WORLD FRANCHISING COUNCIL INTERNATIONAL CONFERENCE
Franchise Council of Australia (FCA) demonstrated its global influence at the inaugural World Franchise Council International Conference bringing together franchise experts from nine countries to share their expertise and insight with more than 150 delegates.
In the opening address, FCA Chairman John O’Brien was passionate and called franchising a “truly international language” that broke down the global and cultural barriers.
Keynote speaker Richard Symon, Director of the National Stock Exchange (NSX), who explained the role of the NSX in facilitating company growth and capital raising for franchise businesses. With the NSX targeting SMEs, Symon called upon franchises to consider NSX as a platform for international growth. He cited their proudest success story - Brumby's - which was recently sold for $45 million after a three year listing on the exchange.
Addressing the key issue of Australia’s franchise global expansion strategy was a panel session facilitated by Rod Young, Executive Director of DC strategy. Panelist and Franchise Association of South Africa Executive Director Vera Valasis drew attention to her country’s growing need for Australian franchise establishments and called on Australia’s franchisors to make the move to South Africa.
“Franchising has only really taken off in South Africa for the past three years despite its 20 year history. At the moment, the South African market is very hungry for franchising concepts and the potential for Australian franchise growth is simply massive”, she said
While we are familiar with the knowledge that Australia has a strong reputation in franchising around the world, Austrade’s franchise industry specialist Cheryl Scott was quick to advise potential franchisors against solely banking on the associated goodwill.
“If businesses wish to use Australian business’s associated characteristics to gain more leverage, that’s fine. However, the one key ingredient to international success is the presence of a strong business system.”
While encouraging Australian franchises to take the plunge, Cheryl’s message to the delegates was clear. “There may be books and articles about overseas markets but the best tool I can recommend is market observation. Nothing picks up the local nuances and forthcoming trends better than market observation and your own judgement.”
CHANGES IN FRANCHISING LEGAL SECTOR
- Legal Symposium
John Martin, Small Business Commissioner, presented a report card on the ACCC franchising activities to delegates of NFC07’s legal symposium.
Recent developments included:
Amendments to the Code
- Additional disclosure and earlier provision of agreement
- Prospective franchisees access to details of ex- franchisees
- Disclosure of TPA Undertakings to ACCC
- Materially relevant facts disclosed within 14 days
- Financial Statements and updated disclosure documents aligned with corporate reporting
- Details of suppliers giving rebates
- Exemption of foreign franchisors withdrawn
Website initiative to increase transparency
- Developed Franchising information space on ACCC web-site
- Focus on 3 main areas - Processes for investigating alleged breaches, summary of matters where there was a court or administrative outcome and topical concerns and issues
Click here to visit our ACCC information pages for more information
BAILEY SAYS GOVT 'CAN'T LEGISLATE FOR BUSINESS SUCCESS'
Delegates at the final day of NFC07 were addressed by Federal Small Business Minister Fran Bailey who said her office takes several calls each week from disgruntled franchisees but that the majority of issues are due to their lack of due diligence when initially signing the franchise agreement.
"The Federal Government has made positive changes to the Franchising Code of Conduct through the recent Matthews Inquiry but certainly can't legislate for business success. However, we can make the system more transparent for both franchisors and franchisees," Bailey said.
In addition, Bailey spoke of her passion for the franchise sector and the joy of seeing Australians conceptualise, build and then share business success.
FUTURE OF FRANCHISING - PHIL RUTHVEN
The very entertaining and informative Phil Ruthven had conference delegates glued to their seats with predictive statistics and forecasts for the franchising sector.
The founder and Chairman of IBISWorld predicted that franchising in Australia in the current financial year will generate revenues of $152 billion, average a 6% growth rate and have 1140 franchisors. He said that small business generates about 24% of Australia's economy and without franchising as a business model most small businesses would die.
Phil's presentation discussed international and domestic economic trends as well as themes for franchising's future success. |
INAUGURAL WHIRLWIND WOMEN IN FRANCHISING CONVENTION
In true FCA form, the Crown Promenade Melbourne was a hive of networking, education and professional development at the inaugural Whirlwind Women in Franchising Convention.
Here’s a brief snap shot of what you missed!
Richard Evans kick started the Conference by reminding delegates there is a glass ceiling and it is up to men to provide leadership for workplace diversity and gender balance.
Julia Camm, standing down as Chair of the Whirlwind Women in Franchising network, announced the new committee for 2008:
- Chair: CORINA VUCIC, General Manager Clark Rubber
- Sponsor Representative: ELEANOR FALA, Whirlwind Print
- QLD/NT Representatives: KATE JOHNSON, Ordium and Faith Manning, Retail Food Group
- NSW Representatives: ELISABETH RICHIE, Home Wilkinson Lowry Lawyers and MELISSA ANDERSON, Gloria Jean’s Coffees
- VIC/TAS Representatives: KARA WISE, Australia Post
- SA Representative: VICKI PROUT, Franchise Alliance
- WA Representatives: LINDA STEELE, Chooks Fresh & Tasty and TAMRA SEATON, Deacons
- Board Appointed Representative: DIANA WILLIAMS, Fernwood Women’s Health Clubs
 Keynote speaker Doctor Rhonda Galbally AO (CEO of Our Community) got delegates thinking about the changes and transitions women have lived through over the past 50 years and those who may not be coping with the changes.
For example, have you given thought to the fact that in 1957 there was no childcare, and now we have a 3 year waiting list? And did your parents or grandparents only have one employer for their entire lives? You might be interested to know that it is now considered ‘the norm’ to have up to 10 different jobs in three completely different vocations throughout your working life. What a difference these two simple facts have made to modern life.
Rhonda also used the forum to urge professional women in the franchising and small business sector to help those who are feeling ‘hopeless’ or not coping in the contemporary environment by participating in ‘the best kept secret in Australia’ – Community Groups.
‘I would love everyone in this room to join the committee or board of one of these groups. Show your passion and leadership. Use your business, financial and marketing skills to transform the group and make it strong’.
Rhonda’s words definitely hit home with a group who were definitely taking note!
With the obvious buzz of success, the Women in Franchising Convention will certainly be a highlight at NFC08!
FCA INDUCTS FIRST WOMEN INTO HALL OF FAME
- Diana Williams, Fernwood founder recognised
 Founder of Fernwood Women’s Health Clubs Diana Williams was the first woman formally inducted into the Franchise Council of Australia’s (FCA) Hall of Fame at the annual FCA Chairman’s Dinner.
Conceived in 2003, the Hall of Fame is designed to recognise and pay tribute to the outstanding ground breakers and influential contributors to the franchising industry over a long period of time.
FCA CEO Richard Evans said that Williams joins the FCA’s Hall of Fame’s list of 23 which includes some of the most recognisable names in the Australian franchising industry including: Bob Jane (Bob Jane T-marts), Roger Gillespie (Baker’s Delight) and Chris Malcolm (Clark Rubber).
Despite yielding a plethora of personal awards, being inducted into the Franchise Council of Australia’s Hall of Fame is a very special occasion for Williams.
“It’s a huge honour for me because the industry has grown so much since that very first early morning FCA breakfast I attended back in 1995. To be recognised alongside the giants who have built the franchising industry in Australia is very humbling,” Williams said.
THAT'S ALL FOLKS!
 In his final address as FCA CEO, Richard Evans assured NFC07 delegates and FCA Members they are working in a strong and stable sector with a great association.
His words of wisdom focussed on the 'e-factor'. "Success without the E's just SUCCS... and life is a bit like that too."
Richard shared the E's franchisees, franchisors, small business owners and all business professionals should adopt to add value to both their work and play: education, energy and enjoyment.
We can't wait for NFC08! |
