BRINGING INTERNATIONAL FRANCHISES TO AUSTRALIA
You have discovered a brand or product overseas that you think will be successful in Australia so you want to obtain the exclusive rights to develop and operate that brand.
Before you sign any agreements it is important to form a view on:
- Will Australian customers embrace the brand and products without change, or will you need to adapt it for local market circumstances? If so, what is involved and what will it cost?
- How big can you make the franchise network in Australia?
- How profitable is it likely to be in Australia given our cost structures with wages, rent and transportation of goods?
If you believe the concept will succeed and the numbers are strong, then you need to undertake a due diligence process to formally assess the opportunity and start to negotiate the terms of purchase. Also read our page on Buying a Master Franchise.
When it comes to agreeing terms and signing paperwork be aware that if you are buying a franchise to operate in Australia, then Australian franchising law will apply. This means specific documentation and disclosures are required.
Just because the agreement says the governing law is in the franchisors country of origin does not mean that Australian franchising law can be bypassed.
CEO Consulting has substantial experience assisting Australian businesses assess and purchase the Australian franchise rights from international Franchisors.
