What Are The Most Popular Franchises In Australia?

Franchise Opportunity ArticleWhen it comes to choosing the type of franchise system, most people in Australia likely select non-food businesses in the retail industry based on a survey.

The Franchising Australia 2016 survey showed that non-food retail franchises accounted for 26 per cent of 79,000 franchise systems in the country. Accommodation and food services represented 19 per cent, while administration and support-service franchises and other services comprised 15 per cent and 10 per cent, respectively.

Choosing A Franchise

If you’re thinking of joining the Jon Smith Subs franchise network, the cost will depend on several factors like any other franchise. You may spend from $50,000 up to $250,000 or more for retail franchises, according to the Franchise Council of Australia (FCA).

The FCA said that you don’t have to hold a licence to become a franchisee, but you may need to secure permits and other approvals particularly if you want to operate a food shop. It’s also best to determine if a franchisor is an FCA member. This indicates that a company complies with best practices in franchising and the Franchising Code of Conduct.

Favourable Outlook

A company’s revenue growth is almost always the first thing that you should consider before buying a franchise. Even if franchises may only account for around 4 per cent of all small businesses in Australia, the survey noted that industry revenue would reach $146 billion in the next 12 months.

There are currently 1,120 franchise businesses in the country, so revenue growth may only be exclusive in some segments. Hence, be diligent in researching your chosen company’s financial performance if it aligns with the estimated industry revenue.

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When choosing a franchise system, think whether you want to be in it for the long-term. While franchises offer the security of a proven business model, some people mistakenly assume that success happens overnight.