Pre-entry franchise education a key step

Lorelle Frazer at a Griffith University lectern
Professor Lorelle Frazer says completing the program helps identify areas for further development.

Research reveals prospective franchisees that complete Griffith University’s free, online Pre-Entry Franchise Education Program are more likely to buy a franchise and experience greater levels of satisfaction than prospective franchisees who don’t complete the program.

The research, funded by the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) and cited in the Australian Government’s response to the Franchising Code Review, explored the effectiveness of the Pre-Entry Franchise Education Program.

Lead researcher and Centre Director Professor Lorelle Frazer says the research results reveal people who undertook the Pre-Entry Franchise Education Program had certain characteristics that made them stand out from those who did not undertake the program.

“People who completed the pre-entry program were more likely to be investigating the possibility of buying into larger franchise systems and therefore spending more money,” Professor Frazer said.

“They were also more anxious about approaching the decision-making process and as a result were more diligent in the initial stages of information search.

“Although they approached the decision to buy a franchise with much more trepidation than those who didn’t complete the program, they were actually more likely to buy a franchise with 64 per cent becoming franchisees, compared to only 40 per cent of those who didn’t complete the program.”

The research also reveals people who complete the program enter franchising with much more realistic expectations resulting in higher satisfaction levels, and have a greater appreciation of factors that influence their franchise unit’s performance.

Professor Frazer says while the research highlights the advantages of completing the Pre-Entry Franchise Education Program, it also identifies areas for further development.

“The research demonstrates the Pre-Entry Franchise Education Program is instrumental in assisting prospective franchisees to make informed decisions,” she said.

“However, areas such as information source awareness, participation motivation, program development and promotion could be improved to further assist prospective franchisees.”

The Centre will use the research findings to create practical resources addressing these areas including a toolkit for prospective franchisees, expanding the modules, engaging franchisors in the promotion of the program and more.

The research involved in-depth interviews with 50 prospective and current franchisees, followed by a national online survey of520 prospective and current franchisees.

Other members of the research team included Centre Research Professor Debra Grace, Centre Deputy Director Associate Professor Scott Weaven, and Centre Researcher Professor Jeff Giddings.

Download a copy of the research report here.

Background on the Pre-Entry Franchise Education Program

ThePre-Entry Franchise Education Programwas developed by Griffith University’s Asia-Pacific Centre for Franchising Excellence and funded by the Australian Competition and Consumer Commission. Since the Program’s launch in July 2010 more than 4,600 people have completed the program. Further information on the Pre-Entry Franchise Education Program is available at: