Five thousand would-be franchisees have registered for a free, online course developed by Griffith University’s Asia-Pacific Centre for Franchising Excellence.
Funded by the Australian Competition and Consumer Commission (ACCC), the program consists of five modules and is designed to set small business operators and prospective franchisees on the best path for a future in franchising.
ACCC Deputy Chair Dr Michael Schaper said the course has been developed to convey a realistic understanding of franchising, and to go beyond the textbook to provide practical tips for would-be franchisees.
“It’s designed to assist prospective franchisees make informed investment decisions, help them understand the demands of franchising, and know where to go for assistance if things turn sour,” Dr Schaper said.
It’s not just franchisees who have found the program valuable, a number of franchisors now incorporate the program into their franchisee recruitment processes.
Subway Development Manager (QLD/NT) Lesley Dobson has made the program compulsory for franchisees applying to Subway in Queensland for the last 18 months.
Dr Schaper said that as a regulator, the ACCC understands that potential compliance issues can be significantly reduced or eliminated if prospective franchisees are educated about their rights and obligations under the Franchising Code before they enter into a franchise agreement.
“If a prospective franchisee does its due diligence by participating in the free pre-entry education program it will be able to make a better and more informed investment decision – and this can result in the prospective franchisee concluding that franchising is not the right investment for them,” he said.
Topics covered in the free online program, which was launched July 1, 2010 include:
- An overview of the franchising sector and the Franchising Code of Conduct
- Franchise disclosure, agreements, royalties and finance
- Franchise support services, site and territory selection, retail leasing and franchise marketing funds
- Franchising intellectual property, the operations manual, franchisor-franchisee relationships and dispute resolution
- Questions to ask franchisors and existing and former franchisees, additional due diligence, useful business skills and assessing suitability to become a franchisee.
For further information or to register visit the website.