Prospective franchisees will have a new tool to help dig away at the detail of a franchise business prior to making the purchasing decision with the launch of a new initiative by respected industry consultancy DC Strategy. The independent franchise business reports are designed to provide wide reaching research and factual analysis, and are the first of their kind in Australia.

Two years of research, analysis, focus groups and interviews have culminated in the launch of these reports which are on sale online at www.dcsreport.com, under the brand DC Strategy Research. The reports vary in price from $350 to $700 +GST, depending on the size of the investment and consequent detail in the report.

Franchisee prospects can expect to read key information on the organization, including key management, franchise system structure, performance, industry commentary, resale activity, disputes and current franchisee feedback.

“The objective is to more easily identify the highest quality franchise systems in Australia and make quality information more accessible to the highest quality franchisees,” explained DC Strategy managing director Adrian McFedries.

Although there are more than 1,000 franchise businesses in Australia, DC Strategy will only be preparing franchise business reports on about 120-150 franchisors. “These reports have been prepared by drawing on experience that has actually built networks and brands around the world and as a result we have a detailed and specialist understanding of what to look for in a high quality franchise system.

“As a result, those prospective franchisees that are serious about an opportunity now have a trusted and independent source of information to contribute towards making a fully informed decision about which franchise to purchase and make a commitment of five or more years.

“Franchisees will now have a choice to purchase independently prepared information in a consistent format as part of their final decision making process in acquiring an existing or greenfield franchise.”

The initiative has the backing of the Commonwealth Bank. Rod Nuttall, national executive manager — franchising, for the CBA, said “WeÕre looking to support best practice in franchising. Prospective franchisees need to have thorough due diligence on the business they are purchasing and an independent report will better prepare them.”