Australia protects franchisees. I have still seen horror stories. I am not however talking about them. I’ve seen families lose everything. I’ve seen multinational franchisors go bankrupt and fly home shamed.
Today I’m talking about simple competitiveness. It is simply impossible to compete in a highly competitive environment when you are in a tightly controlled licence agreement.
Now I am not saying all franchises are bad. I’ve seen Salsa’s (Boost Juice’s Mexican brand) open in Northland Preston only to be valued at $1million within a year. Success! Franchises offer the following benefits to a Franchisee:
– Minimal Planning
– Branding & Marketing
– Turnkey business processes
– Customer service manuals
– Refined products and services
– Brand equity
However if you are a cafe or any other business in a highly competitive market place being a franchise may mean your hands are tied:
In these times of extreme competition and the remnant of a global financial crisis be aware of the benefits and the limitations of becoming a franchisee.
Consider the benefits however please do your research.
If you are in trouble please visit www.franchise.org.au