Franchising in Australia 2025: Trends, Risks, and Opportunities

Australia’s franchise sector has long been a magnet for aspiring business owners seeking a proven model and national brand power. But in 2025, the franchising game is evolving rapidly, with new regulations, shifting consumer habits, and a surge in franchise opportunities across industries. If you’re eyeing a franchise purchase, here’s what you need to know about navigating this dynamic landscape.

2025 Franchise Market Trends: What’s Hot (and What’s Not)

The Australian franchise industry weathered economic uncertainty during the early 2020s, but the latest IBISWorld data shows a robust rebound in 2024–2025. The total number of franchise units grew by 3.7% year-on-year, buoyed by:

• Health and wellness: Gyms, allied health clinics, and healthy food chains are expanding rapidly as Australians prioritise wellbeing.

• Home services: Demand for cleaning, gardening, and maintenance franchises remains strong, particularly in regional centres.

• QSRs (Quick Service Restaurants): Fast-casual dining and drive-thru concepts are thriving, with plant-based and multicultural menus leading the charge.

Conversely, traditional retail franchises (think newsagents and DVD rentals) continue to contract, squeezed by online competition and changing consumer behaviour.

Franchise Finance in 2025: Costs, Lending, and Support

Buying a franchise remains a significant financial commitment. As of June 2025, entry costs for popular franchises start from around $75,000 for service-based models and can exceed $500,000 for established QSR brands. Key financial considerations include:

• Upfront fees: Initial franchise fees, fit-out, stock, and equipment.

• Ongoing royalties: Typically 5–12% of revenue, plus marketing levies.

• Working capital: Lenders now expect at least 6–12 months’ worth of operating capital due to ongoing economic volatility.

In 2025, major banks like Westpac and NAB have streamlined franchise lending programs, offering:

• Up to 60% LVR (Loan-to-Value Ratio) for accredited franchise systems

• Fast-tracked approvals for franchises with proven financials

• Specialist franchise finance brokers to help navigate lender requirements

The government’s Franchising Code of Conduct was updated in March 2025, mandating improved disclosure for financial performance history and capital requirements. This makes it easier for buyers to assess the true costs and risks upfront.

Regulatory Changes and Franchisee Protections in 2025

Recent high-profile franchise collapses prompted the ACCC to strengthen oversight in 2025. Key changes include:

• Mandatory cooling-off period: Now extended to 21 days post-contract signing.

• Increased franchisor disclosure: Detailed earnings projections and existing franchisee satisfaction surveys are now required.

• Dispute resolution: The new Franchise Dispute Resolution Office provides fast-track mediation, with most cases resolved within 60 days.

These reforms aim to rebalance power between franchisors and franchisees, reducing risk for new entrants and protecting established operators from unfair contract changes.

Real-World Examples: Success and Lessons Learned

Consider the case of Boost Juice, which continues to expand across Australia and Southeast Asia. Franchisees cite robust training, transparent financials, and strong brand loyalty as key success drivers. On the other hand, the collapse of the Caltex retail franchise network in 2024 highlights the dangers of one-sided contracts and thin profit margins.

Lessons for 2025 buyers:

• Scrutinise the Franchise Disclosure Document and talk to multiple current franchisees.

• Budget for worst-case scenarios, including lower-than-expected sales and rising supply costs.

• Seek out franchise systems with a track record of supporting franchisees during economic shocks.

Conclusion: Is Now the Right Time to Buy a Franchise?

The Australian franchise sector in 2025 is packed with opportunity, but success depends on smart research and a clear-eyed look at the risks. With new regulations levelling the playing field and lenders competing for quality franchise borrowers, now could be a prime time to make your move—if you choose wisely.