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Research reveals downside of economic conditions on Australian franchise sector
Written on the 7 September 2011 by Fiona Taylor
A quarter of franchises experienced a decline in the number of franchise units during 2010 despite overall sector growth, according to new research from the Asia-Pacific Centre for Franchising Excellence.
Franchise unit declines
Centre Director and lead researcher on the project Professor Lorelle Frazer said findings indicated some franchisees in most systems faced financial difficulties in the current economic climate.
Slow franchise system growth affects sustainability
Report Co-Author and Director of Avatar Consulting David Campbell said higher losses for emerging systems indicated the impact of insufficient market penetration and the inability of some models to fully cushion the current economic conditions.
More franchise sector benchmarks
You can find more franchise sector benchmarks across a range of key performance indicators in the Franchise Performance Metrics Research Report 2011.
Author: Fiona Taylor