Business Franchise Australia and New Zealand

Snapshot of Australian Franchisee Survey participat­ing businesses

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Responses from 1,007 franchisee­s representi­ng 83 Australian franchise systems.

The survey sample indicated that 69% of Australian franchised businesses were operated by men and 29% by women.

Whilst the majority of respondent­s (57%) were born in Australia, more than 40% were born overseas with India the second most common place of birth at 15%, followed by China 7% and the UK at 3%.

A high level of education across franchise owners was evident with 18% holding a tertiary degree and a further 27% holding a Post Graduate Qualificat­ion. 52% of respondent­s indicated High School (22%) or Diploma/Certificat­e (30%) as their highest level of education.

The vast majority (73%) of franchise units were owned by single operators. A further 20% of respondent­s indicated the operation of 2-3 units and 7% indicated the operation of 4 or more units for their franchise system.

The survey reflected that 33% of respondent­s had commenced their business in the last five years (2017-2021). A further 30% commenced their business between 2012 and 2016 and 37% had now been operating their business for more than ten years.

Responses indicate that franchises are typically operated by mature age owners with 76% of respondent­s aged 40 years or older.

Franchised businesses are a significan­t employer in the Australian economy. The employment of more than 2 people was indicated by 81% of respondent­s. Single operators accounted for 19% of respondent­s. Almost half of all respondent­s (48%) indicated their business employed 2-10 people with a further 34% reporting their franchised businesses employed more than 10 people.

The majority of franchised businesses (76%) were based in capital cities. Franchised businesses also have a significan­t regional footprint with 24% of respondent­s indicating their businesses were based outside of state and territory capitals.

There is a significan­t variance in average weekly sales across franchise units, attributab­le to the type of industry, business structure and the scale of the individual business.

Higher turnover levels were evidenced from respondent­s working in food-based businesses which accounted for 80% of the businesses reporting turnover of more than $10,000 per week.

For franchises with sales of less than $10,000 per week, 91% were involved in non-food businesses which in many cases were operated by mobile businesses without rental and wages overheads.

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