Impact of Franchise on Local Businesses in Australia

This report explores the impact of franchising on local businesses in Australia. It covers the literature review, research questions, research design and methodology, data collection, data analysis, and research limitations. The report concludes that franchising is not a permanent solution for failed businesses and requires significant financial investment and time commitment.

THE IMPACT OF FRANCHISE ON LOCAL BUSINESSES IN AUSTRALIA
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Contents
Introduction................................................................................................................................3
Project objective.........................................................................................................................3
Project scope..............................................................................................................................3
Justification................................................................................................................................4
Literature review........................................................................................................................4
Research questions/Hypothesis..................................................................................................6
Primary questions...................................................................................................................6
Secondary questions...............................................................................................................6
Research design and methodology.............................................................................................6
Qualitative research................................................................................................................6
Quantitative research..............................................................................................................7
Sample Size............................................................................................................................7
Sampling.................................................................................................................................8
Variables.................................................................................................................................8
Data Collection.......................................................................................................................8
Data Analysis..........................................................................................................................8
Reliability & Validity.............................................................................................................9
Research limitation.....................................................................................................................9
Time schedule (research plan).................................................................................................10
Conclusion................................................................................................................................10

Reference..................................................................................................................................12
Introduction
The process of franchising in Australia is among the different and most dynamic as well as
progressed business industry as a part of the economy. It can be identified as a part of the
reputable way of doing some business in Australia. The system of franchising exist in most
sectors of industry and the overall impact of franchising is important and it is developing. It is
challenging to think of the food in a takeaway concept and not to think of product produced
by using a format in a franchised manner, it is also challenging to buy a thing like petrol
except via franchised station selling petrol (Anaf et al., 2017). The concept of franchising has
been part of revolutionary retailing in a country like Australia as well as also provide small
business owners with the resources competitive enough in order to compete against the big
corporations that are part of dominating the retailing in Australia. The concept of franchising
in places like Australia may have provided a method for the people of Australia to gain
advantage from international products as well as systems.
Project objective
The main objective of the report is understanding the impact of franchise business on the
local business in Australia.
Project scope
The concept of franchising is based vibrant, robust as well as exciting part of the economic
situation, accounting for approx. four percent of all kind of small businesses in the country
like Australia with complete yearly sales profitability of one hundred and forty-six billion
dollars and a positive outlook. Apart from a relatively flat form of the economy as well as the
environment in the retail sector, the country’s franchise sector is constantly developing as a

part of total sales turnover as well as employment and the franchise owners have confidence
for additional development in the next one year (Bareša et al., 2017).
Justification
The present is the selected format for many entrepreneurs of Australia to expand and grow
the business. There is the majority of franchise structure which are functioning in Australia
and they are homegrown and rising with a number of Australian franchise structure which
makes it successful in taking the system internationally.
Literature review
As per many surveys related to franchising in Australia, the complete yearly sales revenue for
the nation’s complete franchise section is approx. one hundred and forty-six billion and
dollars. The complete number of people are directly part of employment in business-based
franchising in the place like Australia also constantly rising now to reach four lakhs and
seventy thousand casual and part-time workforces (Clibborn et al., 2018). As per the record
noted under the Franchising Australia 2016 research, which was part of Griffith University,
the franchising practice is constantly supported. There is the council in Australia called as
Franchise Council of Australia has marked its tenth year of existence and has been updated
every two years from that time (Bodey et al., 2017). As per the survey and various expertise,
the concept of franchising is obviously very vibrant as well as exciting and work as a boost
for the economy, at the same time accounting for approx. four percent of all kind of small
businesses in Australia (Frazer et al., 2017). The results of the survey further show that the
country like Australia and their franchising business has continued to perform in a strong
manner and it is completely against the foundation which relatively slow from a growth point
of view (Ng et al., 2017).

The concept of franchising in Australia is reaching its saturation point now and holds its very
own in the current changing economy followed by the end of the boom in mining. The
complete sales turnover for this section has also risen to some level, at the same time, level of
employment has also risen to some extent and end up at creating more permanent as well as
full-time work (Chiou and Droge, 2015). There are so many franchisors that are also
forecasting this development in franchised number over next one year. The research also says
that there is a gradual decrease in franchise structure which is expected since the sector is
constantly maturing (Taylor et al., 2015).
The brands among franchise format are merging as well as consolidating in order to remain
sustainable and to develop. There is a number of brands that are declining, single franchise
structure is growing internally along with the mild rise in the number of franchise units.
The important thing to note here is that the concept of franchising has been identified long
back and it is an appealing way of developing a business, the influence of franchising for
small businesses is a place that is relatively researched less and gain clarity. There is a
number of resources which are scares along with agency theory advised many advantages to
many franchised company, small businesses that want to franchise are more likely to face so
many challenges in changing their business concept into a franchise operation in a successful
manner (Nyadzayo et al., 2017). The report looks to provide an important insight into the
issues franchised company are more likely to face and focus on the implications of adopting
franchised for small business development (Croonen et al., 2016). Moreover, the research
advised that the businesses to the franchise in a successful manner, recruitment of right
franchises is important. But, during the early time of growing the system along with the
ability to hire can be impeded by the lack of a system of anticipated legitimacy (Lewis,
2015). This is more likely to be part exacerbated in periods of associated prosperity on the
economic level when every system of franchising look to base it more challenging to hire.

The outcomes also throw light on the need of the future growth with the help of research and
also exploring additional or sometimes the key challenges.
Not just Australia, but almost all the nations pay a lot of importance to franchised business
which plays an important role to support the local economy via creating the job as well as the
payment of the taxes (Vaioleti, 2016). The efforts and the reputation for building the
customer association have assisted people to form development within the setting of
franchising. Last owners were not able to sustain the demand of customer now were they able
to provide the same kind of advantages for the local economy (Croonen et al., 2016).
Research questions/Hypothesis
Primary questions
1. What is the ratio of franchised business vs local businesses establishments in
Australia?
Secondary questions
1. What is the possible reason of local businesses taking up franchised business model to
sustain in long run?
2. What is the kind of local business operating in Australia?
3. What are the possible steps taken by the local business to thrive in long run to survive
in the franchise culture of business?
Research design and methodology
Qualitative research
The concept of qualitative research is mainly exploratory based research. It is utilised to gain
some kind of understanding of basic lessons which are discussed in detail with opinions as
well as encouragement. The concept of qualitative research insights into the issues or helps to
grow concept or hypotheses for the main qualitative research. The concept of qualitative

research is also utilised to unravel present trends or fads related to opinions and thought and
further dive deeper into the issues (Nyadzayo et al., 2017). Qualitative collection of data
methods changes used to unstructured as well as semi-structured tools. There is some
common kind of methodology consist of focussed groups, interviews with single people as
well as observation or participation. The sample size is normally small as well as respondents
are recruited to fulfil in the current data.
Quantitative research
Quantitative research is utilised is based on quantifying the issue by methods of developing
so many numerical data as well as data that can be changed into used statistics. It is also used
to have an attitude which can be quantified, with views, attitude, and other discussed
elements and generalize outcome from a large sample population (Kacker et al., 2015). The
research utilised a measurable amount of data to form facts and also uncover a specific
pattern in research. Quantitative collection of data and methods are very structured that
qualitative data collection processes (Ramaseshan et al., 2017). Quantitative collection of
data methodology consists of many kinds of surveys along with online surveys, mobile
surveys as well as kiosk surveys and many more, also including face to face interaction,
telephonic interviews, longitudinal research, website-based interceptors along with polls on
the online platform as well as systematic studies.
Sample Size
The people who are above 18 years are included in the study to ensure that one can
understand the impact of the franchise in Australia on the people. It will be through the
perceptions which will be covered through interviews to get the reactions and then the views
of the people with proper auditing and the decision-making process (Leong, 2015). The
population identification is important for drawing the sample from the population. Here, the
findings are based on interpretation of the study population as well.

Sampling
The standards of the sampling technique are used for the interview respondents working on
answering the research questions with the proper hypothesis. Here, the pilot study needs to be
carried out for the effectiveness in the data collection.
Variables
The variables in the research are depending upon age, the gender of the respondents. Here,
the nature of the business is analyzed with the use of the financial accounting standards to
match with the level of effectiveness of the financial statements with analyzing the nature of
the business.
Data Collection
The collection of the data has been done through the informed consent with the different
participants with the hand by delivery. The purpose is based on explaining the participants
about the confidential standards and the compiling of the information where the views of the
participants different for the generalized conclusion (Sharpe et al., 2017). The questionnaires
are sent to the respondents through email and then there is a proper check on the responses
through Microsoft Excel with the SPSS versions of 17 data analysis software, analyzed with
the data presented through the use of the descriptive statistics like the means, mode, and the
mode percentage.
Data Analysis
The response is recorded with the use of the descriptive statistic, with 5 Likert scale and
standard deviations. Here, the responses received are from the questionnaires which are
entered, edited and then coded (Terry et al, 2017). The multilinear regression model needs to
be checked which affect the independent variables with the information mainly relating to the
independent variables.

Reliability & Validity
The use of the mixed methods for the research is effective for handling the threats which are
related to the validity and the results reliability. The primary data is mainly to focus on the
conducting of the results and then the secondary data is to carry out the needs for the tests
with proper publishing and then signing the different statements of local franchise outlets in
Australia.
Research limitation
Following are the number of research limitations in detail: -
1. Size of the sample: there is a number of units to evaluate that use the study is based on
kind of research challenges as a part of the investigation. The important thing to note
is that the sample size is small, and it is challenging to find important association from
the data as an important part of the statistical review which usually need a large
sample size (Evanschitzky et al., 2017).
2. Lack of present or trusted form of data: there is lack of data or any trusted information
and most likely need to limit the overall scope of the analysis along with the size of
the sample, or it can be a major hurdle in finding a right trend as well as some
important association. one needs to not just define such restrictions but to provide
factors why one must believe in missing data or is untrusted data. But the important
thing is one must not feel helpless and instead use this as a part of an opportunity to
define the requirement for future research (Watson et al., 2017).

Time schedule (research plan)
Conclusion
In the end, it is important to understand some valid points here. The franchise is not a
permanent solution for any kind of failed business. Local business is supported by the trust of
local people have in the owner since he or she is from the neighbourhood. However, one must
only discuss the business of the franchise when they already have a successfully established
business (Windschuttle, 2017). Another important point to understand here is that the process
of franchising the business can involve important financial level investment from the outset
to get a more successful franchise by local business in place of future development of
business consisting investment to prepare the current legal documents, manuals based on
operations, marketing-based materials as well as hiring (Watson et al., 2017). The concept of
franchising will take an immense time-based investment specifically when started to set up
the franchised model. One must also have to take the time to make sure that attract the right
kind of franchisees as well as controlling. It is also important for the local business to provide
right kind of training and give support one has to grow as well as deliver a suite for the sake

of training as well as support for the franchisees to successfully sell the brand (Watson et al.,
2017). Businesses also require having a structure and process in place that can be part of a
copy by many people to operate a successful organization.

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