What type of business can be franchised?

Although just about any kind of business can be franchised, that’s not to say that every start-up should plunge straight into a franchised model in order to expand.

As the Franchise Council of Australia warns, franchising “is not an easy route to riches for franchisor or franchisee, nor is it a panacea for the ills of a ‘sick’ business.”


Should your business be suited to franchising, however, don’t be put off by the sector you operated in. Although industries such as mining and manufacturing don’t have an obvious franchise model, examples do exist, such as when Clark Rubber franchised its manufacturing operation.


“There is no hard and fast rule, but the sweet spots of franchising are fast moving retail and home services,” explains Steve Wright, executive director of the Franchise Council of Australia.


Most successful franchises have concepts, tools and services that can be easily launched in new locations.


If you have a proven service, such as say a childcare business or a travelling hairdresser service, then you should be able to replicate it, as long as you are offering something different or superior to what already exists in the area.


Your type of business almost comes secondary to your own personality. Are you happy to let others take the reigns of your brand? Can you work well with franchisees, providing them with the support they need while taking a background role to the running of their business?


Going into franchising with a realistic view of what it will involve will help eliminate problems further down the track. If you want the fate of your business to rest solely on your shoulders, as many entrepreneurs do, then franchising isn’t for you.


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