What is a Franchise?

Franchising is a way of doing business. Unlike setting up your own business, in a franchise, the Franchisor owns the name, brand and system, and you as a franchisee are given the right to use them. As a franchisee you pay fees for these rights and for ongoing support services.

Franchising can deliver great benefits. You can learn core business skills and have access to a business model that has proven successful in other locations or areas. Franchisees can have access to a respected brand, obtain initial and ongoing training, have access to product and technical assistance, benefit from group purchasing and collaborative marketing, acquire unique or distinctive products and services, save on set up and other costs, gain lease arrangements on premises not normally available to small business, obtain finance more easily and have the capacity to obtain business support from the franchisor and other franchisees.

There may be other benefits such as administrative assistance, access to advanced technology, franchisor services, research and development and benchmarking.

In short, franchising provides small business (the franchisee) with the tools of big business (provided by the franchisor). That's why owning a franchise business makes a lot of sense - and why Franchising in Australia is amongst the most dynamic and progressive business sectors in the economy.

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