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Report Reveals Regional Franchise Business Growth Potential in Australia

Eden Exchange’s recently released report highlights the impact of technology, internal migration and changing demographics on Australia’s rapidly evolving franchising landscape.

Friday, 9 June 2023: Eden Exchange, a revolutionary online platform for buying and selling businesses, recently released its comprehensive report, “Unlocking Franchise Growth in Regional Australia”, unveiling pivotal insights into Australia’s rapidly evolving, franchising landscape.

The report, in partnership with the Franchise Council of Australia (FCA), sheds light on the crucial role of technology, the impact of internal migration growth and the evolving demographics of Australia’s AU$172 billion franchising industry.

1. Technology: Embracing Innovation for Success

The franchising industry has undergone a significant transformation in adapting to the technological advancements of the modern era. The report showcases a notable shift in the industry’s mindset, moving away from a singular focus on franchise sales towards a growth mindset that places emphasis on innovation, integration of advanced systems and a deep understanding of the Australian market. Franchise owners, from the smallest to the most sophisticated, are now actively seeking education and solutions that can simplify operations, maximise profitability and foster a forward-thinking approach.

2. Australian Migrational Shifts: Driving Regional Opportunities

Over the past 15 years, there has been a notable migration of people from capital cities to regional areas in Australia, according to the Regional Australia Institute. This trend is largely fuelled by the rise of remote working arrangements. As regional towns experience sustained population growth, it is anticipated that service gaps will emerge, presenting significant commercial prospects for small businesses seeking expansion. Regional Australia is also seen as desirable to set up a franchise business due to reduced cost of living, lower operating costs and potential for higher profit margins.

3. Changing Demographics: Achieving Gender Parity

A positive trend identified in the report is the achievement of gender parity within the franchising industry. Traditionally dominated by men, the market now sees a surge of women with increased purchasing power, entering the franchising landscape. This shift in demographics offers exciting opportunities for franchisors to tap into new markets and cater to a broader customer base. The report highlights the importance of infusing fairness into the franchising process, addressing concerns that arose in the past and fostering a more mutually beneficial and commercial framework for franchisors and franchisees.

“Small businesses represent approximately 98 per cent of businesses in Australia. They are indisputably the engine of our economy, and franchising is the predominant business model in the sector,” says a spokesperson for FCA. “In Australia today, there is a franchise operating in almost every type of business category.

“In a more difficult economic environment, franchising is an effective means of facilitating small business creation and expansion in regional areas. As a new franchise business owner, a franchisee is not starting alone. Their franchisor can offer support for recruitment, marketing and supply chain management. Better still, the costs of these services are manageable as they are shared across the network.”

Raghu Rajakumar, Founder and CEO of Eden Exchange, says: “By venturing into regional communities, franchise owners not only open up opportunities for significant profitability but also contribute to the economic growth of small cities and towns. It’s a win-win situation where their franchise can make a positive impact, build relationships and give back to these communities provided they approach the expansion with a mindset of learning and understanding, adapting their offerings to meet the specific needs of the local residents.

“At Eden Exchange, we are committed to assisting franchisors and business owners in unlocking this untapped potential. With our sophisticated, AI-driven platform and experienced team, we provide expert guidance and support throughout the journey, helping to navigate the challenges and seize the opportunities together.”

Eden Exchange is filling a significant gap in the market, revolutionising the way businesses are bought and sold by leveraging technology. Trusted by more than 150 franchisors, including beloved household names like The Cheesecake Shop, Red Rooster and Pizza Hut, Eden Exchange facilitates seamless connections between buyers, deal makers and sellers; fundamentally, transforming the traditional processes involved in business transactions.

The report has garnered acclaim within the franchising community for its valuable insights and practical guidance ahead of the National Franchise Convention (NFC) event hosted by the FCA from 15-16 May 2023 at the Star Gold Coast. It’s an unmissable opportunity for franchises looking to hear directly from inspirational keynote speakers on issues impacting the entire industry. Click here for further event information or download the full “Unlocking Franchise Growth in Regional Australia” report here.

 

Eden Exchange’s CEO and Founder Raghu Rajakumar

 

About Eden Exchange

Eden Exchange is a revolutionary online marketplace for buying and selling businesses. Its premier, all-in-one platform seamlessly connects buyers and sellers, reshaping the landscape of business transactions. With an extensive network with expertise in business sales, Eden Exchange guides clients and users through each step of the business transaction, offering support from lead and deal origination to preparation and transaction. Trusted by an extensive range of clients, including renowned brands such as The Cheesecake Shop, Roll’d Australia and Poolwerx, Eden Exchange has become the go-to destination for businesses of all sizes to achieve their goals. For more information, visit edenexchange.com or follow us on LinkedIn, Twitter, Facebook and Instagram.