By Craig Mac
FRANCHISE
REVOLUTION
& FITNESS FRANCHISES
you’ve likely never
heard of!
F
ranchising in Australia is amongst the most dynamic and progressive business
sectors in the economy. It is a recognised and reputable way of doing business in
Australia and is the chosen format for many Australian entrepreneurs to expand
and develop their business..
Franchising in Australia commenced in a
significant way in the early 1970’s under
the influence of the franchised US fast
food systems - KFC, Pizza Hut, McDonalds
- which commenced operations here
at the time. The growth of franchising
since that time has been remarkable.
Over the last two decades franchising in
Australia in its contemporary “business
format” mode has developed into a
highly significant and dynamic business
activity, which has expanded to include
virtually every product and service
business.
Statistical surveys have been conducted
for the Franchise Council of Australia
(the peak body for the franchise sector
in Australia) by Griffith University every
second year since 1998. The current
Franchising Australia 2016 report reveals:
26
• There were 1,120 busine ss format
franchisors in Australia in 2016
• There were an estimated 79,000
units operating in business format
franchises
international markets.
• More than 470,000 people were
employed directly in business format
franchises.
• Sales turnover for the entire
franchising sector was estimated at
$146 billion.
• Sales turnover for business format
franchises was estimated at $66.5
billion.
• 90% of franchise brands originated
in Australia.
• 2% of franchisors have entered
• 37% of franchise brands engage in
online sales with customers.
• Only 1.8% of franchisees were
involved in a substantial dispute
with a franchisor in the past twelve
months.
Fitness franchising in Australia has been
booming, especially in the last 2-3 years.
Between ‘the big four’ 24-hour gym
franchises alone, there are over 1100
franchise units either open, in pre-sale
or looking to secure a site (approximate
numbers at time of publishing: Jetts - 213,
Snap - 193, Anytime - 478 and Plus Fitness
- 222). Other smaller franchise groups
add an estimated 400-500 units to that
total.
WHAT’S NEW IN FITNESS - WINTER 2017