The Franchise Facts at a glance

(Source Franchising Council of Australia).

The growth of Franchising over recent years has been excellent. The key facts about franchising, established by Griffith University on behalf of the Franchise Council of Australia. are as follows:

1. Number of Franchise Systems - There are a total of 1,100 franchise systems in Australia in 2008, up from 960 in 2006.
2. Turnover - Total turnover of all franchise systems in Australia in 2005 was an estimated was $130 billion.
3. Number of Franchisees - There are 71,400 franchised outlets (and company run outlets within franchise systems) in Australia.
4. Business Growth - Franchising grew at 15% from 2006 to 2008.
5. Employment - Franchising now employs around 413,000 people.
6. Franchise Success - Franchising enjoys a small business success rate more than two and a half times greater than stand-alone small business. Banks look more favourably on an application for a franchise purchase loan when compared with a loan application for a stand alone business. At any given moment less than 2% of franchise owners are in serious dispute with their franchisor.
7. Australian International Expansion - Currently around a quarter of Australian franchise systems operate overseas.
8. Regulation - Australia introduced the world's first national franchising regulations with the introduction of the Franchising Code of Conduct on July 1, 1998. This ensures franchisors provide potential franchise owners with comprehensive disclosure documents prior to the potential franchise owners committing to purchase.

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