National retail leasing enquiry announced

The federal government’s Productivity Commission will conduct a six-month inquiry into retail tenancy leases in Australia in response to industry concerns according to Federal Small Business Minister Fran Bailey.

“Small business tenants are telling me that they are worried about the difficulties they face when presented with commercial leases over which they feel they have little or no control,” says the Minister. News of the inquiry is likely to be welcomed by the franchise sector, with retail franchisors often commenting on retail leasing difficulties. The inquiry may address other leasing concerns, such as the range of disparate retail tenancy laws between states and territories.

To register an interest in the inquiry and to read more about its objectives, click here.

Revised Bank of QLD merger offer rejected

A revised offer by the Bank of Queensland to merge with Bendigo Bank has been rejected by the Bendigo board according to an announcement to the Australian Stock Exchange today.

The renewed offer, including an all-cash option instead of shares in the merged entity follows an earlier offer presented in March and rejected by Bendigo in April. The Bank of Queensland board wil no longer seek a merger between the banks and seek other growth opportunities. Read more 1

Meanwhile a dispute between the Bank of Queensland and a group of former franchisees has been launched in the New South Wales Industrial Court, according to a report in The Australian.

The franchisees are suing the bank and three senior executives over losses incurred in their operation of two Sydney franchises from September 2005 until their termination in June 2006. Read more 2.

Franchisee satisfaction directly linked to financial performance

A survey report of dissatisfied franchise owners in the United States has reinforced the correlation between financial performance and business satisfaction. The majority of dissatisfied franchisees surveyed indicated that their businesses were performing below their financial expectations, and that they would not make the same investment again. Read more.

Poll Results: How often does your field team visit your franchisees?

Responses were low to last issue’s poll “How often does your field team visit your franchisees?” but were evenly spread between monthly and quarterly field visits. No franchisors responded that they visited their franchisees at intervals greater than three months. Comprehensive workshops addressing the nature and effectiveness of field support are currently being held throughout Australia and New Zealand. Click here for more information.

Online Poll: How many outlets does a system need to reach break even?

At what point do the royalties received from a system cover all operating expenses? In other words, how many outlets does a franchisor need to break even? Vote in our online poll now by clicking here with your response, and see how it compares with international franchise break-even studies in our next issue.

Start-up franchisor takes centre stage in Big Love

Starting a new franchise system is hard enough, but when you have three wives and a combined total of seven children, life becomes really complicated. Welcome to the world of Bill Henrickson, lead character in the new HBO smash drama Big Love, a tale of modern polygamy set in Utah and currently airing on SBS.

The show has caused a sensation in the United States, where it is now in its second season. Its fictional portrayal of an apparently “mainstream” family, who are members of a fundamentalist splinter group of the Church of Jesus Christ of Latter Day Saints has been a ratings smash in the US, where it has also drawn extensive social comment for its portrayal of modern polygamy.

But of interest to the franchise community would be its unique portrayal of a start-up franchisor (lead character Henrickson) who sells the first franchise of his Henrickson’s Home Plus hardware superstore in the opening episode, and has ongoing problems with staff, family, and a former business partner who won’t let go. This is perhaps the only example of a new franchisor featured in any contemporary television program. Big Love screens on SBS on Sunday nights at 8.30pm. Click here to read more about the show on the official HBO website.

Airline considers franchising for international growth

Qantas subsidiary Jetstar, a no-frills airline, is reported to be considering franchising to facilitate international growth if South East Asian aviation markets are deregulated next year. Read more.

Could virtual job interviews lead to virtual franchise interviews?

A virtual job fair in the United States last month used cyber community Second Life to provide an online environment for employers and job candidates to meet and conduct job interviews.

In a novel human resources development, virtual interviews could be a new method to evaluate franchisee suitability. The job fair experience was not without its challenges though, with some computer-generated images of people, known as avatars, falling asleep in interviews or floating above the interview table. Read more.

Eagle Boys receives Amex franchisor accolade

Pizza franchise chain Eagle Boys has won the American Express National Retailer Franchisor of the Year award. The award was presented at a ceremony earlier this month, and acknowledges the sales growth of the 180-franchise network in a highly competitive market. Read more.

Franchise Jobs:

Swimart, the franchise division of Waterco Limited, consisting of 58 retail outlets in Australia and specialising in swimming pool and spa equipment and chemicals, are looking for a QLD Area Franchise Manager. Candidates will have solid experience in managing a multi-site retail franchised business and a proven track record in growing the business through account management and relationship-building with existing and potential franchisees. This position is based at Meadowbrook (Brisbane) and reports to the National Franchise Manager. Applications to

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

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