Recruiting suitable franchisees is the biggest concern for the sector (based on our latest website poll), despite the downturn, so migrant franchisees may provide a solution.
Franchise business opportunities provide migrant franchisees the opportunity to buy
themselves Australian residency. According to demographic and social change advisor,
Bernard Salt, at the National Franchise Convention in Perth, Australia, earlier this year,
the growth in migrant franchisees is likely to increase significantly. Bernard says the Federal
Government recently adjusted immigration projections to virtually double at 180,000
migrants per year for the next 50 years to compensate for the workforce gap left by Baby
Boomers as they retire. What does an increase in migrant franchisees mean for your franchise
business? This means a growing pool of potential migrant franchisees, but also an increase of
migrant employees into franchise business networks. Franchisors should consider
adopting franchisee recruitment and support practices for migrants, as well as cultural awareness
training to avoid possible conflict or embarrassment. The majority migrant populations are likely
to come from India and Asia, but also the Middle East.And while recruiting migrant franchisees
can be very successful, franchisors need to assess whether they’re right for their franchise.
Things to consider include:
Will they require extra support or put strain on field staff?
Will they be able to provide the level of customer service required for your company?
Will they be able to respond effectively to enquiries?
Positives of migrant franchisees Migrant franchisees may be able to help you assess whether
your franchise business would be suitable to their local market, or what adaptations would
be necessary. (Although Australian business migrant franchisees may provide a useful starting
point, when expanding internationally always seek professional local advice).
Another positive of migrant franchisees is, unlike many national franchisees where franchising is
often their first foray into business, they generally have run similar businesses in their own country.
They enter franchising in Australia to benefit from the support systems and a strong brand, which
would not be available to them in an independent operation. In fact, under the Australian business
migration visa requirements, applicants should have operated a business in their home country or at
least worked at a senior management level.
Other selection criteria also apply. For an Australian business visa an investment of $500,000 is required
by the federal government, however state government sponsorship is available and reduces the investment requirement to $250,000. English literacy is also a criterion which must be met at Federal and
State level, although with state-sponsored visas English skills are not a strong requirement.
When applying for an Australian business visa it’s recommended (although optional) migrant
franchisees and franchisors contact a registered migrant agent for advice, which may also help
fast-track the application process.
