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Published 22 February 2012 15:14, Updated 23 February 2012 09:01
The BRW Fast Franchises are not only fast, but this year they’re fit as well. Literally. Debuting on the list and storming into first place with average revenue growth over three years of 403 per cent is Jetts Fitness. The network of 24hour gyms is shaking up the fitness industry with its low-cost model and has opened 155 outlets since it was established in 2007. It turned over $43million in 2010/11.
Another Queensland debut, renovators and builders Smith & Sons, is in second place by revenue growth and tops the ranking of Fast Franchises by outlet growth, with 328 per cent over three years.
The annual BRW Fast Franchises special issue, out now, ranks franchises in Australia by their average annual revenue growth and average annual growth in outlet numbers in the three years to June 30, 2011 to reveal the fittest and fastest franchises. These are franchise operations that are streaking ahead and growing at a faster rate than the rest of the economy.
The special edition provides a survival of the fittest review, revealing that growth is not as easy to come by as it was in the late 90s and early 2000s, with franchise recruitment and access to finance providing two big obstacles.
BRW also reveals that a struggling retail sector and falling consumer confidence have put a stop to rampant growth. But the most successful franchise systems have put in place strategies to solve these problems and the special Fast Franchise issue of BRW is full of top tips from the fittest people in the business.
The top five franchise networks in the country, ranked by average revenue growth over three years are:
|Rank||Company||Sector||Revenue 2010-11 ($m)||Revenue growth (%)||State (head office)|
|1||Jetts Fitness||Health and community services||43.0||403.3||Qld|
|2||Smith & Sons Renovations and Extensions||Construction||16.9||305.7||Qld|
|3||Zambrero||Retail (food, beverages)||8.4||132.8||ACT|
|4||Lollypotz||Retail (food, beverages)||7.0||131.6||ACT|
|5||Keen to Clean Group||Property and business services||3.4||85.9||Vic|
BRW editor Kate Mills says, “The top placed fast franchisees on our list have youth and novelty on their side, having operated for nine years or less, and the top four, for just six years or less. The middle and bottom of the pack tells a different story, and much slower growth but - overall, the $128 billion franchise sector remains strong and is enjoying growth that is outperforming the rest of the economy.”