Franchise Sector’s Robust Growth


Franchises have reported strong growth in the past two years despite tougher economic times, according to a survey commissioned by the Franchise Council of Australia.

Executive director Steve Wright said the results of the Franchise Australia 2008 Survey revealed confidence in the sector.

He said franchise systems recorded a 14.6 per cent growth rate between 2006 and mid-2008.

“These statistics illustrate business confidence in the franchising sector and the robust nature of the franchising model, which has a history of performing relatively well compared to the broader small business sector even when economic indicators are pointing down,” he said.

The survey, undertaken by the Griffin Business School, also found that disputes in the sector had declined to just 2 per cent, most of which were in larger, older and more complex systems.

Mr Wright attributed the decline to “greater awareness of the obligations for all participants in the sector” brought about by changes to the Franchising Code of Conduct.

He said the result defied the recent revision of three franchise systems and franchising inquiries in WA and SA state parliaments.

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