Five Reasons Why Australians Are Choosing Franchising

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Five Reasons Why Australians Are Choosing Franchising

“Why do Australians choose franchising?” It is a common question that potential investors often consider before making that important first step on the road to entrepreneurship. One answer that is often given is that franchises provide a proven system to create and run a business. However, the Australian’s relationship with the franchise industry is more multi-faceted than that. There are many reasons why Australia has such an interesting relationship with franchising, some of which are discussed below. These are the main five reasons why Australians are choosing franchising.

A Layered History

The franchising industry in Australia has links back to the early 1970s. When renowned fast-food chains made their away from the United States to Australasia. These brands started popping up on streets throughout Australia’s bigger cities and became part of an average Aussie’s everyday experience. Of course, since then, systems from all industries have been appearing in cities, towns and villages across the nation.

This was just the start, as franchising has become a huge part of the Australian economy since. It is now estimated that there are 1,150 franchising brands operating in the county.

Brand Visibility

The retail sector is an area where franchises have gained significant traction. With about a quarter of all franchises within the country working in this area.

That is a lot of Australian streets peppered with franchise brands that are being viewed by everyone that passes by. Thus, unsurprisingly, brand recognition is massive for many of these franchises.

For most Australians, just getting on with their day-to-day tasks includes interaction with at least one franchise brand.

Exposure to the success franchising brings is just one of the reasons why more and more Australians are looking at franchises as a viable way to start a business.

Dedicated Set Of Laws

Potential investors can be reassured that Australia has a dedicated industry code, called the Franchisors’ Code of Conduct.

It exists to regulate the industry, with the aim of informing potential franchisees. With the information they need before entering a franchise agreement. It also helps provide a cost-effective solution to disputes.

The initial Code, which was introduced in 1998 by the Australian Competition and Consumer Commission, was replaced by a new code in 2015. It details the regulations that franchising industry participants must abide by.

The industry survives difficult times

Australian franchises have proven themselves to be resilient in times of trouble. For instance, in 2016, then chairman of the Franchise Council of Australia, Bruce Bilson, stated that Australia’s franchising sector was performing well despite overall economic struggles in the country.

He said: “The Franchising Australia 2016 survey points to a maturing sector, holding its own in a transitioning economy following the end of the mining boom.”

Cost-effective and flexible

The average expectation for investment in the franchise sector in Australia is around $100,000 – $200,000, but there are many businesses that aren’t even seeking that amount.

It is an industry that offers opportunities to those with lots of money and to those with much less. Not only that, but it is also an industry that allows Australians the opportunity to work to their own schedules and in their own homes. Those are just a few of the reasons why more and more Australians are choosing franchises as their method of business.


An editor with the world’s leading franchise portal, Franchise Direct.

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