Franchisors – Code Update Report
As of the 1st June 2007 these have not gone before Parliament and the FCA is pushing Government to adopt the amendments before the 1st October 2007 to enable Franchisors to meet their yearly compliance obligations.  We believe that the Government will adopt the majority of the Matthews Report recommendations.  One area that will need careful consideration will be the need to disclose rebates received by a Franchisor.  The detail however, is not yet available.
We will keep you advised of the legislative requirements once they are available.

Recent Case Law - Alert for Franchisors
A recent New South Wales Court of Appeal decision of Ketchell v Master of Education Service Pty Ltd [2007] NSWCA 161, has highlighted the importance of Franchisors complying with the Code of Conduct not only in providing a Disclosure Document to a Franchisee prior to entering into a Franchise Agreement, but also on renewal .  This case highlights the need to obtain a written statement from a Franchisee under Clause 11(1) of the Code confirming the Franchisee had a reasonable opportunity to understand the Disclosure Document and the Code prior to entering into the Franchise Agreement.

The NSW Court of Appeal held that the contract could not be enforced because it was entered into illegally.  Therefore the Franchisor could not rely on the contract to recover money from the Franchisee.  This case has potentially severe consequences and we are currently analysing the decision.

This case has the potential to impact particularly on licensing and distribution arrangements which fall under the Code where Agreements provide for automatic renewal or extension of the term of the Agreement annually.

Click here for more information

With over 139 stores nationally, Price Attack is a brand on the rise and with 62 per cent of all Price Attack franchises being female-owned it is a brand that not only resonates with women but is making them wealthy and empowered along the way.

Ruth Swan bravely dipped her toe in the franchising pool in 1996 with her husband Phillip after both had worked in retail for a number of years. 

They bought their first store in Belconnen, Canberra, and three years later followed with a second store, then a third and finally a fourth. 

Ruth and Phillip now own all four Price Attack stores in the ACT, two of which they started from scratch.

Apart from being an incredibly successful and motivated business woman, Ruth is also a dedicated wife and mother to three boys aged between 12 and 16 years who keep her busy with school work, sports and the hectic social lives of teenagers. 

Though Ruth and Phillip bought the businesses together Phillip is happy to take a back-seat to his energetic wife as she handles about 80 per cent of the operations for all four stores.

“Juggling work and personal life can be difficult at times as I am sure a lot of self-employed people would know but to see a business grow from the ground up is very satisfying,” she says.

Ruth has found this to be an exceptionally rewarding career; not without its challenges but perfect for this modern-day professional. 
 
“I could not imagine being anywhere else,” she says, “I love that no two days are ever the same, something is always happening in this business.”

Click here for more information on this story and on becoming a Price Attack franchisee

“Kids absolutely love jumping castles!”, said Mette Kitionas.  

The Kitionas live in Hurstville, Sydney. Prior to taking on a Jumping J-Jays franchise Mette was working full time and John was working two jobs, which left little time to spend with his three young children.  Family life was suffering and they really weren’t gaining financially from their efforts.  

The Kitionas had hired Jumping J-Jays castles a few times before and when they checked out their website they found that the Hurstville franchise was available.  

Jumping J-Jays provided all the equipment they needed. All that Mette and John had to do was get towbars fitted on their cars for the trailer that carried the castles. Initially they bought 12 castles but that was four years ago and as the business has grown they have purchased another six to satisfy the growing demand, particularly in summer.  

Jumping J-Jays is a weekend business that entails one extra day a week for implementing a local area marketing plan.  Most franchisees live in the area they service and Mette and John get involved in their local community by attending local events and sporting clubs.

“We have managed to work around the business so that we don’t let it stop us from doing things. It has been a lot better for us than having to work two jobs. Now John is home by the time the kids finish school every afternoon and we are looking forward to our next holiday. Having the extra money needed to take family holidays has been one of the greatest rewards for running a successful business!”

Click here for more information on this story and on becoming a Jumping J-Jays franchisee

Women franchisees driven to success
with waterless car washing

Australian owned, and now international, waterless car washing and detailing franchise system, Ecowash Mobile, is proving to be a unique business opportunity for women.
Nej Rawnsley operates the Queensland Master Franchise as well as the Brisbane local franchise with her husband.

“We wanted to work for ourselves and be in control of our financial future. With Ecowash Mobile, we have a great flexibility. Plus, it is such an innovative idea. We love introducing the new concept to customers and see their reactions. They’re just blown away,” she said.

Sue Taylor, franchisee of Ecowash Mobile Sydney Central, spoke at the last Franchising Expo in Sydney.  Sue believes that she has found a great business opportunity for women.  “Owning my own business is a complete lifestyle change. I was office-bound for 20 years and now not only do I work outside but I have more freedom in regards to when and how hard I decide to work.  With Ecowash Mobile, we can work around and manage both our family life and business. “

Jim Cornish, Managing Director of Ecowash Mobile, is impressed by the work ethic of his women franchisees.
“The Ecowash Mobile women franchisees have all been doing very well and I put this down to hard work and a great attitude. They are amongst the most successful franchisees we have,” he said.

Ecowash Mobile currently has six women franchisees with room for many more as the franchise is looking to expand in all states across Australia.

Click here for more information on this story and on becoming an Ecowash franchisee

Bark Busters Director, Val, says: “Bark Busters has always had a very high percentage of female Franchise owners. 

At present we have 10 female totally owned and operated Franchisees here in Australia.  With 4 in Sydney, 1 in the ACT, 4 in Queensland and 1 in South Australia. 

Many have been with us for years and years, others are quite new. 
We are finding that we are getting more and more professional people making enquiries these days.  The reasons could be numerous.

• They can see that they can run their own very successful businesses from home.
• Many can combine children and business successfully, as women can very often be well organised and multitasked.
• Many “top” positions in Companies are very male orientated. Females often feel they will never make it to the top job.
• They can put in the hard work and reap the rewards, both financial and lifestyle that the corporate world could not give them.
• Most importantly they see the skills we are looking for and know with confidence that they can do it successfully.

We also have many husband and wife Franchisees where they are both out earning an incredible income successfully running their business together.

I for one felt wonderful to be earning great money when we joined Bark Busters.  My husband had always been the bread winner so to speak, then for the first time we were on equal ground earning capacity wise. 

We also found that putting in the time and effort into something we had unlimited passion for, was not only very rewarding financially, but the lifestyle it gave us was wonderful.”

Click here for more information on this story and on becoming a Bark Busters franchisee