Australian franchises grew over the past year despite battling the economic downturn and a lack access to credit, a study by PricewaterhouseCoopers found.

PwC's Franchise Sector Indicator, released yesterday, surveyed 59 franchisors representing 68 franchise businesses around the country and found the average franchise's revenue grew by 4 per cent and profit climbed by one per cent.

PwC's national franchising partner Greg Hodson said the $60 billion industry had weathered the downturn well.

"The recent economic downturn had tested businesses, but the robust franchising model of replicating a successful concept has proven capable of resisting tough times," Mr Hodson said.

Despite the collapses of high-profile franchises like Kleenmaid, the survey found the franchise sector's confidence was high with 18 per cent predicting profit growth over the next 12 months.

Franchise Council of Australia director Steve Wright said the industry, which employs around 400,000 people, was being held back by a lack of access to credit but overall it was performing well.

"Franchising is clearly a key engine driving strong economic performance," he said. "The sector is weathering the downturn considerably better than standalone businesses, thanks to the franchise network."