Best franchises for beginners: how to choose when you've never run a business

• No Australian dataset ranks franchises by how beginners fare, and there is no official franchise failure or success rate.
• A US study of franchise businesses started in 1986 and 1987 (Bates, 1998) found survival rates were low among true newcomers and high among established multi-unit franchisees.
• The ACCC's free course has 6 modules. Over 2,300 people enrolled between its launch in November 2021 and September 2023, and a third of those signing up said they had just started their research.
• In a 2019 ACCC review of 12 food franchisors, nearly half of prospective franchisees had not got any independent professional advice before buying.
• FranchiseScope's analysis of Franchise Disclosure Register profiles (captured 19 August 2026) found the median system has 9 franchisees, and 12.8% list none (1,142 profiles, self-reported).

Use these criteria instead of a ranking. Each one can be checked in the disclosure document, on the Register or with current franchisees.

• A proven model: outlets that have traded profitably for several years, in locations like the one you are considering.
• Structured initial training: how long it runs, where, who delivers it, what it costs, and whether it covers bookkeeping, hiring and local marketing as well as daily operations.
• An operations manual you can see before you sign, or at least its full contents page.
• Ongoing field support: how often someone visits or calls in your first year, and how many franchisees each support person looks after.
• Network depth: enough franchisees to show the model works for ordinary owners. The ACCC's 2023 review of Register data found half of franchisors had 20 or fewer franchisees, so check how long this system has been franchising and how many owners have come and gone.
• Money you can actually fund: the full setup cost plus working capital, with a buffer, without stretching every dollar you have.
• Earnings information in writing, with its basis and assumptions, that current franchisees can confirm.
• Support you can test: current and former franchisees who say the training and support matched what they were promised.

• That is the classic case for franchising: you buy a tested concept and a way of running it, instead of inventing both.
• Start from your skills and preferences, not from whatever is trending. Do you prefer managing staff, selling, hands-on service work or running systems?
• Match the model to your life. A mobile service run from a van makes for a very different week from a food outlet with late trading hours.
• Use the ACCC's course to compare franchising with owning an independent business or staying an employee; it covers all three.
• Take a short quiz on franchising versus starting your own business to test which route fits you.
• Remember that fit matters more than fame. A strong brand won't make a model you dislike any easier to run.

• 'No experience needed' with no written detail about the training.
• Pressure to sign before 14 days have passed since you received the disclosure document, the Code and the final agreement.
• Earnings promises that are verbal only, or that the franchisor won't explain.
• A franchisor that discourages legal or accounting advice, or offers to fill in the Code's advice statements for you.
• A young system with few or no franchisees describing itself as 'proven'. In FranchiseScope's Register analysis, 12.8% of profiles listed zero franchisees.
• Former franchisee contacts that are missing or out of date. The ACCC's 2019 review found about 1 in 3 food franchisors didn't consistently give useful contact details for former franchisees.
• Support described as 'ongoing' that is priced separately or not described in the agreement at all.

A month is enough to learn the basics and build a shortlist, without signing anything. Adjust the pace to suit you.

1. Days 1–3: take the ACCC's free 'Is franchising for me?' course and note what surprised you.
2. Days 4–7: set your budget ceiling, including working capital and your own living costs, and test it with an affordability calculator.
3. Days 8–10: shortlist three to five systems on the Franchise Disclosure Register and compare setup costs, terms, restraints and franchisee numbers.
4. Days 11–14: make formal enquiries. The franchisor must give you the ACCC's information statement within 7 days of a formal application or expression of interest.
5. Days 15–18: read each information statement and draft your questions on training, support, fees and earnings.
6. Days 19–23: call at least five current and five former franchisees per system, including people who started with no business experience.
7. Days 24–27: attend any training or discovery days on offer, and visit outlets at busy and quiet times.
8. Days 28–30: choose one system to take to disclosure, and book a franchise lawyer and an accountant for the 14-day consideration period.

• How long is initial training, where is it held, and what does it cost, including travel and accommodation?
• Who delivers it, and what will I be able to do on my own when it ends?
• What support will I get in my first 90 days, and who is my named contact?
• How many franchisees does each field support person look after?
• What does ongoing support include, and which parts cost extra?
• How many current franchisees had never run a business before, and can I speak to some of them?
• What happens if I'm struggling after six months?

• The ACCC's 'Is franchising for me?' course: free, online, 6 modules, less than 90 minutes, covering agreements, due diligence, common problems and the main laws.
• The ACCC's information statement, which the franchisor must give you early on. It says franchisees who do pre-entry training tend to have better relationships with their franchisor and be more successful in business.
• Self-Employment Assistance: exploring self-employment workshops, business plan development, free accredited small business training, business advice sessions, business health checks and small business coaching.
• Your own advisers. Before a new agreement, the Code requires signed statements that you got legal, business and accounting advice or chose not to. Choosing not to is the riskier path.
• Honest expectations. In the Australian Franchise Outlook 2026, 56% of consumers surveyed named fear of failure as a barrier to owning a franchise. Training won't remove risk, but it helps you judge it.

• Is the initial training described in writing, with its length, content and cost?
• Will I have a named support contact, and how often will they visit or call in my first year?
• Have I spoken to franchisees who started with no business experience, and what did they say?
• Does the system have enough outlets and history to show the model works for ordinary owners?
• Is any earnings information in writing, with its assumptions explained?
• Can I fund the full cost, including working capital, with a buffer left over?
• Have I completed the ACCC's course and booked a lawyer and an accountant for the 14-day consideration period?