A one-stop shop free education program for people buying a franchise
A free online education program funded by the Australian Competition and Consumer Commission will help prospective franchisees make an informed decision when looking to buy a franchise.
The program, administered by Griffith University's Asia-Pacific Centre for Franchising Excellence, consists of five modules and will commence in July this year.
ACCC deputy chair Michael Schaper said the pre-entry education program will be available nationally and cater to all levels of understanding.
"The program will be a one-stop shop, providing potential franchisees with a better understanding of their rights and obligations under the Franchising Code, and some of the practical issues they could face as a franchisee," Dr Schaper said.
"As has been recognised in the Expert Report on Franchising Code of Conduct recently commissioned by the Minister for Competition and Consumer Affairs, early education of potential franchisees is a critical factor in their business success and compliance with the code. In addition, the need for earlier and better information was underscored by recent research from Griffith University, which revealed that 49 per cent of the franchisees surveyed relied heavily on their 'gut feeling' when deciding to go into franchising," Dr Schaper said.
Prospective franchisees will learn about franchise-specific issues, including franchise fees, royalties, operations manuals, marketing funds and site selection, as well as general business concepts such as cashflow and working capital. Leasing arrangements and dispute resolution will also be covered.
Participants will leave the program with a list of questions to ask franchisors, existing and former franchisees. The program will also direct prospective franchisees to further self-education resources.
The ACCC will assist in the development of the program and monitor its effectiveness, with this program supplementing current education efforts in the franchising sector.
"Anyone thinking about buying a franchise should enrol in the program," Dr Schaper said.
