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 successful business. However, Australian's relationship with the franchise industry is more multi-faceted than that.
There are many reasons why Australia has such a positive relationship with franchising, some of which is discussed below.
A Layered History
The franchising industry in Australia has links back to the 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 are appearing in cities, towns and villages across the nation.
This was just the start, as franchising has become a huge part of Australian economy since. It is now estimated that there are 1,150 franchising brands operating in the county.
Most of these brands are homegrown too, with an estimated 9 out of every 10 franchise systems being Australian.
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 and it details the regulations that franchising industry participants must abide by.
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.
For instance, take a look at our low-cost franchises section and you will see that there are several options that can be taken advantage of for a very low amount.
Not only that, it is also an industry that allows Australians the opportunity to work to their own schedules and in their own homes.
Simply look into our home-based section for more details.
Those are just a few of the reasons why more and more Australians are choosing franchises as their method of business.
If you want to check out our full list of options, browse the A-Z of franchise opportunities here.