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Hair & Beauty Australia Industry Association

Hair & Beauty Franchises – what you need to know.

Posted April 27, 2021

There has been a lot of conversation in our industry of late around franchises in the hair and beauty industry, and some of the trouble that unsuspecting salon owners can fall into when looking at these options in business. Franchises can offer great benefits for those wanting to start their own business, but you absolutely have to be aware of the kind of agreement you’re making and key things to look out for in your franchise agreement.

 

The ACCC approached HABA recently to share some of their top insights for salon owners on franchises and what salon owners need to be aware of.

Let’s dive right in!

 

“I’m thinking about buying a franchise – what is franchising like?”

If you, a family member, or a co-worker are thinking about buying a franchise, you might have questions like:

  • Can I make an income from a franchise?
  • Who can I talk to about what franchising is like in real life?
  • How does owning a franchise compare to a owning small business?
  • Who can help me with my decision-making?

The Australian Competition and Consumer Commission (ACCC) gets hundreds of calls each year from people who already own a franchise. They have gathered stories and information to help with your research about whether to buy a franchise. If you’re thinking about buying a franchise or know someone who is, check out their resources as part of your research.

 

“I own a franchised business and want to know more about my rights as a franchisee”

Part of the ACCC’s role is to help small businesses understand their rights – and this includes franchisees.

Here are some key resources

 

“I own a franchised business, and I need help”

Sometimes there can be disagreements or disputes between the person who owns a franchised business (a franchisee) and the owner of the franchise system (the franchisor).

You can get help from:

  • You can also report your concerns to the ACCC.
    • The ACCC generally does not get involved in individual disputes, but we can provide information about your rights. Your report plus other reports help us to understand if there a big issue we should look into more.
    • More about what we can and can’t do for small businesses.

 

As a member of HABA, you KNOW that your advice is provided by the only organisation officially registered with the Fair Work Commission, making us the leading industry association in Australia for salon owners who want to make serious, lasting change in their industry. We have access to the right information from leaders in their field, like the ACCC and Ai Group, ensuring that we give salon owners the RIGHT information every time. PLUS, we are always here to lend a helping hand and a listening ear to our members. If you’re not a member of HABA you can join ONLINE for a single low fee each week + get access to member services IMMEDIATELY upon joining. No waiting periods, no stress, and all the right advice from the leading Hair + Beauty Association in Australia.

For further advice or assistance on this topic, or any workplace relations matter, please #AskHABA by calling the HABA Advice Line on 02 9221 9911, 8:30am – 5:30pm AEDT Monday to Friday.

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