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Are franchises a good investment?

Franchise businesses offer an established brand and proven operating model, but performance is heavily influenced by site selection, lease terms, working capital and the level of owner involvement — factors that separate strong operators from struggling ones.
Franchise businesses span food and retail to health and wellness and trades. (CommercialRealEstate.com.au)
Franchise businesses span food and retail to health and wellness and trades. (CommercialRealEstate.com.au)
Expert in Costar News in DC market since 2014
17 June 2026 | 15:24

Buying into a franchise offers an established brand, a ready-made customer base and a potentially proven financial model. According to a 2021 survey by the Franchise Council of Australia, approximately 35 per cent of respondents reported weekly sales exceeding $20,000, with food-based businesses particularly strong performers. However, broader economic pressures have weighed on the sector in recent years, with nearly two-thirds of small businesses recording profit declines in 2025, according to the Council of Small Business Organisations Australia.

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News | Are franchises a good investment?