A few weeks ago we covered some findings from The Australian Franchisee Survey conducted by FRANdata for the Franchise Council of Australia (FCA).

In that survey, the overwhelming feeling was one of positivity for the future, albeit, to be noted that the survey was conducted pre-Omicron in Nov 2021.

As promised, we’re back to cover some more detailed findings about why franchisees are feeling positive and expecting a better year ahead.

In the first national survey of Australian franchisees, more than 1000 individual businesses (representing 83 franchise systems) have seen an income turnaround towards the end of 2021 and they expect further improvements over the coming 6 months.

Franchisor support has been crucial

The resounding answer into why franchisees are feeling more confident was the support and comfort of being part of a larger franchise system, as we reported previously.

FCA CEO Mary Aldred agrees that for franchisees, being part of a franchise network has helped many small businesses survive the impacts and restrictions imposed due to the pandemic.

“Since 2018, the FCA has worked consistently with all stakeholders, including franchisors and government, to improve support for franchisees, including small business advisory and education services and tighter regulatory compliance across systems,” said Mary.

What's looking up?

What exactly is making confidence soar? Here are some of the key findings and statistics from the survey.

• 80% of respondents found their franchisors supportive over the past twelve months
• 80% indicated they were receiving high levels of marketing support from their franchisor
• 67% said they were receiving high levels of technology and systems support
• 49% expected better trading performance in 2022, with most optimistic industries including convenience stores, retail food outlets, pet services, and home services
• 30-40% indicated they were receiving high levels of franchisor assistance in the areas of dealing with landlords, vendor relationships, payroll and HR issues and accessing government support program.

Some concerns still remain

Despite the positive outlook for 2022, there are still some challenges to navigate.

The greatest challenge identified was the risk of further government lockdowns, by 57% of respondents. This was followed closely by finding staff (56%) and financial performance (53%).

Even though finding staff was identified as a concern, more than 70% of respondents indicated they hoped to increase employment numbers over the coming twelve months.

And 30% of these businesses hoped to employ an additional 2-4 people, 21% an additional 5-25 people and 3% more than 25 people.

As covered in our article about ‘The Great Resignation’ HERE, there is however a golden opportunity to tap into a new talent pool of entrepreneurial minds looking for more fulfilment in their careers.

Challenges and opportunities aside, franchise owners, like any business owner, needs to stay across market and staff trends and evolve with them.

The survey results indicate a vast majority of franchise owners have been able to do this with the effective support of their franchisors across the pandemic period.