Free pre-entry franchise education online will soon be available for prospective franchisees, thanks to an alliance of Griffith UniversityÍs Asia-Pacific Centre for Franchising Excellence and the Australian Competition and Consumer Commission (ACCC).
Asia-Pacific Centre for Franchising Excellence director Professor Lorelle Frazer told Franchising 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 GovernmentÍs aim to create a sector where people enter franchising with more realistic expectations.
ACCC deputy chairman Dr Michael Schaper said the Expert Report on the Franchising Code identified early education of potential franchisees as a critical factor for their business success and Code compliance.
“The pre-entry education program will provide potential franchisees with a better understanding of their rights and obligations under the Franchising Code, and some of the practical issues they could face as a franchisee,” Dr Schaper said. “Anyone thinking about buying a franchise should enrol in the program.”
The ACCC has funded the franchise education program so it can be offered at no cost to users. Frazer explained, “Prospective franchisees are not willing to pay much for advice. They won’t spend on education.
The online initiative will complement the existing Franchise Council of Australia face-to-face early education program, Eyes Wide Open, believes Frazer. Using both resources would be handy, she said.
The pre-entry franchise education program will be delivered as five modules, one a day direct to a participantÍs inbox. Each module will take about 45 minutes to complete and consists of video, audio and text documents, as well as additional resources and a self-assessment quiz, including a Certificate of Completion.
Although the certificate is for personal recognition Fraser agreed that in time it could have a wider role. Maybe franchisors will feel reassured if someone has done this preparation, she added.
Topics covered include an overview of franchising, disclosure, agreements, royalties, finance, support services, site and territory selection, leasing, franchise marketing funds, intellectual property, the operations manual, franchisor-franchisee relationships, dispute resolution, questions to ask franchisors and existing and former franchisees, useful business skills and assessing individual suitability to become a franchisee.
The program is due to launch in July. To register your interest in the program and receive updates visit http://www.franchise.edu.au/pre-entry-education