From rising operational costs to shifting global trade dynamics, today’s franchisors are navigating complex economic challenges. But while external pressures continue to evolve, so too do the strategies that help franchise networks stay agile, efficient, and profitable.
The good news? With the right planning and support, franchisors can make confident decisions that not only protect their bottom line but also set them up for long-term growth.
At NAB, our franchise business specialists are seeing firsthand how some of Australia’s leading franchise brands are responding proactively to today’s challenges. Here are five strategies we’re seeing succeed across the sector.
1. Bulk purchasing to reduce costs
With inflation continuing to affect margins, many franchise networks are reducing input costs by buying in bulk. This approach provides access to volume discounts, ensures product availability, and helps to smooth out pricing volatility across the network.
One national juice and salad franchise recently worked with NAB’s Trade and Working Capital specialists to place a large-scale order of pomegranate juice in anticipation of price increases driven by inflation and supply chain pressures. By obtaining this key ingredient in advance, the franchise was able to maintain consistent pricing for customers and avoid cost pass-through to franchisees. This approach highlights how forward-planning and access to tailored finance solutions can help ease pressure on margins and create greater pricing certainty in times of economic fluctuation.
2. Driving efficiency through technology investment
Technology investment is crucial for franchise networks looking to streamline operations. Whether it’s investment in digital rostering tools, waste management platforms, or integrated payments, franchisors investing in digital systems are improving both profitability and franchisee performance.
NAB Gateway, for example, is helping some networks enhance their payment and ordering workflows. By integrating ordering apps and centralising payments, franchisors can speed up fund distribution across the network and deliver a smoother customer experience.
Other franchises are using technology to tackle labour productivity and inventory waste—areas where small improvements can potentially drive significant network-wide results to the bottom line.
3. Pricing strategies to manage costs and inflation
Many franchisors are increasingly adopting flexible pricing models that allow for gradual product price increases without disrupting customer expectations. Some are exploring smaller portion sizes or adjusted product offerings to maintain competitive price points while still protecting the brand’s value proposition.
From a banking perspective, managing costs and pricing strategies can also involve financial structuring. Consolidating your financial products with a single bank may lead to more favourable interest rates and reduced fees. In addition, consulting with interest rate risk management specialists can help provide certainty around financing costs and allow you to take advantage of fixed-rate opportunities.
4. Supporting franchisees with better inventory control
A common challenge faced by both franchisors and franchisees is managing inventory and waste—especially when dealing with perishable goods. The fear of overstocking often leads to missed sales opportunities, while understocking can create supply gaps. Franchisors who can effectively support their franchisees in finding the right balance can unlock meaningful improvements in both sales and profitability.
For example, one dessert franchise faced significant increases in the cost of cocoa due to supply constraints in South America, which disrupted inventory consistency. With support from NAB’s Trade and Working Capital specialists—alongside our Commodity Specialists—the business was able to secure a higher volume of cocoa at a more favourable price. This not only enabled them to maintain their current pricing but also ensured consistent inventory levels across their network, helping preserve operational stability and brand trust.
This is a strong example of how franchisors can take a structured approach to pricing and procurement—by leveraging specialist financial tools to balance customer loyalty with profitability, even in the face of unpredictable cost pressures.
5. Mitigating currency and tariff risks with tailored solutions
For franchisors with overseas suppliers or global operations, navigating currency fluctuations and shifting trade conditions is part of doing business. But exposure to these risks doesn’t have to come at the cost of financial stability.
Our Foreign Currency specialists give franchisors online access to NAB’s Connect portal, allowing them to offer preferential rates tailored to their brand. Franchisors can then utilise these rates for all their overseas transactions. This strategy has proven effective for many of our cross-border franchisors, offering a streamlined process with the added benefit of enhanced security for overseas payments.
Through tailored foreign currency hedging strategies, NAB has helped franchise networks lock in favourable rates and reduce uncertainty in Australian dollar movements. These tools provide greater control over cross-border costs—particularly when dealing with high-demand or price-sensitive imports or if bringing in equipment from overseas.
Looking ahead with confidence
While the business environment remains dynamic, franchisors are demonstrating that adaptability, not certainty, is potentially the real driver of success. With the right partners, insights, and financial tools, franchise businesses can strengthen their operations, support their networks, and chart a confident course forward.
NAB’s Franchise Banking team is here to help you do just that. With decades of experience working across the franchise sector, we offer practical support—from financing and trade facilities to digital solutions and risk management—to help you grow with confidence.
Learn how NAB can support your franchise strategy by visiting nab.com.au/franchising or speak with a NAB Franchise Business Specialist today.
Important information
This article has been prepared by NAB and is intended to be of a general nature only. It is not intended to be relied on as advice. It has been prepared without taking into account any person’s objectives, financial situation, or needs. Before acting on the information in this article, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, taxation or other professional advice before acting on any information in this article.
Information correct as at May 2025.
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