Australian Franchising: From International Invasion To International Expansion

The purpose of this paper is to review the growth of the franchising sector in Australia, assess the current situation and examine the challenges it faces as it moves into the 21st century.The growth of business format franchising is examined from the early 1970’s when some of the largest U.S. franchisors established themselves in Australia, through the 1980’s when a great number of Australian franchises were commenced and understanding of franchising was growing, until the current situation where the maturity of the sector is evident and increasingly local franchisors are extending their expansion internationally.The current situation is examined, discussing distribution of franchise systems, their performance, the growing trend to international expansion and the changing attitude of government. The roles of franchisors and franchisees are examined, with attention given to data on their plans, behaviour, opinions and concerns.Finally the problems in Australian franchising as identified by a government Franchising Task Force are discussed, together with its conclusions and recommendations which include a scheme for self-regulation by the franchising sector and attention to education and training.Franchising in Australia has achieved considerable growth and maturity. It has developed its own characteristics and now stands independent of the international participants. Instead, it is turning its attention to international expansion while continuing to develop actively its systems within Australia.