Traditional businesses grapple with shifts in the Australian economy post-pandemic, highlighting the need for proven business models and a comprehensive network support for aspiring entrepreneurs. The turbulent economic climate has been particularly challenging especially for small businesses, however, franchising emerges as a potential solution, offering an established market presence and consistent growth patterns.

While post-pandemic trends initially showed a surge in new business ventures driven by a desire for better work-life balance, economic challenges have since slowed this growth and led to an increase in business closures. Nonetheless, franchising remains a viable option with proven security and support in times of economic uncertainty.

According to the Australian Bureau of Statistics (ABS), the entry rate of businesses was 16%, with an exit rate of 14% in 2023. In the post-COVID period, it has become increasingly challenging to build an independent business, which has encouraged many entrepreneurs to explore franchising as a sustainable alternative. The franchise model offers a tested framework and support system, providing entrepreneurs with stability and increasing their likelihood of success. 

Recent statistics from the IBISWorld Franchise Industry Report 2024 shows an expected industry revenue of $185.1 billion in 2023-2024, with a profit of $5.2 billion. Franchise revenue is expected to grow at an annualised 0.8% through the end of 2028-2029, totalling $192.2 billion. The franchise industry is expected to recover with steady growth, following the business repercussions of the COVID-19 pandemic, including lockdown periods and trading restrictions.

Joining a franchise network offers numerous benefits crucial for the success of small and medium-sized enterprises (SMEs). One primary advantage is leveraging an established brand name. New business owners often struggle with brand recognition, but a franchise comes with a built-in customer base and market presence, significantly reducing the time and effort needed to build a reputation from scratch.

Additionally, providing support from the franchise network is important for the business to thrive. This can come in the form of providing extensive training and marketing assistance. This includes initial training on business operations, customised marketing strategies, customer service and access to a network of other experienced franchisees. 

As the CEO of Kwik Kopy Australia, I am proud to acknowledge the success we have achieved with our franchisees. Recently, Kwik Kopy Penrith celebrated its 40th anniversary, highlighting its long-standing services to the Western Sydney community. The secret behind their success in this economy stems from the support they have received from the franchise network. 

Moreover, we recognise Daniel McKenzie, owner of Kwik Kopy Miller Street, who has demonstrated outstanding leadership and commitment to his team and franchise community, which in the end catapulted him to receive the Franchisee of the Year 2023 award.

The economies of scale are highly beneficial for franchisees, with great potential for profit margins and contribution to overall financial health. Currently, we have 91 franchisees in the network and are set to expand with more locations in the coming years. Through community spirit, the aim is to make owning a business possible for aspiring entrepreneurs. 

Kwik Kopy has commissioned research that has identified the top motivators for individuals entering the franchise industry:

  • Building the lifestyle they desire through greater freedom and flexibility over the long term
  • Starting a business with less risk, with a proven structure, established practices and a robust support system
  • The independence of being their own boss, operating their own business 
  • Building equity, which allows individuals to invest in a tangible, revenue-generating asset

As presented by the IBISWorld Franchise Industry Report 2024, the franchise industry as a whole has demonstrated growth over the years, with a 1.4% projected annual growth rate to 2029 in terms of the number of businesses. Currently, franchised establishments are expected to grow to over 98,000 in 2023-2024, with a projected total of over 107,000 by 2029.   

Kwik Kopy aims to contribute to this growth in the sector, which also helps create employment opportunities. To conclude, the stability of franchising offers an attractive opportunity in the face of economic challenges. Through leveraging established brands, extensive training and outgoing support, franchisees can navigate the post-COVID landscape with confidence.  

Sonia Shwabsky is CEO of Kwik Kopy Australia.