The Selected Characteristics of Australian Business measure the ABS’s proportion of businesses that are currently franchisees. The ABS data also disaggregates that data according to the number of employees of the franchisee. Table 3: Per cent of businesses that are franchisees, 2015-16 Per cent Franchisees as a percentage of businesses with: 0–4 employees 2.4 5–19 employees 7.7 20–199 employees 9.7 200 + employees 6.2 4.5 Franchisees as a percentage of all businesses Source: ABS, 8167.0 Selected Characteristics of Australian Business, various years. Note: The ABS survey measures the proportion of businesses that are in a ‘franchisee relationship’. Table 3 shows that franchisees are most likely to have between 20 and 199 employees, and be defined as medium-sized businesses by the ABS. Accreditation of franchise systems by banks or other lenders appears to be relatively common in the franchising sector in Australia. According to Westpac: A bank accreditation enables a potential franchisee looking to buy a franchise to borrow 40 to 70 per cent of the total set up costs of a new franchise, or purchase costs of an existing franchise business. The Westpac and ANZ websites provide a list of currently accredited franchises systems by each of those entities. Other business organisation considerations Real estate as security Small business lending is often intermingled with the personal finances of the business owner; particularly the residential property of the business
The ABS’s Selected Characteristics of Australian Business measure the proportion of businesses that are currently franchisees. The ABS data also disaggregates that data according to the number of employees of the franchisee. Table 3: Per cent of businesses that are franchisees, 2015-16 Per cent Franchisees as a percentage of businesses with: 0–4 employees 2.4 5–19 employees 7.7 20–199 employees 9.7 200 + employees 6.2 Franchisees as a percentage of all businesses 4.5 Source: ABS, 8167.0 Selected Characteristics of Australian Business, various years. Note: The ABS survey measures the proportion of businesses that are in a ‘franchisee relationship’. Table 3 shows that franchisees are most likely to have between 20 and 199 employees, and be defined as medium-sized businesses by the ABS. Accreditation of franchise systems by banks or other lenders appears to be relatively common in the franchising sector in Australia. According to Westpac: A bank accreditation enables a potential franchisee looking to buy a franchise to borrow 40 to 70 per cent of the total set up costs of a new franchise, or purchase costs of an existing franchise business. The Westpac and ANZ websites provide a list of currently accredited franchises systems by each of those entities. Other business organisation considerations Real estate as security Small business lending is often intermingled with the personal finances of the business owner; particularly the residential property of the business
financial-services-and-small-and-medium-sized-enterprises-paper-12.docx