Franchising bucks the trend, secures strong financial future
Queensland's rapid population growth is once again putting franchising in the spotlight as it continues to be a strong and profitable source of income for thousands of Australian business owners.
The franchising industry generates sales turnover of approximately $128 billion per year and employs around 660,000 people nationally and the upcoming Franchising & Business Opportunities Expo being held at the Brisbane Convention & Exhibition Centre from 21 – 22 July 2012 is expecting an influx this year as people look to own their own business.
"Franchising is an exceptionally strong industry and has continued to exceed GDP growth in the wider small business market for the past 15 years and research indicates the industry may outstrip manufacturing as a contributor to overall GDP by 2022," said Exhibition Director, Gaye Murray.
"Franchising should be the first stop for people looking for secure alternatives to employment."
FCA Executive Director Steve Wright said franchised businesses were attractive options for many people.
"More and more people are considering working for themselves and especially for those who have never operated a business before, franchising offers important business systems, recognised branding and marketing expertise that would be unavailable to independent small business owners," he said.
"On top of that, it’s often easier for individuals to secure bank finance when seeking to purchase a franchise as opposed to starting up their own small business, as major franchise brands are recognised to be more stable investments due to their success rate."
Darryn McAuliffe, National Manager Franchise Banking for National Australia Banksaid buyers should carefully consider their options when shopping for a franchise system.
"No matter what kind of business you are looking at investing in, you need to make sure you do your homework and expos help make that a little easier by having many opportunities presented under the one roof," he said.
"Due diligence checks are vital and you should speak with existing franchisees in the business and get a feel for their experience as well as sitting down with the franchisor and discussing your goals and expectations.
"You also need to be sure you are entering franchising for the right reasons and that you fully understand the lifestyle and income implications of your decision.
"Finally you need to ensure you have adequate borrowing capacity including working capital and you should seek financial advice as soon as possible to determine what franchise options are within your price range."03.07.2012