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Edition #170 of The Insider

 

Lots of news in this week's edition PLUS be sure to visit our website which is regularly updated with the latest franchising opportunities!

In Today's News, read all about:

- A tasty new treat launch!

- Coffee - it's not just about the beans

- Expert comment: Franchising Code Reforms

- ARA comments on minimum wage debate

- Franchise placed into administration

- Think you know who the richest person in the world is?  If you guessed Bill Gates, guess again!

 

And, as always, we also bring you the latest franchising, business and finance news from around the globe.

 

Until next time, all the best,
Leesa and the Team at Inside Franchising

 

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SWEET TREAT LAUNCHED

 

In a first for the retail treat market, and a delicious twist on an old favourite, Wendy’s will launch a new product this April.

Wendy’s 300 stores across Australia and New Zealand will soon include gourmet Ice Cream Cupcakes on the menu - chocolate cups filled with Wendy’s scoop ice cream, topped with flavoured whipped cream and decorated with chocolate or biscuit pieces.

“At Wendy’s we are always developing unique and innovative products and we are very excited to be the first to offer Ice Cream Cupcakes. We’re sure this product will prove to be very popular,” said Wendy’s General Manager Marketing, Todd Duthie.

“Our stores already offer a delicious range of Ice Cream Cakes however the Ice Cream Cupcake is something new for our franchisees and for our customers. They are perfect for an individual treat and will also be a great take-home product to share with the family or as a great dessert for dinner parties.

“We’re constantly looking for ways to offer compelling products that are easy to make and ensure customers keep coming back to our counters.”

Wendy’s Ice Cream Cupcakes will be available in all stores from Monday, April 19

and customers can choose their ice cream flavour and toppings.

 

Click here for more information about Wendy's Franchising

BRISBANE COFFEE CONNOISSEUR CROWNED DONUT KING'S 100TH BARISTA

 

 

Brisbane coffee connoisseur and Donut King Brookside owner Deb Liversidge has been crowned Donut King’s 100th Royal Bean Barista, the company’s most prestigious and coveted coffee accreditation. Deb, with her husband Mace, own four Donut King stores in Brisbane – Brookside, Toombul and two in Strathpine. Joining the franchise in 1991, they have been Donut King franchisees for almost two decades.

 

Donut King National Operations Manager Chris Szysz said he was thrilled to acknowledge the achievements of one of the company’s longest standing franchisees. “In the competitive world of coffee baristas that can make a captivating cappuccino or a luscious latte are valuable assets, so we are thrilled to have Deb on our team. I’d like to commend Deb for her dedication and commitment. She makes a great cup of coffee, so Brisbane residents are lucky to have her!” he said.

 

Click here for more information about Donut King Franchising

EXPERT COMMENT

Government must strike a balance with Franchising Code reforms

 

Hall & Wilcox Partner and Head of Franchising & Distribution, Bruce McFarlane, is urging Government to ensure it strikes a balance in the requirements asked of franchisors as part of its reform to the Franchising Code of Conduct.


Announced by the Minister for Small Business, Dr Craig Emerson on 3 March 2010, the reform requests franchisors provide prospective franchisees with a plain English document emphasising the key costs, benefits and risks of the franchise system.


Mr McFarlane said that Government needs to be mindful of achieving a balance in requirements between franchisors and franchisees.


“Better information for franchisees should mean less disputes, and that’s a good thing for the franchising sector overall,” he said.


“However, this needs to be balanced by the amount of information that franchisors are required to provide, so it’s not too onerous a task.


“I am also not convinced that creating a plain English version is going to substantially shift the bar of understanding amongst franchisees.


“There is already a lot of information available and franchise agreements and mandatory disclosure documents set out the legal framework of the franchisor/franchisee relationship. “Franchisees need to take responsibility to understand the elements of the legal arrangements before entering into the contract, and obtain independent legal and financial advice on the matter.”


Mr McFarlane said, “No matter what reforms are put in place or initiatives undertaken, the law cannot protect business failure absolutely. Potential and existing franchisees need to be educated and this should be the role of Government together with relevant industry associations like the FCA.”


The industry awaits the Government’s preferred format of the plain English guide.  Government does not intend to introduce further changes to franchising laws in the next three to five years, in order to allow time for case law to develop and the effectiveness of the changes to be evaluated.

 

 About Hall & Wilcox:
Hall & Wilcox is a full-service commercial law firm, comprising 28 partners, 79 lawyers and approximately 200 people in total. Whilst headquartered in Melbourne, the firm has a number of national clients and is also a member of the State Capital Group, an international network of independent law firms that have demonstrated the highest quality service and industry leadership.


The Hall & Wilcox partnership has been established for over 90 years and continues to provide high quality commercial advice to its clients across all practice areas.

ARA CALLS FOR NO MORE THAN $10.50 MINIMUM WAGE INCREASE

The Australian Retailers Association (ARA) hassubmitted to Fair Work Australia's Federal Minimum Wage review calling for a realistic and manageable minimum wage increase at $10.50 per week.

ARA Executive Director Russell Zimmerman said Fair Work Australia's (FWA) Minimum Wage Panel must consider the impact of wage bill increases as a result of the Award Modernisation process as well as retailers' plans to cut staff hours to cope with skyrocketing employment costs.

"The ARA strongly recommends Fair Work Australia (FWA) hands down a minimum wage increase that is realistic and reasonable and one that considers continued recovering trading conditions and wage bill increases for Award reliant industries," Zimmerman said.

"Over 41 percent of retailers are telling us the changes to IR laws would mean reducing staff hours. Over 46 percent of retailers are planning on decreasing casual staff levels, 39 percent are planning on decreasing part-time staff levels and over 36 percent of retailers are planning on decreasing permanent staff levels over the next 12 months*.

"Retailers' have planned to respond to wage bill increases by cutting staff hours. This is a direct indication of their limited capacity to pay escalating wage bills during a period of continued recovery.

"Retail trade has been patchy and below expectations for the past eighteen months. Over 63 percent of recently surveyed retailers said the Christmas and post-Christmas sales seasons they've just experienced were worse than the previous year, indicating a pull back from consumers after successive interest rate rises at the end of 2009 and without the help of a Government stimulus package*.

"Recent announcements from unions calling for unmanageable minimum wage increases disregard the wage bill increases that award reliant industries are already facing as a result of the Award Modernisation process.

"Fair Work Australia's decision must not compensate for last year's 'nil' minimum wage increase which was a landmark decision for the time. Fair Work Australia must look forward, not backwards when considering the Federal Minimum Wage for 2010 and make a decision that protects jobs - not one that threatens them," Zimmerman said.

For over 105 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.5 million people. As an incorporated employer body under the Fair Work (Registered Organisations) Act 2009 and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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Refund Home Loans Admit False and Misleading Statements

The Federal Court has issued orders by consent declaring that Refund Home Loans Pty Ltd and its founder and managing director, Wayne Rodney Ormond, have contravened the Trade Practices Act 1974.

Refund Home Loans and Mr Ormond made misleading statements to franchisees that they had been given approval by the Australian Competition and Consumer Commission in relation to Refund Home Loans' treatment of franchisees.

Click here for more about this story

Who is the richest person in the world?

Do you know who holds the title of the world's richest person? (If you guessed Bill Gates, you're wrong!)

Click here for to find the answer

Consumers are changing the way they shop

According to recent Reserve Bank of Australia figures, the value of credit card transactions fell by their biggest percentage in any January in the past 5 years.

Click here for more about this story

Bakers Delight Hop to It this Easter

On Saturday March 20, Bakers Delight bakeries across the country baked and sold Hot Cross Buns to purchase essential medical equipment to help make a difference for sick children this Easter.

Worldwide in Administration

Worldwide Online Printing has been placed into administration.  The 85 Franchisees continue to trade whilst they await news of who will take over the franchise network.

Click here for more about this story

Kleenmaid wives head up new companies

The wives of the former directors of collapsed chain Kleenmaid, have recently registered as the directors of a new set of companies.  When questioned, Andrew Young said he knew nothing about his wife's new business venture.

Click here for more about this story

Franchise Founder Guilty of Fraud

Banjo's Bakery founder Mark Saxby has been found guilty of tax fraud.

A Hobart Supreme Court jury found Saxby guilty of two counts of defrauding the Commonwealth in that he cheated on two of his tax returns.

Sentencing will be determined at a later date.  Prosecutors are insisting on a jail term.

Click here for more about this story

 

 

Relocation for SafetyQuip Sunshine Coast

Sunshine Coast based safety equipment franchise SafetyQuip has relocated to larger premises in response to continuing growth and the need to expand operations.

The new premises in Kunda Park feature an open warehouse concept that provides customers with a unique opportunity to view a complete range of safety equipment, footwear, workwear and site safety related products.

SafetyQuip is Australia's only significant franchised player in full scope Workplace Safety Products & Services – a multi-billion dollar market and thay are actively looking for the right people to establish locally owned and operated SafetyQuip franchise businesses in Sydney, Mackay, Townsville/Cairns, Rockhampton, Tasmania, South Adelaide, South Perth, Canberra and New Zealand.

Click here for more information about

SafetyQuip Franchising

Blockbuster on brink of collapse?

Blockbuster franchisees and store owners around the world watch and wait to see what will happen next with news reports indicating that the American arm of the franchise was on the brink of collapse.

Click here for more about this story

 

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Griffith Business School Series

Eagle Boys Pizza's, Tom Potter, will speak at the first Global Insight Series luncheon for 2010, hosted by the Griffith Business School in Brisbane on April 22.

Click here for more information about this event

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newsletter edition 170 first published 25.3.10                                                                                                                                          CBTR