Impact Of Franchise On Local Businesses In Australia

Project objective

Discuss about the impact of franchise on local businesses in Australia.

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.

The main objective of the report is understanding the impact of franchise business on the local business in Australia.

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).

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.

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).  

Project scope

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).

Justification

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?

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.

Literature review

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).

 

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.

Research questions/Hypothesis

References

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