Sometimes, one conversation in business can change everything. For me, that moment came when I spoke with Mel Maiello, founder of Essential Beauty – one of Australia’s most successful franchise stories.

Mel shared how franchising transformed her beauty therapy business into the thriving, nationwide network it is today. And I couldn’t help but think – if franchising worked for Mel, why couldn’t it work in occupational therapy?

That lightbulb moment led me to launch ActivOT in late 2011 – the world’s first occupational therapy franchise. Back then, many occupational therapists were burnt out, wanting more flexibility but unsure how to start their own businesses. That’s where ActivOT came in. I wanted to build a supportive network where occupational therapists could thrive – setting their own hours, running successful businesses, and practicing OT the way we were trained: with a client-first focus, ethical integrity, and the freedom to deliver meaningful interventions. 

Things moved quickly. By 2020, I had 20 franchisees but was stretched thin – working full-time as an occupational therapist to pay the bills while building the franchise with whatever resources I had left. Something had to change. So, I backed myself. I hired staff, built stronger foundations, and focused on growth.

Today, we have 67 franchisees across five states, delivering services to over 10,000 clients. Before franchising, I could only support 250 clients on my own. Now, the impact is exponential.

Without that conversation with Mel, I might never have considered franchising. And I’m not alone. Too many female founders overlook franchising simply because it’s not on their radar – or they assume it’s only for big brands, retail chains, or industries far removed from their own. No wonder women own just 29 per cent of Australian franchise businesses.

But when done right, franchising can be a game-changer – an innovative, sustainable way to scale service-based businesses, especially for women seeking flexibility, financial independence, and greater impact. Unlike traditional funding models that rely on venture capital or bank loans, franchising allows businesses to grow through a network of independent owners invested in the brand’s success. It also provides franchisees with structured support, reducing the high failure rates that plague small businesses.

Along the way, I’ve learned a lot about what it really takes to build a successful franchise – here are a few hard-earned lessons:

Pick up the phone

Every innovative business idea starts with someone making a call and risking sounding silly. I asked my accountant and lawyer if franchising could work in allied health – despite it being unheard of in the industry. So, pick up the phone and ask the question. 

Get the right advice and structure

Early on, I got the wrong advice on structuring my business. A major firm set me up as a trust—likely assuming I wouldn’t grow! Switching to a company later was costly and time-consuming. I also botched my intellectual property – trademarked but missed key classes and had no idea what a “wordmark” was. Fixing it was frustrating, expensive, and avoidable. Scaling through franchising needs strong foundations: the right entity structure (a smart accountant), solid legal frameworks (a great lawyer), and strong brand protections (a trademark attorney).

You have to back yourself. No, seriously.

The biggest shift came when I truly backed myself. Completing the LeadID leadership course with Tamsin Simounds helped me get out of my own way. Once I did, everything changed – I hired staff, built stronger systems, and committed to sustainable growth.

Become a leader

Being a franchisor means levelling up – from running a business to leading people. You go from doing it all yourself to building a network of successful operators

Build a scalable system

A great idea isn’t enough – you need a business that actually runs without you. Lock in your processes, build solid training systems, and make sure your model is easy to replicate

More female founders should consider franchising 

If more women saw franchising as a growth strategy, we’d see a huge shift in how female-led businesses scale. This is why I’m hosting the upcoming Scaling Smarter Summit so that I can connect more women with the experts and strategies they need to scale successfully. Because if it worked for me, why not more female founders?

The post I decided to turn my small business into a franchise. Here’s what happened appeared first on Inside Small Business.

ISB: How did you first get involved in the food business?

JD: Starting in food was a bit of a detour! We initially got into managing student accommodations and helping international students settle in Australia. One part of this involved running an in-house kitchen to keep everyone well-fed. We dived in – learning heaps from the previous owners and plenty of on-the-job training. It was hands-on, a bit hectic, and we loved every minute. Now, here we are, serving up meals with the same passion we started with!

ISB: What motivated you to transition from running a canteen to running a business of ready meals?

JD: The idea came from a simple observation: we saw student accommodations with no in-house meal services, and thought, “Why not offer ready meals in vending machines?” It was a convenient solution for residents – and even staff pulling night shifts at reception. What started as a natural extension of our work soon rippled beyond students; we now serve meals at top-tier companies across industries, from manufacturing to distribution. I’d love to say we planned it all, but really, one opportunity led to another, and here we are.

ISB: How and why did you decide to join Provender as a franchisee?

JD: Provender also brings a dedicated marketing team to the table, which allows us to take on national contracts as a group – a huge advantage. We truly operate as a team, partnering together to grow the business. The combination of their cutting-edge tech support and strong national presence has enabled us to scale efficiently while building something solid.

ISB: How has your partnership with Provender facilitated the growth of your own venture?

JD: Working with Provender has opened doors we hadn’t imagined. As our vending clientele grew, Provender guided us into the micro-market space – a field they’ve spent years perfecting. This shift into fresh food was ideal, giving our ready-made meal business the exposure it needed, though we quickly realized vending success didn’t guarantee a smooth transition. There were plenty of bumps, and we had to learn the nuances of managing micro-markets effectively. With Provender’s support, we’ve expanded naturally, meeting the rising demand for fresh, convenient meal solutions across new sites.

ISB: How do you foresee not only your business’ growth but also your relationship with Provender in the next couple of years?

JD: Over the next few years, we’re focusing on fine-tuning operations, scaling production, and building a team that shares our vision. With Provender, we’re ready to tackle new opportunities in vending and micro-markets. Increasingly, workplaces want benefits that support employee wellbeing, and fresh, convenient meal options are part of that shift. As we expand, these offerings help promote a more holistic workplace experience and encourage people back into the office. With Provender’s tech innovations, we’re excited to keep growing and serving evolving workplace needs together.

ISB: What is the most important lesson that you can impart to someone who is looking to be a franchisee?

JD: Find a franchiser whose values truly align with yours. In franchising, having partners who share your vision and genuinely support your growth makes all the difference. Also, trust yourself to take those calculated leaps – when we saw the chance to introduce ready-made meals in vending, it felt like the perfect fit for our skills and passions, so we went for it. With the right alignment and timing, growth becomes an exciting journey, not just a goal.

The post Q&A: How Spoonful Kitchen grew by becoming part of a franchise appeared first on Inside Small Business.

Is it the developer pushing to gain the maximum revenue from the development? Or is it the council thinking they will be helping the community with more retail?

Around the Camberwell/Box Hill area in Melbourne, we have vacant spaces that have already cost people a fortune. Many of us think we are already overstocked with coffee shops and quick service restaurants. Yet this is what keeps coming up on offer. Unfortunately, the developers or their agents always find a small entrepreneur who thinks they can make a go of it. And then the problem just becomes bigger.

Case study #1

Opposite our office in Surrey Hills [Melbourne], a new three storey apartment block was built. Below it, the developer placed two large cafe/QSR food outlets facing Canterbury Rd and on the ingress side of the road. This meant that you pass them as you are heading into the City of Melbourne.

I have run many training courses for Site Selection for the FCA, and one of my basic rules is that food is more often purchased on the way home, rather than on your way to work!

Once the apartments were built, the first two tenants were a burger shop and a Greek yeeros shop – both very expensively fitted out. The yeeros shop lasted three months, and the burger shop around six months. The burger shop then became a coffee shop, which lasted another three months, and now both are vacant.

What has this cost the tenants, and the owners of the shops?

Case study #2

Maling Rd in Canterbury [Melbourne] is a trendy shopping “village”-style shopping strip with quirky retailers and independent coffee shops.

Recently, a set of apartments were built at the end of the strip. These have had a terrible history (leaks and other defects) and include two large retail shops below. So far, these have never been occupied, and it looks unlikely to change.

A decade ago, every new development seemed able to support a coffee shop below. But this is no longer the case. Post-covid, amid an economic downturn, the vacancy rate in shops has been growing.

Don’t think that just because your business is in a new development, demand will be built in.

How to pick a store location based on demand

To open a successful retail business, demand for the product needs to be proportional to the competition.

In the cases above, there is likely too much competition – i.e. from other hospitality venues in the area – and too little demand in the area. The assumption made by the developers and naive small-business owners is that the tenants living above the shop will all become customers. But of course, this is not necessarily the case.

One of the metrics we often use in area analysis for our customers is population/competition. In the case of a “coffee and cake” type of store, we often use the metric:

We can compare locations by dividing population by competitors. This does vary depending on what you are selling. For instance, say you own a “destination” business (i.e. a wedding dress retailer) that people are more willing to travel to. In this case, you are going to be looking at a larger population and competition radius.

In summary, do not think that just because a few people live above your new business opportunity, that is automatically going to supply the demand for your projected sales. Think about a much wider audience, and how competitive your product is to what else is available.

If you’re currently selecting a site for your small business, this article has more factors to consider.

The post Why small businesses should rethink retail spaces under apartments appeared first on Inside Small Business.

Black’s approach involves a flat structure in franchising, which he refers to as “flat franchising”. Since its launch in 2017, Success Tutoring‘s franchise network has grown to 35 centres located throughout the country and has a launch schedule to open a further 80 centres nationally before the end of 2026.

“For many who join traditional franchise groups, what they find is that once they become a franchisee, they then have to report to a franchisor known as a regional manager, a divisional franchisor, who owns the entire division, and then a franchise group CEO. They end up working in the same multi-level manager environment that they opted to get away from when leaving traditional employment. This is an old style of franchising. Gen Zs and millennials want more control over their own life and many don’t want to work for a boss,” Black explained.

Black added that the flat franchising model that he espouses is empowering every franchisee to operate as their own boss.

“They do not report to a regional or divisional franchisor. They are supported by our head office which lives to assist them to succeed in their business,” he expounded.

Black also emphasised that the flat franchising approach has helped attract many people to his franchise group, especially millennials who want to combine their love of education with business and enjoy the flexibility that comes with it. The business also developed systems, tools, resources, and other support mechanisms to ensure that it is capable of scaling as the number of Success Tutoring centres increase while maintaining the currentness of materials and delivering fast and high-quality support to franchisees.

“We want franchisees who are going to grow with us. Millennials find our model very attractive. They respect and value their own agency as an entrepreneur and they want to be more in control of their own life and career,” he said.

Black added that he is focused on building Success Tutoring differently. He said, “We are a franchise model but we are very different to other franchise groups. Most people who choose to start a business whether it be by themselves or within a franchise system, are usually very entrepreneurial and want to be their own boss.”

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In particular, the ASBFEO will develop best practice guidance and education, improve the comparability and publication of franchising data sets, as well as the power to name and shame franchisors who have not participated meaningfully in alternative dispute resolutions.

The Ombudsman’s existing service that provides small businesses with low-cost legal advice about disputes with the Tax Office will also be expanded to cover initial advice about franchising disputes.

“These changes are a natural extension of our existing role and an opportunity to promote good behaviour and shared success in this dynamic sector of the economy by encouraging exemplar and best practice,” Ombudsman Bruce Billson said.

The decision comes in the wake of the Government’s acceptance of the recommendations put forward in the review of the Franchising Code of Conduct made by Dr Michael Schaper. The Government is set to amend legislation to provide ASBFEO with these new powers.

“We need to have the right balance between regulatory safeguards and conduct expectations for franchisees and franchisors while providing incentives for businesses to invest, develop, take risks, boost productivity, innovate and share success in franchise partnerships,” Billson said.

The Government is also set to expand ASBFEO’s Tax Concierge Service to support access to low-cost legal advice on alternative dispute resolution matters. It will also consider further changes as part of the independent statutory review of the ASBFEO dispute resolution services next year and establish a Treasury taskforce to conduct a cost-benefit analysis of introducing a licensing regime for the franchise sector.

“ASBFEO’s legislation requires a review at least every four years of the way that we operate our assistance function and whether the approaches, tools and resources available to us to resolve disputes are adequate or could be enhanced,” Billson explained. “The concept of a licensing regime is a bold suggestion for a franchise sector that is already more highly regulated here than in other comparable economies and ASBFEO looks forward to contributing to the feasibility work of the proposed taskforce.

“We believe there is scope in franchising for the Government to consider a non-regulatory approach to activating the existing option for parties to agree to arbitration under the Franchising Code of Conduct by urging franchise systems to pre-commit to binding arbitration where disputes cannot be resolved through alternative dispute resolution,” Billson added. “But there also needs to be more effective enforcement by regulators, such as the ACCC, of the Code and other legal protections that already exist, particularly around unfair conduct and anti-competitive behaviour.

The franchise sector is worth $135 billion and employs more than half a million people. There are some 70,700 franchisees in Australia and almost all of them are small businesses, as are some franchisors.

“Currently, it is only the well-resourced and patient that can further pursue their interests via existing legal channels, unless the regulator steps up and in. This can distort the bargaining position of the parties and willingness to find an early mediate resolution, and is why we advocate for a responsive, affordable and restorative Court-based mechanism that can ensure all parties can benefit from Code protections and legal provisions intended to support fair and reasonable commercial dealings,” Billson said.

“We believe that would be a game changer to deliver the Government’s objective to give people the confidence to enter business relationships and to invest, with the ‘bumper rails’ that aim to ensure reasonable dealing and fair commercial conduct being supported by an affordable and accessible legal process if it is required,” he concluded.

The post Small Business Ombudsman to gain oversight powers on franchising sector appeared first on Inside Small Business.

Recently, entrepreneurship has seen a major surge in female ownership, many of which face an entirely new battlefield of inevitable challenges. This recent trend shows women with a strong passion for achieving a positive work-life balance, achieving professional development, and maintaining a successful career while also fulfilling personal needs. Many of these challenges are even more prominent to those women planning to enter franchising due to the strategic business acumen it requires.

Since 2018, we have seen the largest increase in entrepreneurial aspirations among women, a majority of which is being fulfilled by millennials and Gen Z, showing the shift in dynamic as the workforce continues to grow and change. Furthermore, we can see this increase in entrepreneurial desire seeping into franchise ownership, with women now operating 29 per cent of franchised businesses across the country, amounting to an incredible 28,000 approximately. Women are even more prominent when it comes to SMEs, with 35 per cent either owning or managing.  

Despite these promising statistics, the journey to success can still be extremely difficult for women founding and maintaining small businesses, with limited resources and budgets remaining extremely prominent. This is where we see the appeal of franchising rise, especially among women.

Franchising offers a highly flexible career path, perfectly fitting the increasing trend of women wanting to maintain a healthy work-life balance. In franchising, there’s an opportunity for a structured yet adaptable framework that allows women to move toward their business goals while balancing their personal lives.

The benefits of franchising, however, extend beyond this balance. Franchising offers the security of a proven system with head office support, being part of a dynamic peer community, and proven success. Having this system in place acts as a confidence booster for aspiring business entrepreneurs, providing the challenges of running a successful business but also the guidance and pathways for growth.

If you’re looking to excel in your career as an entrepreneur but love the appeal of maintaining a healthy work-life balance, there are several top tips you can keep in mind:

• Embrace the challenges that may come. When you equip yourself with an understanding of market trends, the economy and consumer behaviour, you continuously learn to adapt and stay ahead in the competitive landscape.
• Surround yourself with a support network. For women in franchising, you will always receive support from the brand, but expand your network with peers and advisors who can provide valuable insights.
• Utilise the resources offered in franchising. Whether it’s training programs, marketing assistance, or operational advice, these are all essential in developing a career and maintaining a healthy support network.
• Come with a resilient mindset. The journey to entrepreneurship can be filled with both opportunities and challenges and learning from setbacks can catapult you multiple steps forward. Adapt, resolve and always keep your goals in mind.

With an increasing trend of women entrepreneurs and upcoming ones, it is important to create an environment that provides support and empowers women in their business journey. Through anticipating and understanding challenges, utilising opportunities and adopting a resilient mindset, women business founders and operators can succeed in their journey and in franchising as well, should they choose this path.

The post Empowering female entrepreneurship: overcoming challenges in franchising appeared first on Inside Small Business.

“Dr Schaper has produced a well-researched and thoughtful report for the Australian Government and we support the report and the majority of his sensible recommendations to strengthen the Franchising Code and regulatory landscape for small and family businesses,” Billson said.

“The franchise sector is worth $135 billion and employs more than half a million people. There are some 70,700 franchisees in Australia and almost all of them are small businesses, as are many franchisors,” Billson added. “We need to have the right balance between regulatory safeguards and conduct expectations for franchisees and franchisors while providing for incentives for businesses to invest, develop, take risks, boost productivity, innovate and share success in franchise partnerships.”

Several of the recommendations involve the office of the Ombudsman, which Billson enthusiastically supported.

“We support the recommendation for a clear statement of purpose to be inserted into the Code to explicitly state why it exists and what it seeks to achieve,” Billson said. “Similarly, we back changes that would also provide a clear statement to prospective franchisees that while purchasing a franchise provides an opportunity to make a reasonable return, it does not guarantee a fixed rate of return. The statement would also outline other terms of their arrangement, so they have quality information to make an informed decision.”

Within the review Dr Schaper recommended that the ASBFEO, ACCC and other agencies develop best practice guides to improve standards of conduct in franchising.

“This is an opportunity to promote good behaviour and shared success and encourage exemplar and best practice,” Billson commented.

Schaper also recommended expanding ASBFEO’s powers to name franchisors who have not participated meaningfully in alternative dispute resolution.

“At present we can only use this power under our Act as it relates to general business disputes, rather than as part of obligations under the Code,” the ASBFEO explained. “These additional powers should apply to franchisees as well as franchisors.”

The review also recommended that the Government also investigate the feasibility of introducing a licensing regime to regulate most aspects of the franchisee-franchisor relationship better.

“We think the Government should analyse the costs and benefits of introducing a licensing regime to regulate the franchisee-franchisor relationship – noting that Australia’s franchising system is already highly regulated and the vast majority of franchise parties on both sides of the relationship are small, less well-resourced businesses,” Billson said. “In exploring whether there are advantages in introducing a licence system, it will be important to examine why existing safeguards and better franchising practice Code expectations are not always implemented.

“Lamentably, in many cases, not enough use is being made of existing powers to take action,” he added. “Small and family businesses are not easily able to enforce protections under the Franchising Code and hope and rely on the regulator to take action where they feel they have been infringed upon. 

“We encourage the Government to consider how a revised Code could be more effectively enforced. We have proposed the introduction a Federal Small Business and Codes List into the Federal Circuit and Family Court of Australia, to provide small businesses with an affordable and timely means of enforcing their legal rights,” Billson concluded.

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A report released just before Christmas reveals the ACCC’s concerns and offers guidance to help franchisors ensure that they are compliant with the change in unfair contract terms laws under Australian Consumer Law (ACL) that came into effect from November 2023.

“We are concerned that franchisors are failing to grasp the importance of complying with the unfair contract terms provisions of the ACL,” ACCC Deputy Chair Mick Keogh said. “Every franchising agreement we reviewed contained potentially unfair contract terms.

“Franchisors are on notice that we will be watching, and those who fail to address the wide-ranging concerns we outline in our report are at risk of legal action by the ACCC and franchisees,” Keogh, who’s organisation has been concerned for a long time about the power imbalances between franchisees and franchisors, added. “The franchising relationship is often characterised by significant controls on franchisees. We are concerned this power imbalance is exacerbated when franchisors include or rely on unfair contract terms in their franchise agreements.”

Pointing out that the review found that many contract terms were “likely broader than reasonably necessary to protect the franchisor’s legitimate business interests”, Keogh said that the ACCC strongly encourage franchisors to use information revealed in the report to “inform a review of all their contract terms, and to seek independent legal advice about their obligations”.

“Franchisors should remove or amend any potentially unfair contract terms immediately, to avoid potential penalties,” Keogh averred. “Franchisors should also not seek to enforce any existing unfair terms.”

The report follows a review of smaller franchisors in industries including repair and maintenance, education and training, arts and recreation, wholesaling, personal services, and food retailing. Despite many of the franchisors looked at in that review being new to franchising, most of the documents assessed were largely compliant with the Franchising Code, and the review did not identify any systemic issues or concerns relating to the code.

That review did, however, raise concerns about unilateral variation clauses, withholding and set-off payment clauses, audit power clauses, restraint of trade clauses and termination clauses contained in standard contracts with franchisees.

“Our report contains several examples of the kind of unfair contract terms we are concerned about and want franchisors to address,” Keogh said. “Our warning to the franchising sector is that it is time to ensure that your contracts are fair.”

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And why not? With an established brand name, a tested business model, and a support system in place, owning a franchise can be a significantly less daunting proposition than starting from scratch.

The allure of a recognised brand

First and foremost, the chief attraction for many potential franchisees is the opportunity to associate with a well-known and established brand. Brand recognition is paramount in business success. Consumers, recognising and trusting a brand, are inclined to support its associated ventures. Rather than investing time and effort into building a brand from scratch, fraught with uncertainties, entrepreneurs can leverage an existing successful brand.

A blueprint for success

Starting a business is often compared to venturing into uncharted territory. However, with franchising, the territory comes with a map. Most franchises equip owners with a well-versed business model, covering store design, inventory recommendations, marketing, and operational norms. Instead of constraints, these guidelines are more like a secret sauce to success. They minimise the experimental phase that solo ventures often undergo, accelerating profitability.

Support every step of the way

Another compelling reason for the rise in franchise ownership is the unparalleled support that franchisors offer. This support can take many forms: training for the owner and staff, marketing and advertising assistance, ongoing operational guidance, and even financial support in some cases.

For new entrepreneurs, this is akin to having a safety net during their business initiation. Unlike standalone ventures that often tackle challenges in isolation, franchisees benefit from a larger supportive network.

Challenges and considerations

Of course, franchising is not without its challenges. Initial investment costs can be substantial. Ongoing royalties might weigh heavily, particularly in slow months. There’s also the potential trade-off in autonomy. Those seeking complete control might find franchising restrictive. However, when weighed against its advantages, these hurdles seem surmountable for many.

Looking ahead

With an increasingly saturated market, franchising’s appeal is set to surge. It provides a viable platform for a broad spectrum of individuals, even those lacking business know-how, to run their firms. Franchising isn’t limited to fastfood; it spans from fitness clubs to tech services. This versatility makes it more enticing to a wider range of entrepreneurs.

If you’re sold on the idea of franchising and are eager to explore this avenue further, here are five actionable tips to ensure a smoother entry:

1. Research & Self-evaluation: Ascertain your interests and involvement level. Assess your strengths, budget, and areas of interest. Match this with potential franchisors.
2. Consult with Franchisees: Interact with existing franchisees for invaluable insights into daily operations, hurdles, and perks of the franchise.
3. Financial Comprehension: Be aware of all financial requirements, including initial costs and ongoing expenses. Also, I recommend you seek both financial and legal advice, especially from professionals experienced in franchising.
4. Examine the FDD: Franchisors legally provide a Franchise Disclosure Document (FDD). Delve into it for information on operations, finances, and legalities. Consider hiring legal counsel for its intricate details.
5. Evaluate Cultural Compatibility: Ensure your values align with the franchisor’s ethos. A business thrives not just on profits but on shared values and mutual objectives.

The post Franchising: the new frontier for aspiring small-business owners appeared first on Inside Small Business.

The research found that 66 per cent of Australian respondents aged 18-30 said they would open a franchise over an independent business. The sentiment is stronger among younger aspiring entrepreneurs, with 59 per cent of those aged 31-50 preferring the franchise route compared to 37 per cent of those over 50.

Overall, 51 per cent of respondents said that they would open a franchise instead of going it alone.

The research noted that 79 per cent believe that it is too risky to start their own business in the current economic climate. Considering that the franchise business segment is comprised of around 1200 franchisors, and around 2,569,900 actively trading businesses in the Australian economy, the report also noted that these findings indicate an impressive appetite for opening a franchise at this time.

“Franchising is attractive to the younger demographic as they’re less inclined to have access to larger sums of money to set up an independent business, and often have less business experience, so will benefit from the structure of a franchise,” Richard Thame, CEO of CouriersPlease said. “A franchisor provides established systems, access to advanced technology, sales collateral, digital marketing, and essential training – all of which help set the partner up for success.

“Opening a franchise provides an opportunity to buy into an established business model that comes with a proven track record, brand awareness, an existing customer base and expert technical and business support,” Thame added. “From parents of young families wanting to build a business around their busy home life to people who have recently moved to Australia looking to establish themselves in their communities; a franchise business model provides the structure and support for someone considering starting their own business.”

The appeal of opening a franchise this year remains largely similar across the States, with South Australians topping the board with 56 per cent of respondents expressing interest in franchise businesses, followed by 54 per cent of Western Australians, 52 per cent from NSW, 51 per cent of Victorians and 48 per cent of Queenslanders.

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