Franchising is one of the most popular ways Australians get into business ownership—with good reason. It combines the independence of running your own business with the support, systems, and brand recognition of a proven company. If you’re considering stepping away from employment or starting a business without reinventing the wheel, franchising could be your golden opportunity.
This beginner-friendly guide breaks down what franchising is, how it works in the Australian context, and why it’s a compelling business model for today’s entrepreneurs.
What Is Franchising?
At its core, franchising is a business relationship where one party (the franchisor) licenses its brand, systems, and intellectual property to another party (the franchisee), who operates a business under that brand name.
The franchisee pays fees in exchange for:
- The right to use the brand
- A proven business system
- Initial and ongoing training
- Marketing and operational support
Think of it as starting a business—but not from scratch.
How Franchising Works in Australia
Australia has one of the most robust franchising sectors in the world, with over 1,100 franchise systems and more than 94,000 franchise units operating across industries like food, retail, education, fitness, and home services (source: Franchise Council of Australia).
Franchising is governed by the Franchising Code of Conduct, a mandatory industry code regulated by the Australian Competition and Consumer Commission (ACCC). It ensures transparency, fairness, and accountability in franchise relationships.
Key elements of the model:
- Franchise Agreement: A legally binding contract outlining rights, obligations, fees, and term length.
- Disclosure Document: A document that provides essential information about the franchise system, performance, costs, and any legal history.
- Training and Support: Provided by the franchisor to help the franchisee operate successfully.
Franchisees typically pay:
- An initial franchise fee
- Ongoing royalties (a percentage of revenue)
- A marketing levy (usually 1–4% of sales)
Types of Franchise Models
In Australia, the most common franchise structures include:
1. Business Format Franchising
This is the most recognised model, where franchisees get access to:
- Branding and trademarks
- Operational systems
- Product/service guidelines
- Ongoing support and training
Examples: Subway, 7-Eleven, Jim’s Group
2. Product Distribution Franchising
The franchisee primarily sells a franchisor’s product, often with more freedom in operations.
Examples: Automotive dealerships, beverage distributors
3. Mobile or Home-Based Franchising
Franchisees provide services without a fixed storefront. Popular in cleaning, lawn care, tutoring, and mobile food.
Examples: VIP Home Services, Gutter-Vac
Why Franchising is a Smart Business Move
✅ Proven Systems Reduce Risk
Franchisees benefit from a tested business model with established systems. While all businesses carry some risk, franchising reduces the trial-and-error that comes with starting from scratch.
✅ Built-In Brand Recognition
Many franchises already have a loyal customer base, which can mean faster traction and higher trust from day one.
✅ Training and Ongoing Support
Franchisors provide startup training and ongoing support, including help with operations, marketing, compliance, and technology.
✅ Easier Access to Financing
Lenders often view franchises as lower-risk investments due to their proven track record—making it easier for franchisees to secure loans.
✅ Opportunities Across Sectors
Franchising isn’t limited to fast food. It’s growing in:
- Aged care and disability services
- Child education and tutoring
- Eco-friendly and sustainable businesses
- Personal fitness and wellness
- Professional services like accounting and cleaning
Is Franchising Right for You?
Franchising can be ideal if you:
- Want to run your own business but value support and structure
- Are prepared to follow systems and brand standards
- Have the financial resources to invest (or access to funding)
- Enjoy working with people—staff, customers, and a head office team
- Are committed to building a business long-term
However, it may not suit people who want full creative control or prefer to operate completely independently.
Common Myths About Franchising (and the Truth)
| Myth | Reality |
| Franchising is passive income | It requires time, energy, and involvement, especially in the early stages. |
| All franchises are expensive | Many mobile or service-based franchises start under $100K. |
| You don’t need business experience | True—many systems are designed for first-time business owners. |
| You can’t fail with a franchise | While risk is reduced, success still depends on execution, location, and commitment. |
Final Thoughts: A Smarter Way to Start a Business
Franchising in Australia continues to thrive because it works. With strong consumer demand, supportive legal frameworks, and franchise systems designed for everyday people—not just business experts—it’s never been easier to become your own boss.
Whether you’re coming from a corporate career, looking to escape the 9-to-5, or planning a family-run operation, franchising could be the right fit to help you build a business that lasts.
Explore franchise opportunities tailored to your goals at Growth Hive or connect with real franchise owners in our Facebook community to learn what it’s really like behind the scenes.
