What is franchising?
Franchising is a way of doing business. At its heart is an innovative method of marketing and distributing goods and services. It has been extremely successful and there are an estimated 79,000 franchised businesses in Australia.
Sector performance
Whilst the franchising industry has faced a difficult trading environment in recent years, both franchisors and franchisees are cautiously optimistic about the trading outlook.
The franchise model
The franchise business model is characterised by a close, symbiotic relationship between franchisors and their franchisees. If the franchisor fails, the franchisees will likely follow. Likewise, without a strong franchisee network, a franchisor cannot be successful over the long term.
Managing performance and failure
Franchises fail, both at an individual franchisee level, and at a global franchisor level. Who drives performance? Who is responsible for failure? The best franchise networks are built upon a combination of franchisor 'vision' and franchisee 'know how'. Ultimately, both the franchisor and franchisees are responsible.
Please click here to view full article
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
