Business Franchise Australia and New Zealand
USING FRANCHISING TO ACCELERATE REGIONAL GROWTH
Fostering a strong and diverse small business sector is a significant component of a sustainable local economic development strategy.
For many Australian regional centres, however, years of slowing commercial investment have resulted in a shortfall in the range of retail and small business services and entrepreneurial opportunities that are significant drivers of wealth creation.
One region seeking to reverse this trend is the Greater Hamilton region, in Western Victoria, which is broadening its strategy of regional revitalization by targeting franchises as an efficient, innovative tool to address service and small business ownership gaps, as well as create a more diverse business mix.
Encouraged by extensive research and analysis of the impacts of franchised businesses and the identified market gaps and opportunities in Hamilton, the city is actively seeking new franchised businesses to set up in town.
“The franchise business model presents a range of locational options from traditional main street storefronts to mobile and homebased businesses. Additionally, franchise businesses provide an organisational system and corporate support that lowers barriers to entry,” according to Hugh Koch, Manager Economic Development and Tourism, Southern Grampians Shire Council.
“Reducing these traditional obstacles may greatly enhance opportunities for many first time entrepreneurs who traditionally lack adequate resources, access to capital, and extensive industry experience.” “Franchises offer the brand recognition, efficiency and economies of scale advantages of a chain store while retaining some of the local economy and entrepreneurial benefits that are hallmarks of independent small businesses,” says Hugh Koch.
Greater Hamilton expects multiple benefits if it can encourage new franchise networks to set up in the region. Not only will there be an influx of new investment, but franchisee and
employment opportunities can be created and the Greater Hamilton region can be used as a base for further expansion into neighbouring areas.
Hamilton sits in the middle of three major centres, Warrnambool, Horsham and Portland, and conveniently close to the cities of Ballarat and Geelong, with Mount Gambier and the Limestone Coast Region of South Eastern South Australia also having an impact on the Greater Hamilton regional economy. It is also close to the burgeoning Grampians tourism area and 90 minutes from the Great Ocean Road.
The Greater Hamilton region promoted its business opportunities to franchisors and franchisees at the Franchise Council of Australia’s National Convention in Melbourne in October and is set to launch other targeted initiatives in 2019. The Council’s Economic Development and Tourism Unit has produced a detailed information kit to assist franchise systems evaluate the opportunities in the Greater Hamilton region. The Greater Hamilton regional presence at the NFC was a fantastic introduction to the industry and a surprise to many attendees, with Hamilton receiving positive feedback for their proactive approach to generating business growth for the region. Many attendees were unaware that Hamilton has an immediate catchment of 24,000 people with 180,000 people residing within 2 hours from Hamilton. And business growth was
the focus with no less than 12 franchises expressing interest in business development into Hamilton. Having the support of a positive and active local Council to assist in the facilitation of a new business establishment was considered a hurdle crossed off the list for many of the franchises the team from Greater Hamilton spoke to.
The central geographical location for a franchise territory, projected population growth of the region and the stable regional spend that is demonstrating an upward trend, were significant considerations for the franchisers as well. Franchises also noted that when you see a local council investing in infrastructure for its CBD like Hamilton currently is, then this is a sure sign of growth throughout the region.
In a consistent rainfall area, fortunate not to be experiencing drought conditions, and with agricultural commodity prices doing well over the last few years, the region is prospering.
Since the National Franchising Convention in Melbourne, the Council team and a number of franchises are currently in discussions aligning potential franchisees with franchisors. Other franchisors are redesigning their geographical territories or examining their business model to adjust to a smaller catchment.
Franchise Council of Australia CEO Mary Aldred says the FCA is delighted to be assisting Hamilton. Through her own strong regional background, Mary knows how much franchised businesses contribute to rural and regional Australia.
“It is not just the economic benefit, but the social and community impact. Often you will find franchisees passing on the knowledge they have gained through their training and support to other local businesses. Healthy businesses create healthy communities,” says Mary Aldred.
“Areas such as the Greater Hamilton region need to stimulate economic growth to increase their population and an investment attraction strategy that focuses on attracting new franchises to the area is a vital action,” says SGSC Mayor, CR Mary-Ann Brown.
SGSC’s Hugh Koch says “There are already several well-known franchise retailers operating successfully in Hamilton. So, we felt there was an opportunity to actively seek new franchises to come here to fill the gaps. Our Economic Development Officer will assist in matching franchisors with franchisees locally.”
In line with these strategies, Greater Hamilton has invested extensively in revitalising the CBD, with two projects in particular leading the way.
The Cox Street development, which lends itself to a bulky goods style retail centre, is currently at detailed design and construct. In
addition, the CBD Revitalisation of Melville Oval and Lonsdale Street is currently in its master planning phase.
In addition, a Council-led proposal to develop 23 industrial sites as a serviced industrial / business park to cater for local demand in the commercial property market is also in the initial stages of construction.
A recent report (Top Opportunities) named Hamilton as a key town to purchase a property in as the town is “booming due to strong local economies and massive infrastructure investment.”
The report stated that Hamilton is included in regions which have seen big increases in sales of houses and units and the strongest growth patterns of anywhere in Australia over several consecutive quarters.
The Southern Grampians Shire Council’s Economic Development and Tourism Unit is the first point of contact for individuals, families or businesses wishing to establish, relocate, diversify or expand in the region.
“Our objective is to provide an environment that is positive for development and investment opportunities and encourages employment and business growth,” says Mayor, Cr Mary-Ann Brown. “By helping to meet the needs and maximise the opportunities for interested franchisors and franchisees, as well as providing a crucial link between government, business and the private sector, we can further enhance the success of the local economy, maintain population growth and diversify the service offering to our community.”
“We welcome the opportunity for national franchises to investigate the Greater Hamilton region further and look forward to inviting those who wish to invest in regional areas of Australia to start with a supportive community such as the Greater Hamilton region,” says Mayor Brown