While the number of franchisors trading in Australia has fallen since 2012, the country’s franchise sector is in better shape than it was two years ago, according to the 2014 Franchising Australia Report reveal.

The biennial survey, carried out by Griffith University’s Asia Pacific Centre for Franchising Excellence in association with the Franchising Council of Australia, shows the industry has experienced net growth in franchise units and sales turnover, particularly in retail franchises, during the past two years.

Sale turnover of the entire franchising sector is estimated at $144 billion.

“The decline in the number of franchise systems can be viewed as a positive for the sector,” Professor Lorelle Frazer, director of the Asia Pacific Centre for Franchising Excellence, said.

“Some small non-viable franchise brands have now exited and the remaining brands have continued to grow and prosper,” Frazer said.

The franchise sector grew by an estimated 6000 units since 2012. While the number of full time employees remained steady, a significant rise in the employment of casual labour was recorded.

For the first time in the report’s history, a considered focus on minority groups has found that around 16 per cent of franchisors actively recruit migrants as franchisees, and a further 12 per cent  intend to recruit migrants as franchisees in the future.

Only seven per cent of franchisors indicated that they have recruited Aboriginal or Torres Strait Islander franchisees, however, over half the franchisor respondents indicated they were interested in a program that would transition Aboriginal or Torres Strait Islander employees into franchisee ownership.