A force to be reckoned with
Due diligence is crucial to franchise success
Welcome to Inside Franchise Business and the first edition for 2019 packed full of franchise experiences, real life stories, tales of expansion and innovation, and practical advice. This year Inside Franchise Business is bumping up its magazine content into four super-sized issues to make it more convenient to tap into the resources you need.
A new spotlight on regional Australia will reveal the trends in population and business growth outside the metro regions. We launch this exciting series with a look at the thriving towns and upcoming areas in New South Wales. Which town will be the next top spot? Turn to page 92 to find out.
Introducing our first Focus special feature, Inside Franchise Business showcases budget buys. We chart the specifics of each franchise offer from 21 diverse businesses so you can compare costs, training and support. If you want to purchase a franchise on limited funds, this is a must-read.
Whatever the investment level of a business, there is a critical need for every buyer to do thorough due diligence, or research, before signing up to a franchise. It’s a fundamental that the whole team at Inside Franchise Business is very passionate about – franchising doesn’t offer any guarantees of success but the chances of achieving financial and lifestyle goals are considerably weakened when there’s very little investigation into how the franchise head office operates, the problems that exist for current franchisees, and whether the business will be money-making.
And because due diligence is so important, the Franchise Basics series of articles offering essential advice, tips and insights is a valuable part of each edition of the magazine. This year we’re backing this up with a Best Practice section that looks at critical concerns every franchisee will need to address – marketing, financial, working with the franchisor – once operating their franchise.
As I write this, the Parliamentary Inquiry into the Operations and Effectiveness of the Franchising Code of Conduct has just delayed the release of its findings. The report is now set for a mid-February deadline. Whatever the recommendations made, there’s no doubt that for franchising 2018 was a tough year. But it’s given the sector’s 1170 brands (or thereabouts) the opportunity to face up to some of the actions that haven’t been favourable to franchisees and to consider how best to take the franchising model into 2019 and beyond. As a significant employer to thousands of staff, a sector that generates about $144bn annually (excluding car dealerships) and a method of empowering individuals to enter business ownership with the opportunity to fulfil their personal and career goals, franchising is a force to be reckoned with.
I hope reading this magazine takes you one step closer to committing to a franchise – and to ensuring due diligence is uppermost in your mind.