LA Weight Loss enters voluntary administration

The Australian operations of US-based franchise LA Weight Loss have been placed in voluntary administration. The administration affects at least nine outlets operating in Queensland, and has left many customers who prepaid for weight-loss programs out of pocket. The chain closed unexpectedly in late May. Administrators for the Australian business are yet to release further details, however it is understood that concerns have been raised over the suitability of the business model itself for the Australian market. The holder of the Australian franchise rights is unable to be contacted and the business’s local website has been largely disabled. Read more 1. Read more 2. Read more 3.

Causes of franchisor failure and insolvency revealed

Failure and insolvency by franchisors is virtually a taboo subject by comparison to discussion about franchisee failure, but a free information seminar in Brisbane on June 21 will lift the veil on this contentious issue. While statistics on the failure rate of Australian franchisors are virtually non-existent, overseas studies indicate these can be almost as high as the failure rate of independent small business.

The seminar will reveal the findings of international studies on franchisor failure and their application to the Australian franchise environment, as well as present case studies on the recent collapse of two Australian systems, and how one of these was able to emerge from insolvency. Titled “Franchising Trends, Pitfalls and Opportunities” the seminar will be presented by the Franchise Advisory Centre and international business advisory firm Deloitte. The free seminar will be held from 12noon-2pm on Thursday, June 21. Early bookings are recommended as places are limited. Click here for seminar and booking details

McDonalds petitions for dictionary change

McDonalds in the United Kingdom is currently petitioning to change a definition in the Oxford English Dictionary which describes a McJob as “an unstimulating low-paid job with few prospects”.

The term McJob first appeared in the 1980’s and has been a part of the Oxford Dictionary since it appeared in the online version in 2001. McDonalds’ UK arm is arguing that the term is “out of date and insulting” to its workforce. Read more.

Australian franchise dispute makes international news

A dispute between Bakers Delight and a former New South Wales franchisee has made international news in Canada, where Bakers Delight operates under the Cobs brand. The dispute centres around the closure of the franchisee’s stores, and was even mentioned in Australian Federal Parliament earlier this year when the franchisee’s local federal member delivered a speech on the issue. Read more.

Poll Results: Field support primarily provides operational improvement

Eighty percent of respondents to last issue’s poll “What is the main purpose of franchise field support” responded that it is to provide operational improvement, while the remaining 20% stated that field support is primarily to police system compliance.

No respondents supported the ideas that the main purpose of field support is to assist with business development and marketing, or to provide financial analysis and guidance to franchisees. Comprehensive workshops addressing each of these issues are currently being held throughout Australia and New Zealand. Click here for more information.

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

Following last issue’s poll about the nature of field support, it is timely to look at the frequency of field support through visits to a franchisee’s store or territory. Please vote in our online poll by clicking here to indicate how often your field support team visits your franchisees (ie. weekly, fortnightly, monthly, every two months, quarterly, every six months, or less than twice per year.)

Understanding mediation helps franchisor team effectiveness

An understanding of the mediation process can help franchisor front line staff in field support and administration roles better manage conflict, and prevent disputes from escalating out of control. Franchise conflict can be minimized through improved systems and awareness of disputation triggers, particularly understanding interests rather than rights. Read more.

Maximise franchise enquiries from franchisor web sites

Optimizing a franchise system’s web site to maximize franchise enquiries may be easier than most people think, and can quickly result in higher enquiry levels, according to a United States expert. Read more.

Franchise system wins industry accolade

Australian mortgage franchise pioneer Mortgage Choice has won the Australian Banking and Finance Award for Best Mortgage Broker for the third time in four years. The system has more than 436 franchises and was listed on the Australian Stock Exchange in August 2004. Read more.

Franchise Jobs:

Worldwide Online Printing are looking for a state manager for Queensland following the recent buyback of its Queensland master franchise. Expressions of interest should be sent to ].

Do you have a job vacancy in your system? 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.