Harvey Norman has recorded a 40.2 percent drop in full year profit but counts the franchising element of its business as a strength.  

In the chairmanÍs report Gerry Harvey said ñThe franchising operations segment recorded a solid result of $302.95 million for the current year relative to $291.41 million for the prior year, an increase of four percent. This is an outstanding result considering the franchising operations segment had contracted by 12.7 percent for the half-year ended 21 December 2008 relative to the previous corresponding period.î  

The half year to June 2009 brought a franchising operations margin of 6.27 percent.  

Franchisee sales revenue, which does not contribute to the financial results of the consolidated entity, reached $5.06 billion in comparison to company-owned sales revenue of $1,440.65 million.

The business has from 69 company stores and 195 franchised outlets in Australia. Six new Harvey Norman and four new Joyce Mayne franchised outlets opened this year while three Harvey Norman outlets and five Joyce Mayne stores in regional locations closed, and the franchised Domayne store at Campbelltown, NSW also ceased trading.