Damon Mcknight
Franchising is a rapidly growing industry in Australia, contributing billions to the economy and supporting hundreds of thousands of jobs. As of 2025, there are over 94,000 franchise outlets across the country, with plans to open 1,374 new units in the next 12 months. The industry has weathered turbulent times, including pandemic restrictions and interest rate hikes, but it continues to be a profitable and attractive business model, particularly in sectors like home services, health and wellness, and food retail. So, which franchises are leading the way in Australia?
| Characteristics | Values |
|---|---|
| Number of franchise systems | 1,344 |
| Number of franchise units | 94,000+ |
| Annual contribution to the Australian economy | $144 billion |
| Job positions generated | 500,000+ |
| Most popular sector for franchising | Non-food retail industry |
| Largest convenience retailer | 7-Eleven |
| Number of 7-Eleven stores | 650+ |
| Largest battery retail franchise | Battery World |
| Number of Battery World stores | 94 |
| Largest Vietnamese food franchise | Roll'd |
| Number of Roll'd stores | 60 |
| Largest bakery franchise | Bakers Delight |
| Number of Bakers Delight stores | 700+ |
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What You'll Learn
The top 10 franchises in Australia
Franchising is one of the fastest-growing industries in Australia, contributing $144 billion to the economy annually. The most popular opportunities for franchising in Australia are in the non-food retail industry, which accounts for over 25% of franchise systems. However, food retail concepts promoting health and well-being are also doing well.
- 7-Eleven: The largest convenience retailer in Australia, with approximately 33.5% market share. They are also the largest independent fuel retailer on the Eastern Seaboard, with approximately 470 fuel stores.
- Laser Clinics Australia: Australia's most experienced provider of laser hair removal, cosmetic injections, and skin treatments. They have 125 franchise units across Australia and New Zealand.
- Just Cuts: An Australian salon brand with a long and successful history in the franchising sector. They provide franchise owners with a proven, successful system to guide them through opening their salon.
- Roll'd: The first and largest Vietnamese food franchise in Australia, with 60 stores across the country. They specialize in authentic Vietnamese street food with a twist to suit Australian tastes.
- Battery World: A reputable battery retailer in Australia, with over 8,000 products. They have expanded to 94 stores and provide comprehensive training and support for franchisees.
- Snap-on Tools: A retail mobile showroom with over 180 franchisees across Australia and New Zealand. They employ targeted marketing techniques and monthly specials to attract customers.
- PACK & SEND: A company equipped with the technology and resources to handle the global movement of parcels, freight, and packages. Their 'No Limits' business model allows them to send and receive anything, anywhere.
- Poolwerx: The leading pool cleaning franchise in Australia, with over 100 retail stores and 300 mobile service vans. They provide outstanding support, marketing, and business development systems to their franchise partners.
- Subway: While facing competition from newer brands, Subway still has a significant presence in Australia, with over 1,400 units in 2015.
- RAMS: A recognised brand in the home loan industry, helping hundreds of thousands of Australians buy their homes.
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The growth of the franchise sector
The franchise sector in Australia has been steadily growing, with the industry contributing significantly to the country's economy. In 2017, franchising represented 4% of Australia's economy, contributing $144 billion annually and generating over half a million job positions. By 2025, the size of the Australian franchise sector is expected to reach $174 billion, with some sources estimating an even higher value of $201.2 billion. This growth is driven by the expansion of existing franchises and the emergence of new franchise brands and networks.
One of the key factors contributing to the growth of the franchise sector in Australia is the diverse range of industries it encompasses. While food retail and quick-service restaurants like 7-Eleven, Roll’d, and Baker's Delight continue to be popular, other sectors such as home building, carpet cleaning, repair systems, waste management, and financial planning have also experienced growth. The non-food retail industry, in particular, accounts for over 25% of franchise systems in Australia.
The franchise sector in Australia has also benefited from the expansion of international brands choosing the country as part of their growth strategy. Brands like McDonald's, KFC, and Subway have established a strong presence in the Australian market. At the same time, Australian-made franchise brands like F45 Training, The Coffee Club, and Poolwerx have used franchising as a catalyst for their global expansion. This exchange of international and local brands has created a dynamic and competitive landscape, driving innovation and growth in the franchise sector.
Despite the overall growth, the franchise sector in Australia has faced challenges, particularly during the pandemic. Sectors like hospitality, travel, and food services were significantly impacted by restrictions and border closures. Consecutive interest rate hikes and inflation have also affected consumer spending, resulting in revenue declines for franchised businesses. However, the franchise sector has proven resilient, and with the easing of pandemic restrictions, it is expected to recover and continue its growth trajectory.
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The biggest fast-food franchises
Australia's fast-food franchise industry is a strong sector, with many healthier food franchises capitalising on the trend towards healthier living. The industry contributes $144 billion to the Australian economy annually, generating over half a million job positions.
Some of the biggest fast-food franchises in Australia include Subway, which had 1,400+ units in 2015, although this number has decreased in recent years. Other large franchises include McDonald's, Hungry Jack's, and Burger Urge. Roll'd is the first and largest Vietnamese food franchise in Australia, with 60 stores across the country. Bucking Bull is another large franchise, offering traditional home-style cooking in a food court setting.
Some newer franchises are also gaining traction, such as Raw Energy, which offers fresh food made with local ingredients. Fibonacci Coffee is another newer franchise, offering a unique coffee experience.
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The impact of the pandemic on franchises
Franchising is one of the fastest-growing industries in Australia, contributing $144 billion to the economy annually. The industry has about 1,144 franchise systems and approximately 70,735 franchisees. However, the COVID-19 pandemic significantly impacted the performance of franchised businesses in 2020 and 2021, and conditions have remained challenging in the post-pandemic period.
The pandemic and its aftermath have resulted in several trends that have influenced industry sectors. Workplace shutdowns and remote work became common, leading to a reluctance to return to physical offices. This shift has prompted employers to adapt their practices to meet the evolving expectations of employees regarding the modern workplace.
The pandemic also caused a brain drain in Australia, with nearly 600,000 temporary visa holders leaving the country. This has resulted in a smaller pool of available workers, coinciding with the lowest unemployment rate in over 40 years. Consequently, businesses have faced challenges in finding team members.
The pandemic's impact on the economy and household income has negatively affected consumer confidence, influencing their spending habits. Retailers have had to grapple with the dilemma of whether to increase prices or decrease quality to maintain margins. The most successful retailers have focused on maintaining quality and enhancing the customer experience to ensure value for money.
The pandemic has underscored the importance of adaptability for businesses. Those that failed to revitalise their locations and offerings to compete with newer, more on-trend competitors have struggled. For instance, Subway faced issues with franchise agreement renewals and claims of costly refurbishments, leading to a significant drop in store numbers in Australia.
In conclusion, the COVID-19 pandemic significantly impacted the franchising industry in Australia, necessitating adaptations in business models and practices to navigate the changing economic landscape and consumer behaviour.
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The legal elements of franchising in Australia
Franchising is one of the fastest-growing industries in Australia, with 1,344 franchise systems and 98,000+ franchise units contributing $144 billion to the economy annually. The Australian Competition and Consumer Commission (ACCC) is the national regulator of consumer and competition laws, including the Franchising Code of Conduct. This code aims to address the power imbalance between franchisors and franchisees. While the ACCC does not resolve individual franchising disputes or give legal advice, it regulates and takes action for breaches of competition and consumer law where it serves the public interest.
The Franchising Code of Conduct applies specifically to franchising participants, and all participants must follow it. A franchise agreement is a legal contract, and if signed, the franchisor and franchisee are legally obligated to uphold their ends of the bargain. Franchisors must not give franchisees misleading or deceptive information and must follow the Franchising Code of Conduct. While the code does not mean franchising is safer than other business ventures, it does provide guidance about the code and new protections and obligations.
The Competition and Consumer Act 2010, including the Australian Consumer Law, applies to franchisors and franchisees. This includes laws that prevent unfair terms in contracts, misleading or deceptive conduct, and anti-competitive behaviour. Franchisees and franchisors may also have obligations under other legislation. If one party believes the other has not followed the agreement, they can take their own action or seek alternative dispute resolution with the help of the Australian Small Business and Family Enterprise Ombudsman.
It is important to understand the legal and tax obligations specific to franchising before entering into a franchise agreement. While some laws apply to all businesses, there are also industry-specific regulations that franchisors and franchisees must comply with. The ACCC offers free courses and guidance to help individuals decide if franchising is right for them and to understand their obligations under the Franchising Code of Conduct.
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Frequently asked questions
There is no clear consensus on which is the number 1 franchise in Australia. However, 7-Eleven, with over 650 locations and a 33.5% market share, is often cited as the largest retail franchise chain in the country. Other top franchises include Laser Clinics Australia, Just Cuts, Roll'd, Battery World, and Bakers Delight.
The success of franchises in Australia can be attributed to several factors. Firstly, franchising offers a relatively safe investment for small business owners, with 95% of franchisors and almost all franchisees being small businesses. Secondly, the franchise model allows aspiring business owners to run their own business while being supported by established systems and brand recognition. Finally, international franchises that successfully expand to Australia often serve as a catalyst for the global growth of "Australian-made" franchise brands.
One challenge for franchises in Australia is the impact of the COVID-19 pandemic, which caused significant disruptions in sectors such as hospitality, travel, and food services. Additionally, franchises need to consider the unique customer behaviours and habits in the Australian market, as well as the legal and commercial landscape, to ensure their success.
