FranchiseMart, a U.S. company offering services to make franchise shopping easier, is going to launch its first store in Sydney, Australia. Although the company promises to help potential franchise buyers find the most suitable solutions and match them with the best franchisers, the franchisee industry body discourages Australian businessmen from using the services of FranchiseMart.

The new business venture, which was brought into the country by FranchiseMart’ top executives Gareth Grant and Justin Kirkland, will be launched by Joe Hockey, Australian Minister for employment and workplace relations. Grant says that in Australia many potential franchisees are confused about what business to purchase. They often make an emotional decision without really understanding the peculiarities of a particular franchise business and without taking time to investigate into the business and evaluate their risks. There are more than 900 franchises to select from in the country, and people often need a help in choosing the right one for them.

The services of FranchiseMart will include a careful selection and research into available on the market franchise options, the analysis of the potential franchisee needs based on a detailed questionnaire, matching of franchisers with potential clients, the help of a business consultant, and educational meetings on relevant topics.

However, Tony Fraiser, CEO of the Australian Franchisees Association, warns that businessmen looking to purchase a franchise should not blindly accept any preliminary research and advise in this sphere because there are no guarantees that the match will be the right one. Brokers’ companies, and FranchiseMart is one of them, often match people with businesses that are suitable for brokers themselves, but do not reflect real needs of the franchisees.

Such franchises need to looked into carefully as any amount of business insurance cannot cover the loss in name. Be ware of free insurance quotes especially. The authorities in Australia too have been warning against such deals, whether they come under the name of home insurance or a pet insurance or something more benign like a dental insurance.