Investors Seek out Franchises for Visas to Australia

by Ray Clancy on October 13, 2010

in Australia Immigration

Visas easier through business franchises

Franchises are businesses where proprietary rights are sold and bought to be used for operations. Many businesses, once they have established themselves, sell their rights and other processes to third parties to replicate their success in other destinations.

Franchises have become one of the boom industries in Australia and the best is yet to come. Now, Chinese nationals are using purchases of franchises and other small businesses in order to immigrate to the country. The trend has been increasing steadily.

10 Thousand Feet Research House is a company that works with businesses in distribution channels. Their report showed that franchise network inquiries have been their top business from overseas. Over thirty five percent of their inquiries, mostly from East Asia such as China and India, have been purchases of these businesses. Another country that has a high volume of inquiries comes from South Africa.

One of the biggest attractions why franchise network businesses have netted this high volume of inquiries from other countries is that these can be the vehicles in order to obtain an Australian Business visa. This is also another way to gain new business or new investments to fund their fledgling business.

According to Head of Intelligence at 10 Thousand Feet Ian Krawitz, “The attractive lifestyle of Australia and the proven success of franchise models have lead to many Chinese residents applying to buy Australian franchises.”

He further adds that, “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.”

As required by current business rules, foreign nationals can purchase an existing business, purchase a franchise or even establish their own business to be able to avail of a business visa. The easiest way is to purchase a franchise while the hardest way is to establish a business, as there would be scrutiny from the Department of Immigration and Citizenship as to the business plan and the viability of the business to be established in Australia. On the other hand, franchise businesses already have an established business model that only need to be operationalized to be viable.

{ 2 comments… read them below or add one }

Christine Sutherland November 6, 2010 at 1:23 am

There is an alternative to franchise purchase which is much easier and cheaper. Become a distributor for an international direct selling company, build your business in your current country and expand into the country you wish to emigrate to. When you can demonstrate that you have independent income from a sustainable business, you have a case for residency. n nWarning: You need to do extensive due diligence on the options available so that you don't waste time, energy, or money. nApart from ensuring it's an industry you're interested in, this is not a choice to make with the heart. Factors are: uniqueness, proven market demand, price acceptability, distribution costs including your time, proof of earnings, depth, breadth and nature of support, company financials/history/profile, 3rd-party clinical proof of any health claims, proof that your income will persist after retirement, otherwise you are merely buying a job.

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sabina February 26, 2013 at 9:47 am

i'm not quite sure that purchasing a franchise in australia will give you enough to get permanent residency in australia.
if you want to get a business visa, you need to have at least half a million dollars in assets and what not.

how buying a $30k franchise or similar would achieve the same, i'm not really sure.

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