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How Australian Franchises Go Bad

Domino's Australia
Domino's, Queanbeyan, Australia / Bidgee photo

Australian franchises are plagued by problems that bear a strong resemblance to those elsewhere, with many of the brands and companies there the same ones found in the U.S., Canada and other countries. Jenny Buchan, a former commercial lawyer who is now a professor at the Business School, University of New South Wales, delves into problems that will also resonate with franchisees outside of Australia and suggests solutions.

Judging by the scandals that have engulfed franchises in Australia including 7-Eleven, Caltex, Domino’s and most recently Retail Food Group, it seems like the very business model of franchising is flawed. But there are franchises that thrive without problems like wage theft and fraught business relationships.

These franchises have a committed franchisor, a proven and evolving brand, and franchisees that are well supported. When any of these components is missing franchisees can quickly become unprofitable and things can turn ugly.

There are some hallmark problems within franchising in Australia and internationally and not all are within the franchisor’s or franchisees’ control. — Jenny Buchan, The Conversation

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About Marilee Hayes

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