Late last year I made seven bold calls about Australian franchising in 2025. I said what I said… and honestly? The franchise universe has been behaving very obediently ever since. So this is your official sequel: a quick victory lap to confirm those predictions landed, a ceremonial self-appointment as the Franchise Oracle © (strictly tongue-in-cheek, but also… look at the evidence), and then — without further ado — my predictions for 2026.
Because if 2025 taught us anything, it’s that Australian franchising keeps rewarding the brands that feel local, human, value-smart and just a little bit ahead of the curve 🔮
Why I was right (2025 recap from your Franchise Oracle)
1. I predicted: Froyo is on the rise.
Why I was right: Froyo didn’t just rise — it strutted back onto the scene in a bucket hat. Yo-Chi kept expanding fast and hit big rollout milestones, with multiple new stores announced and plenty of buzz around its Gen-Z-approved “dessert hangout” format. In other words: froyo is officially cool again, and the “froyo-as-catch-up-spot” thesis is alive and well.
2. I predicted: Wellness is the new fitness (gyms become wellness hubs).
Why I was right: The market kept shifting from “sweat harder” to “feel better.” Boutique studios and wellness-layered fitness models continued to grow, with consumers gravitating toward anything that includes recovery, restoration, or a studio experience that doesn’t feel like a fluorescent punishment.
3. I predicted: Lashes need love — lash franchises are due.
Why I was right: The lash economy has kept growing like it’s on a quarterly refill schedule. Global market research puts lash extensions at around US$1.1b in 2023 with forecast growth of roughly 7.5% CAGR through 2032, which is a serious, sustained curve for a franchise category.¹ Australian beauty trend reporting says the same thing in plainer English: demand is rising on the back of low-maintenance beauty routines and younger consumers keeping lashes “always on.”² We still haven’t seen the breakout national lash franchise take the crown yet (so my prediction of last year may not be entirely on point) but the demand wave I was pointing at is real — and still waiting for a smart franchisor to surf it properly.
4. I predicted: Home maintenance takes off.
Why I was right: Convenience beat weekend DIY again. Third-party outlooks for Australia’s on-demand home services sector (cleaning, handyman, maintenance etc.) put the market at around AUD $183m in 2024, with projected growth of roughly 18% CAGR from 2025–2034.³ That’s not a gentle tailwind; that’s a jet engine — exactly matching the shift I was calling: busy households outsourcing as default.
5. I predicted: Home care franchises keep booming.
Why I was right: This one is basically written into Australia’s demographics. Major industry forecasting estimates the Australian aged care / home care market at about US$32.2b in 2024, growing to roughly US$61b by 2033 (around 6.7% CAGR).⁴ Local professional services analysis also highlights expanding in-home support demand, policy pressure to keep services in the community, and a fragmented provider landscape that favours scalable operators.⁵ So yes: home care franchising kept booming because the need curve is structural, not trendy.
6. I predicted: AI is a goldmine for smart brands.
Why I was right: AI didn’t fizzle — it got a seat at the ops table. Government and private-sector tracking through 2024–2025 shows accelerating SME adoption, with one national survey finding around 70% of small business owners expect AI to significantly lift productivity or service quality.⁶ Franchise systems are built for repeatability, so AI naturally supercharges lead nurturing, marketing workflows, training, QA and scheduling. The smart brands leaned in early, and the gap is already widening. The robots aren’t taking over… they’ve just joined the team.
7. I predicted: Licensing talk will heat up (but chill out).
Why I was right: The licensing conversation genuinely heated up, with serious consultation and industry chatter. But 2025 was already dominated by Code reform and the new Franchising Code, so mandatory licensing didn’t land this cycle. Exactly the “lots of noise, no cliff-edge change yet” scenario I predicted.
Conclusion: the Franchise Oracle remains inconveniently accurate.
Without further ado: my predictions for 2026
1) American brands will continue to stall in Australia
US brands will keep finding Australia harder than expected unless they localise properly (pricing, product, fit-out, messaging). We’ll still try them, but we won’t stay loyal unless the concept feels genuinely “for here,” especially with health and value filters getting stronger. On the ground, the pattern is still clear: big US imports don’t automatically translate here — Taco Bell’s Australian rollout has reportedly under-performed to the point its local operator is looking to offload it, and we’ve seen this movie before with American giants like Dunkin’ Donuts and Starbucks, both of which struggled to gain lasting traction against Australia’s entrenched local tastes and coffee culture
2) Gyms for non-traditional gym people will flourish even more
The softer, prettier, more welcoming studio wave isn’t done — it’s going mainstream. Think low-fear entry, community, lifestyle-fitness hybrids, and formats that feel like self-care rather than self-punishment.
3) Magnolia Legal will keep backing the most fabulous franchise brands
We’re already at 30 franchisor clients and I fully expect that to grow in 2026. The brands that win long-term are the ones who invest in clean recruitment, strong disclosure, and systems that genuinely support franchisees. We will continue being extremely here for that.
4) The franchise sector will keep growing
Franchising remains a durable growth pathway for brands and a compelling “business with a system” option for buyers. Expect continued expansion into 2026, especially among resilient retail, services, and wellness categories.
5) Brands to watch will keep scaling (and here’s my list again)
Based on enquiries Magnolia receives, market observations, and client/franchisee feedback, these are just some of the brands I expect to see continued growth and make waves in 2026 (our fab franchisor clients aside, who will all no doubt do amazing):
(a) J.I.M (Joy In Movement)
They’re popping up for a reason: boutique wellness positioning with a fresh, distinctive offer in a space that’s still expanding. If “wellness-first fitness” is the decade’s pattern, J.I.M fits it like a glove.
(b) The Local Guys
We’re seeing strong prospect interest and consistently positive franchisee sentiment. Their down-to-earth branding is landing, and that “local, practical, no-nonsense” positioning is exactly what scales quietly but powerfully in Australia.
(c) Yo-Chi
I said it last year and I’ll say it again, mostly because I love a family froyo outing, but also because the momentum tells the story: category leadership, rapid expansion, and a format that nails the health-halo dessert hangout.
(d) Mixue
They’ve been a bit under-the-radar here, but globally they’re an absolute powerhouse. In Australia, early growth plus cost-of-living pressure makes their ultra-value ice-cream-and-tea model very well placed to expand further (with local adaptation).
Final word from your Franchise Oracle
2026 will reward brands that are local-fluent, wellness-aware, value-smart, and system-tight. The loudest brand won’t necessarily win — the most loved and most repeatable one will.
And if anyone needs me, I’ll be at Yo-Chi, manifesting more correct predictions. 🍦🔮
Footnotes
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Fortune Business Insights, Eyelash Extension Market Size & Growth Forecast (global market size and CAGR projections).
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IBISWorld Australia, Beauty Services / Cosmetic & Beauty Products industry trend reporting (ongoing demand growth in lash/beauty services).
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Expert Market Research, Australia On-Demand Home Services Market Report 2025–2034 (market size and forecast CAGR).
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GlobalData / ResearchAndMarkets, Australia Aged Care Market Forecast 2024–2033 (market size and growth outlook).
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KPMG, Australia Home Care/Aged Care Market Analysis 2024 (demand drivers, policy settings, fragmentation).
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Australian Government, AI Adoption Tracker 2024–25; COSBOA / Salesforce Small Business AI Survey 2025 (SME AI adoption momentum and sentiment).