Franchise Council of Australia

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Franchising

  • COVID-19 is presenting unprecedented challenges to franchise businesses, and the Franchise Council of Australia (FCA) is absolutely focussed on doing everything possible to support members through this period.

    This includes:

    • Proactively engaging with government and advocating on the key issues that are affecting members.
    • Participating as a member of the Federal Department of Treasury’s Coronavirus Business Liaison Unit, which has been formed by the Government to engage with peak business groups on systemic issues relating to Coronavirus.
    • Advocating for immediate cash relief and assistance for small businesses and retailers in commercial leasing arrangements.
    • Working closely with our expert partner, ER Strategies on providing advice to our members on best practice management of staff in response to COVID-19.
    • Delivering regular updates including best practice advice and resources to assist members on a day-to-day business level.

    The FCA will continue to provide resources, representation and ongoing support to members during this pandemic.

  • The bushfires that spread across large areas of Australia at the start of the year devastated countless individuals, communities and businesses. The franchise sector generously showed its support for bushfire relief efforts, raising money and donating goods and services to assist those affected by the fires.

    Foodco’s fundraising efforts resulted in more than $90,000 being raised for charity.

    Muffin Break’s commitment to donate $1 for every lamington product sold during January raised more than $65,000 to support the Australian Wildlife Rescue Organisation (WIRES) in rescuing and caring for the innocent animals caught in fire-devastated areas.

    Sales of 21,297 lamington products during January were matched with a dollar for dollar donation from Muffin Break’s parent company, Foodco, with more than $12,000 raise from in-store donation boxes and a further $10,000 donated by Muffin Break’s partner, Darrell Lea.

    Jamaica Blue also raised $13,003 from fundraising efforts, with parent company Foodco also matching the amount, to support Australian Red Cross disaster relief efforts.

    The Tabcorp Group, through FCA member The Lott, raised $1.8 million towards bushfire recovery and relief efforts through their Saturday Lotto Bushfire Benefit Draw on 25 January.

    FCA members including McGrath Estate Agents, Ray White, RE/MAX Australia and Harcourts Australia came together as part of the Beyond the Bricks real estate industry initiative to support bushfire affected communities, raising more than $1 through the campaign.

    Gelatissimo raised almost $50,000 for the St Vinnies Bushfire Appeal by donating $1 from every scoop sold on 18th January across their 48 stores and committed a further $50,000 to support Vinnies Australia in in assisting communities to recover and rebuild.

    Chatime and its franchisees have made a $50,000 donation to the Australian Red Cross. In addition, until 31st March, Chatime will be running a ‘Round It Up’ program across its 124 T-Breweries across the country, allowing customers to round up purchases to the nearest dollar with every cent donated will going directly to the Red Cross to aid the people and the communities impacted by the crisis.

    Fergusson Plarre have created a Gingerbread Firefighter to support the Victorian Bushfire Appeal. All proceeds of from sales of the Gingerbread Firefighters are being donated to the Victorian Bushfire Appeal, with more than 29,000 being raised by the end of January.

    Specsavers committed to donate $100,000 from sales in January to support Australian bushfire relief through the NSW Rural Fire Service, Victorian Bushfire Relief Appeal, SA State Emergency Relief Fund and the Salvation Army Disaster Appeal.

    La Porchetta raised $9765 for the Victorian Bushfire appeal through donating $1 from every pizza sold on 11th-12th January.

    Helloworld h donated 10 truckloads of hay (2000 bales) and 575,000 litres of water through the Buy a Bale charity, helping farmers impacted by the drought and bushfires.

    Bakers Delight raised over $225,000 to support those affected by the bushfires through initiatives including: donating $1 from every 6-Pack of Hot Cross Buns sold to the Australian Red Cross Disaster Relief and Recovery Fund from 16-29 January, matched dollar-for-dollar from head office. Bakers Delight also provided bread and snacks to firefighters, volunteers, evacuees and animals in affected areas and donated bread to bushfire relief fundraising events.

    PACK & SEND recently made a donation of $10,000 to the Vinnies Bushfire Appeal and further donations have been made by PACK & SEND franchisee partners.

    McDonald’s Australia have supported the bushfire appeal by: donating $500,000 to the Australian Red Cross Disaster Relief and Recovery Fund, and matching employee donations; implementing in-restaurant donations; and providing free meals and bottled water to firefighters and community members in impacted areas.

    Quest Apartment Hotels donated of $10,000 to bushfire relief and established a GoFundMe page to encourage further donations from franchisees, suppliers and other stakeholders.

    JAX Tyres customers and store teams around the country helped to raise over $75,000 for the Red Cross Disaster Relief and Recovery Fund. In January through donations from tyre sales.

    7-Eleven committed $250,000 to support bushfire relief efforts, allocating this money to the bushfire relief efforts in NSW and Victoria, and for wildlife rescue and rehabilitation across both states.

    Aussie Pooch Mobile Dog Wash donated a bulk quantity of blankets and toys to the Rescue Collective, while Aussie Pooch Mobile groomers washed fire victims’ dogs free of charge, donated money and helped out in any other way they could.

    Nando’s committed $50,000 to Foodbank Australia to help provide food and groceries to those who urgently need them.

    BNI Foundation Australia fundraised to support families with children affected by the bushfires, receiving donations from 10 different countries. The franchise has provided grants to families to help acquire children’s clothes, uniforms, shoes and school supplies so they can get back to school with the essentials.

  • Winner of the FCA’s 2019 Franchisor Social Responsibility Award, Muffin Break, has made an ongoing commitment to sustainability by reducing the coffee cup waste stream.

    “Over five years ago as a team, Muffin Break decided that landfill was not going to be our legacy and we went about finding a partner that would help us change the game in relation to sustainability,” said Natalie Brennan, General Manager of Muffin Break.

    In August 2018, Muffin Break partnered with coffee cup recycling program, Simply Cups, to divert 11 million takeaway coffee cups from Australia’s landfill in an initiative that sees Muffin Break pay to have one cup recycled by Simply Cups for every takeaway coffee or hot drink sold by the franchise.

    In addition, Muffin Break offers a 30-cent discount on coffee for customers every time they bring in a reusable cup for their hot beverage.

    The franchise has also changed from black lids to white lids on their take-away cups to improve recycling outcomes and reduce the impact on Australia’s landfill, as well as removing single-use plastic bags, plastic straws and plastic cutlery and replacing these with more sustainable options across the network.

    Muffin Break has also focused on educating kids on the topic of sustainability by running Little Grower workshops, where children are taught how to plant and care for a seedling which they get to take home at the end of the workshop.

    “Our franchisees have been really behind the whole process of sustainability. They’re the ones who have driven it,” said Brennan.

    “A big thank you to MYOB and FCA this Award but I hope that it might be one of the last awarded. Our hope is that sustainability is not special, it’s just business as usual.”

    Extracted from article originally published in issue 4 of The Franchise Review 2019, the Official Journal of the Franchise Council of Australia.

  • The Franchise Review spoke to InXpress Australia & New Zealand’s Asia Pacific Franchise Development Director, David Wilkinson, to find out how the shipping and logistics franchise uses a transparent sales process to attract and recruit the best candidates.

    According to Wilkinson, implementing a clear, transparent and documents sales process is fundamental to enhancing the brand’s reputation with potential franchisees.

    “The greatest benefit with presenting candidates with a clear and documented process is that they feel comfortable in pursuing information about the brand and business model, without the concern of having signed a binding upfront agreement. Ultimately, the best candidates are the ones that are educated and informed, having taken the right amount of time to do their research and due diligence,” he says.

    “For us it shouldn’t ever feel like a sales process. It should feel like a journey of discovery. The process really puts candidates in the driver’s seat in terms of education and awareness but also allows them to go along on this journey of discovery and start to build a really good understanding of our business model and practices,” Wilkinson says.

    “The biggest concern for many of our candidates is that we’re going to try and sell them something when they’re not ready, or they don’t know enough to decide if this is the right business for them. We can avoid this pitfall by allowing the candidate to enter a process of education and discovery by offering them a clear, transparent and well documented process at the very beginning,” Wilkinson says.

    “Most franchisors will have a franchise sales process which will be documented; however, many don’t share it with candidates as part of the introductory phase. They’re presented with bite sized steps as they progress. My learnings have been that the more transparent we are with our candidates, the better the quality information they will provide us,” Wilkinson says.

    Extracted from article originally published in issue 4 of The Franchise Review 2019, the Official Journal of the Franchise Council of Australia.

  • The Franchise Council of Australia honoured some of the nation’s best and brightest in business at the MYOB FCA Excellence in Franchising Awards Gala Dinner on Tuesday 22 October, with national chocolate store franchise San Churro named the 2019 Australian Established Franchisor of the Year.

    “It means more for our franchise partners and all the hard work and millions of hours that’s gone into the concept over the last 13 years, and we stand on the shoulders of that,” Giro Maurici, CEO and Founder of San Churro said.

    “Thirteen years ago, a franchisee put their life savings in our hands. At the time we were humbled and took that with the utmost respect. Thirteen years and 51 franchise partners later, each one has had the same impact on us and we treat them with the same respect and give everything we’ve got so they can prosper,” said San Churro Director of Operations, Matt Brusi.

    The Australian Emerging Franchisor of the Year Award was taken home by Express Retail Group, the franchisor of the Salon Express and Barbershop Express brands, which currently has 41 salons and barbershops operating across Western Australia and Queensland with a strong focus on expansion.

    “This award is a recognition of what we’ve achieved over the last four years and the importance of our franchisees. It’s recognition they deserve for investing in us, supporting us and believing in a brand that was in its infancy. That’s the true testament to the franchise partnership and we’re really proud of it,” said Express Retail Group CEO, David Boyd.

    A total of 14 Excellence in Franchising Awards, plus the 2019 Hall of Fame inductee were presented on the evening, which was proudly sponsored by MYOB.

Small Business

  • The Franchise Council of Australia (FCA) supports the Federal Government’s plan to provide direct support for small businesses facing unprecedented challenges during the COVID-19 pandemic.

    The Government’s stimulus package provides direct support for business including payments for business, wage subsidies for apprentices and trainees and enhancing the instant asset write-off.

    Providing immediate financial relief to small businesses is vital to support businesses to manage cash flow challenges and retain employees during these times.

    Small businesses can find out more about these support measures by visiting https://www.business.gov.au/risk-management/emergency-management/coronavirus-information-and-support-for-business

  • Bushfires across Australia are affecting many parts of the country. The impact on businesses and communities has been devastating, with many workplaces and individuals affected by the bushfires and smoke.

    There are a number of workplace rights and entitlements for employers and employees affected by natural disasters or seeking to access leave, with a comprehensive list of resources and links available on the Fair Work Ombudsman website, including those relating to:

    1. Leave entitlements
    2. Workplace health and safety
    3. Pay during stand down
    4. Flexible working arrangements
    5. Emergency and useful contacts

    To access this information, click here (external link).

  • The Australian Small Business and Family Enterprise Ombudsman has released a discussion paper, seeking feedback on developing a best practice framework for small businesses facing insolvency and for practitioners managing external administrations.

    “In releasing this discussion paper, we’ve outlined the key pain points for small businesses as well as the challenges for registered liquidators.

    “In the meantime, this discussion paper poses a number of questions we are seeking feedback on, particularly around the transparency of the insolvency process,” said Australian Small Business and Family Enterprise Ombudsman, Kate Carnell.

    Submissions close on Monday 27 January 2020, with the final report due date at the end of March 2020.

    Find out more and view the discussion paper.

  • Consultation on changes to the current Unfair Contract Term protections is now open, with the Treasury seeking submissions from interested parties including small, medium and large businesses through to individual consumers.

    As part of the process, a number of consultation sessions are also expected to be held in Melbourne, Sydney and Canberra.

    Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash, said the consultation will explore options to strengthen the existing protections for small businesses from unfair terms in standard form contracts.

    Submissions will be open until 16 March 2020. For more information or to lodge a submission, stakeholders can visit: https://consult.treasury.gov.au/consumer-and-corporations-policy-division/enhancements-to-unfair-contract-term-protections

  • The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has announced an inquiry into the insolvency system, to investigate if current insolvency practices achieve the best possible outcome for small and family businesses in financial trouble.

    The inquiry will look at the insolvency system and uncover if it encourages practitioners, in the first instance, to restructure the small or family business to turn it around. According to Ms Carnell, the Banking Royal Commission wasn’t asked to look at the role of insolvency practitioners and that was a missed opportunity.

    “We know there is a very low success rate in restructuring Australian businesses under external administration and the impact of the insolvency process is often devastating for the small business owner,” said Ms Carnell.

    The Insolvency Practices Inquiry will examine:

    • the existing insolvency system through the experience of small business
    • the degree of transparency of the governance, processes and costs of practitioners including legal advisers, valuers, investigating accountants, administrators, receivers and liquidators
    • how the insolvency of a small or family business may lead to bankruptcy for the owners
    • how the framework impacts the practices and fees of insolvency practitioners

    Small and family businesses that have faced financial difficulties and restructured or wound up their business can share their stories by completing: https://www.surveymonkey.com/r/InsolvencypracticesInquiry

    An interim report will be released in December with a final report to be handed down in February 2020.