Franchise Health Index
A single number that captures the overall health of the Australian franchise market. Here's exactly how it's calculated — no black boxes.
Australian Franchise Health Index
▲ +3 from last quarter
Based on network growth, fee competitiveness, and system stability across 107 brands.
How is this calculated?How the Health Index works
The Franchise Health Index is a weighted composite of three sub-scores, each measuring a different dimension of market health. The index ranges from 0 (deeply unhealthy market) to 100 (thriving market), and is recalculated quarterly from the same brand intelligence data that powers our 107 Brand Intelligence Reports.
Network Growth Score (40% weight)
Measures whether franchise systems are expanding or contracting.
- •Growing brands share — What percentage of the 107 brands have positive net outlet growth over the past 12 months?
- •Average growth rate — The mean net growth rate (new outlets minus closures, divided by total network size) across all brands.
A score of 100 means every brand is growing strongly. A score of 0 means the entire market is contracting.
Fee Competitiveness Score (30% weight)
Measures how competitive ongoing fee structures are for franchisees.
- •Average fee burden — The mean total fee burden (royalty + marketing + technology fees) relative to historical benchmarks.
- •Fee distribution — What proportion of brands charge below 10%, between 10–12%, and above 12% in total ongoing fees.
A score of 100 means all brands offer competitively priced fee structures. A score of 0 means fee burdens are excessively high across the board.
System Stability Score (30% weight)
Measures the maturity and resilience of franchise systems in the market.
- •Average network age — How many years, on average, have these franchise systems been operating in Australia? Older systems tend to be more stable.
- •Closure rate — The average rate of outlet closures as a percentage of total network size. Lower is better.
A score of 100 means mature, stable systems with minimal churn. A score of 0 means young, volatile systems with high closure rates.
Data sources and limitations
The Health Index is calculated from the same dataset that powers our 107 Brand Intelligence Reports. This data is sourced from publicly available franchise disclosure documents, company filings, media reports, and direct research.
It is recalculated quarterly when the underlying brand data is refreshed. The index currently covers 108 franchise systems across 9 categories.
The Health Index is a market-level indicator, not a recommendation tool. A healthy overall market does not mean every individual brand is a good investment. Always conduct independent due diligence on any specific franchise opportunity.
Want the data behind the index?
The Research Bundle gives you access to all 107 Brand Intelligence Reports, category comparisons, and the data underlying every metric on this page.
Get the Research Bundle — $397Rankings based on publicly available franchise disclosure data. FranchiseInsights does not recommend or endorse any specific franchise system.