Home' The Franchise Review : September 2016 Contents THE FRANCHISE REVIEW
As Australia’s franchise sector continues
to mature, the importance of high-
level education among the professional
franchise executives guiding its future is
becoming more apparent.
Franchising is one of the biggest and most important
contributors to the Australian economy. It is dynamic and
diverse, and the industry has matured well beyond its origins in
fast-food retailing to now encompass all aspects of consumer
and business-to-business products and services.
Franchise systems operating in Australia include some of the
biggest consumer brands in the world, local success stories,
and up-and-coming entrepreneurs who have chosen the
franchise business model to expand their operations.
According to the latest Franchising Australia 2014 report,
the franchise sector contributes $144 billion to the Australian
economy each year; comprises a total of 1160 franchise brands
and 79,000 individual franchise units; and directly employs
more than 460,000 people, as well as many more in its
supporting supply chain.
These figures showcase the strength and resilience of a sector
that continues to grow – in both net growth of franchise units
and total sales turnover – at a time when many other parts
of the Australian economy, such as resources, mining and
infrastructure, have been declining.
The future growth possibilities for the franchise sector in
Australia, driven by its unique business expansion model and
the powerful brands that it promotes, are endless; however, the
challenges facing the sector and those who work at its highest
levels are also immense.
Strategic thinking needed
Franchising in Australia has not been without its challenges and
controversies, and the modern-day franchise professional requires
a depth and breadth of strategic thinking, problem-solving and
proactive business planning for their business to survive and thrive.
Due to the diversity of its people, systems, products and
services, franchising presents a demanding and ever-changing
business environment, with new challenges emerging every day
from new ‘disrupter’ competitors to changing government and
workplace regulations – and the constant innovation required to
stay ahead of the latest market trends.
The skill sets required to successfully steer a franchise
business through these troubled waters encompass everything
from marketing, recruitment, training, information technology,
human resources, finance, accounting and operations, to site
selection, store layouts and supply-chain logistics, as well as
the ‘big picture’ strategic management, planning, creativity,
passion and vision that sets the benchmark.
Given the professionalism and leadership now required across
all aspects of running a franchise, it is no surprise that higher
education is growing in recognition and rewards throughout the
While franchising may once have largely relied on hands-on,
on-the-job training rather than tertiary education, the sector is now
actively embracing the benefits that higher education can deliver
in shaping its future success.
Twofold benefits of education
The benefits of education in franchising are twofold. Firstly,
franchise businesses benefit from high-calibre staff and leaders
who can professionally manage and maximise growth across
their multifaceted operations. Secondly, franchise executives
personally benefit from more clearly defined and rewarding
career progression paths in franchising.
The importance that is now placed on university education in
franchising was highlighted in the most recent Franchise Sector
Salary Survey Report, completed by Griffith University’s
Asia-Pacific Centre for Franchising Excellence in 2015.
Of all the respondents to the survey, 62 per cent had
a bachelor’s degree or a higher qualification. This was
rewarded with significantly higher salaries at many different
levels in franchise management for those with a university
education, compared with those who did not hold a
The results of this survey clearly show that education, not
just experience, is now viewed as a key quality required in a
franchise management professional.
At CEO, founder and general manager level, those with a
tertiary education had an average annual salary of $145,866,
while those without averaged $94,000.
At the franchise development manager level, the difference
was $128,750 to $92,285; at the franchise operations
manager level, it was $123,241 to $101,855; and for franchise
marketing professionals, it was $118,500 to $93,629.
Education unlocks the
keys to franchise success
ARTICLE PROVIDED BY GRIFFITH UNIVERSITY'S ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE
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