Key takeaways
- 2025 presents an opportunity to reset after a tough few years
- Continuous innovation in both mindset and product is critical to future success
- Rise of multi-unit franchising reflects a shift to enterprise building vs ‘buying a job’
- Demand for sustainable product merges cost-efficiency with value alignment
The economic headwinds over the past few years have eroded confidence and margins for many businesses – but few models are better positioned to weather the storm than franchises. Adversity often breeds opportunity and as we step into 2025, there’s a sense of renewed possibility for franchising. For forward-thinking businesses, this year presents an inflection point – an opportunity to innovate from the inside out, maximising talent and technology to deliver newly-defined value to clients.
Innovation
The business world is moving faster than ever before, and with that comes the need to continuously innovate. Despite economic growth expected to improve, there remains an air of vulnerability and uncertainty amid ongoing cost pressures and the flow-on impact on consumer behaviour.
The pressure is on businesses to learn quickly about their client’s wants versus their needs, and adapt quickly to remain ahead of the competition. For the past 18 months, we have seen an increase in the ‘repair-first’ mindset as consumers seek to maintain rather than replace their assets – such as robotic cleaners, filters and equipment. But as financial strain eases, we expect consumer priorities to shift from repairing to replacing. It’s vital for franchisors to remain agile to the changing needs of their client and continuously redefine how to deliver value.
Technology and artificial intelligence (AI) continue to reshape the workforce, but ultimately, franchisors can’t afford to ignore their value in modern business operations.
Poolwerx has leaned into automation to maximise efficiencies, allowing our team to focus more on high-value client services to enhance the overall client experience. Staying ahead of the curve with the opportunities AI offers will be both a challenge and an opportunity to remain committed to finding a better way. We are already exploring ways to leverage AI’s capabilities for team upskilling, training and development.
However, with this increased digitisation comes a renewed perception of the traditional workforce. It’s estimated Generation Z accounts for 27 per cent of the workforce, and we can continue to expect their influence to reshape workplace expectations. Franchisors need to adapt to these new dynamics, or risk being left behind for more evolved working models.
Poolwerx’ ‘hub and spoke’ operation model uniquely positions us to deliver strong commercial outcomes while fostering adaptable work structures for our retail and service operators. By balancing structured operations with innovative flexibility, our Franchise Partners are redefining work arrangements to meet the evolving expectations of today’s workforce. Early results highlight significant improvements in staff wellbeing, paired with enhanced business performance – a win-win for both employees and franchise partners.
The changing face of franchising
For Poolwerx, innovation isn’t just about tools; it’s about mindset. Our alignment with growth-minded talent who consistently lean into new ways of doing business and incorporate cutting-edge technologies enables us to move faster and remain competitive.
Franchising has always been about creating opportunities, but the profile of those opportunities is evolving. The rise of multi-unit franchising reflects a shift in mindset – from ‘buying a job’ to building an enterprise. Today’s franchise partners aren’t just operators; they’re business professionals with growth mindsets, looking to increase enterprise value and achieve greater returns than their traditional roles might offer.
In the last year, 95% of our prospective franchise partners were seeking multi-unit operations, compared to just 70% five years ago. This is largely being driven by former C-Suite Executives. In the last four years, Poolwerx has observed a significant increase (90%) in tertiary-qualified candidates looking to buy a franchise, and almost half are departing high-level corporate roles.
These buyers are investing up to 17 times more capital to buy an existing operation rather than invest in a brand-new franchise territory. It’s a direct reflection of franchising’s capacity to offer a proven and accelerated pathway to wealth creation compared to traditional employment. Franchising provides the proven business models and proven brands that these business-savvy individuals know they can back with peace of mind that their investment is sound.
Leading the green agenda
Sustainability has been progressively rising to the forefront of the consumer agenda, but the cost-of-living has accelerated the desire for energy-saving tools. Today, clients are looking for solutions that save money and align with their values.
The pool care industry has evolved rapidly in response to these demands. Poolwerx was the first to market with a 7-star energy-rated pump that maximised energy savings and reduced operating costs for pool owners.
Today, the underlying basis of our products is focused on helping our clients preserve the health of their aquatic environments for year-round enjoyment. We’re also responding to the growing demand for natural, low-chemical pools that promote wellness and create a sanctuary for families. These innovations not only meet today’s needs but also position us as leaders in the sustainable future of pool and spa care.
Franchising beyond 2025
The evolving landscape of franchising – marked by innovation, a shift toward enterprise-building, and a growing green agenda – presents immense potential for those ready to embrace it.
Franchises have proven their resilience by navigating economic challenges and re-emerging stronger. For aspiring franchise partners, this presents an opportunity to step into a well-supported, future-focused model as it gears up for a new chapter of innovation. For those well-established in the space, it’s a chance to sharpen strategies, challenge outdated schools of thought, and lead the way in creating sustainable, meaningful value for clients and communities.
For almost 20 years, Nic has served in key leadership roles for global and national brands including Donut King, Gloria Jeans, King Island Dairy, Nescafé and Vitasoy. His demonstrated history as a business leader in the franchising and retail industries has equipped Nic with critical insights into understanding the core values of the Australian small business owner.
Nic has developed a breadth of knowledge at a strategic and operational level and his international experience drew him to Poolwerx as the company continues to bolster its reputation as the world’s largest global franchise pool service brand across Australia, New Zealand and the United States.