Franchises likely to feature in government audit of workplace agreements

Approximately 10,000 fast food and juice businesses around Australia – many of them franchised -  will be audited by the Workplace Ombudsman in the wake of last week’s apology by Bakers Delight to the staff of one of its franchisees who had been forced to sign unfair workplace agreements (AWA’s). Staff at the Bakers Delight Kareela franchise in Sydney’s southern suburbs, were told by their franchisee that they had to find replacement staff to fill a shift if they were sick and unable to work, or else “loose (sic) your job”.  Read more 1

The Workplace Ombudsman announced this week it would audit 10,000 fast food outlets and juice bars, most of which are likely to be franchised, and pay specific attention to the lawful entitlements of young employees, as well as the protection of their rights when making workplace agreements. Penalties for non-compliance include payment of outstanding entitlements, breach notices, and fines of up to $33,000 per breach. Franchisors concerned about the implications of non-compliance in their systems are encouraged to review the industrial relations sections of their operations manuals.  Read more 2

Seminars to help franchisors understand and manage their obligations and risks in relation to their franchisees’ industrial relations practices are currently being planned by the Franchise Advisory Centre in conjunction with national law group Dibbs Abbott Stillman. For notification of details about these events, click here to register your interest.

Cartridge World sold to private equity and management

Cartridge World founders Bryan Stokes and Paul Wheeler have sold an 80% majority stake in the international cartridge refilling franchise for an estimated $60 million, according to a report in today’s Australian Financial Review. The deal is the latest in private-equity backed system acquisitions this year, including the sale of pizza franchise Eagle Boys several months ago. Cartridge World had been in discussions with a US-based private equity fund, but withdrew in favour of an offer from Australian-based Wolseley Private Equity, in conjunction with Cartridge World’s senior management team.

Retail leasing inquiry submissions closed

Submissions to the federal government’s Productivity Commission inquiry into the market for retail tenancies have now closed, with submissions reported to have been received from more than 100 individuals and organizations. Of these, nearly 70 submissions are already listed online at the inquiry’s website, with almost 20 of these showing the complete submission. Approximately 10% of submissions listed to date are from franchisors, with the balance coming from individuals, business groups and property interests. The inquiry’s draft report is due late next month, with the final report scheduled for delivery by Christmas.  Inquiry details  List of submissions

Kwik-E-Mart conversion doubles 7-Eleven sales

Converting 7-Eleven stores in the United States to Kwik-E-Marts to tie-in with the release of The Simpsons movie has doubled sales in the 12 participating outlets, according to news reports. Fans of The Simpsons have rushed stores to buy Squishees, KrustyO’s cereal, Buzz Cola and Radioactive Man comic books in a unique reverse product placement promotion that takes fictional products from The Simpsons movie and television show, and turned them into real products – albeit only for one month. More than 3.4 million items of Simpson merchandise had been sold through 7-Eleven stores with a week of the promotion still to run.  Read more

Free education seminars for potential franchisees

Free education seminars for potential new franchisees will be held in Brisbane later this month. The seminars on August 22 and 29, will inform participants about what they should know before buying a franchise, what to expect as a franchisee and the Franchising Code of Conduct. The seminars are an initiative of the Australian Competition and Consumer Commission (ACCC) and will be presented by the Franchise Advisory Centre. Franchisors are encouraged to recommend the seminars to their prospective franchisees as part of their research and due diligence process.  Read more

Dymocks bids for Borders

Cashed-up after the recent sale of its Sydney CBD head office building, Dymocks is reported to be one of two book chains currently bidding for the Australian and New Zealand outlets of US-based Borders, which announced its withdrawal from international markets last month. The other bidder is reported to be Angus & Robertson, although Woolworths is also rumoured to be showing interest as well. Read more

NZ franchisors embrace financial benchmarking

A record attendance at a recent seminar in Auckland demonstrated that New Zealand franchisors have embraced the concept of financial benchmarking and key performance indicators as necessary tools for franchise system owners and managers. The seminar, organized by the Franchise Advisory Centre and presented by Avatar Business Navigators and Lavis Melin Taylor, drew a sell-out crowd of more than 40 to learn about improved methods to manage and monitor franchise system performance. The Financial Benchmarking & KPI’s for Franchisors and Franchisees seminar will next be held in Sydney and Melbourne in September, before returning to New Zealand in October. Read more

Pack & Send set for UK

Australian packaging and freight franchisor, Pack & Send, has announced its expansion to the United Kingdom with the appointment of a UK master franchisee. The system currently has 77 stores in Australia, and expects the UK market to sustain up to 240 stores over the next 15 years.  Read more

Capital gains tax for NZ?

Amid speculation that the Reserve Bank of Australia will soon lift interest rates, the Reserve Bank of New Zealand (RBNZ) has suggested that capital gains tax should be introduced to help control inflation. Unlike Australia, New Zealand does not currently have a capital gains tax, however in a submission to a parliamentary inquiry, the RBNZ suggested that a capital gains tax could help control monetary policy without distorting the economy. A capital gains tax would have wider implications for the franchise sector in New Zealand with franchisees expecting to profit from the sale of their businesses.  Read more

Burger Fuel IPO runs out of gas

An initial public offering by New Zealand-based food franchise Burger Fuel raised only about a third of the target amount, even after a one-week extension. The share offer raised NZ$5.25 million, well short of the NZ$15 million target and $2.75 million short of the minimum NZ$8 million required for the offer to proceed. However under a guarantee, Burger Fuel’s directors will buy NZ$2.75 million worth of shares to reach the $8 million minimum to ensure the offer proceeds. The company will list on the NZAX following its IPO, which was promoted over the shop counters of its burger outlets to customers.  Read more

BSR buoyant about Betta future

Electrical retail franchise BSR, which acquired the Betta Electrical and Chandlers brands after the collapse of Betta Stores Limited (BSL) last year, is buoyant about its future following a highly positive national conference, the announcement of a new five-member board, and a greater than expected profit.  Read more

Poll Results: Why do franchisees leave your system?

A third of respondent’s to last issue’s poll “Why do franchisees leave your system?” indicated that an insufficient return on investment was the main reason. Other factors that were also ranked equally included poor job satisfaction, and a poor relationship with the franchisor team.

Online Poll: What do franchisees do after leaving your system?

This issue’s online poll looks at what franchisees do after leaving a franchise system. Do they buy an independent small business, buy a franchise in another system, return to the workforce, or retire? Vote now in our online poll.

Franchisee motivation differs with age

A recent survey of prospective franchisees found that franchisee motivation differs according to age, with Generation X and Y franchisees more focused on lifestyle, while Baby Boomer franchisees are more interested in money. The independent survey, commissioned by Mortgage Choice, found that income potential and improved lifestyle were the two main motivators for self-employment through franchising.  Read more

Retail homemaker database launched

Site selection specialists Spectrum Analysis have developed a database of 140 homemaker centres and retail strips around Australia, including weightings to score centres according to the drawing power of their key tenants.  Read more

Tattersall’s wins ACCC approval for Golden Casket takeover

The Australian Competition and Consumer Commission (ACCC) will not stand in the way of gaming firm Tattersalls’ $530 million takeover of Golden Casket, however the merged entity will be required to divest itself of one subsidiary in order to maintain a competitive market. Read more

Contempt of court proceedings against former franchisor

Former Little Joe’s snack franchisor, Bon Levi, has had proceedings for contempt of court instituted against him by the Australian Competition and Consumer Commission (ACCC). Levi is alleged to have breached court orders made against him in February 2005 which prevented him from selling business opportunities without running the business successfully for at least six months, and providing information to buyers about the orders, his business experience and aliases by which he has been known.  Read more

Other franchise news:

- Home Instead Senior Care partners with Alzheimer’s Australia for dementia care training;

- Lenards’ pink cooler bags raise funds for The Cancer Council for Pink Ribbon Day;

- Signwave opens first WA store in Perth;

- Laserquit stops smoking;

- Cash Converters raise profit result;

- Free range chickens rule at The Poultry Place;

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