Embed Size (px)
DESCRIPTION
$131b turnover, 407,000 employed and 73,000 franchise units.These are key numbers for the franchise sector’s contribution to the Australian economy. This Slideshare presentation reflects on important facts from our research and highlights key data including online sales, levels of franchise conflict and the types of social media used.
Citation preview
Key Insights into Franchising in Australia 2012
Professor Lorelle FrazerAsia-Pacific Centre for Franchising Excellence
Griffith University
www.franchise.edu.au
Five key findings
Size & Growth
Economic contribution
Response to economic downturn
Social media
Online sales
www.franchise.edu.au
Size and Growth
www.franchise.edu.au
Industries
Retail (non food)
Retail food
Admin & support services
Other services
Rental, hire, real estate
Education
Finance / Insurance
Professional / technical
Recreation
Other
0% 5% 10% 15% 20% 25% 30%
27%
18%
16%
10%
7%
6%
4%
3%
3%
6%
www.franchise.edu.au
2002 2004 2006 2008 2010 20120
200
400
600
800
1000
1200
1400
700850
9601100 1025
1180
Franchise systems
www.franchise.edu.au
2002 2004 2006 2008 2010 20120
10000
20000
30000
40000
50000
60000
70000
80000
51000 5400062000
71000 70000 73000
Franchise units
Mature; 51%
Young; 19%
Emerging; 21%
Franchisor Experience
Young:Franchising 1-5 yearsEmerging : Franchising 6-10 yearsMature: Franchising > 10 years
www.franchise.edu.au
Large; 30%
Medium; 24%
Small; 46%
System size
Small: 1 – 20 unitsMedium: 21 – 50 unitsLarge: More than 50 units
www.franchise.edu.au
2009/10 2010/110
5
10
15
20
25
30
3532
28
1517
21 22
RetailNon RetailOverall
Internal system growth
www.franchise.edu.au
Causes of growth (PWC)
Franchisee performance
Strategic direction
Market positioning
Access to new franchisees
New products/services
Site availability
Economic conditions
New systems/tech
0% 10% 20% 30% 40% 50% 60%
54%
54%
39%
26%
18%
16%
14%
14%
www.franchise.edu.au
Economic contribution of
the sectorwww.franchise.edu.au
Sector turnover($ billion)
BFF Vehicles Fuel Total$0
$20
$40
$60
$80
$100
$120
$140
$61
$37 $32
$130
$60
$29
$39
$128
$62
$31 $38
$131
200720092011
www.franchise.edu.au
2010 20120
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
142000 145000
91000124000
456000
138000
F/TimeP/TimeCasual
Employment
www.franchise.edu.au
Response to economic downturn
www.franchise.edu.au
Franchisor activity levels
Sales turnover
Profitability Product promotion
Franchisee recruitment
System promotion
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No changeDecreaseIncrease
www.franchise.edu.au
Franchisee activity levels
Product
sales
Profitabilit
y
Customer c
ount
Loca
l mark
eting
Staffing
Competition0%
10%20%30%40%50%60%70%80%90%
100%
No changeDecreaseIncrease
Key challenges (PWC)
Franchisee availability
Economic conditions
Franchisee access to funds
Site affordability
Increasing competition
Site availability
0% 10% 20% 30% 40% 50% 60% 70% 80%
68%
58%
55%
36%
22%
21%
www.franchise.edu.au
Disputes
Yes: 18%
No: 82%
YesNo
www.franchise.edu.au
25%
10%65%
LitigationMediationSolicitor
Dispute resolution
www.franchise.edu.au
Top 5 causes of disputes
System compliance
Fees
Territories
Profitability
Misrepresentation
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
46%
39%
31%
31%
31%
www.franchise.edu.au
Social Media
www.franchise.edu.au
Types of social media use
Intranet
Linked in
Blogs
0% 10% 20% 30% 40% 50% 60% 70%
64%
59%
39%
27%
14%
www.franchise.edu.au
Online sales
www.franchise.edu.au
Online sales
Yes: 40%
No: 60%YesNo
www.franchise.edu.au
How $$ are distributed
Profits to franchisees
Sales direct to franchisees
Profits to franchisor
Profits to marketing fund
Other
0% 5% 10% 15% 20% 25% 30% 35% 40%
38%
32%
9%
4%
17%
www.franchise.edu.au
Proportion of system sales which are online sales
Up to 5%: 64%
18%
18%0 to 5%6 to 50%> 50%
www.franchise.edu.au
