The maturation of the internet has caused a major transformation in the industry. Brick-and-mortar retail stores are fading, takeaways are gaining more popularity, and people are becoming keener on the digital consumption of goods. Despite all the changes, franchising a business in Australia remains as popular and profitable as ever. While the pandemic has wreaked havoc on the industry, it was quick to fight back and gain momentum.

However, the transformation hasn’t stopped. And if you are interested in franchising a business, you may want to take a quick look at the changes and trends in the franchising sector in Australia before making your calls.

So, dive into the following section and learn the current franchising trends in the industry!

Franchising A Business? Here’re 6 Trends You Should Know About!

New Zealand and Australia have more franchising outlets than any other country. Over 90% of the franchisees are Australian-developed, while U.S.-developed brands occupy between three and five per cent in the sector in Australia. The franchising sector has been growing tremendously in the country since the 1970s. As more entrepreneurs search for opportunities in the industry, competition is increasing rapidly. And this competition and market change have led to the following trends:

1. Leading Sub-Sectors

In recent years, sectors such as home building, repair systems, carpet cleaning, financial planning and waste management have enjoyed significant growth following the franchising model. The non-food retail industry has emerged as the most popular industry, with over 25% operating franchise systems. Foot retail concepts promoting health are also doing well. Apart from that, administration and support services, senior care services, community care and 24/7 gym services are gaining momentum too.

2. Opportunities 

While Australian brands dominate the franchising sector in the country, brands born in the U.S. are key players in the industry, followed by the UK and European brands. Franchisors regularly use local lead-generation sites, such as Octomedia, to seek franchisees. Franchisors from the U.S., on the other hand, are keener on approaching existing Australian franchisors with established brands. They are entering the market through cooperatively-owned units and acquisitions.

3. Sectors Doing Well Under Recession

While there is no guaranteed formula to establish a successful franchise, a few sectors seem to do well even under the harshest economic conditions. So, if you are considering franchising a business, you may choose a company among these resilient sectors. These sectors include hair cutting, accounting, tax preparation, child and pet care, shipping and packaging, auto-maintenance and repair, real estate, computer-related services, home repair and renovation and staffing and employment services.

4. Using Social Media For Advertising 

With the popularisation of the internet, brands are increasingly using social media to promote their products and services. It does not just help reduce the marketing cost but also reaches more potential customers. SEO, SEM, SMM and more methods are emerging for convenient online marketing. However, the effectiveness of traditional media has not disappeared completely.

5. Incorporating Technology

More sectors are relying on technology to deliver their products than ever before. Technology is helping consumers access more brands and products and allowing companies to establish stronger relationships. For instance, gyms use video conferencing to offer training sessions or provide instant quotes to their clients. Software applications are helping companies bring consistency in their sales, while virtual seats are becoming popular among residents who don’t have enough time to attend ceremonies and functions.

6. Accepting Diversity

Stats show that multicultural franchises have more chances of launching and succeeding than non-diverse opportunities. Experts are crediting the growing cultural consciousness for this trend. More than that, business owners realise multicultural markets remain mostly untapped. For instance, ethnic cuisine has become a popular idea among investors.

Bottom Line

Building viable supply lines, emphasising environmental impact, and the health and safety of staff and consumers are other trends you can see emerging in the industry. Hopefully, these above trends will bring you more clarity about the sector when franchising a business. Franchising businesses can be an overwhelming experience. Thus, it’s always a clever idea to consult an expert for guidance and training. You can also use their connection to find a suitable franchisee or franchisor.