What are Aussie franchisees optimistic about? Earlier this year the very first national survey of Australian franchisees was unveiled. And it showed a positive attitude for 2022, despite some concerns from business owners.

When it came to business, 49 per cent of the respondents predicted stronger trading this year. The most optimistic industries included convenience stores, retail food outlets, retail stores, pet services and home services franchises.

Levels of franchisor support

Overall 80 per cent of those franchisees surveyed believed their franchisors had delivered good support throughout 2021.

Most (80 per cent) indicated their franchisor was delivering high levels of marketing assistance. Sixty seven per cent said they had received significant help with technology and systems.

Some other challenges for franchisees (dealing with landlords, vendor relationships, payroll and HR issues) were eased by strong levels of franchisor support for at least 30 per cent of respondents.

Boosting employment

At the time of the survey a substantial 70 per cent of respondents were expecting to boost employment numbers over this year.

Challenges and concerns

However, staff recruitment was cited as a key concern with 56 per cent highlight this as a major challenge, alongside the risk of further lockdowns. Just over half (53 per cent) raised concerns about financial performance.

How many business units do franchisees have?

The vast majority (73 per cent) operate a single franchise, with 20 per cent managing up to three business units. Just seven per cent of respondents were running their business across four or more franchise units.

How long franchisees were trading

The survey showed a fairly even split in the length of time respondents had been operating. One third (33 per cent) operated for less than five years and 30 per cent had been trading between five and 10 years. More than one third (37 per cent) had been in business even longer.

More than half the franchisees surveyed (69 per cent) operated from stand-alone premises or within a shopping centre. The survey revealed a further 22 per cent of franchisees operated their business from a mobile van or home office. 

The 2021 Australian Franchisee Survey Report is based on responses from 1,007 franchisees representing 82 Australian franchise systems. It was conducted by Frandata on behalf of the Franchise Council of Australia.