunities for franchising your business in Australia and thus it should be credited as being a success. However, you should be ready for obstacles. By following proper strategic planning and management, it will be easy to take your business to another level even if you are faced with these challenges commonly.
Author Bio - With the help of this article, the author wanted to make all business owners aware of the challenges of starting a franchise and how to overcome them.
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