IBISWorld, Australia’s most credible and renowned research house, has released its annual research paper on the Australian franchise sector and it is the good news I had expected it to be.
The report states that the fundamentals are good and growth is to continue in the sector.
- the Franchising industry is still forecast to grow at an annualised 1.3% over the five years through 2018-19, to be worth $179.4 billion. Growth in real household disposable income has supported consumer demand for franchised goods and services over the past five years.
- the Franchising industry is expected to encounter steady trading conditions over the next five years, with revenue projected to increase at an annualized 1.7% over the five years through 2023-24, to be worth $195.4 billion.
- Online retailing is currently being used by 36.7% of franchise systems, with a further 32.7% stating that they plan to participate in online sales in the future.