Franchise Council of Australia

Franchisee Resources

Australia’s largest franchisee survey findings

The FCA has recently launched the final report of Australia’s largest franchisee survey. With over 1,000 responses, it is the largest single survey of Australian franchisees undertaken.

The key findings include:

  • The 2021 Australian Franchisee Survey Report is based on responses from 1,007 franchisees representing 83 Australian franchise systems and evidencing significant diversity.
  • The survey sample reflected: Australian franchised businesses were operated by men (69%) and women (29%) (note: in many of the male operated businesses, a woman partner may also jointly run the business’.
  • Whilst the majority of respondents (57%) were born in Australia, more than 40% were born overseas with India the second most common place of birth at 15%, followed by China 7% and the UK at 3%.
  • A high level of education was evident across the population of franchise owners with 18% holding a tertiary degree and a further 27% holding a Post Graduate Qualification. More than 50% of respondents indicated either High School (22%) or a Diploma / Certificate (30%) as their highest level of education.
  • A low level (4%) of respondents indicated they had previously served in the Australian Defence Forces and the majority of ex-defence force personnel owning franchises were involved in non-food businesses with the highest representation found in service and maintenance franchises.
  • The vast majority (73%) of franchise units were owned by single operators. A further 20% of respondents indicated the operation of 2-3 units and 7% indicated the operation of 4 or more units for their franchise system.
  • The survey reflected that 33% of respondents had commenced their business in the last five years (2017-2021). A further 30% commenced their business between 2012 and 2016 and 37% had now been operating their business for more than ten years.
  • Responses indicate that franchises are typically operated by mature age owners with 76% of respondents aged 40 years or older.
  • Franchised businesses are a significant employer in the Australian economy. The employment of more than 2 people was indicated by 81% of respondents. Single operators accounted for 19% of respondents. Almost half of all respondents (48%) indicated their business employed 2-10 people with a further 34% reporting their franchised businesses employed more than 10 people.

You can read the full survey here.

What is franchising?

Franchising is a business relationship in which the franchisor (the owner of the business providing the product or service) assigns independent people (the franchisees) the right to market and distribute the franchisor’s good or service, and to use the business name for a fixed period of time.

The franchise operates through the use of a format, or a comprehensive system for the conduct of the business, including such elements as business planning, management system, location, appearance and image, and quality of goods.

The ongoing business relationship between the franchisor and the franchisee includes the product, service and trademark, as well as the entire business concept itself from marketing strategy and plan, operational standards, systems and formats, to training, quality control and ongoing assistance, guidance and supervision. In short, it provides small business (the franchisee) with the tools of big business (provided by the franchisor).

The contract between franchisor and franchisee is ultimately a legal relationship, with the full obligations and responsibilities of both parties outlined in a highly detailed franchise agreement.

What to know before buying a franchise

FCA19014_Whattoknow

Franchisee FAQs

Find out the answers to some of the most common questions asked by prospective franchises.

Information for franchisees

The FCA Franchisee Guide (available to view and download below) is aimed at assisting prospective franchisees and existing franchisees with a toolbox of information from due diligence, to understanding franchise regulations, what questions to ask, how to get expert advice, and how to resolve conflicts that may arise.

FCA19026_Franchisee-Guide

Remember, in considering whether or not buying a franchise business is the right decision for you, the most important thing you can do is research, analysis and read as much information as you can get your hands on. This will go a long way towards ensuring you get the right business for you.