DC Strategy franchise consultants release results of annual franchisor survey

Franchise consultants DC Strategy have released the results of their annual franchisor survey, which spoke to 150 of the country’s top Franchisor CEOs directly, and offers a distinct insight into what is happening in the franchise sector.

The largest of its kind in Australia, the survey sought views from retail, food and service franchise groups, with CEOs polled from the top franchises based on number of stores and total profits.

The CEOs provided insights on a wide range of topics, including:

• network growth and performance
• international opportunities; and
• key challenges faced in the sector.

In addition, almost 50 per cent of the groups surveyed reported at least 15 per cent profit over the past twelve months.

The CEOs surveyed agree that the biggest challenge in the next year will be franchisee recruitment, but are optimistic, with the current quality of candidates being of a higher calibre and with more business experience than in previous years.

DC Strategy franchise consultants also note that the top franchise groups are attracting more franchisees overall, which they predict will lead to a consolidation of the sector that will see bigger systems engulf some of the smaller franchise operations.

Confirming the sentiment among leading CEOs that if a franchise system works in Australia, it can be made to work anywhere in the world, 35 per cent have indicated active involvement in global markets, and around 22 per cent looking to grow internationally within the next three years.

Executive Director of DC Strategy, Rod Young, observes that very few respondents are embracing the benefits of social media as an effective tool for customer engagement and brand awareness.

“We encourage franchisors to consider the rapid and demonstrable effects sites such as Facebook and Twitter as a highly effective marketing tool that is currently under utilised by the majority of franchisors,” he says.

DC Strategy offers franchise consultancy and legal advice services that focus on building the value of franchise businesses. Further information on the survey and the services the company offers can be found online.