Extract from Kim Beazley’s address to the National Franchise Convention:- Franchising has come a considerable distance since it first took off in Australia according to Griffith University’s 2004 Franchising Australia survey. In 2004, Australia had 850 business franchise systems – a 21 per cent increase on the 700 franchise systems in 2002. 54,000 franchise business units in 2004 – 14 per cent more than two years ago. And 92 per cent of our franchisee systems are of Australian origin – all local know-how and innovation. Franchises employ over half a million Australians across sectors as diverse as food and beverage, retail, home services, banking and financial services. And all the evidence suggests that Australia’s franchises are among the most successful businesses. In the 12 months to 2004, only three per cent failed. And the rate of business failure in the first five years of operation is much lower for franchises than for other businesses – one estimate suggests only 12 per cent of franchises fail in their first five years, compared with a rate of 70 per cent for other independent businesses. This proves the benefits of the franchise model – people get to be their own boss, with all of the independence that brings, while also being able to trade under an established brand with the big advantage of group advertising and buying power.