The top three reasons for buying a franchise were income potential (54%) followed by job satisfaction (such as looking for a personal challenge) and flexibility (such as setting your own hours).
Females were more likely to move into franchising for the income potential (57% versus 52% of males) and flexibility was a lot more important to females (51%) than males (38%).
"Working to live rather than living to work is still an important motivator for potential franchisees, but the income that can be produced via running your own business is presently the most important factor for the growth of the Australian franchising industry," Mortgage Choice consumer affairs manager Kristy Sheppard said.
The most popular franchisee opportunities were food, restaurants and cafès (47%), followed be general retail (22%), business and professional services (21%), health, beauty and personal services (21%), tourism, leisure and accommodation (19%) and domestic services (18%).
While the downturn has not diminished the appetite of potential franchisees to enter the sector, it appears the slowdown has forced some to revise their expectations around money.
There were far less respondents willing to pump large amounts of capital into a new franchise, with most expecting to spend between $0 and $100,000 and just 5% willing to spend more than $400,000.
Potential franchisees have also modified their profit expectations. Over a quarter expect to break even in their first year, with most expecting to make between $20,000-50,000.
