FCA delegation presents State of Franchise 2023 report to key ministers

The Franchise Council of Australia has released its State of Franchise 2023 report, which reveals franchising contributes $35.1 billion in wages to the Australian economy each year.

Matthew Monaghan, CEO, and Brendan Green, FCA chair, presented the report to both the Small Business Minister the Hon. Julie Collins and the Hon. Sussan Ley Deputy Leader of the Opposition last week as part of a delegation to Canberra.

The report reveals there are 1267 franchise systems active in Australia and more than 94,000 franchise outlets employing almost 600,000 Australians.

Data from the June 2023 Franchise Business ‘Pulse Check’ survey of 65 brands is included in the report.

State of Franchise report reveals franchisor concerns

A broad industry cross-section undertook the survey with the highest percentage of respondents in general services (12 per cent). There were a high number of respondents from retail (11 per cent), retail food (9 per cent), quick service restaurants and sit-down restaurants (6 per cent each).

The survey highlights the top concerns among respondents. Rising interest rates and the economic environment (66 per cent) was the major issue. This figure has risen from 60 per cent, 56 per cent and 54 per cent in the three previous quarterly surveys.

Almost one third of respondents (31 per cent) cited financial performance as a challenge.

The survey revealed continuing recruitment concerns, particularly the availability of suitable employees for franchisees (62 per cent). Recruiting franchisees (44 per cent) and sourcing suitable staff for the support office (36 per cent) were also key concerns.

Data security was a major issue for 67 per cent of respondents, up from 60 per cent in the last quarter.

FCA delegation represented 3600 small businesses

The Canberra delegation comprised 14 FCA members who directly represented 3600 small businesses.

Matthew Monaghan said “Franchise Council of Australia is proud to have led this high-power delegation to Canberra to both launch our 2023 State of Franchise Report and to bring the successes and value of franchising first hand to key political and departmental stakeholders.”

The FCA delegation briefed the ministers on the key points of the 2023 State of Franchise Report, and shared their experiences of the challenges of small business.

Attending the briefings were:

• Amber Manning, CEO, Just Cuts

• Angus McKay, CEO, 7-Eleven

• Brendan Green, CEO, Hire A Hubby

• Carlos Antonius, CEO, Chatime

• Daniel Mesiti, multi-unit franchisee, Boost Juice

• John O’Brien, founder and executive director, Poolwerx

• Karen Bozic, CEO, Craveable Brands

• Marcel Lal, CEO, InXpress

• Matt Fitton, COO, Nurse Next Door

• Matthew Penfold, chairman, Kwik Kopy

• Richard Thame, CEO, CouriersPlease