Download - Key Insights into Franchising in Australia
Key Insights into Franchising in Australia 2012
Professor Lorelle FrazerAsia-Pacific Centre for Franchising Excellence
Griffith University
www.franchise.edu.au
Five key findings
Size & Growth
Economic contribution
Response to economic downturn
Social media
Online sales
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Size and Growth
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Industries
Retail (non food)
Retail food
Admin & support services
Other services
Rental, hire, real estate
Education
Finance / Insurance
Professional / technical
Recreation
Other
0% 5% 10% 15% 20% 25% 30%
27%
18%
16%
10%
7%
6%
4%
3%
3%
6%
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2002 2004 2006 2008 2010 20120
200
400
600
800
1000
1200
1400
700850
9601100 1025
1180
Franchise systems
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2002 2004 2006 2008 2010 20120
10000
20000
30000
40000
50000
60000
70000
80000
51000 5400062000
71000 70000 73000
Franchise units
Mature; 51%
Young; 19%
Emerging; 21%
Franchisor Experience
Young:Franchising 1-5 yearsEmerging : Franchising 6-10 yearsMature: Franchising > 10 years
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Large; 30%
Medium; 24%
Small; 46%
System size
Small: 1 – 20 unitsMedium: 21 – 50 unitsLarge: More than 50 units
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2009/10 2010/110
5
10
15
20
25
30
3532
28
1517
21 22
RetailNon RetailOverall
Internal system growth
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Causes of growth (PWC)
Franchisee performance
Strategic direction
Market positioning
Access to new franchisees
New products/services
Site availability
Economic conditions
New systems/tech
0% 10% 20% 30% 40% 50% 60%
54%
54%
39%
26%
18%
16%
14%
14%
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Economic contribution of
the sectorwww.franchise.edu.au
Sector turnover($ billion)
BFF Vehicles Fuel Total$0
$20
$40
$60
$80
$100
$120
$140
$61
$37 $32
$130
$60
$29
$39
$128
$62
$31 $38
$131
200720092011
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2010 20120
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
142000 145000
91000124000
456000
138000
F/TimeP/TimeCasual
Employment
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Response to economic downturn
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Franchisor activity levels
Sales turnover
Profitability Product promotion
Franchisee recruitment
System promotion
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No changeDecreaseIncrease
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Franchisee activity levels
Product
sales
Profitabilit
y
Customer c
ount
Loca
l mark
eting
Staffing
Competition0%
10%20%30%40%50%60%70%80%90%
100%
No changeDecreaseIncrease
Key challenges (PWC)
Franchisee availability
Economic conditions
Franchisee access to funds
Site affordability
Increasing competition
Site availability
0% 10% 20% 30% 40% 50% 60% 70% 80%
68%
58%
55%
36%
22%
21%
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Disputes
Yes: 18%
No: 82%
YesNo
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25%
10%65%
LitigationMediationSolicitor
Dispute resolution
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Top 5 causes of disputes
System compliance
Fees
Territories
Profitability
Misrepresentation
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
46%
39%
31%
31%
31%
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Social Media
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Types of social media use
Intranet
Linked in
Blogs
0% 10% 20% 30% 40% 50% 60% 70%
64%
59%
39%
27%
14%
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Online sales
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Online sales
Yes: 40%
No: 60%YesNo
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How $$ are distributed
Profits to franchisees
Sales direct to franchisees
Profits to franchisor
Profits to marketing fund
Other
0% 5% 10% 15% 20% 25% 30% 35% 40%
38%
32%
9%
4%
17%
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Proportion of system sales which are online sales
Up to 5%: 64%
18%
18%0 to 5%6 to 50%> 50%
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