In a recent interview, Darryn McAuliffe, the head of FRANdata, shared his insights on the franchising industry in Australia. FRANdata is a leading provider of ratings, research, and reporting on the franchise sector, offering an independent view of the quality of various brands.
McAuliffe’s optimism about the franchise sector, even amidst challenging economic times, is infectious. He highlighted the resilience of the sector, particularly during the COVID-19 period, where strong brands provided exceptional support to their franchises.
Here are some key takeaways from the interview:
- The franchise sector remains positive, with many businesses built on hope and success.
- Lenders have had a good experience with the franchise sector, especially with strong brands that have supported their franchises well during challenging times.
- Current trends in franchising include responding to consumer demand, investing in technology and innovation, and catering to people’s concerns about wellness and leisure time.
- Brands looking to get independently rated by FRANdata undergo a thorough process that includes providing a lot of information and participating in interviews. The outcome is an objective rating that helps promote and expose the brand.
- McAuliffe expressed admiration for the Jim’s Group brand, noting its size, longevity, and values.
The franchising industry is a dynamic and evolving sector, and McAuliffe’s insights provide a valuable perspective for anyone interested in franchising. Whether you’re a potential franchisee, a lender, or just interested in the business world, understanding the trends and outlook of the franchising industry can be incredibly beneficial.
What 3 questions to ask before investing with a franchise brand?
- Independent Research or Ratings: Ask the franchise system if they’ve had any independent research or ratings done to understand their business better.
- Relationships with External Stakeholders: Inquire about their relationships with external stakeholders and how they invest in those relationships.
- Access to Existing Franchisees: Request access to their existing franchisees to gauge their satisfaction with the system and to see if the franchisor has delivered on its promises.
In addition to these points, McAuliffe also mentions a red flag to watch out for when considering a franchise brand: a lack of willingness to provide information or access to existing franchisees early on.
What does FRANdata think of Jim’s Group?
As you can hear from the above, Darryn has great admiration from what he sees from us online which is a direct result of our transparent content strategy where we leave nothing hidden, so that prospects can know everything about us before investing.
To learn more about FRANdata visit https://www.frandata.com/