Is franchisee enquiry dropping?

Some anecdotal evidence has suggested franchisee enquiries have declined within the Australian market over the past year. Closer inspection reveals a more educated and discerning franchise buyer, and a need to refine recruitment processes and strategies.

The DCS view that the franchisor’s get the franchisees they deserve is all too true. In a market of near full employment, interest rate uncertainty, and high salaries uncertainty  only the better developed franchises with a value proposition for the franchisees in the top quartile of the market will succeed. The franchisee market, both primary and secondary, is still growing within Australia and new quality emerging systems such as ANZ Mortgage Solutions, Grill’d and Healthy Habits demonstrate the propensity for this trend of “being your own boss” to continue if you have a compelling offer and a quality recruitment process for prospective franchisees.

The combination of a cooling economy, and the recent Lenard’s court case has prompted many franchisors to review their recruitment strategies and processes. Experience indicates focus, people incentives, process inconsistency, complacency and needless exposure to litigation risk are all contributing to some poor results for franchisors in a very competitive market for the best franchisees.

Rod Young

Rod Young is Executive Director at DC Strategy.

DC Strategy is the region’s leading specialist consulting and legal firm. Our specialist teams in Strategy, Franchising, International and Legal have developed the networks and brands of many of the region’s most successful businesses. Contact Rod Young at rod.young@dcstrategy.com