One of the factors in recent years that has contributed to the success of RFG and other franchises is the massive immigration in recent years. For those that don't understand the system in order to get PR (and all the benefits that goes with it) and immigrant needs to obtain 100 points. Points are awarded on the basis of age, education in Australia etc. However the largest number of points is gained by operating a business with up to 35 points being obtained depending on the businesses turnover. It is turnover that is the criteria and not factors such as whether it is a viable business or profitability. This is why you will see many immigrants operating businesses such as a Caltex pertrol station (massive turnover low profitability). On this basis for a large number of buyers profitability is not of primary importance as the business is then onsold to the next PR hopefull once PR is obtained.
For RFG and others any reduction in immigration is a danger as there would then be fewer buyers for franchises. The whole immigration system is unfortunately one big Ponzi scheme. Education, franchises etc are just part of the system.
RFG Price at posting:
$3.08 Sentiment: None Disclosure: Not Held
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