Hello and welcome to this week's edition of The Insider.

In Quick Shots News:

~ Interested in 'getting your kicks' in the ancient arts of the Shaolin temple? Guess who's franchising ...

~ Retail Food Group announce the disposal of its Central Manufacturing Facility.

In Today's Features:

~  Wisewoulds Lawyers join us with a summary of the Parliamentary Joint Committee franchising inquiry findings.

~ Autobarn adds some unexpected "extra toppings" to their new ad campaign.

 ~ The ARA urges consumers to do their part for the country and get some retail therapy

All of this, and much more of the latest news and opportunities from around the globe in this edition.

Enjoy!

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“The secret of success in life is to be ready for opportunity when it comes.”  

     Benjamin Disraeli

RETAILERS SET FOR RUDD'S EARLY CHRISTMAS PRESENT

Peak retail industry body the Australian Retailers Association (ARA) said they remained hopeful the Rudd Government's $10.4 billion stimulus package, set to land in consumer's pockets from Monday this week, would stimulate consumer spending just in time for Christmas.

ARA Executive Director Richard Evans said after successive months of stagnant growth, Australia's retail sector is looking forward to any spending boost from Prime Minister Rudd's early Christmas present.

"Despite recent survey results predicting many people will either save their bonus or use it to pay off debt, we're optimistic this will be a different story when the money lands in pockets.

the rest of the economy. If consumers stop spending, jobs are at threat because employment is the easiest expense for business owners to cut during tough times.

"The ARA has said all along that the rate increase in November 2007 was yet to be felt through the economy when the premature and damaging February and March 2008 rate increases were announced. Unfortunately our predictions were correct. But recent RBA interest rate cuts tell us the underlying foundations of our economy are strong and consumers should be confident to spend responsibly and enjoy Christmas 2008.

"Without relying on credit and with some responsible spending, Australian consumers should feel confident to enjoy the upcoming Christmas season.

"The Government has done its job, the RBA has done its job and if we're in this crisis of confidence together it's now up to consumers to do their job - shop for Australia," Evans said.

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA supports and represents over 5000 members throughout Australia. Visit www.retail.org.au or call 1300 368 041.

AUTOBARN GOES TO NUMBER ONE

Autobarn franchisees rose to their feet and applauded at each of the recent state launches of the group’s new marketing campaign which will break in time for Christmas.

Central to the campaign is the lead character of the cheeky SBS national TV series Fat Pizza. Paul Fenech, best known as ‘Pauly’ from the show, heads up a cast that features other famous characters including Habib, Rocky, Bobo the chef and the infamous, donut munching chick Toula.

New TV ads heavily promote the Autobarn brand alongside a wide range of supplier products in an immensely enjoyable, and what’s certain to be a highly memorable series. Additional material including radio, catalogues, store point of sale and web work is also being rolled-out with Fat Pizza ambassadors raving about Autobarn being ‘number one for all your car stuff’.

The entire campaign sends a clear message that Autobarn is very much in-tune with its customers and what they want from an automotive accessories store.

“When the idea was proposed, I must admit we were a little stunned,” said Autobarn General Manager – Advertising Vince Montagnese.

“We knew we were on to something really good. It’s a campaign that has everything. It’s on the money with our target market and presents our brand in a fresh and exciting way. It’s unashamedly retail which is critical in the current market for all our franchisees. We’re in no doubt it will drive a lot more business in to all our stores,” Vince added.

Autobarn’s advertising committee, which is represented by franchisees from all states, was instrumental in making the unanimous decision to adopt the campaign.

“This is the one campaign that has captured the imagination of every member of our advertising and promotions team, as well as every Autobarn franchisee,” Vince said.

Having viewed the new material there’s no doubt that this is a campaign that will add a lot of weight to Autobarn’s marketing efforts.

Click here for more information about Autobarn Franchising Opportunities

EXPERT COMMENT:

FRANCHISING UPDATE: PARLIAMENTARY JOINT COMMITTEE REPORT ON FRANCHISING

In June 2008, the Parliamentary Joint Committee on Corporations and Financial Services commenced an inquiry into whether any amendments should be made to the Franchising Code of Conduct (the “Code”) in order to raise the standard of conduct of participants in Australia’s growing franchising sector.

The major theme of the Committee’s report was how to best deal with so-called “rogue” franchisors that have been reported to have opportunistically dealt with franchisees, particular in relation to unfairly terminating or failing to renew franchise agreements or in negotiating resolution of disputes. Somewhat controversially, it was felt that the best method of preventing or limiting this behaviour would be through the introduction a new obligation into the Code requiring franchisors, franchisees and prospective franchisees to act in good faith.

Other recommendations included:

• that the disclosure requirements of the Code be amended so that franchisees are offered a clearer understanding of what will happen when the franchise relationship comes to an end;
• that the government develop a simple online registration system for Australian franchisors, with each franchisor required each to lodge an annual statement that they are meeting the requirements of the Code and the Trade Practices Act (TPA) and to report on the extent of their franchise network;
• that the Trade Practices Act 1974 (TPA) include pecuniary penalties for breaches of the Code or of the misleading and deceptive conduct and unconscionable conduct prohibitions of the TPA; and
• that the ACCC should be given the power to investigate parties thought to be engaging in conduct contrary to the Code.

It is clear form the report that the Committee’s primary concern was creating the right balance between the rights and obligations of franchisors and those of franchisees.

This concern was borne out in the recommendations made by the Committee, which should go some way to protecting franchisees from opportunistic behaviour by rogue franchisors without being too burdensome for the majority of franchisors who aim to foster sound working relationships with their franchisees.

Click here for an extended article

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• Franchise and Business Law Specialist
• Member of the Franchise Council of Australia (" FCA ")
• Member of the International Franchise Lawyers Association ("IFLA") with affiliate Law Firms worldwide

Franchise Advertising Opportunities

 and with prospective franchisees looking for information on opportunities available,

now is the time to get your advertising organized.

*Click here for this story

ASX / MEDIA ANNOUNCEMENT -
RFG:  SALE OF CMF & LONG TERM SUPPLY AGREEMENT

Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) today announced that it had reached an agreement with Allied Mills Pty Ltd (Allied Mills) pursuant to which the Company shall dispose of its Central Manufacturing Facility (CMF).

The CMF, being a facility dedicated to the manufacture and wholesale supply to franchisees of donut and bakery products, was established by RFG during FY07 at Yatala within the Gold Coast - Brisbane corridor.

RFG commissioned the CMF given the manufacturing processes relevant to the large scale production of its proprietary Donut King products were unique within Australia.

The manufacturing business associated with the CMF therefore constituted a departure from RFG's core business of developing and managing retail franchise systems.

 > Click here for more details about this story

Freaks and Virgins - Only in America ...

After consumers were filmed having a "Whopper Freakout” last year (where Burger King’s PR company removed the Whopper from the menu at several Burger King outlets just to capture the reaction of patrons, who were variously surprised, upset or shocked by its absence), Burger King have now taken the burger war to extremes by visiting Iceland, Thailand and even Transylvania.

So-called “Whopper Virgins” were selected to taste test their first Whopper up against the Big Mac with their reactions captured on film are now being used in Burger King advertising. 

After the taste-tests, the participants were then flown back to their hometowns, where the rest of the villagers were also rewarded with Whoppers. 

Yes, really ...

 > Click here for more details and Images

How do you get your kicks?

China daily newspaper in Zhengzhou has reported that pretty soon, it won't be necessary to go to the famed Shaolin temple in China's Henan Province to learn its famed kungfu fighting style. You'll be able to get your kicks at a franchised "offshoot" in Yunnan Province.

Under the management of Shi Yongxin, the Shaolin have already gone into film production, e-commerce and kungfu shows.

 > Click here for more details about this

fascinating "franchise opportunity"!

16 Shopping Days left until Christmas

Sales chaos

One man was killed, and four shoppers, including a 28-year-old pregnant woman, were injured during incidents in the US post Thanksgiving Day Sales. 

 > Click here for more details about this story

New Trading Hours

From this week, Perth retailers have the option of all day Sunday trading.  Shop owners hope that consumers will embrace the new trading hours this Christmas.

Retail sales slump

Retailer Gerry Harvey is warning some of the stores in his Harvey Norman empire will close during the next six months because of the economic slowdown.

Sales in all key areas of the business - furniture, electrical and computers - had slumped three to four per cent in recent months, he said.

 > Click here for more details about this story

Get online, not in line, at Michel’s Patisserie this Christmas

Christmas revellers can go online to cook up all the Christmas cakes and treats they need for this year’s celebrations with the launch of the Michel’s Patisserie online ordering.

The website lets customers celebrate the good things by browsing, ordering and paying for a range of Christmas goods from their computer.  They can then select the store and date they would like to pick the goods up from.

Treats available for ordering at michels.com include Christmas Cupcakes, Rum Balls, Choc Mint Mud Cake, Chocolate Cherry Buche, Shortbread Christmas Trees and Christmas Pavlova.    A range of summer entertaining favourites, such as Mango Cheesecake and Fruit Flan, are also available online.

 > Click here for more details about Michel's Patisserie Franchising Opportunities

AND to link to Michel's ordering website

ACCC NEWS

Interested in all the latest news from the ACCC?

> Click here to visit the ACCC News Centre.

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*The content of all news items published in this newsletter are published in good faith and are reproduced from information provided by the individual companies or their agents, the subject of said news items. News items from other publications are linked to original source.  Inside Franchising Pty Ltd takes no responsibility whatsoever for information and content being true and correct.

NEWSLETTER EDITION 129 - FIRST PUBLISHED 9 DECEMBER 2008

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