En route to work the other day, I caught the breakfast duo chatting about a fresh Gen Z trend. Apparently, they’re skipping the bars and flocking to YoChi instead. Naturally, I turned to my very Gen Z paralegal for confirmation. “Oh yeah,” she said. “It’s the vibe. We hang out, catch up on the goss, and grab froyo weekly.” (Or however the kids are saying it these days.)
This is excellent news for YoChi, an iconic brand with cult-like devotion. And while YoChi itself is not a franchise, its popularity hints at a bigger trend in Australian franchising. As someone who lives and breathes this space, I see brands thriving, floundering, and everything in between. So, let’s dive into Magnolia Legal’s Seven Predictions for Australian Franchising in 2025.
1. Froyo is on the Rise
YoChi is leading the charge, proving that froyo is officially cool again. With their sleek stores, Instagram-worthy toppings, and a vibe that screams Gen Z hangout heaven, their growth isn’t slowing. Expect more froyo franchises to pop up in 2025, vying for a slice of YoChi’s success. Will froyo overtake coffee as Australia’s favourite casual catch-up spot? Will it become the new Acai? We believe so, especially for younger generations. Watch this space.
2. Wellness is the New Fitness
Fitness franchises are flexing in new ways. Gyms are going beyond burpees and treadmills, embracing wellness trends like infrared saunas, ice baths, and meditation pods. Self-care is no longer a buzzword; it’s a booming industry. Expect the next big fitness brands to double as wellness hubs, catering to the mind, body, and soul.
3. Lashes Need Love
Let’s talk lashes. It’s become a thing for younger generations to keep their lash game strong. Yet, no major franchise player has emerged in this space (though a number of smaller networks have caught on). Why not? It’s a billion-dollar industry with untapped potential. If 2025 isn’t the year of the lash franchise boom, I’ll eat my mascara wand.
4. Home Maintenance Takes Off
Our lives are back to busy. With office returns, social events, and full schedules, many people have less time to look after their homes. Franchises that offer home maintenance services—like cleaning, gardening, and handyman repairs—are set to soar. Outsourcing is the new DIY.
5. Home Care Franchises Will Keep Booming
Australia’s population is ageing, and the demand for home care and disability support is soaring. Franchises in this space are thriving—and rightly so. They meet a critical need and are set to grow even more in 2025. For entrepreneurs who want purpose with their profits, this is the sector to watch.
6. AI is a Goldmine for Smart Brands
While McDonald’s in the US hit pause on AI ordering, it’s not because AI is a dud. For systemised franchise models, AI is a game-changer. Think personalised customer experiences, streamlined operations, and reduced costs. Brands that lean into AI now will be miles ahead of the pack by 2025. The robots aren’t taking over—yet—but they’re definitely joining the team.
7. Licensing Talk Will Heat Up (but Chill Out)
The Federal Government will pour resources into researching a licensing model for franchising (see our article here for further background) but don’t hold your breath for big changes. While a taskforce has been introduced (see here), I just don’t see this becoming mandatory next year. With the Franchising Code of Conduct sunsetting in April 2025, it’s already a massive year for compliance and change in the industry. Adding licensing to the mix would be chaos. Expect lots of chatter but no action—for now.
So, there you have it. Froyo is back, wellness is winning, and AI is more than sci-fi. Some brands will ride these trends to glory, while others might miss the memo. Either way, Australian franchising is gearing up for a dynamic year. Got a prediction of your own? Let’s hear it—perhaps we could chat about it at YoChi?