Franchise operations have emerged as one of the more resilient business models, with the latest figures showing 9 per cent annual growth in turnover.

The Business Development Alliance said the $145 billion sector was “very healthy” and coping better than most independent stores during relatively tough economic times.

However, franchise turnover was down from the usual double-digit growth of recent years.

BDA director Mark Fernandez said franchises were subject to the same economic challenges as other businesses but benefited from parent company support.

Those in the service sector, including health care and domestic help and maintenance, were enjoying the strongest growth among franchises.

While the growth rate was down, Mr Fernandez said Australian franchises were enjoying strong expansion abroad.

Bounce Inc has recently announced it is moving to a franchise operation, instead of a company-owned business model, partly to support its rapid international expansion.

It is set to open in five countries this year.

Mr Fernandez said an increasing number of foreign brands were also setting up in Australia.

He attributed the interest to Australia’s relatively strong economy, by global standards.


© The West Australian