5 Simple Steps to Start a Franchise in Australia
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The Franchise Industry in Australia is among the most robust in the world. (Source: Austrade)
It’s estimated that there are more than 210,000 franchise businesses operating in the country, which represents more than 4% of all businesses in the country.
The sector generates an estimated $22 billion in revenue and supports more than 110,000 jobs across the country.
However, If you’re interested in starting a franchise in Australia, you’ll find that the market is extremely competitive and that there are a variety of options to choose from.
In this blog, we have broken down the process of starting a franchise in Australia into Simple 5 steps .
Let’s get started!
Step 1: Research the available options

As you begin your search for a franchise opportunity in Australia, the first thing you should do is research the franchise industry in the country.
This will help you understand the various franchise business models that are currently operating in the country and will help you learn about the franchise opportunities that are available to you as a candidate.
A few methods of going ahead with the research include:
- Visit the businesses operating the Franchise: You must visit franchise businesses to learn more about the different franchise business models that are currently operating in the country.
Some of the best ways to do this are by talking to other franchise owners and asking them questions about their experience owning a franchise.
- Online Research: Another way to research is by doing online research to find out more about the franchise opportunity that you’re considering.
How do you do it?
Let’s say you want to start a franchise business in Australia in a popular domain.
Now, Most of the popular franchises in Australia operate in the retail, hospitality, and food services industries.
Some of the most popular franchises in Australia include McDonald’s, KFC, Starbucks, Subway, and Domino’s Pizza.
So, if you were to look for a Franchise in this F & B domain – there is nothing better than looking at the most popular franchise business model in Australia.
McDonald’s also happens to be one of the most well-known franchise business models in the world.
You can learn more about the McDonald’s franchise opportunity in Australia by visiting the official website of the fast food chain.
However, it might not be an option you want to invest in, as Mcdonald’s franchises require a minimum investment of $1 million to $5 million. (Source: Visafranchise)
So if McDonald’s is expensive, let’s move to other franchise models in the F & B space like Subway or Pizza Hut.
The fact is that there are a number of different franchise opportunities in Australia, so the first thing you should do is research the franchise industry in the country so that you can learn about the various franchise business models that are currently operating in the country.
Step 2: Identify the Right Franchise Sector

The fact is that there are a number of different franchise opportunities in Australia which makes it confusing for anyone to identify what meets their needs.
To avoid confusion – the first thing you should do is research the franchise business model so that you can learn about the various franchise business models that are currently operating.
And then, you weigh the franchise opportunities based on your skills, interests, costs and goals.
Be wary of franchise opportunities that can raise your monthly costs by a significant amount, add substantial ongoing costs, or are not right for your business goals.
Some franchise opportunities require a large upfront investment, while others require a smaller investment.
However, some franchise opportunities require ongoing investment.
Some of the factors you need to weigh are:
– The potential cost savings
– The business goals and operating style
– The skills of the franchise owner.
– Understand the industry
– Location of the franchise
– Amount of time and effort required to start the franchise.
I also recommend looking at a few past failed business Franchise models.
A good example of a Franchise model that did not work for small businesses was building, which was a franchise opportunity that offered to franchise existing sign-making businesses.
Unfortunately, BuildASign was unable to generate enough revenue to become profitable, which resulted in the franchise opportunity shutting down.
This is a cautionary tale for anyone who is interested in the sign-making franchise opportunity in Australia.
The thumb rule I ask business owners planning to start a franchise is – If you already have a successful business, you might be interested in exploring the franchise opportunities that are a good fit for your business goals and operating style.
However, if you want to start from scratch, you can look at the failed franchise models in the industry to learn about some of the mistakes that failed franchisees made.
Step 3: Research the Franchise You Want to Start

After identifying the franchise opportunity that is a good fit for your business goals and operating style, the next step is to find out more about the franchise opportunity.
This involves doing some research about the franchise opportunity.
The steps that can help you research the franchise opportunity include the following:
Research about a Franchise
The first step in researching a franchise opportunity is to do some background research about the franchise opportunity.
This involves doing some research about the franchise opportunity.
You can find out more about the franchise opportunity by doing some background research on the franchise.
This involves looking at the franchise website, reading reviews, and visiting the franchise location.
Some good ways to search for information about the franchise opportunity are: – Google – Facebook – Instagram – LinkedIn – Twitter – Quora – Reddit – YouTube – Google Maps, etc.
Read their Franchise documents.
The next step is to read their Franchise documents.
This involves reading the Franchise Disclosure Document (FDD) and understanding the business goals, operating style, and franchise opportunities that have succeeded in the past.
Talk to the Franchise Sales team or an existing Franchise owner to learn more about how the franchise operates and if it aligns with your goals.
By the end of your research, you should expect to understand better what the franchise is about and how well it aligns with your goals.
If I were to do the research, I expected to ask myself the following questions:
– What is the franchise opportunity about?
– What is the business goal of the franchise opportunity?
– What is the operating style of the franchise opportunity?
– What is the current market share of the franchise opportunity?
Let’s take an example of a 7-eleven franchise opportunity and answer these questions.
– What is the 7-eleven franchise opportunity about?
Ans: The 7-eleven franchise opportunity is a convenience store.
– What is the business goal of the franchise opportunity?
Ans: The business goal of the 7-eleven franchise is to provide convenient store locations for customers.
– What is the operating style of the franchise opportunity?
The operating style of the 7-eleven franchise is to operate 24 hours a day, seven days a week.
The 7-Eleven franchise opportunity is a business opportunity that sells food and products.
They have a franchise format and operate around the clock. They also have a corporate office that provides support to franchisees.
– What is Australia’s current market share of the 7-eleven franchise opportunity?
The current market share of the 7-eleven franchise is around 10% in Australia.
The franchise opportunity is currently operating in Australia.
– What does it cost to start a 7-eleven franchise, and what is the return on investment?
The initial investment to start a 7-eleven franchise is between $300,000 and $500,000. (Source: Franchisegator)
The 7-eleven franchise opportunity has a good return on investment.
The 7-eleven franchise opportunity can be a good investment for people interested in the convenience store industry.
The 7-eleven franchise opportunity can help people to build their businesses as they have a well-known brand.
Once you can answer the questions above, it’s time to move to the next step, which is where you put together a business plan.
Step 4: Create a Business Plan

When you’re ready to move to the next step of starting your franchise, the stepping stone of the foundation that you are about to set up is a business plan.
One of the most important steps in starting a small business is to plan out exactly what it will look like once it’s built out and generating revenue.
This is done through the creation of a business plan, a formalized document that lays out the goals and strategies of a small business in great detail.
The goal of a business plan is to provide a roadmap for achieving the goals of the business, but it can also be used to help secure funding and show potential investors and partners what a small business is all about.
Generally, a small business will use a franchise business plan as a starting point, though it is up to the owner to customize the plan to their specific needs.
I usually look at the franchise design document as a source of truth to start planning our small business plan that plans to become a franchise for this business.
A franchise design document will include the following sections: Mission Statement, Vision Statement, Organizational Chart, Marketing Plan, Operations Plan, Financial Plan, and Franchise Agreement.
Some of the stuff here would be irrelevant to your business plan, but the majority of it applies to your small business as you are going to be a franchise operating under the big brand.
So you cannot deviate from their fundamentals.
I would also use their CAPEX and OPEX model, revenue mechanism, and past case studies of similar-sized / location businesses to build our revenue model.
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You might also want to consider the expenses such as buying a software license, hiring a lawyer to do the paperwork and review all the agreements, and trying to get all the approvals that you need from the various government agencies.
Once you have covered all of these expenses and listed them on your business plan, you are ready to start the franchise business and move to the next stage.
Note – The business plan is an opportunity to detail your business idea, your goals, and your strategy for reaching them.
So do not shy away from going back to the previous steps and re-writing your business plan.
You will be able to make valuable revisions and improvements to your business plan as you go through it.
Think of it as a living document that will evolve over time and will help you make an informed decision.
Step 5: Time to Sign the Franchise Agreement!

A franchise agreement is a legally binding contract between a franchisee and a franchisor.
When you are ready to open your franchise, you must sign a franchise agreement.
The agreement sets out the terms and conditions of your franchise, including the rules and policies you will be expected to follow.
It also outlines the franchise owner’s and franchisee’s rights and obligations.
It is essential to read the Franchise Agreement carefully and understand what it means and doesn’t mean.
When considering whether to sign a franchise agreement, you should keep in mind the key points of the agreement.
Franchise agreements come with various provisions, and the terms can vary depending on the franchise brand.
It’s important to understand what each provision means to decide whether the franchise is right for you.
The first thing you should do before signing a franchise agreement is review your business’s current state, including sales projections and financials.
This will help you determine if the franchise is a good fit for your needs and help you avoid any costly oversights.
It will also allow you to understand better what you will be signing when you finally sign the franchise agreement.
Also, it is vital to consider the terms and conditions of the agreement before signing it.
Your franchise agreement will define the rights and obligations of the two parties and your franchised business’s operating rules and policies.
It will also define the territories you will be operating in and the terms and conditions of the franchise sale and development agreement.
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Before signing the dotted line with the company, do not forget to engage a legal team/lawyer.
As a new franchise owner, you will rely on the expertise of a legal team to help you navigate the legal process and protect your business.
As you build your brand, you will become intimately familiar with legal’s role in your business and its impact on your day-to-day operations.
This will give you a better understanding of the legal landscape and how it affects your business.
For example, remember that when considering whether to franchise your business, you should know the basic requirements and regulations of the Australian government.
As per the Australian Competition and Consumer Commission – the government department responsible for franchise regulations, The Australian government has several requirements for businesses considering franchising.
The primary requirements are that a franchise business must operate within a specific geographic territory and provide a particular product or service.
The government also requires franchise businesses to comply with minimum standards in employment, health and safety, and the environment.
This is where legal help can help you comply with everything or point you in the right direction.
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On an ending note:
Franchising is a proven business model helping Australians run their businesses for over a century.
Australia has more than 100,000 franchise locations nationwide and has generated more than $100 billion in revenue through the model. (Source: ibisworld)
But not all franchise opportunities are the same.
Some are run by experienced, well-known brands, while others are run by inexperienced operators just looking to make a quick buck.
With so many dodgy franchise systems out there, it’s no wonder people are afraid to take the plunge.
But if you research and find the right franchise, you can start your own small business with almost zero financial risk.
So do your research well and use this blog to follow the steps to starting your own franchise business in Australia.
And only if you are comfortable with everything, sign the franchise agreement, and become a proud owner of a franchise business in Australia.
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