What franchisees think | Inside Franchise Business

What franchisees think: Australian survey

Sarah Stowe

What are Aussie franchisees optimistic about this year? The very first national survey of Australian franchisees reveals a positive attitude for 2022, despite some concerns from business owners.

Its’ good news on the business front with almost half (49 per cent) of respondents expecting a better or much better trading performance over the next year and just 14 per cent predicting a decline.

The most optimistic industries included convenience stores, retail food outlets, retail stores, pet services and home services franchises.

On the financial front, 66 per cent did not foresee a borrowing need over the next year; in contrast 20 per cent expect to borrow at least $50,000 in the next 12 months.

More jobs expected

The sector can expect to see increased staffing levels, with more than 70 per cent of respondents seeking to boost employment numbers over the upcoming 12 months. Nearly one third (30 per cent indicated they hope to employ between two and four more staff, 21 per cent are planning for an additional five to 25 employees and 3 per cent are expecting to add more than 25 new staff

What does 2022 look like for franchisees?

49% expect better trading

70% will boost staffing

66% will not require loans

Franchisees revealed their biggest challenges ahead are the risk of lockdowns (57 per cent), staff recruitment (56 per cent), and the financial performance of their businesses (53 per cent).

Franchisor support

A great majority of respondents (80 per cent) indicated they were receiving high levels of marketing support from their franchisor; 67 per cent said they were receiving good levels of technology and systems support.

About 30-40 per cent of respondents reported receiving high levels of support when dealing with landlords, vendor relationships, payroll and HR issues as well as accessing government support programs.

Overall 80 per cent of respondents found their franchisors supportive throughout 2021 (many franchise systems had a spread of responses) and nearly 60 per cent saw distinct advantages to being part of a franchise system rather than operating as an independent business.

The survey showed a fairly even split in the length of time respondents had been operating: 33 per cent less than five years, 30 per cent had been operating between five and 10 years, and 37 per cent had notched up 10 years in business.

Most popular as a business model, the bricks-and-mortar premises, with 36 per cent of respondents operating from stand-alone premises and 33 per cent within a shopping centre. The survey revealed 22 per cent of franchisees were operating from a mobile van or home office. 

What franchisees think of franchisor support

80% report good marketing support

67% appreciated good tech and system support

Who are Australian franchisees?

69% male

29% female

76% are aged 40+

45% are university-educated

Where do Aussie franchisees come from?

57% are Australian, 43% are from overseas: India 15%, China 7%, UK 3%

Where are franchisees operating?

76% capital cities

How many business units do franchisees have?

73% have one business; 20% have 2-3 outlets; 7% own four or more franchises

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.