Franchising sector study predicts more growth.

The Australian franchising sector continues to grow despite expected future economic downturn, a recent study by Griffith University has found.
Griffith University's Asia-Pacific Centre for Franchising Excellence recently completed the Franchising Australia 2008 study, part of a biennial series which provides a clear picture of the Australian franchising sector and changes over time.

Project leader and Asia-Pacific Centre for Franchising Excellence director, Professor Lorelle Frazer said results showed the sector had grown more than 14 percent in two years.

"Revenue from sales in the sector has increased to an estimated $130billion, with more than 1100 business format franchise systems operating and more than 71,400 units within these systems," Prof. Frazer said.

"The sector represents four percent of Australian small business, with the majority of systems operating in retail trade, followed by accommodation and food service, including fast food."

FRANCHISE SAFER BET?

Prof. Frazer said with the current economic situation expected to worsen it was likely there would be a rise in people looking into franchises over starting their own small business.

"People look to franchises as a way of reducing risk within small business, by adopting a tried and tested approach," Prof. Frazer said.

"Franchise systems also provide added support and can accelerate learning for an individual starting their own business, so it is likely we will see an increase in franchisees over independent operators."

The research also revealed part-time franchising was on the rise.

"Part-time franchising appears to be a growing trend with individuals seeking a form of independent business ownership that accommodates existing employment and family commitments," Prof. Frazer said.

"Results show the franchising sector caters for franchisees who require more flexibility in operations with slightly less than half the franchisors reporting they appointed franchisees who work in a part-time capacity."

Prof. Frazer, who is also Dean (Learning and Teaching) at the Griffith Business School, said with tougher economic times ahead there was likely to be an increase in people seeking education and new skills, and the franchising sector would be no exception.

"After extensive consultation with the industry we're expanding our Graduate Certificate in Franchising, to also be offered online from semester two, 2009," Prof. Frazer said.

"The Graduate Certificate builds on the franchising specialist course already offered by the university and provides a strong foundation for anyone involved in franchising whether as a franchisor, franchisee, franchise support industry or corporate franchise office employee."

Graduates of the certificate program may then go on to receive credit towards Griffith's five star Master of Business Administration program should they choose to continue studying.

Asia-Pacific Centre for Franchising Excellence researchers Dr Scott Weaven and Owen Wright were also involved in the Franchising Australia 2008 study, which is sponsored by the Franchise Council of Australia. ♦

For further information on programs and courses visit www.griffith.edu.au/gbs

E-mail: gbs-postgrad@griffith.edu.au

Tel: 1800 145 155 ♦ ◊

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