Introduction
Franchising is one of the most popular ways to start a business in Australia. In fact, Australia has one of the highest franchise participation rates in the world, with over 1,100 franchise brands and 70,000 franchise units operating nationwide, according to the Franchise Council of Australia (FCA). From coffee shops to fitness centres, franchises provide a proven business model, training, and brand recognition that make them attractive to first-time entrepreneurs and seasoned investors alike.
If you are considering starting a franchise in Australia, this guide will walk you through the legal, financial, and operational steps you need to understand. As our Director, Saumil Shah, often says, “The franchise journey is smoother when you prepare well before you dive in.”
What Is a Franchise?
A franchise is a business model where the franchisor (the brand owner) licenses its operations, branding, and systems to a franchisee (the investor or operator). The franchisee pays fees and royalties to run the business under the franchisor’s established brand.
There are different types of franchise models in Australia:
- Product Distribution Franchise – You sell the franchisor’s products (e.g. car dealerships).
- Business Format Franchise – You adopt the franchisor’s entire business system, brand, and marketing (e.g. Domino’s, Jim’s Group).
- Management Franchise – You oversee business operations while others deliver the service (e.g. F45 Training, where franchisees often manage teams of trainers).
- Investment Franchise – You own the franchise for profit while hiring managers to run it (often in hospitality or retail chains).
Step 1: Research the Franchise Market in Australia
Before committing, you need to understand the current franchise landscape.
Key Market Insights
- According to IBISWorld, the Australian franchising industry generates over $170 billion annually, employing more than 500,000 people.
- Sectors like food, coffee, fitness, and home services dominate. For example, Domino’s has more than 700 outlets across Australia and New Zealand, while Jim’s Group supports over 4,800 franchisees across various services.
- Health and sustainability trends are shaping new opportunities. Brands like Zambrero, which promotes “Mexican with a mission”, have expanded rapidly thanks to consumer demand for healthier, socially responsible options.
👉 Tip: Explore the Franchise Disclosure Register (via business.gov.au) to check franchise systems that are legally compliant and transparent.
Step 2: Understand the Legal Framework
Australia has one of the most regulated franchise markets in the world, designed to protect both franchisors and franchisees.
Core Legal Requirements
- Franchising Code of Conduct (mandatory under the Competition and Consumer Act 2010) – Sets out rights, obligations, and disclosure rules.
- Disclosure Document – Must be provided at least 14 days before signing, including financial data, fees, and obligations.
- Franchise Agreement – The legally binding contract between franchisor and franchisee.
- Cooling-off period – Franchisees usually have 14 days after signing to withdraw.
👉 Tip: Always seek independent legal advice. The ACCC warns that disputes often arise from franchisees not fully understanding their agreements.
Step 3: Assess Your Finances
Starting a franchise is a significant financial commitment. Costs vary widely depending on the brand and sector.
Typical Franchise Costs in Australia
| Expense Type | Estimated Range | Example Brands |
| Initial Franchise Fee | $20,000 – $70,000 | Jim’s Group (~$25,000 entry) |
| Fit-out and Equipment | $100,000 – $500,000 | Domino’s, Zarraffa’s Coffee |
| Ongoing Royalties | 4% – 12% of revenue | Common in food & retail |
| Marketing Contributions | 1% – 4% of revenue | Often pooled for national ads |
Case Example: An F45 franchise can cost upwards of $250,000 to $300,000 to set up, but it comes with global brand recognition and a strong support system.
👉 Tip: Ensure you have working capital for at least 6–12 months. Many franchisees underestimate the early period when revenue is still building.
Step 4: Choose the Right Franchise Model
The right franchise should align with your skills, lifestyle, and goals.
- Food & Beverage Franchises (Domino’s, Zarraffa’s Coffee): High demand, but labour and rent-intensive.
- Service Franchises (Jim’s Cleaning, Simply Helping): Lower overheads, often home-based, and flexible hours.
- Fitness Franchises (F45, Anytime Fitness): Growing demand due to health trends, but competitive market.
- Retail Franchises: Require strong cash flow management, affected by economic cycles.
👉 Tip: Visit existing franchisees to ask about real operating challenges, not just the glossy success stories.
Step 5: Operations and Training
One of the key advantages of franchising is that you are not starting from scratch.
- Training: Most franchisors provide comprehensive training. For example, Domino’s offers both in-store and online training modules.
- Systems and Technology: Franchises like Jim’s Group offer digital platforms for scheduling, payments, and customer management.
- Marketing Support: National advertising campaigns, such as Zambrero’s Plate 4 Plate initiative, help drive customer engagement.
👉 Tip: The best franchisors provide ongoing support, not just upfront training. Check how often you will receive field visits and updates.
Step 6: Conduct Due Diligence
Never rush into signing a franchise agreement.
Checklist for Due Diligence:
- Read the Disclosure Document carefully.
- Compare projected earnings against industry benchmarks from ABS and IBISWorld.
- Speak to at least 3–5 existing franchisees.
- Get both legal and financial advice from professionals familiar with franchising.
As Frank Tzimas, a senior franchise consultant, puts it: “Numbers tell part of the story, but culture and support tell the rest.”
Step 7: Launch and Grow Your Franchise
Once you’ve completed the groundwork, it’s time to launch.
Key Launch Steps
- Secure your site or service area.
- Complete fit-out, branding, and staff training.
- Leverage local marketing alongside national campaigns.
- Monitor KPIs such as revenue growth, customer satisfaction, and staff retention.
Case Study: Zarraffa’s Coffee started as a single store in Queensland in 1996 and now operates more than 70 outlets. Their growth has been driven by strong regional marketing and consistent customer experience.
Trends Shaping Franchising in Australia
The franchising landscape is dynamic. According to the FCA’s 2023 report, key trends include:
- Sustainability focus – Consumers prefer eco-conscious brands using recyclable packaging or renewable energy.
- Technology integration – From app-based ordering in food outlets to digital membership systems in gyms.
- Home service growth – Rising demand for cleaning, aged care, and NDIS-related services.
- Multi-unit ownership – More investors now own multiple franchise sites, especially in fitness and hospitality.
Practical Tips for Success
- Know your strengths – Pick a franchise that matches your skills. If you dislike customer-facing roles, a food franchise may not suit you.
- Prepare for hard work – A franchise is not a passive investment. Expect to put in long hours, especially at the start.
- Stay updated – Regulations change. For example, the 2025 reforms to the Franchising Code of Conduct will increase compliance requirements.
- Network – Join groups like the Franchise Council of Australia or community forums for peer support.
Conclusion
Starting a franchise in Australia can be one of the most rewarding paths to business ownership. With the right preparation, legal understanding, and financial planning, you can leverage proven business systems to build your own success story. From household names like Domino’s and Jim’s Group to emerging brands in health and sustainability, the opportunities are vast.
As our Director Saumil Shah often reminds clients, “A good franchise is not just about the brand you buy into, but about the support and systems that help you thrive long-term.”
If you are ready to explore, check out our Growth Hive Franchise Listings for opportunities across Australia or join the conversation in our Franchise & Business in Australia Facebook Group to connect with like-minded entrepreneurs.
