Pandora Franchise Changes Lead to Store Closures

Pandora’s decision to take tighter control of its Australian retail network by moving away from franchise partnerships is drawing criticism from local operators and leading some stores to close. The brand’s goal is to encourage growth through more company-owned outlets while leaving long-standing franchisees frustrated and staff without jobs.

For many years, the Denmark-based jewellery brand expanded in Australia through a wide network of franchisees and stockists, reaching over 100 stores nationwide. Recently, however, Pandora started buying out franchise partners and bringing more stores under direct management. This shift has led to closures in areas such as Toowoomba, Rockhampton, North Sydney and Melbourne’s Forest Hill.

The company says it has taken control of about 30 former franchise stores over the past five years while renewing or extending 50 other agreements. Some impacted business owners argue the buyout offers were too low. They claim that rejecting those offers often left them with no option but to close once their leases ended. Many of these stores were locally operated family businesses and the closures have resulted in job losses in several regions.

The backlash has intensified due to concerns about how these transitions were managed. Some employees used personal social media to advertise last-minute closing-down sales, as official company channels were no longer available during final trading days. Despite the criticism, Pandora reports that its total store count in Australia has increased from 120 in 2023 to 132 in 2025 as part of a broader retail strategy.

While Pandora says its proposals exceeded contractual obligations and that it treated franchisees fairly during the transition, the tension between local operators and the company’s headquarters reflects the difficulties of moving from a franchise model to full corporate ownership. Pandora continues to project confidence in its long-term presence in Australia even as this shift brings short-term disruption.

Source: The Australian, The Courier Mail, Statista