No regulation for shopping centres: Retail Lease inquiry draft report

The Productivity Commission’s long-awaited draft report of its inquiry into the Market for Retail Tenancy Leases has recommended that no additional regulation for shopping centres is necessary. The recommendation is bound to spark further controversy over the issue, with many retailers and franchisors claiming that shopping centres must be regulated to reduce their market power and ability to influence the viability of their tenants’ businesses.

The draft report, released on December 13, also recommends greater consistency in state and national leasing regulation (but not a tightening of regulation), improved accessibility, transparency and consistency of tenancy and leasing information, and that an improved definition of unconscionable conduct is necessary. The 271-page report is available online by clicking here.

Public hearings for the inquiry will be held in February 2008, and provide participants with an opportunity to talk to their submissions, discuss issues with the inquiry Commissioners, or observe proceedings ahead of the final report being presented to the government in March.

Both the Franchise Council of Australia and Australian Retailers Association have expressed dissatisfaction with the draft report, claiming that regulation of shopping centre landlords is needed.  Read more

WA franchise inquiry issues paper now online. Submissions due Feb 15

A background issues paper for the Western Australian state government’s franchising inquiry has been released, with the deadline for submissions to the inquiry set for February 15, 2008. The background paper outlines the legal environment for franchising, and raises key issues for consideration along the inquiry’s terms of reference, which include existing state and federal legislation, any patterns of unconscionable conduct, remedies available to franchisees, existing practice in Australia and overseas on unconscionable conduct and renewal of licenses.

The issues paper, released on December 18, raises 10 discussion points for submissions to consider that examine the franchise relationship before, during and after the term of a franchise agreement.

To view the issues paper, click here.

VIC Small Business Commissioner puts spotlight on franchises

The Victorian Small Business Commissioner (VSBC) Mark Brennan has thrown a spotlight on franchises in his 2006/2007 report released recently, with an increase in the number of franchise complaints to bring the sector under closer scrutiny in future. “Complaints dealt with by the VSBC during this period concerned allegations as to misrepresentations as to turnover, unconscionable conduct such as failure to negotiate, and failure to agree to mediation,” states the report. “Whilst it is not appropriate to characterize this increase (in complaints) as an emerging market trend, the VSBC will take a keen interest in future franchising matters.”  Read more

Field Support workshop discount registration ends tomorrow (Dec 21)

Improving franchisee performance can be a challenge for any franchisor, but often the best way is to increase the effectiveness of front line field support personnel. A highly successful two-day workshop already attended by more than 140 franchise brands will be held in most capital cities in February 2008. Registrations received by December 21 qualify for an extra discount of 10%.  Read more

Borders merger review delayed

The Australian Competition & Consumer Commission (ACCC) has delayed its releasing its view of the proposed acquisition of Borders by Angus and Robertson until January 30. (The previously advised date was December 19). The ACCC’s statement of issues in relation to the merger of the two franchised book chains is available online. Click here for more information.

Gloria Jeans to open in India

Gloria Jeans has announced a deal to open up to 10 coffee houses in India in the next 12 months, with two due to open in Mumbai in January. The chain currently has 784 coffee houses in 28 countries worldwide, with stores opening this month in Pakistan, Ukraine and Germany.  Read more

Share crash for shopping centre group

Australia’s second-largest shopping centre owner has had nearly 80% wiped off its share value this week after revealing difficulties with debt facilities affected by the subprime crisis in the United States. Centro Properties Group maintains it is solvent and will trade on, but must refinance $3.9 billion of debt by February 2008. Read more 1. Meanwhile other property groups, including Westfield are poised to buy Centro’s assets if it is forced into a fire sale.  Read more 2

Burger Fuel loses $1m in three months since float

New Zealand based franchise Burger Fuel, which earlier this year launched a public offering to fund its franchise expansion, has posted a NZ$1.3 million loss since floating three months ago, and expects to continue to lose NZ$50,000 per month while it opens further stores.  Read more

The secrets of negotiating good retail leases revealed

Learning how to negotiate the best leasing deal on commercial and retail properties, and managing leases for individual outlets or entire networks will be the subject of a new full-day education program to be introduced in 2008. The seminar is particularly relevant and timely given the recent release of the Productivity Commission’s draft report on retail leasing, and complements the popular seminars on Franchise Site Selection. The first Property Leasing – Negotiation & Administration seminar will be held in Brisbane on Friday, February 29.  Click here for more information.

Government-subsidized business mentoring available for franchisees

Franchisees can access government-subsidized assistance to review the performance and health of their business, and to provide key recommendations on how to improve marketing, turnover and profitability. The program, which provides a business owner with three hours of one-on-one contact with an experienced and qualified business mentor, costs just $250, with the subsidy covering the rest of the mentor’s costs. Participants receive a detailed business health check report and may qualify for further subsidized mentoring. For more information, or contact the Franchise Advisory Centre on 07 3716 0400.

Franchise Council appoints outsider to lead role

The Franchise Council of Australia has appointed a newcomer to the sector as its new executive director. Communications and lobbyist executive Steve Wright, a former public relations manager for telecommunications companies including Telstra, Optus and Hutchison, will commence in the new role on January 8, 2008. He replaces former chief executive officer Richard Evans who left in October.   Read more

Former small business minister holds seat

Former small business minister Fran Bailey has held her federal seat of McEwen by just 12 votes following an Australian Electoral Commission recount in what is the second-closest winning margin in Australian electoral history. After initially trailing by six votes on the first count, the Liberal Party requested a recount which revealed some misplaced votes, and others declared informal that were formal. The smallest ever winning margin was just one vote in the seat of Ballarat in 1919.  Read more

Comment: Uncertain times ahead for franchising in the Year of the Rat

2008 will be the Year of the Rat, according to the Chinese zodiac, and while rats may not be appealing little creatures in Western society, the Chinese zodiac accords them with the characteristics of wit, spirit, alertness, delicacy, flexibility and vitality. Furthermore, people born in the Year of the Rat are usually smart and willing to accumulate wealth and be successful, as well as live harmoniously with others.  These Chinese star sign characteristics could equally be applied as desirable characteristics of both franchisors and franchisees, and with uncertain times ahead for the sector in 2008, are probably more relevant than ever.  Read more

Merry Christmas from Franchise News & Events

Franchise News & Events would like to wish all readers a very happy and safe Christmas and prosperous New Year. We will return early in the New Year with more news and information about trends, issues and events in franchising in Australia and overseas.

Christmas closure: Please be advised that the Franchise Advisory Centre’s office will be closed from 5pm, Friday December 21, and reopen on Monday, January 14, 2008.

Other franchise news:

- Jones the Grocer opens in Singapore;

- H&R Block US losses from subprime meltdown larger than expected;

- Drummond Golf acquires additional stores in Brisbane & Adelaide;

- Treasurer calls for budget input from community;

- University of Wollongong unveils Master of Retail Management course;

Franchise Appointments & Departures:

The Franchise Council of Australia has appointed Steve Wright as Executive Director (see story above);

Helen Rogerson has joined The Coffee Club as Learning & Development Manager.

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

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Franchise Jobs:

Learning and Development Executive – PoolWerx

An opportunity has arisen for an ambitious Learning & Development Executive to join the dynamic PoolWerx leadership team.

The exciting opportunity will see the incumbent developing and delivering educational solutions across PoolWerx’s domestic framework and soon to be launched international operation. With some 3000 staff planned across Australia & New Zealand, the challenge will be providing training and learning solutions as well as state of the art technologies for Human Capital improvement across the group.

We are seeking an outstanding Learning & Development Executive. Ideally candidates will possess ‘large corporate/learning experience’ and be appropriately qualified in providing learning solutions and preferably within a franchise oganisation.

For more information on this position, contact:

Victoria Rogers, Ph: 07 3217 7111 or (website: www.poolwerx.com.au)

Office Manager – Franchise Advisory Centre

The Franchise Advisory Centre is looking for a part-time/casual office manager to commence in January 2008. Experience in general administration, event management, and data entry and database administration will be highly regarded, along with excellent time management, organisational and computer skills. Hours are by negotiation and can be school-friendly to suit working parents.

For more information, contact:

Jason Gehrke, Ph: (07) 3716 0400 or (website: www.franchiseadvice.com.au)

Do you have a job vacancy in your system and need to get word to potential candidates already working in the franchise sector? details to Franchise News & Events for inclusion in our fortnightly e-bulletin. (Cost applies – Contact us for details).