The first half of 2020 had been a nightmare across industries and geographies, with the world battling an unforeseen crisis, the COVID-19 pandemic. Australia experienced its first-ever economic crisis in decades with the GPD plummeting by 7% in June 2020. All industries, including the franchise businesses, took a toll, but by September-October, 2020 the economy finally started showing signs of revival. In 2021, things are positively looking up for businesses and brands. Nevertheless, the trends have altered, so has the consumer attitude. That brings us to a very vital query; is 2021 a good year for buying a franchise for sale in Australia?
Why the sudden focus on the franchise? Well, the question should be why not? Australia has one of the most thriving markets that have been attracting brands and franchisors from all over for eons now. Even with the pandemic and a GDP drop, the franchise sector was able to generate $155.1 billion in the last fiscal, bracing for an optimistic projection in 2021 through 2027.
There has been another post-pandemic trend change that has raised the question of the feasibility of franchise businesses in the country. With job security becoming uncertain amid situations of crisis, more people are seeking alternative methods to earn, become more self-dependent financially. This renewed mindset is urging more people to seek the best franchises to buy in Australia. But is that a lucrative decision?
Profitability from Franchise Businesses in Australia
As per the latest market stats, there are more than 90,000 franchise businesses in Australia, with an employment number of 514,761 and counting. Along with the big brands like McDonald's, Burger King, Starbucks, etc. the local brands have a substantial role to play in the flourishing industry. It is hardly an exaggeration to claim that the Australian brands offer tough market competition to the global franchises, in both market hold and growth.
The post-pandemic aid offered by the government and efforts of the business organizations has cumulatively contributed to the revival. A brief of the business schemes are mentioned below that would make owning a franchise easy for the franchisee:
- SME Recovery Scheme includes a $5 million loan size with an 80% loan guarantee offered by the government.
- Job Maker Hiring Credit Scheme promotes the hiring of new employees under business organizations. The scheme offers up to 12 months of payment to the employer, while the employees receive $100 - $200 weekly payment.
Schemes like these are enabling people and giving them the confidence to become independent by buying a franchise for sale in Melbourne, Sydney, or Adelaide in Australia.
With markets taking a sharp turn upwards, the Australian franchise industry is looking for a fruitful and profitable run in the coming years. Several new brands have opened up franchising after the pandemic, with more queuing up. Global brands have also displayed interest in opening up more outlets across the urban and semi-urban demographics of the country. So, this might be your chance to buy a franchise for sale in Adelaide or Canberra and become your own employer.
If that was an insightful read for you, subscribe to https://www.businessfranchiseaustralia.com.au/ for similar informational write-ups on the franchise industry in Australia.
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