Free online course teaches due diligence to the franchising industry

The Griffith University’s Asia-Pacific Centre for Franchising Excellence has informed 1,600 people on franchising due diligence through a free online franchise program they developed which was funded by the Australian Competition and Consumer Commission and launched 12 months ago.

The program was developed in response to Centre research that revealed franchisees often have unrealistic expectations and were poorly informed before entering franchising said Centre Director Professor Lorelle Frazer.

“The feedback the Centre’s received from a range of franchise sector participants highlights the need for and positive effect of the program,” said Frazer who also noted the format of the program was to foster accessibility.

The program was well-received on all levels of franchising participation with prospective franchisee, Marcel Wareham from Victoria saying, “The pre-entry program is a great initiative and much needed for aspiring franchisees.

“It provides a good foundation of knowledge in order to undertake due diligence and the video presentations throughout provide a great way to absorb the information.

“I’m still considering franchising, but am not going to rush into the first opportunity that arises.

“I will now take my time undertaking the necessary due diligence,” he said.

Soon-to-be franchisee Mark Easterbrook from Queensland said the course should be mandatory for any new franchisee without business experience.

“It helped me understand what is involved in becoming a franchisee and pointed me in the right direction to get answers and to ask the right questions.

“My greatest insight from the program was the level of detail you need to get into in every aspect of the business, from legal advice, through to a business plan and estimating cash flow, to the franchisee’s obligations,” he said.

Engaged in the franchising sector for over 20 years, Home Ice Cream Franchise Recruitment Manager David Moran found the pre-entry franchise education program very useful.

“The whole program added to, or reinforced my franchising knowledge, and I now recommend potential franchisee partners in my organisation to take the course before joining us so they can benefit from the knowledge gained.”

The pre-entry franchise education program has now been incorporated into a number of franchisee recruitment processes.