Specsavers is a well-known name in Australia’s optical and audiology retail sector, but many wonder whether it operates as a traditional franchise. The answer is nuanced: Specsavers in Australia uses a distinctive joint venture partnership (JVP) model, which shares some features with franchising but also differs in key ways.
What Is the Specsavers Partnership Model?
Unlike a conventional franchise where franchisees pay fees and royalties to operate under a brand with limited ownership, Specsavers’ model involves joint venture partnerships between the company and local business operators. Typically, each Specsavers store is co-owned by two partners:
- An optometrist partner, who brings clinical expertise
- A retail partner, who manages the business and retail operations
Together, they hold equity shares (known as Class A and Class B shares) in the standalone business entity that runs the store.
How Does This Differ from a Franchise?
- Ownership: Partners have a genuine equity stake and share in the profits and capital growth of their store, rather than simply paying franchise fees.
- Support: Specsavers funds the shop fit-out entirely, so partners don’t need to secure business loans for setup
- Back-Office Services: Specsavers handles many centralized functions such as lease negotiations, marketing, accounts, HR, and legal support, allowing partners to focus on customer service and operations
- Royalties: Instead of traditional franchise royalties, Specsavers collects a percentage of turnover for support and marketing (around 12% and 6.5% respectively).
This model is often described as a hybrid between franchising and joint venture ownership, providing strong brand support with real local ownership and entrepreneurial control.
Benefits of the Specsavers Model in Australia
- Shared Expertise: Combining optometry and retail skills boosts business success and customer satisfaction.
- Financial Backing: Specsavers’ investment in store setup reduces financial barriers for partners.
- Strong Brand and Marketing: Partners benefit from a nationally recognized brand and centralized marketing campaigns.
- Ongoing Support and Training: Comprehensive training programs and mentoring help partners thrive.
- Industry Recognition: Specsavers Australia has won awards like the Franchise Council of Australia’s ‘Established Franchisor of the Year’ in 2013, reflecting the strength and innovation of its partnership approach.
Becoming a Specsavers Partner
Specsavers offers pathways for experienced optical professionals and retail managers to become partners through programs like the Partner in Development (PID), which provides training and mentorship over 9-12 months to prepare candidates for business ownership.
Summary
While Specsavers Australia shares some characteristics with franchising, it is more accurately described as a joint venture partnership model. This approach blends the benefits of brand support and scale with genuine local ownership and profit sharing. It has proven successful in Australia, helping Specsavers grow to hold over 30% market share and operate hundreds of stores nationwide.