Franchisors have continued to achieve double digit growth in the last 12 months despite the difficult economic conditions, according to PwC’s franchise sector indicator (FSI).

The FSI revealed franchisors achieved profit and revenue growth of 10 per cent in the last year.

For the first time non-retail franchisors, including home and personal services, mortgage brokers and business to business franchises, out-performed the retail sector with a higher than average revenue growth rate of 14 per cent.

“Growth in the non retail franchise sector reflects that many services have now become ‘must haves’ rather than ‘nice to haves’. What we once thought were discretionary spending decisions are now part of normal consumer spending patterns,” PwC partner Greg Hodson said.

“The growth in non-retail is also evidence of the growing number of businesses that sell services to other businesses, adopting franchising as all or part of their business model.”

But despite achieving just below the average with 9 per cent revenue growth in the past 12 months, retail franchisors are still thriving.

“There is nothing shabby about retail franchisors performance. Again it is proof that the fundamentals of franchising often produce better results than those of non-franchise models,” Hodson said.

One fifth of franchisors surveyed attributed their growth to new products and service, but only 14 per cent said technology was a key driver.

“Although it’s evident that success comes from having a clearly defined strategy and the willingness to continually review and refine that strategy, the most successful franchises also have the resources and commitment to implement the strategy too,” Hodson said.

Looking to the future, franchisors surveyed remain optimistic. They are forecasting revenue growth of 11 per cent in the next 12 months and 34 per over the next three years. Profit is tipped a little higher at 15 per cent for the next 12 months and 45 per cent for the next three years.

Franchisors also plan to add an additional 10 franchise units in the next 12 months and 31 over the next three years.