What is a Franchise?

In Australia, the franchising sector has the Australian Competition and Consumer Commission (A.C.C.C.) as its watchdog to ensure businesses comply with the Franchising Code of Conduct which is part of the Trade Practices Act. In broad terms, according to the Franchising Code of Conduct a business is deemed to be a franchise if:-

1. There is a written, oral or implied agreement;
2. The business supplies goods and or services under a system or marketing plan;
3. The business is substantially associated with a trade mark, advertising or commercial symbol, and if;
4. The Franchisee pays a fee, directly or indirectly.

WARNING: many businesses are unwittingly operating as a franchise, without observing the Code of Conduct, and consequently are running a substantial risk of being fined under the Trade Practices Act for failing to comply with the law. These fines are substantial for both Companies and individuals, so if you are in any doubt please gives us a call – it could be the best investment of your life.

We Franchise Business Successfully

Our National team has decades of experience and has been associated with the conception and growth of many of Australia’s top franchises.

BDC is with you for your entire franchise journey from inception to infinity and our franchise development team is just one part of BDC which is capable of assisting you for the life of your business.

Why Franchise?

”Because without question the franchise model is the safest, most cost effective and successful expansion method known to man”, Phil Blain.

The advantages of franchising a business are numerous:-

• Enables very rapid expansion
• Expansion is conducted largely at the expense of the incoming Franchisee.
• Generally a franchise structure is lean for a Franchisor, greatly reducing the dependency and hassles associated with staff
• Franchising provides the basis for the development of a powerful brand which can be tightly controlled
• Franchising lowers risk for both Franchisor and Franchise and this has been statistically proven
• It offers customers and clients a guaranteed standard of product or service and a comfort and satisfaction that comes with consistency
• Franchising instils controls
• “Hurt money” investment from Franchisees leads to improved performance as their assets are at risk
• Contributions to Group marketing funds enhance the advertising spend and subsequent brand exposure.
• This is further enhanced at the localised level by Franchisees enacting local area marketing plans
• Franchising often provides the Franchisor with a new business entity whose value is substantially boosted by the sheer fact it is a franchise with a guaranteed income stream
• Dealers, Agents or Licensees can be converted to Franchisees thereby raising their loyalty and commitment to the brand immediately