Now the Royal Commission into banking has passed, the target has moved to the franchise sector. As consumers, we all know and use a franchise with the business model being popular on the Coffs Coast and in the past few years franchising has become one of Australia’s most popular business models with more than 79,000 operating, employing over 470,000 people.

A recent parliamentary Joint Committee into the Franchising Code of Conduct was released. During the inquiry, the evidence heard in public indicated many issues and it was made clear too many franchisors are abusing the power imbalance between themselves and franchisees. The list of complaints documented failure points too numerous to mention, ranging from unconscionable contract terms to intimidation, gross exploitation and complete abandonment. Negative news stories abound where the exploitation of employees has occurred. More to come out of that.

Knowing what a business franchise is, and beginning to weigh up its pros and cons as a model to grow your business, is a great starting point for anyone interested in embarking on the journey to become a business franchise owner but do the negatives outweigh the positives? Do you simply end up working six or seven days a week for minimal profits after all expenses of the franchise are met, along with rent and wages etc.


  • use of existing and well-known brands and products;
  • ability to grow a franchise network quicker or buy and expand and existing franchise business without having to do it all yourself from scratch;
  • growth and established systems driven by committed, invested and profit-driven franchisees, available benchmarks and targets.


  • significant upfront cost, and time, required to establish the necessary franchise systems and infrastructure, including start-up fees;
  • ongoing and sometime fixed costs of training, advertising and franchise fees;
  • lack of control and independent business decision making, so relying on the success of the franchise model.

Each franchise model is different and anyone considering buying onto one should always review the franchise agreement thoroughly, also seeking trusted business advice. Ultimately the decision comes down to what suits the owner best and considering if could you do it all yourself.

Start-up businesses are flourishing in the Coffs Coast region with many groups now offering assistance, advice and even access to grant funding to get started. You can always buy into other non-franchise businesses, the main thing is no matter what, you always complete comprehensive due diligence and seek advice.