Franchising in Australia continues to be a vibrant and growing sector with excellent opportunities for individuals who would like to gain business experience under a brand, system and with the support of a franchisor.
One of the fastest growing sectors over the past 5 years has been in home help, aged care and support and NDIS.
It's the End of the World as We Know It (And I Feel Fine)….
I think REM had great insight when they wrote that song in 1987 and its unfortunately more relevant today, than we would all like with the outbreak of hostilities around the world (when will we humans ever learn?).
The economy, cost of living pressures and wars puts all kinds of pressure on all of us trying to live a normal life and now we have the uncertainty of fuel shortages that will impact many businesses and sectors.
I don’t like to get political but in that context our Reserve Bank then decides to increase interest rates again! Go Figure!!
Many businesses will be impacted by these events at the same time as dealing with the impact of AI which has led to major redundancies by large companies such as the Banking and the IT sector.
Ironically when there are events which lead to high level unemployment from people made redundant in the workforce this becomes a positive for the Franchise Sector.
The reason for this is that those made redundant need to find an alternate source of income and this leads to a flood of more prospective franchisees for franchisors.
One of the franchise sectors that benefits from this will be the Senior and Home Care Services sector with its low cost of entry and low overheads it is an attractive option whether it is home maintenance, home care and support, home cleaning or mobile services.
We now have over 17% of Australia's population over 65, living longer and many need various levels of home support and care as people want to stay in their homes as long as possible.
Let your fingers do the walking
Now more than ever home owners want services that can come to them so we can sit back and do other things in life rather than cut the lawns do handyman jobs or even take our car to a garage for repairs.
We can get The Grey Army to do some home maintenance and home care, Swimart to clean the pool, Blue Wheelers to wash the dog and Coles to deliver our dinner, all while sitting on the couch watching Travel Guides!
The services available seem endless with the Jims Group now offering Jims Beauty services. As their marketing says you can now “Get your hedge trimmed, your hair done and a nice facial” but hopefully not by the same person!
There is a myriad of excellent opportunities for a prospective franchisee who wants to run their own business with flexible work hours not being tied down to a retail or office environment and with the benefit of training and the franchisors system, support and marketing.
The benefit generally for delivery of Home Care services is that the cost of entry is generally lower than a fixed site franchise and they can keep their overheads low depending on the model.
Some statistics
We all love a good statistic and here is the latest courtesy, of Ibis World.
Home Maintenance
The Trades and handyman sector is very broad and includes all the major trades from painting to roofing, tiling, plumbing and electrical services, with the largest revenue being from gardening, lawn mowing and landscaping services.
The Tradesman and Handyman Franchise sector in Australia is worth around $1.3bn in 2025 with sector revenue growth at 0. 7% due to a slow down in the construction market, cost of living pressures and high interest rates.
However, that sector is bouncing back due to the pressure on the Government to deliver affordable housing which has led to increased development and construction projects.
The revenue in the home maintenance sector shows 70% of the revenue is generated by the 3 main franchise brands Jim’s Group, O’Briens and VIP Home Services, with around 32% of the revenue from building installation services and 15% from maintenance, gardening and other construction services (IBISWorld Report).
Home Care & NDIS
The senior and home care franchise sector is booming with demand for in-home services projected to grow 7% annually, over the next 5 years. The sectors revenue is estimated to grow by around 2.3% to $1.4 billion up to 2028-29 which is extremely promising for the sector.
The sector is projected to have one of the strongest growth rates of any industry as baby boomers turn 65 by 2030.
The opportunities in this sector are endless with demand for personalized stay at home care, alternative therapies and use of technology for rostering, telehealth, and increased market consolidation.
Many of the services previously available from not for profit’s are now provided by the private sector who are active in this space such as Five Good Friends, Home Caring, Nurse Next Door and Complete Nursing and Care.
Sanicki Lawyers have advised many prospective franchisees in the Nurse Next Door system while also establishing franchise systems in home maintenance and home care and support.
Like the Child Care and Early Learning sector the home care sector is shifting to larger service providers acquiring smaller operators to gain scale and then expanding across Australia.
The demand for services is now far greater than house cleaning and garden maintenance to mental health support, social connection, and specialized disability support.
NDIS and aged care services have come under greater scrutiny after the Federal Government Royal Commission which brought in rigorous compliance standards, quality assurance, and training to meet the National standards.
WFD Consulting Group
Sanicki Lawyers Franchise Specialist Robert Toth is part of the WFD Consulting Group a consultancy which provides a one-stop-shop for franchise development and franchisee recruitment.
WFD can assist and support clients with their business expansion plans via Franchising and/or Licensing and in conjunction with WFD our firm has successfully assisted many franchise systems to achieve their business expansion goals.
WFD can provide advice and financial modelling as well as proving Operations Manuals and franchisor training and support to ensure a successful roll out of a system.
Recent projects with WFD have included establishing franchise systems in a variety of business sectors such as the medical and allied health sector, mobile car services and the home services sector.
What will it cost to take up a franchise?
Initial investments for home-based or mobile franchises often range from $30,000 low end up to $150,000, covering the upfront Franchise Fee, training and legal fees and working capital.
Franchising is still the most prominent and suitable business model for business expansion for a successful business, and it also allows individuals who would not otherwise be able to operate or fund their own business, to generate an income via the franchisors brand, system and training.
It is generally accepted that franchised businesses are more effective in their marketing and promotion of services than the smaller independent handyman and tradie services and therefore franchisors are likely to pick up the major share of growth in these sectors.
With an ageing population and the Governments funding in the NDIS sector, home care and NDIS support has really taken off and has been very successful but at the same time there have been some adverse operators in the sector which the media seize on which does impact the credibility of franchising for the rest who operate at a high standard.
Sanicki Lawyers act for several franchisors in this sector and advise franchisees taking up a franchise in this sector. These franchises have enabled people to come from nursing and other health and support services to run their own business and become business owners under a franchise system.
Home services are particularly attractive to people who have worked a trade or a husband-and-wife team who like to work together.
There are several other well developed aged care and home care franchises on offer but as with any investment we recommend franchisees should do their homework and compare the models on offer, the fees charged and do their own financial analysis bot h legal and financial before taking up a franchise.
Home, garden maintenance and cleaning
This sector is highly competitive and has grown post the pandemic from when it was considered an essential service encompassing all the well-known systems such as Jims Group, O’Brien (glass plumbing and electrical), V.I.P. Home Services, James Home Services and many others.
There are several newer service offerings such as Kitset Assembly (who can assemble your IKEA - 3 easy step sofa (that ends up being 33 difficult steps)! and Hang My TV as the name suggests can hang TV’s and set up your home entertainment systems.
Once that’s all done, you can call Geek2U to sort out your iPad, laptop and tech issues and then order your home delivery pizza!
Home tutoring, educational support and other services
Other great opportunities exist for franchisees in child education, student tutoring, health and wellbeing, dog walking and pet sitting.
How to select the right franchise
It’s a matter of finding a business you find appealing and which suits your skill set and which enables you to earn a reasonable income.
It may also be a franchise that is a new opportunity you can take on board with training, and which suits your lifestyle and budget.
Doing what you love is a good start as once you take up a franchise there is no easy way to exit without crystalising a loss.
Franchisees expect more from their franchisors so check out if the franchisor is using the latest technology for its marketing, AI-powered chatbots for customer service, data management solutions and cloud-based platforms for data storage and on-line support. Cyber security is a major issue which franchisors need to ensure they address as part of their franchise system.
Mobile Franchises
Mobile franchises are attractive due to their low cost of entry, low overheads and flexible work conditions which mean franchisees can earn a reasonably good wage for their effort.
Like any business investment, franchisees should do their due diligence to see if its right for them, as no two franchise systems are alike. So, we suggest you compare a few systems in the same sector as their entry fees, royalties and other fees will vary as do their exit or transfer costs, if you sell the business in the future.
Most franchisors still charge a royalty based on the gross revenue and a marketing levy or obligations to do local area marketing.
Seek advice from a Franchise Law Specialist and financial advice before you commit.
Seek independent financial advice and do your own financial modelling and projections before you commit and talk to other franchisees in the system.
If the numbers don’t work, we suggest you walk away as there will be many other franchises to choose from.
Preliminary matters to consider
Key Questions to reduce your risk and make an informed decision.
- Is the franchise an established system or a new one? A new franchise can be a great opportunity, but it can also be a higher risk.
- Is there a long-term market need for the product or services offered or is it a passing fad or trend? With AI and technology will this business still have a market in the next 3 or 5 years?
- Who is the franchisor and who are you dealing with? Is it the Founder or a sales representative or a large corporate group? All have pros and cons; you may be doing business with the franchise manager not necessarily the Founder or directors.
- What training and support is offered ? What time and attention do you need to give to the business to take a reasonable salary. Is it full or part time do you have work 7 days a week?
- What is the feedback from other existing franchisees? You should contact at least 3 to gain different views.
- Does the Franchisor embrace the digital technology and social media? If not, it may be behind its competitors in the market.
- Are you simply buying yourself a job? That’s fine, but don’t be afraid to walk away before you sign up if the numbers don’t work or if you are unable to at least draw a basic salary.
- Will you be a “force for good “and prepared to work within the franchise system rather than trying to fight or change it? If you want to change the system, don’t be a franchisee as it will likely lead to dispute!
- Can you see yourself still operating the business in say 3 or 5 years? What is your exit plan and what are the costs to exit the franchise?
- Will you need to drive long distances to see your customers? How will you cope with traffic and the operational costs.
So much to consider but with Specialist Legal and Financial advice we can help you navigate all the issues so that you can make an informed decision before you commit.
Summary
As with any business investment it comes with risks, so do your due diligence on the franchisor (just as they do their due diligence on you) and make sure you take care of your own business by seeking Specialist Franchise Legal and Financial advice before you commit.
Robert Toth | Special Counsel | Accredited Commercial Law & Franchise Specialist | [email protected] | mobile – 0412 67 37 57 and Colin Crawford [email protected] mobile – 0425 838 800
