October 30, 2020
The 10 biggest finance franchises in the Australian market
The list of finance franchises is quite varied with home loan mortgage focused, bookkeeping and accounting services, as well as invoice finance specialists all included in the list.
It demonstrates that within the financial service industry, there are enough sub niches to grow a substantial business that does not have to be the high volume home loan mortgage broking approach.
The competition amongst the home mortgage focused brands is interesting to observe, with what appears to be some difficulty in truly cutting through as to what the true points of difference and competitive advantages between them all are.
It has also been very clear from researching the industry from a franchise buyers perspective, that many of the players within it are not particularly transparent about costs and fees.
In many cases the ongoing fees were unable to be obtained for a potential franchise buyer to at least initially consider and understand. This is somewhat disappointing, as the franchise sector in particular, is still emerging from a sustained period where a broad lack of transparency caused concern and problems for many.
1. ANZ Mobile Lending - 450+ franchises
Is the only independently rated franchise brand in this 10 biggest finance franchises list, under the Franchise Rating Scale, by FRANdata. The brand is rated 5 out of 5 stars, and this achievement is significant in the market.
More about the Franchise Ratings Scale
The clear brand-connected backing of a big four bank is clearly a key part of their strategy in attracting franchise owners, by articulating the benefits of impact and reach of the brand.
- CEO = Shayne Elliott
- Headquarters located = Melbourne, Victoria
- Franchising Since = 2004
- Investment = starts at $150,000
- Initial Franchise fee = TBD
- Ongoing Fees = Annual Franchise & Admin Fee TBA
- Training = 6-12 weeks minimum and a 12 month certification. If you come from a non-lending background, you will be required to complete a Certificate IV in Finance and Mortgage Broking.
Social Media Presence
- Facebook = 367.4K followers
- Instagram = 20.2K followers
- Twitter = 126.5K followers
- LinkedIn = 468.5K followers
2. Mortgage Choice - 430 franchises
A publicly listed company. A heavy focus on technology is the way the brand is looking to differentiate itself from the competition. Key software supporting the brokers' business, The Broker Platform, “…designed by brokers for brokers” claims time saving features “…to submit loan applications 30% faster than other platforms in the industry.”
They actively work to differentiate themselves from with statements like “...there are no hidden or ongoing annual fees for things like marketing or software updates and support.”. Elements of brand, support and technology underpin their pitch to the franchise market.
Shopfront and brokerage franchises available, as well as financial adviser franchises available with FinChoice.
- CEO = Susan Mitchell
- Headquarters located = North Sydney, NSW
- Franchising Since = 1994
- Investment = starts at $35,200
- Initial Franchise fee = NA
- Ongoing Fees = TBD
- Training = 2-week training course
Social Media Presence
- Facebook = 37.6K followers
- Instagram = 10.7K followers
- Twitter = 5.6K followers
- LinkedIn = 8.1K followers
3. Smartline Mortgage Advisers - 314 franchises
Owned by the REA Group, who owns numerous website assets including realestate.com.au and realcommercial.com.au, and more.
Consistently draws attention to detail regarding that they have won the ‘Franchise of the year award 10 times’ or similar phrasing. However this claim feels a little too broad and used excessively in differing ways, given our experience of the franchise market.
We produced some content around 'best franchise' lists HERE.
In a nod to action on diversity, the brand has a ‘future female brokers’ program focused on women in small business in remote and regional areas. A good and clever contributing and positioning initiative. Also has low entry fees with no shop front required, with franchise owners working from home or shared offices, and can write loans Australia wide with no territory restrictions.
Software, support and training are again a key focus of this brands pitch to potential franchise partners.
- CEO = Sam Boer
- Headquarters located = North Ryde, NSW
- Franchising Since = 1999
- Investment = from $13,000
- Initial Franchise fee = TBA
- Ongoing Fees = Marketing fee TBA
- Training = 1 week induction course + 12 mth business coaching program
Social Media Presence
- Facebook = 5.3K followers
- Instagram = 67 followers
- Twitter = 1,287 followers
- LinkedIn = 3,250 followers
4. Aussie Home Loans - 200+ franchises
Aussie has been on a significant push recently to make it known that they are looking to grow in the market. The brand has stated it wants to expand to 300 retail stores by 2023. Indeed, the brand has actioned this with special terms to stimulate interest in the business. For a period, the franchise fee has been halved, and a $30,000 store fit out contribution provided.
It's leading pitch to would-be franchise partners is it's 'Industry leading training and mentoring'.
Has a mix of mobile brokers and retail locations.
- CEO = James Symond
- Headquarters located = Sydney, New South Wales
- Franchising Since = 1992
- Investment = from $150,000
- Initial Franchise fee = $45,000, halved to $22,500 for a limited time.
- Ongoing Fees = TBA
- Training = 4-week induction program. (3 weeks Certificate IV in Finance and Mortgage Broking plus 1 week business operations training)
Social Media Presence
- Facebook = 46.7K followers
- Instagram = 2.3K followers
- Twitter = 8.2K followers
- LinkedIn = 9.4K followers
5. First Class Accounts - 180 franchises
The first and only bookkeeping business in this list. Targeting small to medium sized businesses, no formal qualifications are needed. The business states that their competitive advantage to other bookkeeping systems is in their training methods and systems that equip for supporting clients.
Of note through franchisee related material, is the focus on being the biggest in the country with that scale, and what it broadly brings, giving you an advantage.
A factor to consider in the space is the impact of automation on the service level and demand with technology in the industry.
- CEO = Mick Devine
- Headquarters located = Robina, QLD
- Franchising Since = 2000
- Investment = $45,000 + GST
- Initial Franchise fee = NA
- Ongoing Fees = TBA
- Training = 9 weeks comprehensive induction training
Social Media Presence
- Facebook = 443 followers
- Instagram = 80 followers
- Twitter = 669 followers
- LinkedIn = 9,487 followers
6. Success Tax Professionals - 95 franchises
The network is offering services as accountants, tax agents and business advisors. The business can be started on a part or full time basis. The business collateral and significant detail appears to demonstrate a thorough, as well as hands-on franchisor approach with exceptional transparency.
Interestingly, around half of the current franchise owners are not tax agents and can have agents employed. While for approximately the other half of franchise owners who are tax agents, they achieved this after joining the group.
Even though a lack of information as stated in the introduction to this entire '10 biggest finance franchises' list is an issue, this is not the case with Success Tax Professionals. In fact, maybe they provide too much on the surface! The Overview-Brochure found directly off their website is a very detailed 58 page, thorough document for anyone to view.
- CEO = Mark Vernal (Director/Principal)
- Headquarters located = O'Conner, WA
- Franchising Since = 2003
- Investment = $0 - $15,000 depending on the category of purchase
- Initial Franchise fee = $1
- Ongoing Fees = TBA
- Training = Induction - 6 hours in person induction, plus 8 x self-paced modules, and more.
Social Media Presence
- Facebook = 6.9K followers
- Instagram = 221 followers
- Twitter = 53 followers
- LinkedIn = 362 followers
7. Bank of Queensland (BOQ) - 93 franchises
The business differs from others in this list as a franchise owner offers a full service banking branch in their local community. BOQ positions itself as a community / regional bank to the majors as their point of difference. They really do have a local banker manager type of feel to them and heavily promote ‘It’s possible to love a bank’ position.
Approximately 60% of branch numbers are franchised.
To become a franchise owner, BOQ requires you to have management and leadership experience in the Australian banking industry. A brand characterised from a franchise investment perspective, with very little available information in the marketplace.
- CEO = George Frazis
- Headquarters located = Brisbane, QLD
- Franchising Since = 2001
- Investment = TBA
- Initial Franchise fee = TBA
- Ongoing Fees = TBA
- Training = TBA
Social Media Presence
- Facebook = 41.4K followers
- Instagram = 2,185 followers
- Twitter = 10.2K followers
- LinkedIn = 36.9K followers
8. RAMS Home Loans - 81 franchises
Owned by Westpac Banking Corporation. Interestingly, the first 3 reasons 'Why Join RAMS' in their franchise recruitment collateral are: 1. Recognised Iconic Brand, 2. Owned by Westpac, 3. Proprietary Mortgage Specialists.
The business is leveraging the power of the Westpac brand and it's scale benefits regularly, as a key attraction for potential franchise owners.
The brand data states that 35% of franchise owners have been with RAMS for over 10 years, and 50% with the brand for over 5 years. Following on from that, a key part of franchise collateral content focuses on a supportive and collaborative culture within the business, where "...you'll enjoy direct access to Head Office staff, including the RAMS leadership team, so you're always welcome to contribute your ideas and share your thoughts..."
It is a requirement to open your RAMS Home Loan Centre within 12 months of becoming a franchise owner.
- CEO = Jake Bromwich
- Headquarters located = Sydney, NSW
- Franchising Since = 2003
- Investment = $35,000
- Initial Franchise fee = Included in investment
- Ongoing Fees = TBA
- Training = TBA
Social Media Presence
- Facebook = 77.9K followers
- Instagram = 458 followers
- Twitter = Branch pages only
- LinkedIn = 4,311 followers
9. Money Quest - 80 franchises
Became a franchise system in 2016 with the goal of making property ownership ‘easy and rewarding for everyday Australians’.
The brand puts franchise owners absolutely front and centre in it's strategies to attract new franchise partners. Certainly, other brands do as well, but the method here is core and next level. A key focus throughout the marketing collateral is on joining a business with a 'culture and environment that empowers and encourages you to grow'. Front and centre are examples of current franchise owners who 'used to work for the banks, but wanted to run their own business'.
A clear and effective positioning strategy for a smaller competitor after franchise owner talent.
The brand makes the effort to personalise the franchise enquiry experience by giving due focus and attention encouraging you to 'Meet Julian', in building the franchise opportunity enquiry pages around the person you'll speak to.
Simple, but well-executed, and reinforces the personalised nature of the brand.
- CEO = Michael Russell (MD)
- Headquarters located = Melbourne, VIC
- Franchising Since = 2016
- Investment = From $9,500
- Initial Franchise fee = NA
- Ongoing Fees = TBA
- Training = Induction program via online learning platform, plus a dedicated mentor for 2 years
Social Media Presence
- Facebook = 1,392 followers
- Instagram = 896 followers
- Twitter = NA
- LinkedIn = 1,071 followers
10. FIFO Capital - 62 franchises (AU)
The only factoring or invoice finance focused franchise on this list. The business has the following products that you offer to your local SME market as a franchise owner: Invoice finance, trade finance, supply chain finance, and business loans. The business effectively acts as a mini-bank where most major banks can't or won't assist.
Most franchise owners work from home according to the brand, with the franchise business aspect flexible with options to lend your own funds to increase returns, or access funding within the group to lend to your client base that you build.
Additionally, the company reassures franchise owners of its credit assessment process and insurance layers to protect from defaulting payments.
- CEO = Wayne Morris
- Headquarters located = Melbourne, Victoria
- Franchising Since = 2005
- Investment = starts at $49,500 - $79,500
- Initial Franchise fee = included in investment
- Ongoing Fees = TBA
- Training = 7 weeks = 4 days induction, 6 weeks comprehensive
Social Media Presence
- Facebook = 515 followers
- Instagram = 76 followers
- Twitter = 385 followers
- LinkedIn = 760 followers
