Fantastic deal for Dare

Melbourne-based fledgling franchisor and furniture retailer Dare Gallery has been sold to the operators of the Fantastic Furniture chain for $700,000. The sale includes seven company-owned stores and three franchises, but did not include three other company owned-stores that will be closed with the loss of 20 jobs. Dare will continue to operate as a division of Fantastic, which also owns Plush and the Original Mattress Factory brands. Dare was placed into voluntary administration last month after post-Christmas trading difficulties, and received 21 expressions of interest from potential buyers. Read more

Article claims thousands ruined through franchising

An article in Brisbane daily newspaper The Courier Mail on three Queensland Michel’s Patisserie franchisees recently claimed they are among “thousands of Australians who suffered financial ruin courtesy of franchising”. The article reported that the three franchisees were losing money, and had joined other Michel’s franchisees in complaining to the Australian Competition and Consumer Commission (ACCC).  The article did not include a reference to support its claim in relation to franchisee financial ruin, but did include comment from the management of Michel’s Patisserie’s new owners Retail Food Group. Read more

All that glitters was not gold for Kleins

National jewellery retailer Kleins, which entered voluntary administration recently with debts estimated at $20 million, was adversely affected by increased competition and internal operating costs even though the high Australian dollar would have made the cost of its stock imports cheaper, according to a news report. Read more

Small business concerned about budget outcomes

The small business sector, including both franchisors and franchisees, did not benefit greatly from last week’s budget, with some observers commenting that cuts to government programs in the sector would result in an overall decline in government business programs. Read more 1  Read more 2  Read more 3

Non-financial indicators lead franchise buying decisions

Potential franchisees are looking for stimulation, challenge and lifestyle flexibility ahead of income potential according to a Mortgage Choice survey released this week, however the cost of a franchise offering is a major factor in determing which franchise to buy. Read more

Going green an Australian first for Gloria Jeans

Coffee chain franchise Gloria Jeans is the first Australian company to be receive a Green Globe award for its commitment to the highest environmental and social standards which preserve biodiversity and provide sustainable livelihoods for coffee growers and their workers. The award was recently made by the Rainforest Alliance, a not-for-profit organisation which takes a holistic approach to sustainability. Read more

FANZ general manager resigns

Franchise Association of New Zealand (FANZ) general manager Peter Fergusson has resigned to take up a new position as CEO of one of the largest providers of disability research, equipment and advisory services in New Zealand. The announcement was made in a recent FANZ email to members. Fergusson has long been involved with disability and health charities on a volunteer basis, and is also involved in a Ministry of Health committee. He will leave FANZ after 18 months in the role, but will continue to work with the board to assist a smooth transition in the role.

Franchise “clearance sale” reduces fees by up to 90%

An online franchise in the United Kingdom is discounting up-front franchise fees by up to 90% in a retail clearance sale to fill its remaining territorities. In a move that is likely to raise eyebrows over the issue of maintaining franchise brand integrity and franchisee resale values, the franchisor of The Best Of, an internet-based business, is selling its last 100 territories for a limited time only at “decimated” prices. Selling franchises with limited period offers at discounted prices is a highly unusual approach, and is rare in franchising. Similar offers also seen in the UK include limited offers to buy a franchise with a free bonus upsize of an extra 30% franchise territory. The success of such offers, and the long-term sustainability of the franchise relationships arising from these sale deals is unknown. Read more

Local government delays stymie franchise growth

A coffee-chain franchisor has blamed local government for delaying network growth, claiming that site approval processes are “childish”and “antiquated”, and system growth would occur at twice its current speed if local government processes were streamlined. Read more

Marital spat causes courtroom franchise dispute

The breakdown of the marriage between tyre franchisor Bob Jane and his former wife has led to claims her two Bob Jane franchises were terminated as punishment, the Victorian Supreme Court heard recently. The case also involves allegations that Laree Jane had up to 41 credit cards and was an “extravagant spender” who drained her franchises’ bank accounts because she could not live within an $800,000 per year allowance during her marriage, according to a media report.  Read more

Franchisor reviews background of franchise employee

The Bank of Queensland will review the history of an employee of one of its franchises who has been charged with giving financial advice without a license and promoting the failed Westpoint scheme of investments prior to his employment with the bank. The employee, who has worked for the Castle Hill franchise for the last six months, faces three charges brought by the Australian Securities and Investments Commission for illegal advice provided between 2003 and 2005. He was also a director of a lending company which collapsed last year owing creditors $5million. The employee’s wife also works at the bank branch . Read more

Franchise perfection is a journey, not a destination

The two recent inquiries into franchising conducted by the governments of Western Australia and South Australia have again raised the prospect of further legislation for franchising, with both inquiries suggesting improvements that would require federal government endorsement.

A number of the recommendations from these inquiries were not new to the sector, and in some cases repeated recommendations by previous inquiries or submissions to previous inquiries.

Yet irrespective of the extent and nature of these recommendations, it would be fair to say that the inquiries summarised that franchising isn’t perfect. This should not be a relevation to the franchise sector or its observers, and in fact directly reflects one of the key attributes of franchising itself – that perfection in business is a journey, not a destination. Read more

Excellent turnout for Ex-Factor seminars

More than 140 people attended the recent seminars on the controversial topic of “How to stop ex-franchisees destroying a system” held in Brisbane, Sydney and Melbourne this month. The seminars, presented by Franchising Australia Survey author Professor Lorelle Frazer from Griffith University and Franchise Advisory Centre director Jason Gehrke, discussed issues of brand piracy, franchisee activism and systemic issues to address in order to maintain positive ongoing relationships with franchisees. The seminar coincided with the launch of the Asia Pacific Centre for Franchising Excellence, an initiative of Griffith University. Read more

Oil money fuels Middle East growth for Burger Fuel

New Zealand-based gourmet burger franchise Burger Fuel, which listed on the stock exchange last year by issuing prospectuses over the counter to its customers, will now expand into the Middle East after recently signing a master franchise agreement for Dubai and the United Arab Emirates. Read more

Other franchise news:

- Harvey Norman share price rise on upgrade;

- Pizza Capers goes for growth; plans to double to 50 stores by end 2008;

- Parmalat joins with partner to bid for Dairy Farmers;

- Comment invited on proposed Treasury regulations to charge for valuations for private rulings;

- Starfish Earrings doubles store network;

- US boom in meal-assembly franchises ends - Struggle to survive begins;

- McDonalds staff retention program to redefine “McJob” perception;

- Future Leadership award cheers Happiness Institute;

Franchise Appointments & Departures:

Cartridge World has appointed Joy James as senior vice president of business development.

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FRANCHISE JOBS

Positions Vacant:

Franchise Development Manager - NSW

Bakers Delight is Australasia's largest retail bakery chain, which consists of over 700 bakeries throughout Australia, New Zealand, Canada & America. An exciting opportunity exists for an experienced sales and recruitment specialist to join the Bakers Delight operations team in NSW. You will be responsible for the sale of existing bakeries and for the recruitment & selection of future Bakers Delight franchisees. You will be part of the National Franchise Development Team and will contribute to the success of Bakers Delight in NSW.

To be successful in this role you will have a proven track record in sales & recruitment along with a well developed ability to create and sustain long term relationships.

For more information, please contact:

Kellie Rose’Meyer – Group Franchise Development Manager – 03 9811 6114 or email . Please visit www.bakersdelight.com.au.

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A high-level candidate seeks appointment with a SE Queensland-based Franchisor.  With general management, senior executive and board experience, this person is engaged in national Franchise Management and responsible for:

- managing Franchisor/ee relationships and communication

- documentation and compliance with the Code;

-  training and development including internal coaching

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This person has a high level of written and oral communication and presentation skill, is commercially astute, a strategic thinker and able to engage at a very senior level as well as direct staff and relate effectively with Franchisees. Email or phone (07) 3716 0400 for more information.

Franchising Mentor. 25+ years experience

Available to mentor start-up, growing and mature systems. Litigation avoidance and understanding of franchisee issues. Email or phone (07) 3716 0400 for more information.

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