Australia’s booming franchising sector turns over an estimated $128 billion - or 14% of the country’s gross domestic product - with personal services and finance/insurance among the fastest growing areas.
The Griffith University Franchising Australia 2006 survey indicates an 89% growth in the personal services sector since 2004, with finance/insurance reflecting a 59% growth.
Franchising expert and chief survey investigator Professor Lorelle Frazer said a strong economy and demographics accounts for the surge in market expansion.
‘The upward trend in personal services – hairdressing and beauty products, gymnasiums and gardening services – is related to a full-employment economy where people can afford personal luxuries and don’t have the time to carry out these tasks themselves,’ the Dean of Learning & Teaching said.
‘Because many of them provide mobile services at the customers’ residence or place of work, these also tend to be lower-cost franchises and therefore easier to recruit new franchisees.’
Growth in finance/insurance is in response to the real estate boom over recent years and the need for financial planning services by Australia’s ageing population. More about it.
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