Master Franchise Development
Many Australian entrepreneurs look to import a foreign-based franchise by securing a Master Franchise to develop the brand in Australia. We can assist you in getting started as a Master Franchisee in Australia.
Acquiring a Master Franchise usually involves the payment of an initial upfront fee for a defined territory which may or may not include the right to sub-franchise. Further investment will be required to open at least one and sometimes several company owned outlets to prove the business model in the market before a franchise can be granted in the territory. Additionally, investment will be needed to localise a range of elements from sourcing suppliers, developing an on- and off-line marketing and advertising campaign and amending documents such as the operations manual, the franchise agreement and preparing a Disclosure Document that meets the Australian Franchising Code of Conduct.
Good franchisors will almost certainly require you and your management team to attend training in the home market at your cost before the first location is established in your territory. While Australia is a small market globally, its transparent and enforceable adherence to the rule of law in intellectual property, franchise contracts and other commercial transactions has proven attractive to many international franchise concepts. US-based McDonald’s, Burger King, KFC, Subway, Ben & Jerry’s and Jani King have demonstrated that master franchising can help companies grow on a global scale.
Financial commitments to the franchisor typically involve a share of the local revenue from both initial local franchise fees and ongoing product or service sales by way of a monthly or quarterly royalty payment. Experienced franchisors are looking for investors with a demonstrated financial and operational capability, who have prior experience in business, people management and real estate if it is a bricks and mortar based business. They expect the Master Franchisee will be hands on, operating the business on a day to day basis. International Masters, their franchisees and their customers look not just to the potential cache of an international brand, the brand must be clearly articulated for their market and it must deliver on its promise.
Our team at DC Strategy have decades of experience assisting Master Franchisees. From negotiations and acquisition through the drafting of legal agreements, localising operations, procedures, suppliers and technology implementation to brand and marketing strategies and franchisee recruitment, we have rolled out a wide range of international retail, food, service and online franchise brands. Contact our team today to discuss whether Master Franchise development could work for you.
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