Originally published in The Canberra Times.

By Bruce Billson

Franchising, when done well, is one of the most dynamic and scalable models of entrepreneurship available to small business owners. It offers a unique blend of independence and support, allowing franchisees to leverage proven systems, established brand awareness and customer loyalty while contributing their own energy, capital, and local market insights.

Success in franchising doesn't come from simply ticking boxes. At its best, franchising is a relationship. Some might say it's symbiotic - where franchisees and franchisors depend on each other for success. This interdependence is what makes franchising such a powerful model, but it also means that both parties must be aligned in purpose and practice.

The recently released Australian Franchise Outlook 2026 by the Franchise Council of Australia states that franchising generates $174 billion each year, is powered by 90,000 small businesses, and provides work for more than half a million Australians. Franchising is also one of the most inclusive business models in Australia, with franchising offering women, men and families from all walks of life the chance to step into business ownership.

The Outlook also provides recent survey results where consumers shared the main reason for choosing a franchised business over an independent one is convenience (32 per cent) and being their own boss (76.5 per cent) as the main reasons they would consider owning a franchise.

Franchising opens many opportunities for small-business ownership, and with that also comes different responsibilities and risks - and none are a "set and forget" sure-thing.

Prospective franchisees have a responsibility to dig deep into their own research and due diligence, and not be swayed by any glossy brochures or rely solely on the franchisor's pitch. That means reading the disclosure documents and franchise agreement thoroughly, understanding the financials and mutual expectations, and asking the hard questions about profitability, support, and dispute resolution. It's also helpful to consider the broader economic and regulatory environment, talk to current and former franchisees, visit locations and observe franchise operations in action firsthand, and even work in the business if possible.

There are excellent resources available, such as the ACCC's Franchising web content, including information about the Franchising Code of Conduct and a free online course to help work out if franchising is for you, and the Franchise Disclosure Register, where you can view franchisor profiles and disclosure information before entering into any agreements. We've also recently released ASBFEO's franchising guidance materials, which offer practical tips on entering into a franchise, change management and exiting a franchise.

And it is worthwhile seeking professional advice from lawyers and accountants who specialise in franchising. These experts can help you interpret the fine print, assess the risks, and make informed decisions.

It's smart to be aware. You're not just buying into a brand or the vibe or an "aesthetic", you're committing to a business model, a culture, and a set of obligations that will shape your day-to-day life. Prospective franchisees and franchisors alike need to make sure it's a right fit.

Through our Assistance function, we see disputes between franchisees and franchisors where expectations are not aligned, highlighting the importance of cultural and operational fit from the outset.

A franchise may look great on paper, but if the expectations don't align with your values, work style, or business goals, it's unlikely to succeed. Some systems demand hands-on involvement, while others offer more autonomy. Some are highly structured; others are more flexible. It's crucial for would-be franchisees to know what they're signing up for, and to really ask themselves if the franchise model or structure really is for them. This is all the more important for those without prior business ownership experience.

For franchisors, legal compliance is just the beginning. The real work lies in building a franchise system that enables success. That means being transparent about fees and policies, and providing comprehensive training, listening to feedback, and adapting to market conditions.

Franchisors must be transparent and upfront about their expectations. For instance, if multi-unit ownership is discouraged, this should be clearly communicated. Likewise, if active involvement in the day-to-day operations is essential, potential franchisees need to be made aware. Other operational requirements, such as mandated opening hours or minimum product sales targets, should also be clearly outlined.

Change must be managed with care. Poor communication, lack of consultation, and disregard for franchisee concerns can erode trust and lead to costly disputes. Good franchisors understand this. They engage franchisees early, explain the rationale behind changes, and provide the support needed to implement them successfully.

For franchisors and franchisees alike, misalignment at the outset can lead to frustration, underperformance, and ultimately, failure. Misinformed or misunderstood business operating models and misaligned expectations can have disastrous consequences, both financially and mentally, for franchisors and franchisees. In most cases, it's the franchisee who bears the brunt of these issues. Power imbalances within the franchise relationship can further compound these challenges.

For franchisors and franchisees alike, the real opportunity lies in building relationships based on transparency, mutual respect and understanding, and shared ambition. The franchise model thrives when both parties understand their roles, responsibilities, and the value they bring to the table. Clear guidance and honest communication are critical to setting realistic expectations and ensuring informed decisions.

So, what makes a relationship successful? Is it honesty, transparency, communication, trust, understanding each other's perspectives and a shared commitment? Well, that's franchising.

For small business owners considering franchising, do your homework, seek advice, and ensure the opportunity fits your goals and capabilities. For franchisors, the challenge is to go beyond the minimum and create systems that empower franchisees, adapt to change, and deliver real value.

Franchising is not some kind of shortcut to business success - it's a relationship, a structured partnership that requires all of the above.

But when done well, it can be a powerful engine for growth, innovation, and community impact. And fulfilling relationships can and absolutely do add value to our lives.