Strong growth despite labour market

A lot can happen in a year. Just more than 12 months ago, Western Australia franchises were concerned about the difficulties in finding new areas of growth, with the sector subject to the same labour market pressures as other industries.

And while franchisors continue to experience difficulties in recruiting quality franchisees, it seems the sector has adapted to a changing market.

Auto Masters master franchisor, Nigel Warr, said despite the mining boom poaching many from the franchising pool, the auto repairer was in the process of building five new franchise locations.

Global tailor LookSmart Alterations now operates 20 of its 70 franchises in WA, which accounts for 37 per cent of the company's turnover.

"We're opening two to three new stores a year and we've opened four this year in WA, which is our biggest year yet," LookSmart franchise development manager Fadi Mikhael said.

Although the start-up costs are almost double in Perth compared to the east coast (between $100,000-$200,000), the company has experienced growing interest from potential franchisees since its re-branding from Citywide Clothing Alterations.

Stationery and storage provider Smiggle, owned by retailer Just Group, recently opened its first franchise in WA at Karrinyup Shopping Centre, with more outlets on the way.

"Smiggle's transformation from an east coast business focussed on major cities to a national chain is on track and we remain very confident ... [the franchise] has performed beyond out expectations thus far," Just managing director Jason Murray said.

Housework Heroes national franchisor Mike Stringer said demand for the cleaning service forced the company to alter its franchise structure to reduce the number of jobs being turned away.

"There's been a bit of growth in WA, enough where we've had to change our model and shift to a system where our franchisees can take on contractors to do all the work," he said.

Partners Steve and Leanne Sunjic have also joined the franchise fold, opening their Ecowash Mobile waterless car wash in Perth 18 months ago, which the pair say is experiencing strong growth.

Snap Printing is looking to expand, by adding a second tier to its franchise in WA, offering marketing services to SMEs.