Franchising Australia 2012 report - Thewebconsole.com

Franchisee profitabilityKey facts• 90 percent of franchisees areoperating profitably.In support of the success of the franchising business model, franchisor respondentsreported that 90 percent of franchisees were operating profitably. Only marginal differenceswere reported between retail (87 percent) and non-retail (95 percent) franchises, and interms of system size, with large systems reporting 95 percent of franchisees operatingprofitably, compared with small (90 percent) and medium-sized (80 percent). In the contextof industry experience, all franchisees within emerging systems (6-10 years) were operatingprofitably, while 85 percent of franchisees in young systems (1-5 years) and 88 percent offranchisees within mature systems (7-10 years) were reported to be profitable operations.B3 What proportion of your franchisees do you estimate are operating profitably (i.e.earning profits beyond employee and owner wages)?Proportion of franchiseesoperating profitablyNumberPercent0-25% 3 7.726-50% 6 15.451-75% 3 7.776-100% 27 69.2Total 39 100.0Notes:1) A total of 39 franchisors responded to this question from an expected 126.2) The median percentage reported by franchisors was 90%.3) The low response rate to this question (31%) should be noted and the results viewed with caution.Franchising Australia 2012 Page 47