Just how big is the Franchise Market in Australia?

Written by Grant Garraway - Franchise Consultants

The franchise market in Australia is very substantial, with an annual economic impact of over $201 billion and employing more than 549,000 people. It includes over 1,230 franchise networks (all according to ibisworld.com.au) and more than 94,000 individual franchise outlets (according to the Franchise Council of Australia). 

• Economic Impact: The industry generates an economic impact of more than $201 billion annually.

• Employment: Franchises directly support over 549,000 jobs across Australia. parttime, full time and casual, from 15 years old flipping burgers to C.E.O's managing thousands of franchised stores.

• Industry Size: There are over 1,230 franchise networks, most of which are relatively small and more than 94,000 individual franchise outlets.

• Market Activity: The market is experiencing growth driven by innovation and consumer demand, although some sources note recent challenges like high interest rates which have impacted discretionary spending and overall revenue growth.

• Global Context: Australia has more franchise outlets per capita than any other country except New Zealand. 

Franchises come in many business formats, so Australian developed, and some imported from overseas.

Ibisworld.com.au have said "The Franchising industry has weathered a turbulent period. Pandemic restrictions led to significant disruptions for franchised businesses. Sectors like hospitality, travel and food services bore the brunt of these changes, grappling with density quotas and border restrictions. In the aftermath, franchised companies have struggled to regain footing, especially against consecutive interest rate hikes, which have stymied consumer spending and left businesses battling elevated cost pressures."

With interest rates dropping over the last few years, and the post-Covid normal now well established the franchise sector has had a much stronger growth period.

One of the few Australian brands which is already well established which is still offering master Franchises (they call them Divionals Franchisors) is the Jims Group. This is particularly true of their newer divisions.