Pole dancing. Yep. That’s the enduring symbolism of the franchising industry in Australia. You see, there’s even a pole dancing studio franchise Down Under. In a country that loves sports and fitness, it was only a matter of time before the light bulb went on, the music started, and the owners of a pole dancing franchise raked in the dough.
Contributing an estimated Aus$128 billion to the economy, the franchising industry in Australia is booming, and promises to remain strong, even if the global economy takes its time recovering. Per capita, this sprawling continent has three times the number of franchised units than the good old USA. Many of these franchises are tapping into the trend of more and more Australians having a lot of disposable income to spend, but little time in which to spend it, or even do the needful.
In addition to the usual suspects – KFC, McDonald’s, Domino’s Pizza, Nando’s and Subway, which have successfully franchised their way across the country – there are also smaller brands like EmbroidMe, Anytime Fitness and Expense Reduction Analysts.
Despite a drop in the number of franchise systems operating due to the global economic downturn, the Australian franchise sector has survived the turmoil. True to the saying, ‘Only the strong survive’, unsustainable franchises, mostly retail outlets, have gone under. This has actually been a good thing, since the number of franchisors had been growing steadily since 1998. Better yet, the nearly 70,000 surviving franchise units are actually growing – despite the recession.
Unlike many other countries, the franchise industry in Australia is governed by strict legislation – to protect both franchisees and franchisors. All franchise businesses within Australia must comply with the Franchising Code of Conduct, which assists both parties in making informed decisions before they enter into legally binding agreements, and offers a framework for resolving disputes over matters such as royalties, fees, trademark usage, terms of licensing, disclosure documents, cooling-off periods and marketing fund audits.
Most operators in the franchising industry in Australian, including franchisees, franchisors, lawyers, accountants, consultants, academics and publishers are members of the Franchise Council of Australia.
The best way to do your research on the franchising industry in Australia is to check out the calendar of franchise exhibitions and expos. You’ll find that many of the would-be owners of franchises are Generation Y entrepreneurs whose parents bankroll the business. A franchise is ideally suited for these young start-up upstarts, who get to be their own bosses, without the trials and tribulations of starting what they might think is a great idea, but the market doesn’t. Plus, they get to learn about running a business, while receiving support and training from the franchisors.
Most franchises in Australia follow the Business Format, where the franchisor specifies the system by which the franchisee must conduct his business.