Why Australia’s franchise industry is thriving

Franchising is big business in Australia. In fact, the Franchise Council of Australia estimates that we have more franchise systems per capita than any other country in the world. There are over 1160 franchise brands, with a healthy 86% of those Australian based.

One Australian franchise that has earned a strong position over the last eight years is Croc’s Playcentres. Founded by Lawrence Cusdin and Brett Aldons in Melbourne, Croc’s have become market leaders in the child indoor play industry. Unimpressed with the indoor playgrounds available at the time, Cusdin and Aldons had the vision to be the “Hilton Hotel’ of the indoor child play centre industry. With a commitment to research and excellence, they now have over 15 stores throughout Australia and continue to grow. This is reflected by a growth rate of 137.6% last year and Croc’s inclusion on the 2015 BRW Fast Starters list, an annual list of Australia’s top 100 startups.

So why are franchises booming? Our unique geography plays a part. The concentration of Australia’s population in five major cities – Sydney, Melbourne, Brisbane, Adelaide and Perth – means that business competition within those urban centres is fierce. Franchising is a way of leveraging the competitive advantage of a strong name, whilst also alleviating the pressure on a small business owner.

Given the rapid proliferation of franchises, those looking to invest have many options. However, such a wide field also means there will be discrepancies in the quality of product and structure. The Australian government has tightened its franchising regulations over the last decade but investors still need to complete thorough due diligence on the brand they are considering.

Croc’s Playcentres have an established structure, as well as a key partnership with the Foodco Group, which was ranked by the Australian Business Review in 2016 as one of the top three franchise groups in Australia, with popular brands including Muffin Break and Jamaica Blue. An exclusive agreement means that Muffin Break cafés now operate within Croc’s Playcentres, meaning franchisees get two great brands in one package. Both franchises provide full training to staff and business support.

Join one of Australia’s franchise success stories and become a member of the Croc’s Playcentres family.

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