Is Franchising For You?

Does franchising offer value for money? You bet!

According to the 2010 Franchising Australia survey conducted by Griffith University 69,900 franchise outlets operating in Australia produced a whopping $128 billion in sales turnover and employed 690,000 people.

By giving consumers what they want - better value and more standardised concepts that benefit from being part of larger buying groups - the franchising sector has boomed in recent years.

But how does franchising benefit you as a franchisee? In several ways…

1. Investing in one’s own franchise is a lower risk proposition than investing in a pure start-up. The trick is to choose one that closely matches your skills, personality traits, and budget.

2. You don’t have to reinvent the wheel. Someone else has already worked out how to operate the business successfully.

3. You will be taught how to run your business successfully. A comprehensive franchisee training program coupled with ongoing training and support is the hallmark of a good franchise system.

4. You don’t have to spend time thinking up new products and services. The franchisor is responsible for research and development.

5. The arduous task of supplier negotiations has already been done for you. You’ll be able to buy products and services at a lower cost as a part of a group than as an independent operator.

6. Good franchise systems provide professional marketing and advertising material to their franchisees to enhance their business and build brand recognition.

Fast Franchising Facts

• More than 80% of Australian franchisors maintained a Franchising Code of Conduct compliance program (We do).


• Some 91% of franchise organisations operating in Australia originated in Australia  (We did).


• Australia is the world capital of franchising - with three times as many franchises per capita compared with the United States, IBISWorld research shows.


• 32% of franchisees are male sole owners. 14% of franchisees are female sole owners.


• Two thirds of franchisees are aged 30 to 50 years.


• The majority of franchisees spend from 6 to 10 years within the franchise.