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An Australian business publication says a shakeout may be looming in the AU$ 61B franchise industry. Some on BMM argue that it is already occurring, and at least one Aussie agrees.
Adrian McFedries warned that some Aussie franchisors are not "commercially viable" and notes that businesses which want to only open a few units may be better advised to seek organic growth.
Bakers Delight founder Roger Gillespie advises "Make sure you deal with the facts, not fiction."
Western Australian publication WA Today puts the franchise sector at $130B, and paints a more guarded picture. A spokesman for National Australia Bank says they are continuing to lend to franchisees, but only 40 to 70 percent of the purchase price. The spokesman says that more aggressive lenders are exiting the field.