Business Franchise Australia


Data Security – An increasing concern

A new issue – data security – is moving up with staff shortages, escalating interesting rates and inflation, as an increasing concern for Australian small business, according to the Franchise Council’s latest national survey of franchised businesses. 

The First Quarter 2023 Franchise Business “Pulse Check” survey included responses from 138 brands covering 15,973 individual business outlets (15,549 franchised and 424 company operated) employing 65,416 Australians.  


The top three concerns or challenges for franchise systems in the March 2023 quarter were: 

1. Availability of suitable employees at 65(up from 56% in December) remains the most significant challenge  

2. Rising interest rates and inflation at 60% continues to build (up from 56%, 54% and 39% in the three previous quarters) 

3. Franchisee recruitment challenges at 46% also has increased in the last two surveys (up from 36% and 29% in the December and September quarters). 


Respondents in NSW and Vic equally (37%) indicated they were increasingly concerned about data security. 77% of respondents expected their bankers to protect them from fraudulent conduct in relation to their bank accounts.  

At 37% of respondents, NSW overtook QLD as the strongest performing state or territory for franchises over the past 12 months, followed by QLD (24%), VIC (15%) and WA (13%).  

Respondents indicated that in the next twelve months they were most likely to expand business equally in NSW (37%) and VIC (37%). 

Forward sentiment in relation to revenue expectations remains positive for the June 2023 quarter with 39% of respondents expecting stronger revenue over the next three months, 15% expecting a decline and 46% expecting revenues to stay about the same. 

The percentage of respondents feeling optimistic about business conditions in the next six months remains solid with 51% of respondents feeling optimistic or very optimistic. 18% of respondents were feeling pessimistic and 31% indifferent. 

Respondents anticipated the opening of 785 new franchised units in the next twelve across their respective networks for which 56% would require access to finance. 

This latest survey shows that despite the economic challenges, franchised businesses continue to be resilient and expand, and there is a strong sense of optimism about the outcomes expected for the remainder of the year. 

The Franchise Council of Australia is the peak industry body for the $172 billion Australian franchise sector. We represent franchisors, franchisees, business advisors and small business owners who collectively employ more than 565,000 Australians. The FCA advocates for responsible economic leadership at a national level as part of our mission to support the ongoing success of our members, franchising, and businesses across Australia.

Phone: 03 9508 0888