Free Online Pre-Entry Franchisee Education

The Australian Competition and Consumer Commission is to fund free online education for franchisees through the Asia-Pacific Centre for Franchising Excellence at Griffith University.

We've recently done research on the causes of conflict in franchising and a major cause was the mismatch between potential franchisees' expectations and what they get when they are in the franchise.

The program is in line with our research which suggests improved pre-entry education can reduce conflict in the franchise sector, as well as with Federal and State Franchise Inquiry recommendations, and the Government’s aim to create a sector where people enter franchising with more realistic expectations. Professor Lorelle Frazer, Asia-Pacific Centre for Franchising Excellence

Modules are to be emailed one per day for five days and include written, video and audio information and self-assessment quiz’s.

 

Module 1

• What is Franchising:The size and scope of the franchise sector in Australia; and how franchising differs from other businesses.
• Advantages and disadvantages of franchising:Why franchising appeals to franchisors and franchisees; and the downsides of franchising.
• The Franchising Code of Conduct:The purpose of the Code; Key provisions and their implications for franchisees.
• The role of the ACCC and other regulatory bodies:The ACCC and the Trade Practices Act; and ASIC, IP Australia, and state development bodies.

Module 2

• Understanding Franchise Disclosure:The difference between Annexure 1 and Annexure 2 disclosure; and what should be disclosed when.
• The Franchise Agreement:Common provisions of franchise agreements and their implications for franchisees; and consequences of breaching a franchise agreement.
• Franchise Fees & Royalties:Types of upfront fees; and Types of royalties and how they are paid.
• Finance:Financing, Cashflow and ongoing Franchise Costs; other costs under a franchise; understanding bank accreditation of franchise systems; and the difference between profit and cashflow.

Module 3

• Franchise Support Services:What types of support may be provided after you buy a franchise; and maximising the benefits of franchise support. 
• Site & Territory Selection:General principles of site or territory selection; and exclusive and non-exclusive territories. 
• Retail Leasing:Common franchise leasing practices; and negotiating a property lease. 
• Franchise Marketing Funds:The purpose of centralised marketing; and the requirement of local area marketing.

Module 4

• Franchising Intellectual Property:Understanding what is Intellectual Property; Trademarks, copyright and internet domains; Who owns Intellectual Property developed under a franchise?
• The Franchise Operations Manual:The Operations Manual as an extension of the franchise agreement; Types of Operations Manuals and their evolving nature. 
• Franchisor / Franchisee Relationship:Understanding the nature of the relationship; and the e-Factor.  
• Dispute Resolution:Types and causes of franchise disputes; and Mediation and the Office of the Mediation Advisor (OMA).

Module 5

• Questions to ask Franchisors, Existing Franchisees and Ex-Franchisees:Assessing the Franchisor; and assessing the franchise offer by contacting current and former franchisees, when buying a franchise.
• Additional Due Diligence: Other factors to assess in considering buying a franchise; and how much time and cost to allocate to your due diligence before you buy a franchise.
• Useful Business Skills:A summary of desirable skills or training that may not be provided by the franchisor; and financial literacy, business reporting, HR, etc.
• Assessing your suitability as a Franchisee:Understanding the commitment and compromises of franchising; and methods of assessment before you buy a franchise.

The program is set to launch in July 2010.