WNiF Magazine - Winter 2017 Edition | Page 26

By Craig Mac FRANCHISE REVOLUTION & FITNESS FRANCHISES you’ve likely never heard of! F ranchising in Australia is amongst the most dynamic and progressive business sectors in the economy. It is a recognised and reputable way of doing business in Australia and is the chosen format for many Australian entrepreneurs to expand and develop their business.. Franchising in Australia commenced in a significant way in the early 1970’s under the influence of the franchised US fast food systems - KFC, Pizza Hut, McDonalds - which commenced operations here at the time. The growth of franchising since that time has been remarkable. Over the last two decades franchising in Australia in its contemporary “business format” mode has developed into a highly significant and dynamic business activity, which has expanded to include virtually every product and service business. Statistical surveys have been conducted for the Franchise Council of Australia (the peak body for the franchise sector in Australia) by Griffith University every second year since 1998. The current Franchising Australia 2016 report reveals: 26 • There were 1,120 busine ss format franchisors in Australia in 2016 • There were an estimated 79,000 units operating in business format franchises international markets. • More than 470,000 people were employed directly in business format franchises. • Sales turnover for the entire franchising sector was estimated at $146 billion. • Sales turnover for business format franchises was estimated at $66.5 billion. • 90% of franchise brands originated in Australia. • 2% of franchisors have entered • 37% of franchise brands engage in online sales with customers. • Only 1.8% of franchisees were involved in a substantial dispute with a franchisor in the past twelve months. Fitness franchising in Australia has been booming, especially in the last 2-3 years. Between ‘the big four’ 24-hour gym franchises alone, there are over 1100 franchise units either open, in pre-sale or looking to secure a site (approximate numbers at time of publishing: Jetts - 213, Snap - 193, Anytime - 478 and Plus Fitness - 222). Other smaller franchise groups add an estimated 400-500 units to that total. WHAT’S NEW IN FITNESS - WINTER 2017