Industry Statistics and Trends
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $203.0bn in 2024.
Trends and Insights
Trading conditions have been challenging
- Pandemic-related restrictions hampered the performance of franchising businesses over the two years through 2020-21. Trading constraints led to industrywide disruptions, the forced closure of all non-essential services, like hairdressers, home gardening services and gyms, and an erosion of revenue across the board.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Greater use of technology is set to drive how households shop
- Trading conditions over the past few years have changed how consumers search, shop and communicate with businesses. Once regarded as an add-on option, the pandemic cemented the importance of having an online platform for all business types.
Biggest companies in the Franchising in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
Metcash | 12,409.8 | |
Eagers Automotive | 8,454.9 | |
Harvey Norman | 7,490.0 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Motor vehicle retailing, Fuel retailing and Retail. Motor vehicle retailing is the largest segment of the Franchising in Australia.
Trends and Insights
Motor vehicle retailing is on the up thanks to an upswing in income
- Car manufacturers act as franchisors in motor vehicle retailing, while car dealerships operate as franchisees. Unlike traditional franchise agreements, new car dealerships don't pay fees or royalties except for contributions to cooperative marketing funds. New car dealerships also get to choose their location, unlike businesses in traditional franchise agreements.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Franchising is a method of growing a business in which a franchise owner (franchisee) is granted, for a fee, the right to offer, sell or distribute goods or services under a business system determined by the business founder (franchisor). The franchisor supports the franchised business group by providing leadership, guidance, training and assistance in return for ongoing service fees.
What's included in this industry?
Motor vehicle retailingFuel retailingRetail tradeAccommodation and food servicesAdministration and support servicesPersonal servicesEducation and training, healthcare and real estate servicesCompanies
MetcashEagers AutomotiveHarvey NormanPurchase this report to view all 4 major companies in this industry.
Related Terms
FRANCHISORFRANCHISEEFRANCHISETHIRD LINE FORCINGIndustry Code
ANZSIC 6720 - Franchising in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite a brief recovery, consecutive interest rate hikes in response to inflation have slashed spending on franchised goods and services. A drop in discretionary spending, t...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Growth opportunities and consumer demand have been driving an influx of new services. This is significantly altering the relative size of each product segment.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Franchised businesses are heavily concentrated in New South Wales, Victoria and Queensland. High population levels and strong CBDs allow these states to support most franchis...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Most franchised businesses compete on the price and range of products and services. Brand strength offers franchised businesses a competitive advantage over standalone busine...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Franchising industry is highly fragmented, covering a range of markets from finance to childcare. Major franchised businesses have been chosen based on their size and str...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Metcash's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Eagers Automotive's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Harvey Norman's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Metcash, and factors influencing its performance in the industry
- Description and key data for Eagers Automotive, and factors influencing its performance in the industry
- Description and key data for Harvey Norman, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Franchising Code of Conduct covers the agreement between the franchisor and the franchisee. Franchised businesses must stay up-to-date with changes in the Franchising Cod...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Bricks-and-mortar franchises need more staff than kiosks or mobile services, leading to higher wage costs. The economic recovery and a jump in store numbers have driven up em...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Franchising industry in Australia in 2024?
The market size of the Franchising industry in Australia is $203.0bn in 2024.
How many businesses are there in the Franchising in Australia industry in 2024?
There are 1,307 businesses in the Franchising industry in Australia, which has grown at a CAGR of 0.7 % between 2019 and 2024.
Has the Franchising industry in Australia grown or declined over the past 5 years?
The market size of the Franchising industry in Australia has been declining at a CAGR of 1.1 % between 2019 and 2024.
What is the forecast growth of the Franchising industry in Australia over the next 5 years?
Over the next five years, the Franchising industry in Australia is expected to grow.
What are the biggest companies in the Franchising market in Australia?
The biggest companies operating in the Franchising market in Australia are Metcash, Eagers Automotive and Harvey Norman
What does the Franchising in Australia include?
Motor vehicle retailing and Fuel retailing are part of the Franchising industry.
Which companies have the highest market share in the Franchising in Australia?
The company holding the most market share in Australia is Metcash.
How competitive is the Franchising industry in Australia?
The level of competition is moderate and increasing in the Franchising industry in Australia.
Related Industries
Widen your competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Real Estate Services in Australia
- Legal Services in Australia
- Fast Food and Takeaway Food Services in Australia
- Cafes and Coffee Shops in Australia
International industries
- Intellectual Property Licensing in the US
View all industries in Australia
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
