Australia has one of the highest numbers of franchises per capita in the world, however to make it work you need a plan, experts say.
The franchise sector has experienced particularly rapid growth over the last 10 years and now accounts for about 14 per cent of our gross domestic product.
Although the sector is buoyant, Stewart Creighton, National Manager of Market Specialists with the Commonwealth Bank’s Corporate Financial Services, notes that for entrepreneurs seeking to enter the industry, navigating its financial terrain can be challenging.
“While franchising offers a number of business securities such as a tried and tested business model, proven operational systems and the support of a franchise network, it is not without financial risks,” Mr Creighton says.
Operating under a well-established name and reputation of a franchisor, using their training resources and taking advantage of the added buying power of a large network, offers a balance between independence and security.
However, buying a franchise does not always guarantee success.
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