Recommend Print

Becoming a franchisee

Franchises facing recruitment challenge

By Oliver Milman
Tuesday, 19 October 2010

Australia’s franchises are in good shape, although recruiting franchisees remains a major issue, according to new research.

 

A survey of 150 top franchise CEOs by DC Strategy found that more than 40% experienced at least 8% growth over the past 12 months, outstripping the rest of the economy.

 

Nearly half generated at least 15% profit, while 22% of those surveyed plan to enter international markets within the next three years.

 

However, franchisors flagged franchisee recruitment as the biggest challenge for the sector over the coming year. Other recent studies have shown that despite the relative strength of the franchise sector, the industry is struggling to identify enough high-quality candidates to fill positions.

 

Rod Young, executive director of DC Strategy, says: “During the economic downturn, many groups believed the anticipated increase in unemployment would be beneficial to the franchising sector.”

 

“This was not the case, with the unemployment rate remaining stable meaning the number of potential franchisees has fallen.”

 

The DC Strategy study found that candidates now have access to more capital than before, although the demographics of franchisees remain stubbornly unchanged.

 

The report found that 80% of franchisees were men, while previous reports have indicated that franchisors aren’t doing enough to appeal to young people or those who weren’t raised in Australia.

 

“Groups need to consider a clear strategy to attract female franchise candidates to ensure they do not limit their growth to an even greater extent,” Young says.

Comments (0)

Subscribe to this comment's feed

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy

FREE DOWNLOAD - 101 tips for start-up entrepreneurs

Covering everything from starting up to sales to social media strategies, this advice forms a fantastic guide that will be of use to anyone starting up in business.


Register for the StartupSmart Newsletter and immediately receive '101 tips for start-up entrepreneurs'.


Your email please (*)
Invalid Input
101 tips for start-up entrepreneurs

Free Newsletter


Invalid Input
Join the StartupSmart community

Follow us

StartupSmart on Twitter StartupSmart on Facebook StartupSmart on LinkedIn

Subscribe to StartupSmart RSS feeds

Events


  • Kick Butt Sales
    Register for Kick Butt Sales here (The early bird discount finishes 28 Sep 10).   New to selling? So too was Amanda Gome once upon a time. The founder of ...

  • Facebook Page Workshop over Four Weeks
    Do you want to learn how you can get over 1000 fans on your Facebook page? Learn from expert Facebook Pager – Lara Solomon creator of Mocks, author of...

  • EMSA - Email Marketing Summit 2010
    Who Anyone who would like to: learn about email marketing  improve their email marketing skills increase campaign measurability hear some great new ...

  • Sales Accelerator 2011 - The Churchill Club
    Register for Sales Accelerator 2011.   Upstairs @ The Leveson Hotel, 46 Leveson St, North Melbourne 11th November, 2010 Start planning now to rev up y...

  • Melbourne StartupCamp
    To kick-off the Global Entrepreneurship Week 2010 in Australia, we will be organising a very entrepreneurial and innovative StartupCamp in Melbourne at which...

Latest Members

Sponsored Links

Our Partners