Franchising is a force for hard working entrepreneurs achieving their goals out of the spotlight
As many a celebrity will attest, fame comes at a cost. So when the spotlight shines on a business it can be for the best or worst of reasons. Franchising has found itself in this position with the parliamentary inquiry into the efficacy of the Franchising Code of Conduct progressing through initial public hearings at the time of this publication going to press. What’s been apparent in the glare of publicity that has pre-empted and is accompanying the inquiry is there is no easy answer to bringing profitability and success to every franchisee across Australia.
However, misleading and unconconscionable conduct must be dealt with. The question is, does the Code need to be revised and improved? Do existing regulations suffice but need greater compliance? Do the regulators themselves need more resources?
The hearings and inquiry will advance, the committee will review and assess the submissions and the impact of the Code, and by 30 September the franchising sector will have clarity on what happens next.
In the meantime, this $146 billion sector continues to power its way through a challenging retail economy, to build up strong service-based businesses, to employ about half a million people across its nearly 80,000 individual businesses.
These numbers indicate how entrenched franchising is across Australia - not just through the big names that hit the headlines but through the actions and entrepreneurship of hard working franchisees and franchisors trading in everything from lawn mowing and dog washing to business coaching and IT support, from beauty salons and gyms to hotels and bakers, from pool cleaners and logistics to Mexican food and ice-cream parlours…
And fronting many of these operations are franchisees who have shown that a franchise model can bring dividends.
Individuals looking to replicate this success fall into two camps: those who know clearly what business and brand they want to be involved in, and those for whom opportunity is wide-open.
Whichever profile you match - there’s something in this edition for you. For those that are advanced in their search, salutory advice about the legal issues that are central to franchising are uncovered in the Franchise Basics segment.
For those of you just dipping your toes in the franchise pond, it’s a deep pool...you might start with the list of 10 franchises you’ve probably never heard of (see page 14) before moving on to showcases of franchisee and franchisor success, discovering what’s coming up at the next expos in Brisbane and Melbourne, and uncovering some of the brands operating in the Asian food market, and hotel and auto repairs space.
Enjoy the read.