How To Franchise A Business In Australia As A Non-Citizen?

Opening a business in a foreign country from scratch can be a stressful procedure. Thus, many entrepreneurs who want to start their businesses in Australia choose to franchise. It’s a less risky business model that gives you access to an abundance of resources and people to flourish. Still, learning how to franchise a business as a non-citizen in the country can be overwhelming. Loads of information on the web can make you feel distressed and confused, especially if you don’t have expert help. 

And that’s why the following section is here to help out. 

So, continue reading and learn what procedures you have to complete to franchise a business in Australia as a foreigner.

How To Franchise A Business In Australia As A Non-Citizen?

Choosing the franchise model for your business will give you a fast-track launch and access to operators and mentors. In Australia, you ought to have citizenship, a visa or partner with an Australian citizen to launch a business. 

Here’s a brief guide on how to start your franchise as a non-citizen in Australia.

1. Understand The Visa Process

Non-Australian citizens will need a visa to operate businesses or work in the country. And for that, you will need to look up to the Department of Home Affairs. Furthermore, a state or territory government must nominate you before you apply for the visa. Typically, the procedure will look like this:

i) You must submit an expression of interest through the SkillSelect online service of the Department of Home Affairs.

ii) Check if a territory or state government or the Austrade CEO has invited you to apply for the visa. If they don’t contact you, you can connect with them directly. You can speak with legal experts or franchise consultants to learn more about this or how to franchise a business in Australia.

iii) Once you receive the invitation, you can apply for the visa. For the application process, you shall submit a few documents and meet certain requirements.

2. Find The Correct Visa For You

Australia has different visa options for individuals looking to establish a business. It includes

i) Business Innovation and Investment Visa (Provisional)

Ideal for people with business skills, the Business Innovation and investment provisional visa allow individuals to operate existing or new businesses in the country. This visa is generally valid for four years and three months. If you hold a provisional permit, you can apply for a permanent visa once you have met some specific requirements.

ii) Business Talent Visa

For a Business Talent visa, a state or territory government must nominate you or invite you to apply for the visa, and you must have the required assets or funding. A business Talent visa is a permanent visa with its own sub-categories.

iii) Significant Business History Stream

If you are an experienced business owner searching for how to franchise a business or operate an existing or new business in the country, you can apply for this one. To apply for the Significant Business History stream, you must have a net value of at least AUD 1.5 million and a business turnover of a minimum of AUD 3 million annually.

iv) Venture Capital Entrepreneur Stream

If you want to start a new business in Australia and can get venture capital funding from an Australian Investment Council member, you can apply for the Venture Capital Entrepreneur stream visa. You will require a minimum of AUD 1 million in Australian venture capital funding to establish a high-value business idea.

3. Fulfil The Legalities

Besides getting the licence, there are many other legalities you will need to take care of before starting your franchise. You will need to learn about and apply for

i) Permits

ii) Approvals

iii) Licences

iv) Code of practice

v) Standards and guidelines

vi) Registrations

vii) Fair trading

viii) Contracts

ix) Privacy laws

x) Employment laws

xi) Franchise code of conduct

x) Intellectual property and more.

Steps In Franchising Your Business In Australia

Once you have received the visa or permission to operate in Australia, follow these steps to kick-start your franchise journey:

1. Choose a franchise

First, you need to choose a franchise to invest in. Typically, experts advise you to invest in a service or product you are interested in. Your passion will help you drive sales, create marketing strategies and improve the brand reputation.

Before choosing any franchise, remember to analyse the industry. Inspect its risks, threats, opportunities and strength to ensure you are not wasting money. Additionally, conduct competitor analysis, and get feedback on the franchisor from other franchisees or social media.

2. Analyse the cost

Franchising a business is not an inexpensive venture. So, take your time to get in-depth knowledge of the cost. Consult with financial and legal experts to determine how much you have to spend before the franchise starts to run successfully. Calculate the expenses related to franchise agreements, royalties, initial establishment fees, product and services-related fees, transfer fees, and costs related to marketing, renewal, audits and training.

3. Consider The Risks

Franchise contracts are for the long term, and they can be challenging to get out of. So, evaluate the risks related to your particular franchise and industry. Also, check on your financial resources to ensure you have a backup fund in case the franchise fails.

Wrapping Up

Hopefully, this post will help you learn more about how to franchise a business in Australia as a non-citizen. Franchise laws and regulations can be confusing. Thus, it’s always advisable to speak with a consultant. They can help you learn about the specific businesses or industries you are interested in and provide tailored solutions for a seamless procedure.