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Advertorial: Franchising Versus DIY

Want to own your own business, but are unsure whether to go out on your own or buy into a franchise? Kristy Sheppard weighs up the options.

New business owners are increasingly going down the franchise path, which is reflected in the growth of Australia’s franchising industry (on a per capita basis, the most heavily franchised country in the world).

Its sales turnover is now worth well over $1 trillion and there are more than 960 business format franchise systems, nationwide, in industries ranging from fast food to financial services.

One quarter of Australian franchise systems have entered international markets and according to the Franchise Council of Australia, the sector contributes 14 percent of the Australia’s national GDP. But let’s look at the fundamental advantages of choosing one option over the other.


Self-sufficient business

No franchise purchase fee.

All profit generated from this business is yours and you can choose what to do with it.

You can brand your business however you like.

Not restricted by a franchisor’s directions and business processes.

You can develop your own policies and procedures.

No need to meet minimum performance standards of the franchisor.

Not affected by a franchisor’s loss of reputation.

You can promote your business via any means without seeking approval.




You are not starting from scratch—there is an established business model to follow.

You can ‘ride on the coat-tails’ of the franchisor’s established brand reputation, successes and improving status via things such as media coverage.

You have the support and materials supplied by head office and, possibly, state offices. At Mortgage Choice, these range from business processes, sales, training and continued professional development, marketing/public relations, accounting, IT, customer service centre, compliance, mentoring and recruitment, to simply being able to ask for advice on a daily basis.

You are part of a collaborative network and can therefore ask advice from a more experienced franchisee, or even pool resources for local marketing.

You can take advantage of head and state office’s national and metropolitan advertising, branding and public relations activities and results.

Many solid supplier relationships are already set up.

You can get discounts on various products and services because you are part of a network of franchises.

Franchises traditionally have a higher success rate in comparison to self-sufficient small businesses.

The benefits of running your own small business are usually personal, financial and lifestyle orientated, so it’s important to weigh up your options carefully to establish the best model for you. Either way, you have the flexibility of running your own operation via your own timetable and needs.

* Kristy Sheppard is corporate affairs manager at Mortgage Choice (www.mortgagechoice.com.au )

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