Export your franchise to Australia
Nick Strong, MD of www.selectyourfranchise.com takes a look at Australia’s thriving franchise market.
Franchising is alive and flourishing In Australia. Total sales turnover of franchise units was approximately $96 billion in 2005. This is an impressive 14% of Australia’s GDP.
Since 2004, franchise systems have grown by 12.9% to reach 960 systems, reflecting a confident, regulated franchising sector in a strong local economy.
Franchising in Australia has expanded to include virtually every product and service sector. Australia now has the most franchising outlets per capita in the world.
A recent survey estimates that there are 61,860 franchised units operating in Australia including 5,660 company-owned units, which in comparison to a total of 54,000 units in 2004. This illustrates the strength of the sector. These numbers are all the more significant when one considers that Australia’s entire population is only 20 million people.
Many franchise companies state that the current challenge for the sector is finding sufficient suitable franchisees to enable expansion of their systems. In spite of this, there are still many opportunities for new concepts providing they are adapted to local market needs and conditions.
UK companies considering exporting their franchise to Australia should consult closely with their chosen British Franchise Association accredited consultant and lawyer so best advice is obtained before expensive action is taken.