Franchisees better suited for success, says Boost Juice founder Janine Allis
The current parliamentary inquiry into the Franchising Code of Conduct has many franchisees sceptical over the economic environment of the sector, however Boost Juice founder and Shark Tank investor, Janine Allis remains confident.
Speaking to SmartCompany following the Shark Tank season four finale, Allis dismissed concerns about the fragility of franchising, remarking that business owners are far more likely to be successful when starting a franchise, compared to an independent business.
“There’s no question – you’re three times more likely to be successful with a franchise than you are going to be on your own,” Allis said.
“If you want to be successful in business, getting a franchise is the way to go.”
Despite the current uncertainty surrounding the sector, Allis’ claims strengthen last year’s comments from Dominique Lamb, CEO of the National Retail Association.
Lamb suggested that while 80 per cent of independent small businesses fail in the first five years, franchising presented a far more structured alternative.
“That’s far higher than the 20 per cent failure rate among franchisees. As a franchisee you’re not entering a new industry on your own,” Lamb said speaking with Money Magazine.
According to the Franchise Council of Australia, there are over 79,000 franchises operating nation-wide, employing more than 470,000 Australians and generating approximately $146 billion in sales turnover.
However, Allis admits that while the sector provides prospective business owners with the foundations for success, franchising does not present a guarantee of fiscal reward.
“Even with all the positives that come with it, you still have to pick your franchise carefully,” Allis said.
“Franchising is a business, and what you do in that business dictates your success more than what a franchisor does…just like with everything, there are businesses who don’t do the right thing by franchisees, and they’re businesses you shouldn’t get involved in.”
The last 12 months has seen the franchising sector rocked by allegations of misconduct and underpayment, reflected in a lack of industry confidence.
For Allis’ Boost Juice franchise however, network growth has been steady and consistent.
The franchise currently holds 270 locations in Australia, with 197 overseas and Allis said franchise inquiries in 2018 are “stronger than they’ve ever been”.