The franchising industry is a significant and exciting part of the Australian economy, with the sector experiencing continued steady growth, generating substantial jobs and enjoying sales turnover currently estimated at $146 billion per year.
A method of growing a business, franchising involves a franchise owner (the franchisee) paying a fee and being granted the right to offer, sell or distribute goods or services under a system established by the business founder (the franchisor). The franchisor supports the franchisee with leadership, training and other forms of assistance and in return receives ongoing service fees.
As with many other industries, the sector is perpetually vulnerable to factors relating to the economic environment, from domestic market slowdowns and uncertainties over economic stability, to flat retail spending.
However, we are able to assist franchise businesses to effectively manage these economic challenges. Our expertise lies in reducing debt, trimming costs, managing cash flow and focusing on improved productivity.
The Australian franchising industry benefits from the fact that Australia has one of the world’s strongest regulatory frameworks for the industry, underpinned by the Franchising Code of Conduct, which enhances both consumer and industry confidence but also raises issues of compliance. Our consultants will help you stay informed and proactive about industry and legislative changes and make sure your business is compliant.
Franchise businesses also experience challenges relating to disputes, often regarding franchisee compliance, fees or misrepresentation issues. Here, we can advise on the use of mediation and other alternative dispute resolution methods for any franchise-related disputes.
The franchising industry is also susceptible to problems relating to human capital, with less than a quarter of franchise brands utilising an enterprise agreement in their systems. Our consultants can assist with all employee-related challenges, including compliance with workplace legislation. Our aim is to devise the ideal strategy to best support revenue generation and growth.