Body Shop founder Anita Roddick dies at 64

Anita Roddick, the charismatic founder of environmentally-friendly beauty product chain The Body Shop, died of a brain haemorrhage early this week at the age of 64. Ms Roddick, who was made a Dame of the British Empire in 2003, started her international chain in Britain in 1976. Today, The Body Shop has more than 2000 outlets worldwide and is now owned by French cosmetics giant L’Oreal. Ms Roddick was not only a pioneer of environmentally-friendly business practices, but also built one of the first major international non-food franchises and was an inspiration and role model to many businessmen and women. Read more 1

Ms Roddick was reknown for her dedication to social causes, particularly the environment, and created a new wave of interest in philanthropy among small to medium-sized businesses. Read more 2

Retail Food Group bids up to $88 million for Michel’s Patisserie

Less then four days after mopping-up the few outstanding shares to complete its acquisition of the 320-strong Brumbys bakery chain, listed franchisor Retail Food Group (RFG) last week announced a bid for Michel’s Patisserie, valuing the 340-strong cake retail franchise at up to $88 million. The deal is expected to be completed in early November, and will result in a network of bakeries, cafes, donut and cake shops with more than 1,000 stores in Australia, making RFG one of the country’s largest franchisors. The conditional $50 million cash and scrip agreement to buy Michel’s includes an incentivated earn-out clause which could raise the total price to $88 million. The management team of Michel’s will remain as part of the deal, with RFG not ruling-out additional acquisitions once the deal is completed. Read more 1   Read more 2

Bendigo approved for Adelaide takeover, Bank of QLD looks elsewhere

Approval for Bendigo Bank’s takeover of Adelaide bank has been approved by the competition regulator, the Australian Competition and Consumer Commission.  Read more 1

Bendigo Bank had been the subject of a takeover bid by Bank of Queensland earlier this year, but rejected the offer due to a perceived incompatibility between the two organizations, both of which operate franchised branches. Bank of Queensland has since announced it will continue to look at other acquisitions, and now plans to merge with Home Building Society in a deal worth $592 million.  Read more 2

Oz McCafe’s dominate McDonalds internationally

McCafe's are an Australian innovation that McDonalds have successfully introduced to Germany, and now Japan. However Australia still has more McCafe's than any other country (406) after they first appeared 20 years ago, and were exported by McDonalds' former Australian CEO, Charlie Bell. Read more 1  McDonalds same stores sales have also increased by six to eight percent in August due to the performance of McCafe’s, longer opening hours, new menu items and healthier food choices. Read more 2

Sale rumours for auto repair franchise

Auto repair franchise Midas is reported to be considering a sale to West-Australian based chain Automasters, according to an article in online news service Smart Company. Read more

Caltex unveils new Star Mart image

In a bid to grow its share of the convenience retail market, Caltex this week unveiled the first of its new Star Mart concept stores in Sydney, featuring a new-look fit-out and new product offerings. Read more

Health Minders is in the Zone

The 130-strong Health Minders chain of Healthy Life stores and DVC franchises has been acquired by listed health retailer Healthzone in a deal worth $12 million. Read more

More than money motivates performance

Ever wondered why some employees respond better to financial incentives than others? Or wondered why some franchisees are satisfied with returns that would be considered too low by others? The answer is that money alone is not enough to motivate people, and in some cases can actually be a disincentive. Behavioural psychologists believe that money erodes intrinsic motivation by externalizing control, reduces a sense of appreciation, and dilutes the opportunity to be seen as a role model. Read more

ACCC lodges retail leasing submission

The Australian Competition and Consumer Commission (ACCC) has weighed into the current Productivity Commission’s Retail Leasing inquiry with a submission of its own, outlining the Commission’s competition concerns and overviews complaints received about retail tenancies. The 51-page submission, lodged last week, can be viewed online by clicking here.

A recent report by Inside Retailing Online speculated that the Productivity Commission would move to establish a national retail lease database, a recommendation that has appeared in a number of submissions to the review. Read more. The Productivity Commission’s initial report on the retail leasing review is due later this month.

Poll Results: How will the changes to the Code affect your system?

Eighty percent of respondents to last issue’s online poll expect that the changes to the Franchising Code of Conduct will result in a large change to their business and cause delays in recruitment, as well as require a reworking of head office procedures. The remaining 20% of respondents said the Code changes would have a small impact on their business requiring extra administrative work. No respondents supported the notion that the changes would have no impact and it would be business as usual. To see the Code changes, which come into effect from March 1 next year, click here.

Online Poll: How motivated by financial returns are your franchisees?

Every employer and franchisor has experienced it at some time: staff don’t respond to financial incentives, and franchisees often don’t go the extra mile to maximize the profit potential of their business. So how motivated are franchisees by financial returns? Vote now in our online poll.

Financial benchmarks & KPI’s essential for franchisees

Becoming your own boss might be the key factor for many people in deciding to buy a franchise, but it’s the profitability and financial performance of the business that provides real outcomes for franchisees according to financial benchmarking and profit specialist David Campbell. And while the business model is important in determining profitability, it is often the franchisees themselves that are their own worst enemy in achieving a healthy bottom line. Read more

Financial Benchmarking and KPI’s seminars will be held next week in Melbourne (Sept 19) and Sydney (Sept 20). For more information, click here.

Online BAS lodgements available in 2010

Small businesses will be able to lodge their BAS statements and other government-required business and company reports via a centralized online system by the middle of 2010. Read more

First Introduction to Franchising course for Gold Coast

The first Introduction to Franchising course to be held on the Gold Coast, one of the most highly-concentrated areas of franchising activity in Australia, will be held on October 9. The full-day course presented by the Franchise Advisory Centre in conjunction with Griffith University, provides fundamental knowledge about the franchise sector in Australia, best practice in franchising and the regulatory environment. It is designed for new franchisors and master franchisees, as well as staff of established systems who are new to franchising. Read more

Free seminars: Reducing franchisor risks from franchisee IR misconduct

Recent high-profile media reports and investigations by the Workplace Ombudsman have revealed that inappropriate and illegal employment practices by franchisees under new Industrial Relations laws can have significant consequences for public confidence and integrity of their franchise brands and the franchisor entity itself. These seminars will look at the obligations of franchisors to the employees of franchisees, and what are the main employment law issues franchisee employers should be aware of. Click here for dates and locations

Pizza franchise and ad agency relationship hell-bound

New Zealand-based Hell Pizza, famous locally for its outrageous and controversial advertising that has included a condom letterbox campaign and using images of Adolf Hitler, has split with its longstanding advertising agency Cinderella amid claims that the pizza chain’s new marketing campaign is too conservative. Read more

Other franchise news:

- Starbucks found dies at age 87;

- Blue Chip Financial Solutions to franchise all NZ operations;

- Boost Juice restructure complete; ready for growth and acquisitions;

- 400,000 small businesses to suffer if unfair dismissal laws are extended;

- Flight Centre founders to retain control after failed private equity bid;

- Australian Geographic joins Myer stable;

- Yarra Valley Farms goes high-tech in fruit and veg delivery;

- Noodle Box opens in WA;

- Berkelouw Books competes with Dymocks and Angus & Robertson in Borders sale;

- The Athlete’s Foot to rebrand internationally;

Franchise Appointments & Departures:

- Kleenmaid have appointed former RAMS executive Andrew McNair to the position of National Franchising Manager.

- Oporto have announced the resignation of National Operations Manager Jamie McKaughan after four years in the role.

- Mortgage Choice has announced the promotion of Ross Hardcastle from Queensland Franchise Development Manager to State Manager for Victoria and Tasmania.

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Franchise Jobs:

PoolWerx have a position vacant for a Legal Officer (paralegal) at its national office in Taringa, Brisbane. The job involves the preparation and tracking of franchise agreements, as well as lease and intellectual property management. Email Victoria Rogers for more information at .

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