Retail and WA franchise inquiry reports due next week

Both the Productivity Commission’s retail leasing inquiry, and the Western Australian franchise inquiry are due to lodge their final reports on Monday next week.

A report into the operation of franchise businesses in Western Australia is due to be presented to the WA Small Business Minister by Monday, March 31. The WA franchise inquiry, which has caused concern in the franchise sector about the prospect of state-based franchise legislation was launched last November.  Read more 1

A total of 221 submissions have been made to the Productivity Commission’s inquiry into the Market for Retail Tenancy Leases in Australia, with public hearings conducted around Australia in February.  Read more 2

Lifestyle is important for franchisees, but money rules

While a recent research report of franchisees found that 31% joined a franchise in order to enjoy a better lifestyle, Franchise Advisory Centre research indicates that after joining a franchise, income becomes more important to franchisees and is cited as the single-largest reason for leaving. The 2007 research “Why do Franchisees Come and Go” by the Franchise Advisory Centre took the form of group interviews of master franchisees and managers of a national franchise chain, and found that while lifestyle was the largest reason for joining, this was replaced by income at 45% as the largest reason for leaving a franchise system.  Read more

Green Acres accused of charging $10,000 termination fee

New Zealand home services franchise Green Acres, which is currently embroiled in a scandal over the sale of unauthorised franchises by a rogue master franchisee, has now also come under fire for heavy-handed tactics in dealing with a legitimate franchisee and allegedly demanding a $10,000 termination fee. Chilean migrant Rodrigo Calquin had his cleaning franchise terminated and was issued with a demand for a $10,000 termination fee after disputing the amount of royalties owed to the franchisor. Read more

Survey looks at overcoming shortage of franchisees

A survey by a Griffith University doctoral student plans to examine the differences between independent small business owners and franchisees, as part of the wider issue of the perceived shortage of franchisees in the Australian market today.

PhD researcher Stephen Bennett is seeking input from franchisees who are currently in their first business and have been so for three years or less, and operate in retail food or non-food businesses, or personal or business service industries. Franchisors are encouraged to refer the confidential online, 10-minute survey to their franchisees. To complete the survey, visit http://tinyurl.com/2qyovv

Lavish lifestyle for Blue Chip founders

With franchises and other companies attached to their Blue Chip property investment empire in receivership or struggling to stay afloat, the lavish lifestyle of the New Zealand founders has been revealed in a media report. Read more

Franchisors make best of tight employment market

Franchisors which are well-branded, dynamic and proactive will be able to attract and retain staff more effectively than other businesses, according to a newspaper report. Read more

Franchise Association of NZ considers legislative model

The Franchise Association of New Zealand is currently surveying its members to see what form of legislative model the sector is likely to consider in the wake of recent franchise scandals and high-profile calls for regulation. However Franchise New Zealand Magazine reports that is now unlikely that franchising will be regulated under the current Finance Service Providers Bill, and that any regulation will be under a specific franchising bill.  Read more 1  Read more 2

Shoe franchisor to acquire clothing brand?

The parent company of retail footwear franchisor The Athlete’s Foot is reportedly in negotiations to acquire active clothing label Lorna Jane, which has 40 stores and operates in Australia, New Zealand, Singapore and Thailand.  Read more

From student to state manager in just four years

24-year old Cain Cooke has taken a fast track in his franchise carerer, from studying teaching four years ago to his recent appointment as South Australian state manager for real estate franchise Century 21. Read more

No formula franchise a formula for success

A United States baking franchise is finding that defying conventional franchise wisdom and not having a formula for all business operations can actually be an advantage.  Read more 

US franchising grows 18% to 2005

Franchising in the United States grew by more than 18% during the four years from 2001 to 2005, and added more than 140,000 businesses and 1.2 million jobs to the US economy, according to the recently-released PricewaterhouseCoopers Economic Impact of Franchising study. Read more

New national association for retailers

The Queensland Retail Traders and Shopkeepers Association (QRTSA) has relaunched itself as a national representative body for the retail sector and joins a crowded market of at least five other retailer associations. QRTSA is the second Queensland retail association to launch nationally, following the National Retail Association’s expansion from its Queensland base several years ago.   Read more

Other franchise news:

- Boost Juice signs master franchise deal for Malaysia;

- SMH article examines links between Gloria Jeans and Mercy Ministries, Hillsong Church;

- Mentors potentially more effective than boards for governance;

- Franchisee recruitment an uphill battle for franchisors;

- ACCC defends Code changes;

- Borders US parent does not rule out sale of entire business;

- Starbucks baristas win lawsuit against franchisor over $100 million tip claim;

Franchise Appointments & Departures:

Former Forty Winks CEO Roger Wilson has been appointed by the Bulky Goods Retailers Association to assist its executive director with strategic planning, member and sponsor services.

Gloria Jeans global CEO Ian Martin has resigned.

– Made a new staff appointment recently? details to Franchise News & Events (Free service).

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