Franchising can offer significant advantages whether you are buying a franchise or considering franchising your own business. For franchisees, the benefits can include an established brand, proven systems, training and ongoing support, while the disadvantages can include fees, reduced control and contractual restrictions. For business owners, franchising can provide a way to expand using franchisee investment and motivated owner-operators, but it also brings additional legal obligations, management responsibilities and risks.
I have been involved in franchising businesses since the early 1980's. At that time, franchising as a business growth strategy in Australia was in its infancy. Now, we are one of the biggest adopters of franchising in the world.
This guide examines the advantages and disadvantages of franchising from both the franchisor and the franchisee perspective, helping prospective franchisees and business owners understand the key commercial and legal considerations before deciding whether franchising is the right option.