15 Best Profitable Franchises in Australia

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The Franchise style of Business plays an important role in the Australian Business ecosystem.

Not only does the franchise style of business contributes to employment (Australia Franchises employ half a million people), they contribute immensely to the economy.
As per the last report, $181.8 billion in yearly revenue was the number contributed to the economy by Australian Franchies (source: Jim’s).

This number is around 4% of the Australian economy and it is only growing from strength to strength every year.

Also, the franchises play a vital role in supporting the small business ecosystem in Australia.
A significant reason for the success of franchises in Australia is that they offer a relatively safe investment.

 Most entrepreneurs burn out, or their businesses do, simply because they lack the money to operate.

 Around 20% of all new businesses fail in their first year, ending up as another statistic (source: Fundera).

However, compared to other options – franchises offer business owners the chance to operate something safe and smooth.

I know Franchising has its advantages and disadvantages. However, the poisitive outweighs the negatives (based on my experience).

For example, Franchising allows business owners to relax right from the start without worrying about a mountain of paperwork or business plans, all of which are handled by the franchisor’s head office.

If you are a small business owner looking for a profitable small business idea in Australia, you are going to get some amazing business ideas from this blog.

Because in In this blog – we cover the 15 best franchises in Australia based on their profitability.

The franchise in the list of the profitable franchises in Australia ranges from laser clinics to a gas station.

Lets get rolling! with the list

7 Eleven Stores

7 Eleven Stores - Best Profitable Franchises in Australia

Industry: Retail
Headquarters: Dallas, Texas
Founded: 1927
Number of Locations: 650+ in Australia
Estimated Franchise Cost: $500,000 and above
Terms of Agreement: 15 years with renewals
Perks: Gross income of $365,300 guaranteed for fuel stores and $399,000 for non-fuel stores, annually

Started in the US, 7 Eleven’s widespread Australian presence makes it feel like a home-grown brand.

With more than 650 locations, it is the country’s largest convenience retailer, boasting a 33.5% share of the market.

So, what makes 7 Eleven such a popular franchisor?
Besides their brand value, 7 Eleven is just a great brand to work with because they take care of most details, keeping their franchisees free from the most heavy lifting.

How 7 Eleven Helps?
1. Negotiates with suppliers
2. Sets up the store
3. Provides training in an 8-week program
4. Helps with marketing and accounting, and
5. Provides advice on which products to stock

Along with this, owning a 7 Eleven franchise can be a highly profitable venture.
The retailer offers 50% of the profit for the first $500,000 of revenue and 47% of every half a million that follows.

Bakers Delight

Bakers Delight - Best Profitable Franchises in Australia

Industry: Food Service
Headquarters: Melbourne, Victoria
Founded: 1980
Number of Locations in Australia: 700+
Estimated Franchise Cost: $500,000 to $600,000
Terms of Agreement: 10 years with renewal
Perks: Recognised brand name with an existing customer base

Bakers Delight is the most famous bakery franchise chain in Australia.

It also happends to be one of the Top Food Franchises in Australia.

In addition to the above, Baker’s Delight is the largest Australian-owned bakery chain with an existing customer base, basically guaranteeing revenue.

It is a bit pricey but makes up for it with the long term and the guarantee of revenue.

Laser Clinic

Laser Clinic - Best Profitable Franchises in Australia

Industry: Beauty
Headquarters: Sydney, New South Wales
Founded: 2008
Number of Locations: 150 (with New Zealand)
Estimated Franchise Cost: $290,000 to $320,000
Terms of Agreement: 5 years with a 5-year renewal option
Perks: 50/50 split in costs for setting up a franchise

Started in 2008, Laser Clinic Australia is an award-winning beauty company that provides cosmetic injectables, laser hair removal, and skin treatment.

The company started franchising in 2013, expanding to 150 locations across Australia and New Zealand, offering its services to 205,000 new clients in 2020 (Source: Take a Tumble).

What makes Laser Clinic such an attractive option is the 50/50 split in the franchise set-up costs.

The franchise’s business model reduces the financial burden on the franchisee to around $300,000, with the brand offering the equipment and retail stock along with HR, IT, and legal support.

Laser Clinic also provides training for all of its products and services.
For running the location, franchisees get a base remuneration of $100,000 from the very fast day, making it a highly attractive option.

Just Cuts

Just Cuts - Best Profitable Franchises in Australia

Industry: Beauty
Headquarters: Sydney, New South Wales
Founded: 1980
Number of Locations: 230 (worldwide)
Estimated Franchise Cost: $85,000 to $260,000
Terms of Agreement: 5 years
Perks: Realistic possibility of expanding to multiple salons

Launched by hairdressers, Just Cuts has been operating in Australia since 1980 and is currently offering its services in 190 locations throughout the country.

The franchise has also expanded to New Zealand and the UK, with locations and revenue increasing every year.

Just Cuts operates on a fixed-franchise fee, which has helped the company develop and expand (source: Just Cuts).

The franchise cost varies on the size of the salon, but what a franchisee gets from Just Cuts includes:
1. A turnkey salon
2. Point of service training and tools
3. A digitalized platform along with a comprehensive eLearning tool
4. Continued support
5. Retail rewards program
6. Personalised marketing campaign for the grand opening

Due to the relatively low starting cost and fixed franchise fee, expanding the franchise chain is easier with Just Cuts.

In fact, more than 50% of Just Cut franchisees operate more than a salon.

Poolwerx

Poolwerx - Best Profitable Franchises in Australia

Industry: Construction
Headquarters: Dallas, Texas
Founded: 1992
Number of Locations: 150 (worldwide)
Estimated Franchise Cost: $110,000 to more than $500,000
Terms of Agreement: 15 years
Perks: Exclusive access to business development programs

Poolwerx is the leading hot tub/spa and pool maintenance company in Australia and New Zealand.

With 150 locations worldwide and a massive mobile service fleet, they have an unmatched footprint in their line of business.

Depending on which franchising option you opt for, a Poolwerx location can set you back as much as $500,000.

This investment involves Poolwerx’s three franchise opportunities:
· Opening a new franchise
· Joining Poolwerx by converting your existing hot tub/spa or pool maintenance business
· Buying a franchise that’s on sale

Total Tools

Total Tools - Best Profitable Franchises in Australia

Industry: Retail
Headquarters: Port Melbourne, Victoria
Founded: 1989
Number of Locations: 80
Estimated Franchise Cost: $1,700,000 to $2,000,000
Terms of Agreement: Up to 10 years with renewals
Perks: Growth of 22% compared to the competition


Total Tools is the leading tool store in Australia, with its 80 stores all around the country offering more than 60,000 products.


The franchise is pricey, but this is what you get for your money:
· A store set up by the brand according to its standard
· Help in securing 50% of the setup cost from banks
· Support from Total Tools teams in IT, Finance, Marketing, Construction, and online and commercial sales


For these services, Total Tools gets 2.5% of the turnover as an administration fee.

Wet-Seal

Wet-Seal - Best Profitable Franchises in Australia

Industry: Construction
Headquarters: Coffs Harbour, New South Wales
Founded: 1986
Number of Locations: 10 in 59 Franchise Territories
Estimated Franchise Cost: $25,000 to $40,000 plus GST
Terms of Agreement: 3-5 years
Perks: Unique products for each territory

If you’re looking for something on the smaller side, Wet-seal is the perfect franchising option.

The waterproofing business has been operating in Australia for the better part of 3 decades and offers franchisees all the required equipment and a nationally recognized certificate.

On top of this, they offer IT, administrative, and marketing support, along with access to newly developed products and in-house research.

Battery World

Battery World - Best Profitable Franchises in Australia

Industry: Retail
Headquarters: Queensland
Founded: 1997
Number of Locations in Australia: 110+
Estimated Franchise Cost: $250,000
Terms of Agreement: 12 years
Perks: Comprehensive six-week training program

With more than 110 stores, Battery World is the leading retailer of batteries in Australia and offers more than 14,000 products.

On the franchising side, their pricey franchise cost covers everything from the establishment fee to fit-out and consultancy fees.

The lengthy franchising term makes Battery World an appealing option.

Computer Troubleshooters Australia

Computer Troubleshooters Australia - Best Profitable Franchises in Australia

Industry: Information Technology
Headquarters: Bentleigh, Victoria
Founded: 1999
Number of Locations in Australia: 80+
Estimated Franchise Cost: Starting from $250,000
Perks: Low monthly and initial startup costs

If there’s one sector you should be getting in, it is IT, and Computer Troubleshooters Australia provides you with a fairly low simple way of getting into it.

The brand makes for a solid franchise option because of:
· Sales and marketing support
· Low start-up costs and overheads
· Ongoing support
· Updated resources
· Established vendor relationships
· Automated admin and office billing system

Pack & Send

Pack & Send - Best Profitable Franchises in Australia

Industry: Logistics
Headquarters: Sydney, New South Wales
Founded: 1993
Number of Locations in Australia: 130+
Estimated Franchise Cost: $179,687 to $265,837 along with working capital
Terms of Agreement: 10 years
Perks: Diverse revenue streams


Offering a range of revenue options, Pack & Send offers one of Australia’s leading logistics services on the back of its solid business model.

 
What makes the brand special is that they guarantee a minimum number of customers in the first year and pay the franchisee if fewer customers turn up.

PowerfulPoints

PowerfulPoints - Best Profitable Franchises in Australia

Industry: Design
Headquarters: Crows Nest, New South Wales
Founded: 2003
Number of Locations in Australia: 10+
Estimated Franchise Cost: starting from $80.000
Terms of Agreement: 5 years plus renewal
Perks: Target revenues of $1,000,000


Dealing with clients such as McDonald’s and Hermes, PowerfulPoints is one of Australia’s leading graphic design agencies.


In franchisees, PowerfulPoints is looking for graphic designers they can train with their 4-weeks program and 2-hour coaching sessions for the first 22 weeks.

Billy’s Buddies

Billy’s Buddies - Best Profitable Franchises in Australia

Industry: Education
Headquarters: NA
Founded: 2016
Number of Locations in Australia: 200 programs
Estimated Franchise Cost: Staring at $15,000 plus GST
Terms of Agreement: 5 years with renewal
Perks: Social contribution to Australian children


Developed by Billy Slater, this educational program offers children aged 2-6 basic ball skills. It makes for an exciting franchise prospect because of:
· Low overheads
· 3-day training course on program management, marketing, coaching, and administration
· Discount on supplies
· Turnkey system
· Complete stock pack

Hudsons Coffee

Hudsons Coffee - Best Profitable Franchises in Australia

Industry: Food Service
Headquarters: Port Melbourne, Victoria
Founded: 1998
Number of Locations in Australia: 80
Estimated Franchise Cost: $300,000 to $500,000
Terms of Agreement: 10 years with renewal
Perks: Brand recognition and airport access


Hudsons Coffee started in Melbourne in 1998, started franchising in 2003, and was purchased by the Emirates Group in 2009.

 
It’s a rapid rise and the coffee chain is looking to expand, with their franchise cost covering the franchise fee, along with setup, recruitment, training, and equipment costs.

HomeCaring

HomeCaring - Best Profitable Franchises in Australia

Industry: Health Care
Headquarters: Smithfield, New South Wales
Founded: 2015
Number of Locations in Australia: 13
Estimated Franchise Cost: $80,000 to $120,000
Terms of Agreement: Unlimited
Perks: 50/50 split in cost and profits


HomeCaring is a rapidly expanding home care brand that aims to open up 200 locations by the end of this decade.

 
To help attract investors on this journey, they are offering a fantastic 50/50 split in cost and profits, which their model accomplishes with a joint bank account for all financials.

Roll’d

Roll’d - Best Profitable Franchises in Australia

Industry: Food Service
Headquarters: Sydney, New South Wales
Founded: 2012
Number of Locations in Australia: 90+
Estimated Franchise Cost: $400,000 to $500,000 plus GST
Terms of Agreement: NA
Perks: Brand marketing and ongoing support


Roll’d be one of Australia’s fastest-growing restaurant chains.

 
Roll’d have 90 plus locations in just a decade, serving Vietnamese food.

 
Its success with franchisees revolves around the support it provides and the growing popularity and ease of transport of its product.

We hope you found a helpful business idea in the list of the best Australian franchises shared with you.


Let’s move to the next step and let us take you through a few important topics around what it means to be a franchise owner in Australia:

The Scope of Franchising in Australia

More than 79,000 franchising units operate in Australia, with around 1,200 of them being Australian-owned (source: Profitable Venture). 

A franchise is essentially an agreement with a brand owner, a franchisor, and a franchisee.
The latter is allowed to conduct business in the brand’s name while also being privy to their business and marketing systems (source: Australian Parliament).

The basic responsibility of a franchisee is to operate the business and turn in a profit. The franchisor takes responsibility for training and support, vetting the franchises, selecting the site of the franchise, and, most importantly, provision of the FDD (financial disclosure document).

The franchisor helps their franchisee set up the new business, taking on legal responsibilities as well. They, in turn, expect the franchisee to run the business efficiently and operate it per the brand’s values and goals.

The franchisee’s responsibilities thus include:
1. Protecting the Brand Name. The franchise takes a lot of responsibility in assuring that its actions uphold the name of the franchise.

Any poor judgment from the franchisee can affect the brand as a whole, which is one of the downsides of the franchise model.

2. Hiring Employees and Providing Training. The training provided by the franchisor depends on the contract signed with the franchisee and the extent of their support.
Besides that, the franchisee is expected to hire employees and train them according to the values and needs of the brand.

This is where an employee handbook composed and vetted by the franchisor comes in handy.

3. Developing and Growing the Business. Being the owner of a franchise doesn’t mean that you get to sit back and follow the basic rules.

You are expected to develop the business and grow it. The franchise is a part of the business and is designed to grow.

Several franchisees have made use of their success and gone on to develop chains of franchises.

4. Marketing and Advertising. The franchisor is usually responsible for marketing the business and providing the marketing materials.

However, franchisees may have to do some advertising for their location. Such details have to be ironed out in the contract with the franchisor at the start (source: Small Biz Trends).

How to Choose the Right Franchise?

How to Choose the Right Franchise? - Best Profitable Franchises in Australia

Now that you know what owning a franchise means, it’s important to understand what you need to look at in a franchise. There are a lot of options in Australia, and you need to select the one that suits you the best.

Here’s what you need to look for in a franchise:

Define Your Goals

It’s never too late to reassess your goals and define them to help search for the right franchise.

You need to go through why you want franchise ownership and what you aim to achieve from it.

Furthermore, you cannot look at it just from a financial perspective. Instead, you have to look at how this decision will affect your family, your future, and your private life. Make sure to get a clear perspective on this before looking for a franchise.

Shortlist Some Franchise Options

Identify some ideal franchise options once you have your goals clear. The choice of a franchise can vary based on what you’re looking for.

Two common filters are the franchise’s area of business and its profitability.

Go through all available options and identify the ones you find the best.

Make Contact

The first impression in such business meetings goes a long way.

You can discern just how the potential franchisor interacts with you and how open they are to your inquiries and plans.

Pay extra attention to how they greet you and how much information they try to get from you. Beyond that, you need to check if they answer all your questions and let you know how to follow up.

Find Out How They Work

Once you are comfortable with their responsiveness and work culture, it is essential to know how they work. 

Take a close look at their operations and identify the processes they follow since you might have to adopt them soon.

Evaluate the Franchise Documents

Once you have decided on a specific franchisor, the first thing you do is to look at the paperwork. 

Then, take the franchise documents to a qualified franchise attorney once you receive them.

Ask Other Franchise Owners

Make sure you check with other franchise owners as one of your final steps. 

It is easy to find the list, and the owners will let you know all about the pros and cons of working with the franchisor you have in mind.

Don’t Miss Discovery Day

Most franchisors host a discovery or decision day, which allows you to visit their headquarters and meet them (source: Entrepreneur). 

This visit or meeting helps you get to know each other better and assess your comfort level in the arrangement.

Execute the Franchise Agreement

Simply execute the franchise agreement, with or without the help of a franchise lawyer once you have made your decision on the franchisor.

And that brings us to the end of the Franchises in Australia blog.

We hope you enjoyed the blog.

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