There is a lucrative opportunity to bring your United States franchise to Australia. After all, the industry is worth $146 billion. Companies in the U.S. are constantly looking for thriving markets to expand to. Australia is certainly one of those markets. There are a number of things to consider before diving into the Australian market. It can be a worthwhile endeavor but you must do your research beforehand if you expect to find success in another country. We have rolled out five tips for bringing a franchise from the United States to Australia.
Finding A Local Entity
One way to make your mark in Australia is to allow a master franchisee to essentially become a franchisor. It’s one of the easier ways to make your mark in Australia. The newly-minted “franchisor” would train franchisees that they have recruited. A master franchisee can also be tasked with handling legal matters. The master franchisee will always report back to the top of the company. This ensures that you are filled in on the day-to-day operations in Australia without having to physically be there. As long as the franchisee can be trusted, this is an ideal way of having success with your expansion.
Make Sure Your Trademarks Are In Order
Protecting your IP is a vital part of businesses. It’s no exception when you’re looking to expand to another country. You can help protect your IP by filing for trademarks. It’s key that you don’t issue franchises until your trademarks are locked in and registered. Make sure to leave no stone unturned.
You’re always entering uncharted territory when you’re doing business in another country. There are different laws in Australia that you must familiarize yourself with. It will benefit you to seek out legal advice. This includes consumer laws, taxes, employment, privacy, and more. There are also differences in regulations throughout various industries. Grasping these laws will help you avoid any potential legal issues when taking your expansion to Australia.
Franchisors must present a disclosure document in Australia. This document requires yearly updates. The disclosure document should have an overview of the business as well as the franchise’s history and operation details. Only one document spread across all of your franchisees is required.
Be The Sole Franchisor
If you’d rather take the reins yourself in Australia, you can do so. Setting up your own company or using your company in the United States to get your foot in the door of franchises in Australia will work. Franchise Direct has an extensive list of franchises up for sale in Australia. When setting up a company, realize that there are different rules depending on whether your company is public or private. Public companies require at least two directors who primarily live in Australia, while private companies only need one.
It’s important to be prepared when expanding your franchise to Australia. Make sure your documents and trademarks are in order and follow the rules.