Want to buy into the major industry in franchising?

Sarah Stowe

Franchise brands run through almost every industry in Australia but which attracts the most brands?

A new report reveals the retail (non-food) industry dominates the Australian franchising sector, with 26 percent of brands operating in this segment.

That’s according to Franchise Australia 2016, the latest bi-annual survey of the franchising sector conducted by the Asia-Pacific Centre for Franchising Excellence at Griffith University.

Trailing the retail industry is the combined accommodation and food services sector which accounts for 19 percent of franchise brands.

Fifteen percent operate in administration and support services, and 10 percent in other services such as personal services, automotive repairs and IT.

Professor Lorelle Frazer, director of Asia-Pacific Centre for Franchising Excellence, highlights that the franchising sector continues to be impacted by intense competition in retailing, particularly non-food retailing.

“Food retailing has been more resilient with consumers responding well to variety and innovation in food concepts,” she says. “However, we can expect to see plenty more turbulence in the retail sector moving forward.”