Recruiting suitable franchisees is the biggest concern for the sector (based on our latest website poll), despite the downturn, so migrant franchisees may provide a solution.

Franchise business opportunities provide migrant franchisees the opportunity to buy themselves Australian residency.

Migrant franchisee growth increasing

According to demographic and social change advisor, Bernard Salt, at the National Franchise Convention in Perth, Australia, earlier this year, the growth in migrant franchisees is likely to increase significantly.

Bernard says the Federal Government recently adjusted immigration projections to virtually double at 180,000 migrants per year for the next 50 years to compensate for the workforce gap left by Baby Boomers as they retire.

What does an increase in migrant franchisees mean for your franchise business?

This means a growing pool of potential migrant franchisees, but also an increase of migrant employees into franchise business networks.

Franchisors should consider adopting franchisee recruitment and support practices for migrants, as well as cultural awareness training to avoid possible conflict or embarrassment.

The majority migrant populations are likely to come from India and Asia, but also the Middle East.And while recruiting migrant franchisees can be very successful, franchisors need to assess whether they’re right for their franchise.

Things to consider include:

• Will they require extra support or put strain on field staff?
• Will they be able to provide the level of customer service required for your company? 
• Will they be able to respond effectively to enquiries?

Positives of migrant franchisees

Migrant franchisees may be able to help you assess whether your franchise business would be suitable to their local market, or what adaptations would be necessary. (Although migrant franchisees may provide a useful starting point, when expanding internationally always seek professional local advice).

Another positive of migrant franchisees is, unlike many national franchisees where franchising is often their first foray into business, they generally have run similar businesses in their own country.

They enter franchising in Australia to benefit from the support systems and a strong brand, which would not be available to them in an independent operation.

Business migration visa requirementsIn fact, under the business migration visa requirements, applicants should have operated a business in their home country or at least worked at a senior management level.

Other selection criteria also apply.

For an Australian business visa an investment of $500,000 is required by the federal government, however state government sponsorship is available and reduces the investment requirement to $250,000.

English literacy is also a criterion which must be met at Federal and State level, although with state-sponsored visas English skills are not a strong requirement.

When applying for a business visa it’s recommended (although optional) migrant franchisees and franchisors contact a registered migrant agent for advice, which may also help fast-track the application process.

The Australian Government’s Department of Immigration and Multicultural Affairs handles visas, and a list of registered migration agents is available from the Migration Agents Registration Authority .

Free Migrant Forum

A Migrant Forum is being held by Westpac and will provide the opportunity to find out more. The forum will cover target countries, individual eligibility criteria, overseas activity by the Australian Government and migrant support within Australia.

The Migrant Forum will be held next Tuesday (December 15, 2009) at the Tattersall’s Club, 215 Queen Street, Brisbane, Queensland from 8.45am – 11am. RSVPs are essential and can be made to Julie Jones on 07 3227 2164 or at jjones@westpac.com.au by COB tomorrow (December 2, 2009).