The latest Australian Franchise Pulse Check Survey is out, and reveals a generally positive June 2025 quarter with 78 per cent of respondents reporting average weekly revenue growth.
The FRANdata electronic survey of 61 franchise groups representing 121 brands and more than 20,000 business units revealed 2 per cent had recorded growth between 26 and 50 per cent; 7 per cent had seen an increase between 11 and 25 per cent; and 69 per cent had achieved growth from 1 to 10 per cent.
Of all the states, Queensland had proved to be the most profitable for 35 per cent of respondents over the last 12 months.
More than half of survey respondents (59 per cent) were optimistic about the immediate future while 31 per cent were neutral in their outlook.
In contrast, 22 per cent of respondents experienced a drop in revenue, mostly reporting under a 10 per cent decline. However, just 10 per cent surveyed held a pessimistic view of the next six months and 10 per cent of franchisors said their financial performance was a challenge.
There was a net increase in franchises, with 603 units opened during the period and 426 closed.
Looking ahead, franchisors expect to open 1,693 units over the next year. Where will they expand? New South Wales tops the list, with 32 per cent of franchisors planning to expand there, followed by Queensland (30 per cent) and Victoria (26 per cent).
Fitness and at-home senior care were the industries with the strongest performance; in contrast, couriers, freight and logistics, and the dessert segment of retail food were the weaker segments.
Franchisor concerns
The perennial staffing issue continued as the key challenge with half the respondents (49.2 per cent) citing availability of suitable staff as a major concern.
When it comes to franchisees, franchise recruitment is a stumbling block for 43.1 per cent of responding franchisors – up from 36.1 per cent in the March quarter.
In the June quarter 40.4 per cent expressed concern about the financial performance of their franchisees (marginally higher than the 39.6 per cent last quarter). More than a third (34.5 per cent) were worried about franchisee engagement and satisfaction.
The macroeconomic pressures of rising interest rates and inflation remain an issue for 36.2 per cent of respondents. This is a shift from the March quarter which saw franchisors (61.2 per cent) most concerned about rising interest rates and inflation.
The Australian Franchise Sector “Pulse Check” Survey June, 2025, was commissioned by the Franchise Council of Australia.
