Borders bookstores to exit Australian and NZ markets via licence

International book retailer Borders will exit the Australian and New Zealand markets by selling its existing stores and a long-term licence to operate under the Borders brand.

The US-based book chain will exit from the Australasian market, and possibly other international markets, in order to concentrate on domestic growth within the United States.

Private equity firms, trade buyers, and other book retailers are believed to be interested in the sale, with an information memorandum for potential buyers due to be released later this month. Read more.

7-Eleven brings Kwik-E-Marts to life for Simpsons movie

In a case of life imitating art, a dozen 7-Eleven stores in the United States and Canada have been converted to Kwik-E-Marts, the convenience store featured in The Simpsons television series, and soon to feature in The Simpsons movie.

In a novel reverse product placement move, the convenience chain will also be selling products featured in countless Simpsons episodes such as Buzz Cola, KrustyO’s breakfast cereal, and Squishees, a Simpsons-inspired derivative of 7-Eleven’s Slurpees.

However don’t expect to see any stores in Australia converting to the Kwik-E-Mart brand. 7-Eleven Australian CEO Warren Wilmot says the costs are too great for a short-term promotion in the Australian market, compared to the much larger US market, but welcomes the innovation as a sense of fun and an endorsement of the iconic nature of the 7-Eleven brand.

And while some observers would consider the innovation to push the boundaries of brand integrity, marketing experts consider it to be an excellent crossover promotion to strengthen the relationship between the brand, and customers who are also Simpsons fans.  Read full story.   See store photos.

McDonalds monster ad banned; Nandos pole-dancing ad upheld

A television advertisement featuring two little girls who battle a monster to recover a woman’s lost ring has had a complaint upheld against it by the Advertising Standards Bureau (ASB) on the basis that it encouraged children to engage in unsafe behaviour. The advertisement shows the girls climbing down a drain to recover a woman’s lost ring, battling a two-headed monster that is holding the ring, and then going off to McDonalds with the woman, who promises the girls free Happy Meals for life.

“The board considered that the ad’s premise of the children going down the drain and then accompanying a stranger to a restaurant was contrary to prevailing community standards,” says ASB chief executive officer Fiona Jolly.

Meanwhile an ad for restaurant chain Nandos which features a pole-dancing mother had complaints against it dismissed. “The Board did not find that pole dancing was incompatible with family values. The ad also has an M classification, which means it can only be shown during programs recommended for persons over 15,” says Ms Jolly.  Read more.

2006 Census data to facilitate franchisor planning

The recent release of the 2006 Australian Census will provide valuable data for franchisors in planning future operations across a range of levels, including HR, product mix, and location. Based on this new data and the success of Site Selection seminars earlier this year, the Franchise Advisory Centre and Spectrum Analysis are again partnering to conduct Site Selection and Territory Planning seminars next month, with seminars scheduled for Perth (August 14) and Sydney (August 16). These seminars have received outstanding feedback from participants across a range of brands, from small franchisors to household names. Click here for more information.

Poll Results: How many outlets needed to reach break even?

Last issue’s poll “How many franchise outlets does a system need to reach break even?” drew a range of responses. More than one third of respondents indicated that a franchise system would reach break even with between one and 10 franchise outlets, while a similar number responded that break even would be reached between 21 and 50 outlets.

12.5% indicated that between 11 and 20 outlets were sufficient to reach break even, and a further 12.5% responded that break even would be achieved between 51 and 100 outlets.

No respondents indicated that break even would require more than 100 outlets.

The results of a study into franchisor break even perceptions were recently discussed at a joint Franchise Advisory Centre / Deloitte seminar. For more information, .

Online Poll: How long do franchisees stay in your system?

On average, how long do franchisees stay in your system? Vote in our online poll now by clicking here with your response.

Hooters to hit the big screen?

US-based restaurant chain Hooters, famous for its scantily-clad female staff, could soon feature on the big screen. A $1 million movie script has been commissioned by Hooter’s US founders, and is reported to portray a fictional account of the founders’ own story.  Read more.

Hooters has already landed in Australia, with three outlets now open, including one in Parramatta which is reported to have set a Hooters international record for highest opening day trading. This is the second time the brand has appeared in the Australian market. In 1997 the chain opened its first Australian store in inner-western Sydney, which was part-owned by former FAI and HIH executive Rodney Adler. The new operators of Hooters in Australia have no connection with the earlier attempt.

Burger Fuels growth with share offer

New-Zealand based burger chain Burger Fuel, is selling just over a quarter of the company, starting with a direct offer to its customers. The sale of 26.7% of the company and listing on the second-tier NZAX stock market is expected to raise NZ$15 million for further expansion of the chain throughout Australia and other overseas markets. The chain currently has 19 stores in New Zealand and one in Australia.  Read more.

Generation Y stereotypes challenged

Generation Y employees and future potential franchisees may not be the self-obsessed, undedicated, short-termers that contemporary society has painted them out to be, according to a recent Entrepreneur article. Generation Y, born between 1978 and 1990, could actually have more to offer employers and franchisors in the long term if businesses are able to recognize Generation Y’s unique talents and social outlook. A seminar on this topic will be held in Sydney on August 22.

Click here for seminar details.  Read full Entrepreneur article.

Franchise appointments:

Retail Food Group (RFG) has appointed Nicole Dodd as Chief Marketing Officer to oversee the marketing initiatives of RFG’s Donut King and bb’s café brands, which continue to operate separate and distinct marketing departments.

Franchise Jobs:

Baskin Robbins has a part-time administrative position available at its national office on the Gold Coast (approx. 20 hours per week). For more information, contact .

Do you have a job vacancy in your system or made a new staff appointment? details to Franchise News & Events for inclusion in our fortnightly e-bulletin.

Franchise media releases wanted

Add Franchise News & Events to your media release distribution list for news about your system. Send all releases to:

Franchise News & Events

An initiative of the Franchise Advisory Centre

PO Box 15304

BRISBANE  QLD  4002

Ph: +61 (07) 3716 0400

Fx: +61 (07) 3716 0300

For editorial or advertising enquiries, contact Jason Gehrke.

All content copyright 2007, Franchise Advisory Centre.