Franchise inquiry submissions available online

Submissions to the Federal Government’s current inquiry into franchising are being uploaded to the Inquiry website as they are received and vetted. Currently 37 of 45 submissions reviewed to date have been uploaded and are available to view in PDF format. Confidential submissions are not uploaded, and identifying names of third party individuals or brands are concealed in those submissions which include allegations of misconduct. It is understood the inquiry has received up to 100 submissions. The Parliamentary Joint Committee on Corporations and Financial Services Inquiry into franchising is due to be completed by December 1.  Click here for inquiry details 

Ombudsman investigates claims of foreign worker exploitation

The Workplace Ombudsman is investigating claims that foreign students are being paid as little as eight dollars per hour, and are required to work unpaid “trial” periods and 12-hour shifts in some convenience retail franchise stores. Read more 

Ex-franchisees urge Federal Police investigation

Former Bakers Delight franchisees in Western Australia have backed calls by two Federal MP’s for an investigation by the Australian Federal Police, according to an online news service. Unsatisfied by an earlier ACCC investigation which cleared Bakers Delight of any wrongdoing, the franchisees have lobbied federal politicians Don Randall and Joanna Gash to pursue the issue, resulting in a recent parliamentary debate on a private member’s motion to further regulate the franchise sector.  Read more 

New Zealand franchise inquiry open for submissions

The New Zealand government’s inquiry into franchising has opened for submissions, with a website providing full details of the inquiry including the Ministry of Economic Development’s 35-page discussion document which canvasses three options: To maintain the current, unregulated environment; To bolster education efforts in the franchise sector, particularly for prospective franchisees; or to introduce franchise-specific legislation. Submissions to the NZ inquiry close on November 21. Click here for details of the inquiry. 

Blue Chip investment scandal costs franchisees & investors dearly

The fallout from the failed Blue Chip property investment franchise chain, continues to reverberate in New Zealand, where franchisees and investors face the prospect of bankruptcy or losing their homes under crushing debts.  Read more 

Nothing angelic about this franchisor

Don’s Dirty Dog Wash is now open for business and advertising for franchisees. ABC comedy series Very Small Business sends up the worst of franchising by showing dodgy Don Angel’s latest get-rich-quick scheme – a mobile dog wash franchise started without any pilot operation, manuals, or anything to make the business viable. See Very Small Business, ABC1, Wednesdays at 9.30pm. Read more 

Krispy Kreme investors fall out

A key investor in the Australian operations of US-based doughnut chain Krispy Kreme has written down its $18 million investment to nil, at a time when fellow investors are looking to inject more capital into the business. Souls Private Equity has written-off its entire investment in Krispy Kreme Australia (KKA), blaming the opening of 25 stores recently for putting KKA’s cash flow under “considerable stress”.  Read moreMeanwhile in the United States, where Krispy Kreme has struggled to maintain earnings and has seen its share price crash by more than 90%, the chain has announced plans to introduce soft-serve ice cream to appeal to a wider range of customer tastes and halt flagging sales.  Read more 

Woolies coy on purchase of Mitre 10

Woolworths have emerged as a potential buyer for hardware franchise chain Mitre 10, which has indicated it plans to restructure and raise capital in order to compete more effectively with Bunnings.  However Woolies is not yet ready to reveal its level of interest, while financial analysts believe Metcash is an “obvious” buyer. Read more1  Read more 2  Read more 3 

Electrical rental franchisor joins retail buying group

Whitegoods and appliance rental franchise Mr Rental has joined the BSR Group’s Betta Buying Association to improve its buying power and access to a diverse range of products. BSR is the franchisor of Betta Electrical stores around Australia.  Read more 

Better educated franchisors attract better franchisees

Education alone may not be a determinant of business success, but it can be an essential element in the overall combination of factors that come together to plan, launch and sustain a profitable financial enterprise. Not surprisingly then, a commitment to ongoing professional development and educational qualifications are commonly used by franchisors as selection criteria to assess the likely future chances of success of potential franchisees.But by the same token, why should franchisees invest in franchisors that aren’t prepared to invest in themselves?  Read more 

Kenny’s opens in NZ with company stores

Specialty card retailer Kenny’s Cardiology has opened six company-owned stores as its first step to build a network of 30 outlets in New Zealand. Kenny’s, a system owned by ASX-listed multi-brand franchisor Allied Brands, says the expansion into company-owned stores first gives potential franchisees in NZ a chance to look at the franchise in action before considering buying one.  Read more 

Books printed while you wait

A machine which prints and binds books while customers wait has been launched at Angus & Robertson’s Bourke Street store in Melbourne. The machine was named by Time Magazine in 2007 as one of the Inventions of the Year, and takes only a few minutes to print and bind a paperback book. With more and more titles available electronically, the Expresso Book Machine can potentially expand a book retailer’s inventory (particularly for out-of-print books) without increasing holding or floorspace costs.  Read more 

New franchisor proud to announce its products are a health hazard

A new burger store concept called Heart Attack Grill that features menu items such as the Double Bypass Burger and Flatliner Fries, served by curvaceous female staff in skimpy nurses uniforms has opened in Phoenix, Arizona. With the slogan, “A taste worth dying for” and a company policy of referring to customers as patients, the burger store is already advertising for franchisees, and has featured on television news coverage around the world. Read more 

Disclosure document update due next month

Annual updates to franchisor disclosure documents are required by October 31. Changes to the list of current and past franchisees, details of litigation, marketing fund expenses and franchisor financials or auditor statements are key areas to be updated. Click here for the latest copy of the Franchising Code of Conduct and it’s disclosure requirements. 

Gehrke nominated in Franchise Council board election

Franchise Advisory Centre director and Franchise News & Events publisher Jason Gehrke has nominated for a position on the board of the Franchise Council of Australia (FCA). An 18-year veteran of franchising at franchisee, franchisor and advisor level with a long list of credentials to his name, Gehrke seeks to bring new energy to the FCA board and a fresh vision for the challenges that lay ahead for the franchise sector. FCA members will shortly receive voting papers for this election.  Read more 

Acknowledgement of support

The Franchise Advisory Centre wishes to publicly acknowledge the support of law firms Hall & Wilcox (Melbourne), Dibbs Abbott Stillman (Brisbane), and Thomson Playford Cutlers (Sydney) for their assistance with recent education programs.-          Hall & Wilcox Lawyers (www.hallandwilcox.com.au);-          Dibbs Abbott Stillman Lawyers (www.daslaw.com.au);-          Thomson Playford Cutlers (www.thomsonplayfordcutlers.com.au).

Other franchise news:- Listed real estate group merges with Century 21;- Big decline in NZ Pizza Hut sales;- Just Group considers franchising to expand its stable of fashion labels;- Barbershop franchises go upmarket;- Free porn featuring retail staff on mobile phone;- Australian appointed as director of World Intellectual Property Organisation;- Eagle Boys adds international chef to its menu:- Mediation costs an issue for cash-strapped franchisees; 

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