Australia
09 November 2007
You know that the franchising industry has hit the mark when a shopfront like Franchisemart opens. This is a place you can go to buy your very own franchise, where you can compare and select from a range of different business options.
I was going to a meeting in the Sydney suburb of Crows Nest last week when I wandered past a store getting new signage ... it turns out Franchisemart opens today. Already established in the US, this is the first Australian store.
In true franchising style, director Gareth Grant plans to grow Franchisemart by opening franchised offices in 2008 in all capital cities in Australia. Grant says that he's already been approached by people in Victoria, Western Australia and Queensland.
According to a study by Griffith University, sponsored by the Franchise Council of Australia, Australia's franchising sector turns over an estimated $128 billion, or 14 per cent of the country's GDP.
No wonder there's a Baker's Delight, Gloria Jeans, Step into Life, Sign*A*Rama, Contours and LJ Hooker on every corner.
Now, much like going to the supermarket pick a selection of groceries, you can also choose your own business. It's franchise pick'n'mix. In Australia, there are franchise options including everything from pets and payroll services to event planning and education.
But how do you go about choosing the right franchise?
Do your own research
Apart from ensuring that the dollars and cents stack up, make sure you do your own research. While information provided by the franchisor may be useful, always try to find independent verification of their statistics.
For example, they may claim that a certain location is a high traffic area. Find out for yourself. Go and sit at the proposed location - or shopping area - for half a day and actually count the number of people who go past.
Identify trends in the industry and analyse the longevity of the products or services on offer.
Check out the calibre of other franchisees
Remember that you are the company you keep. Visit the operations of other franchisees. Try to meet them. If a franchise is worth investing in, the franchisor should be happy to provide you with contact details of other franchisees so you can hear from first hand experience.
Talk to nearby shopkeepers or businesses
Gossip isn't always a bad thing. While you should take much of what you hear with a grain of salt, it can be useful to find out as much as you can about a franchise by asking other people in the industry, and nearby business owners. The more information you are armed with, the better.
What's been your experience with franchising? Tell us the good, the bad and the ugly.
Source :
www.blogs.smh.com.au
