Overseas investors are buying franchises in increasing numbers, new research has shown.
11 October 2010
Research shows overseas investors look to franchises for Australian Business Visa
Chinese nationals looking to emigrate to Australia are buying small businesses in increasing numbers, new research shows.
Research house 10 Thousand Feet, which works in businesses with distribution channels, recently released a report on Australia's franchise networks that showed 35 per cent of all enquiries from overseas residents came from China, followed by India and then South Africa.
10 Thousand Feet head of intelligence Ian Krawitz said there has been a steady increase in interest in being a franchisee coming from Chinese residents because this allows them to apply for an Australian Business Visa to migrate as well as gain valuable business support for their new enterprise.
"The attractive lifestyle of Australia and the proven success of franchise models have lead to many Chinese residents applying to buy Australian franchises," he said.
"The franchising format is proving increasingly popular for overseas residents entering Australia, particularly those from non English speaking backgrounds.
"Rather than starting a business from scratch in a new business environment, franchising provides a great opportunity for overseas residents to fast track their learning curve on the service culture, marketing practices and regulatory requirements of operating a business in Australia."
To gain business visa overseas nationals they can buy an existing business, buy into a franchise or start their own business. Starting a new business requires highly developed business plans and can mean a longer review process from the Australian Immigration Department, whereas franchise businesses have a proven business model.
The Australian Visa Bureau is an independent consulting company specialising in helping people lodge their Australian Visa application with the Australian High Commission.