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If you weigh up whether to start your own business as part of a career change or invest in a franchise, the decision you make could make or break your success. As with most things, there are benefits and drawbacks to whichever option you go with. Here we look at the pros and cons of investing in a franchise to help you make an informed choice.

Is Franchising Experiencing Growth In Australia? 

Yes, it is. It's a burgeoning field that's attracting more and more Aussies. At the point of writing, there are just over 565,000 Australians employed in franchises, with that figure expected to grow by 1.1% during 2022. It's an industry worth some $172bn, so it's certainly worth considering as an option.

What Are The Pros And Cons Of Being A Franchise Owner? 

So in order to understand whether you have both the drive and interpersonal skills  needed to make a go of things as a franchisee, you need to know about what life is really like. To assist in this regard, we now look at some of the many advantages and disadvantages of taking this route.

Let's begin with the benefits.

The Pros Of Being A Franchisee Include:

  • Support- the support you get as a franchisee in terms of business assistance is a huge benefit and often well worth some of the operational restrictions that an agreement like this involves. The support offered will depend on the franchise, but you will typically get lots of relevant advice and support that can really tip things your way.
  • Much Lower Rate of Failure - when you consider that 60% of Australian business fail within the first three years, you realise that running your own company can be tough. However, you’re buying into a proven enterprise with a franchise, meaning that you gain the non-too-inconsiderable advantage of a much lower rate of failure.
  • Customers Know Who You Are - as the best online courses on franchising shows, the brand recognition aspect is a real game-changer. When starting a company from scratch, no one knows who you are, which is a big challenge when you’re looking for customers. As a franchisee, you're getting a ready-made business and for the most part, you're your own boss.
  • Bigger Profits, Lower Risk - as a result of the support and improved brand recognition you get as a franchisee, the profits are typically bigger. What's more, your exposure is greatly reduced, so in terms of career change options, it’s a solid one that offers proven returns if you’re willing to put in the time and effort that’s required.

The Cons Of Being A Franchisee Include:

  • Limiting regulations - the franchisor who sold you your franchise has the right to determine regulations that need to be adhered to. This will influence what you can and can’t do as a franchisee and can involve aspects like branding, opening hours, services provided and more. It can be frustrating if you prefer your professional freedom, so you should be aware of it.
  • Startup Costs - take an online course in franchising and one of the first things you’ll cover is the initial cost. Depending on how well-known the franchise is, the more you’ll pay, so you should be prepared to part with a lot of cash. That said, you are investing in your future, but it can sting a bit when it leaves your account!
  • Ongoing costs - the initial investment you make is not the only outgoing you're going to have when running your franchise. Your franchise agreement will lay out the extent of these expenses, as you’ll typically be required to pay for other things like advertising, training and more. If you don’t take this into account, it can put a big dent in your cash flow!
  • Your accounts aren’t private - another drawback of franchising is that you don’t get to keep your finances private from the franchisor. They are probably going to put something in the agreement that states that they can oversee everything, so you’ll have no choice but to provide access. If this is an issue for you, it could be that franchising isn’t for you.

Online Education Courses  - Your Key to Franchising Success

Franchising is something that takes a certain mindset and interpersonal skills that hit all the right notes. It also takes knowledge and know-how, which is something we can help you with at OCA with our video-based, CPD Endorsed online Franchising Courses. Offering a next-level learning experience - as can be seen in our Student Study Demo - that shows you exactly what to expect.

OCA students are extremely well supported too, with both 24/7 tutorial support and 1-to-1 mentoring on every one of the courses we offer across 20+ industries. To find out more about this or our flexible payment options, check us out at

Alternatively, to speak to us about enrolment or anything else, give us a call at 1300 611 404 or email us at [email protected].

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