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how to choose a franchise

How to Choose a Franchise in Australia

Franchises give you a proven roadmap to follow, increasing your odds of success. But not all opportunities are equal. Discover how to choose the right franchise in this guide.

Why Should You Buy a Franchise?

Buying a franchise is a viable and appealing option for many entrepreneurs, as most have:

  • A proven business model
  • A well-known brand
  • Ongoing support

The franchise you choose must meet specific criteria. And then, you need to figure out if it fits your personality and local target market. But don’t worry - we’ll cover all that and more in this guide.

Buying a franchise benefits both new and experienced entrepreneurs in many ways, including:

1. Extra support

Franchises provide you with the support you wouldn’t have if starting from scratch. Most high-quality franchisors will train you on everything you need to know. So even if you have no business or industry experience, you’ll still be able to succeed.

And being a franchisee, you can reach out to other store owners for help when you hit a roadblock.

On top of this, you often receive business-related support from the head office.

For example:

  • National marketing campaigns and direction on local campaigns.
  • (SOPs) Standard Operating Procedures.
  • Business software.

2. An established business model

High-quality franchisors will have an established, proven business model. McDonald’s, for example, has learned what works through opening thousands of stores.

As a franchisee, you gain access to these years of business experience without trial and error. As a franchisee, you gain access to these years of business experience without trial and error.

3. A well-known brand and instant credibility

Leveraging a well-known brand gives you instant credibility. Customers don’t have to guess whether your products or service are high-quality. If they’ve enjoyed their experiences with other stores in the network, you’re almost guaranteed to have a happy customer when they come to you.

You’ll never hear someone say, “I hope a Big Mac in Brisbane tastes the same as in Sydney” - because they already know it will.

4. Sourcing financing can be easier

Since franchises have a proven business model, lenders may be more open to supplying business funding. Often, franchisors have existing partnerships with lenders. These lenders know their business inside and out, so they know the risks involved.

5. A franchise may cost less than a similar business started from scratch.

Unless you have tons of industry and business ownership experience, your processes won’t be perfect. And if these processes aren’t perfect, you’ll be losing money through inefficiencies.

Instead, you can follow and learn from existing, proven systems to save you money in the long run.

Find out more: Need help pitching yourself to a franchisor? Learn how to stand out from other franchisees.

What Makes a Successful Franchise System?

criteria franchise system

There are many franchises to choose from, but not all give you the best chance of success.

Find a franchise that has these characteristics:

  • Well-known brand: Buying into a famous brand gives you instant credibility with customers.
  • Successful track record: Without a successful track record, you can’t be sure of your risks.
  • Thorough franchisee training: Training is crucial if you’re lacking business experience. But it’s also an opportunity for experienced entrepreneurs to learn from a successful franchisor.
  • Ongoing franchisee support: Running a business is challenging. So having ongoing support can help you navigate roadblocks.
  • National and local marketing plans: Marketing is crucial for running a successful business. But it takes time to analyse your market and find what works. So, if your franchisor takes care of it, you have one less task on your list.
  • Fine-tuned business systems: Systems boost efficiency and productivity, helping you produce consistent outcomes.
  • Company profitability: A profitable franchisor knows what they’re doing so you can feel confident in the systems they provide. But if your franchisor is running into problems, your business will too.
  • Innovative approach: Does the franchisor keep up with technology and industry trends? If so, you can have confidence that your franchise will be successful in the future.
  • Mutually beneficial arrangements: The best situation is where your franchisor only benefits when you do, meaning they have a vested interest in your success.
  • Qualified leadership team: One wrong move can bring down a franchisor’s entire network. For example, a CEO's stance on a controversial topic could cause customers to boycott your store.

Choosing a Franchise that Suits You

The franchise opportunity you choose must suit your personality, skills, and goals. You should:

1. Take stock of your skills and experience

Make a list of all the skills and experience you have that would be relevant to starting a business. Having industry experience will shorten the learning process - but owning a franchise in a brand-new industry is possible if franchisors have excellent training.

2. Decide on the type of industry you want to enter.

It’s a good idea to choose the type of franchise you want to buy based on:

  • Your previous experience.
  • Consumer demand.
  • Personal interests.

Choosing this way will give you a greater chance of succeeding.

3. Look at the franchises’ potential and brand reputation

Ask the franchisor questions that will uncover your chances of success, such as:

  • How long does it take franchisees to become profitable?
  • What per cent of franchisees fail? Why?
  • What do you do if a franchise isn’t performing well?

You can also look at customer reviews, news, and social media to understand the brand’s reputation.

4. Figure out all the fees upfront

It’s normal to pay fees in exchange for using a brand’s name and support. But you should check that there aren’t any hidden or excessive royalty fees that don’t make sense. It’s good to compare fees between similar franchises to see if anything stands out.

5. Analyse the target market, demand, and competition of the franchise

There must be enough demand from your target market for your franchise to succeed. Ensure that your local area has the types of customers you need and low competition. You can gauge demand by looking at social media or asking a franchisor about the number of enquiries they receive.

6. Ask if they offer training and support

Even if you have industry or business experience, training and support are the best way to succeed. For example, a Jim’s Mowing franchise should teach you everything about garden care, including using tools and performing the necessary services.

7. Contact franchisees to ask about their experiences.

Call the owner of a local franchise and ask about their experiences, for example:

  • What support and training does the franchisor provide?
  • Does the franchisor keep improving their business processes?
  • What do customers think about your franchise?

8. Ensure you understand the franchise network and agreement.

Before you go into business, you must understand the franchisor’s disclosure documents.

These cover the:

  • Relationship between you, the franchisor, and other franchisees.
  • Fees you’ll need to pay.
  • Franchisor’s details.
  • Franchise system.

Find out more: Want to know more about the franchise agreement? Read our guide to find out what it is and why it’s important.

Top Performing Franchises in Australia

Australia has many top-performing franchisors, so it’s easy to find companies to join. Some of the best franchises to own in Australia include:

Jim’s Mowing

Starting in 1989 with Jim’s Mowing, the Jim’s family is now the largest franchise network in Australia. There are almost 4,000 Jim’s franchisees across mowing, home cleaning, dog washing and other areas.


Australia has almost 1,000 restaurants, with over 80% owned by franchisees. McDonald’s has an extensive 12-month training program and stringent requirements to become an owner.

Boost Juice

In 2000, the founder of Boost Juice saw an opportunity to provide Australians with a healthy alternative to soft drinks and milkshakes. Today, they’ve built an international brand with over 580 stores worldwide.


Subway has been perfecting sandwiches since 1965 and has opened over 1,000 stores in Australia alone. Like Boost, customers know the brand for its healthy alternatives to fast food.

Find the Perfect Franchise Today

Buying a franchise is a sustainable way to shortcut the trial-and-error process of starting a business.

Now that you know what makes a great franchise and how to choose one that suits you, it’s time to start your search. Check out the latest franchises for sale across marketing, technology, construction and more.

If you have any franchise-related questions, send us a message. A member of our team will answer any questions you have.

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