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Franchising in Australia

Franchising in Australia
Franchising in Australia

Franchising in Australia is a $174 billion industry annually.  This industry includes over 1,200 networks and more than 94,000 individual franchised outlets.  These franchisees employ at least 565,500 Australians across the nation.  Source: Franchise Council of Australia 

Today, there is a franchise for just about every category of business.   

Whilst these franchises can differ from relatively simple business to very complex, they own a substantial market share and create employment and achievement for the nation.  And particularly for those franchisees that discover success and autonomy through self-employment and an improved quality of life. 

The Role of the ACCC in Franchising  

The Franchising Code of Conduct applies to all franchising in Australia and is monitored and regulated by the ACCC.  They also provide guidance about the code.   

The overarching role of the ACCC is for regulating the Competition and Consumer Act 2010. This includes some of the laws that businesses in Australia must follow, which includes the Franchising Code of Conduct.  They do this through education, encouraging compliance, and sometimes investigating. 

The ACCC describe Franchising as a way of doing business.  The two primary roles in franchising, are the franchisor and franchisee. 

The ACCC state that the, “franchisor largely controls how the franchisee’s business is run. They control the name, brand, and business system the franchisee is going to use.”  

To say the “franchisor largely controls how the franchisee’s business is run”, is to say that the franchisor provides the franchisee with all the tools, knowledge and information they need to run a successful franchise.  In many respects this is what the franchisee is looking for – a ready-made and proven business model, processes and manual on how to run a successful business. 

Information about Franchising  

Here is a link to the Franchising Code of Conduct

The ACCC also offer a free course to see if franchising is something for you.  Here is a link to that course. 

The Federal Government website for business also provides information on franchising.  For franchisors and a prospective franchisees.  

Franchise Council of Australia (FCA) 

The FCA is the peak body for the franchising industry, they say:   

Our mission is to support and connect the Australian Franchising Community by helping them grow through education and advocacy. 

The FCA provides a platform for franchisors, franchisees, business advisors and small to medium businesses to influence government policy. 

The FCA also provides a lot of information for franchisors and prospective franchisees.   

Their webpage for Franchisees is extensive covering topics from the legal frameworks to becoming a franchisee.   

The FCA also conduct surveys across the franchising industry and share their findings.  A link to that page, which gives some details about who Australian franchisees are, is here (at the bottom of the webpage). 

International Recognition of Franchising in Australia 

Australia is known globally as a well-regulated and thriving franchising industry.  For example, the USA government recognises franchising in Australia and makes the following statement

Australia has more franchising outlets per capita than any other country except New Zealand, but close to 90% of franchises are Australian developed.  U.S. brands (not individual units) represent between three and five percent of the market. 

Australia has over 1,100 franchisors, 65,000 franchise units, and 8,000 company-owned units in Australia.  Australian-developed brands dominate the market. The United States is a key international player, followed by the United Kingdom, and more generally Europe. 

Conclusions 

Lets look at what conclusions we can draw from this information. 

  1. Franchising in Australia is a very mature and healthy business sector. 
     
  1. The Franchising industry is well regulated ensuring compliance and fairness in the franchisor-franchisee relationship. 
     
  1. There is a huge amount of (free, accessible) information available for prospective franchisees.  
     
  1. The franchising industry is well supported a healthy array of organisations, such as the Franchising Council of Australia, consultants and training organisations. 
  1. The franchising industry in Australia is recognised internationally (for example, USA) as a thriving industry. 

Franchise opportunities are now available with Mobile Martinis  – learn more on our franchising page. 

Feature Image by Austin Distel on Unsplash 

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Australia’s love for cocktails

Cocktail Party - Cheers

The growth of premium drinks – cocktails particularly – in Australia is continuing to gain even further momentum. Australia’s love for cocktails !

Where this recent growth started 

The popularity of cocktails was boosted by the pandemic.  It seems that whilst Aussies were experiencing lockdowns, many took an interest in cocktail making and mixology.  Understanding how these premium drinks are made became a home hobby for many.  And there is skill required to make cocktails truly the premium drink they are. 

The skills home hobbyists developed came mainly from online, but also these people were collecting quality books on the subject.  Then practicing their techniques at home, and inviting friends and family over to ‘test’ the products. 

At Mobile Martinis we have also seen the boost in the demand for premium drinks and cocktails at our client events, following the pandemic and the demand getting stronger each year. 

Strong Demand for Cocktails 

This demand for cocktails has also been seen in other sectors, such as on-premise consumption.  Research company CGA Strategy have studied this growing trend.  Their research shows that “a huge 28% of Australians say they are drinking more cocktails” than ever before (2022).   

A Neilsen-IQ report (Sept 2023) said this increased to 32%.  With cocktails being the number one drink that we trade up to.  Additionally, about 50% of cocktail drinkers will have a cocktail, every time they go out.   

The CGA research also reports that “59% of bartenders state that they believe that cocktails are in the best position to thrive” for years to come. 

Beer and wine still lead in overall drink popularity, with 47% and 41% respectively.  However, cocktails have hit 30%.  Yes, this adds up to more than 100%, but that’s how the research data has come out.  Have you ever gone out for a couple of drinks, maybe beer or wine, then topped that off with a Mojito, Margarita, or Espresso Martini…?  That is how it adds to more than 100%. 

Cocktails resonate with us today 

Cocktails are in tune with us these days.  Premium drinks help make entertaining and celebrating special occasions, more special.  We at Mobile Martinis have also seen this.  Our clients and their guests love the service, the entertainment of making the cocktails and these premium drink enhance the celebration.   

The CGA report also reported the key driver behind seeking a cocktail is that we are “looking for a treat” (CGA say 45% of cocktail drinkers).  This also aligns with a more broad global trend towards premium drinks and cocktails for making get-togethers a special occasion, every time.   

When we experience a well-executed cocktail, it lifts the taste of standard spirits.  The cocktails really are a premium drink, and make special events, even more special.   

For Mobile Martinis clients and their guests, these research findings hold up very well.  We see our clients and their guests enjoying the ‘special feeling’ of well-made cocktails, tailored to their events.  Providing everyone with an awesome experience and creating lasting memories of their special occasions.  

The growth of premium cocktails has become a big part of our Australian culture.  When we are going out, staying home, or holding our own celebrations with friends and family, premium cocktails are a big part of recipe for our celebrations. 

Learn more about our special event packages here

Featured image by Helena Yankovska on Unsplash