Friday, June 14, 2024

The future of franchising

New research shows that opening a franchise is perceived as a more secure and supportive option for those looking to start a business this year. Two-thirds (66%) of Australian respondents aged 18-30 years said they would open a franchise over an independent business this year. Comparatively, 59% of 31-50s and 37% of over-50s would consider opening a franchise, indicating an increased inclination among the younger population to open a franchise.

The research was commissioned by CouriersPlease, a leading parcel delivery service that has a network of more than 1200 Franchise Partners and contractors throughout Australia. 

CouriersPlease asked an independent panel of 1005 Australia adults whether the current economic climate is too risky to open a business independently, and whether a franchise business would be preferable, with the knowledge a franchisor could offer support and help reduce the risks involved in opening a business.

Four-fifths of total respondents (79%) believe that it is too risky to start their own business in the current economic climate, but more than half (51%) of all respondents said they would open a franchise instead of going it alone. Considering that the franchise business segment is comprised of around 1200 franchisors, and around 2,569,900 actively trading businesses in the Australian economy, these findings indicate an impressive appetite for opening a franchise at this time.[1]

CouriersPlease CEO Richard Thame explains, “Franchising is attractive to the younger demographic as they’re less inclined to have access to larger sums of money to set up an independent business, and often have less business experience, so will benefit from the structure of a franchise. A franchisor provides established systems, access to advanced technology, sales collateral, digital marketing, and essential training – all of which help set the Franchise Partner up for success.”

“Opening a franchise provides an opportunity to buy into an established business model that comes with a proven track record, brand awareness, an existing customer base and expert technical and business support. From parents of young families wanting to build a business around their busy home-life to people who have recently moved to Australia looking to establish themselves in their communities; a franchise business model provides the structure and support for someone considering starting their own business,” Mr Thame said.

Rukshan ‘Ruki’ Thilakaratne joined the business as a relief driver in 2014, before buying his first run in 2016. Based in Brisbane, he says that CouriersPlease’s customer-centric culture has helped grow his business rapidly.

“The company introduced bulk customers and invested in new technologies to improve the efficiency of our work processes, helping Franchise Partners find, and retain, customers in a very competitive market. It is this level of support which helps me focus on creating my business community and keeping my customers smiling,” Mr Thilakaratne said.

CouriersPlease Perth-based franchise partner Vipin Mehta explains why the franchisor’s reputation has helped set his business up for success.

“As a franchise partner, I benefited from the recognition and trust that comes with being associated with an established brand, and I’m proud to contribute to the company’s reputation by developing strong relationships with local businesses, organisations and individuals who require courier services. I also made full use of the training and support resources offered by the franchisor, so I’m well equipped to handle the day to day operations of the business, and I stay updated on any new developments.”

The appeal of opening a franchise this year remains largely similar across the states, with South Australians topping the board with 56% of respondents expressing interest in franchise businesses. Followed by 54% of Western Australians, 52% from NSW, 51% of Victorians and 48% of Queenslanders.

The full survey results, including age and state breakdowns, can be found here.

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