It’s been a rough year, but is franchising in recession?
The election of a coalition government promised an economic boon that would re-instil confidence in the small business sector. Now, just a few weeks on, the Federal government looks poised to tackle some of the industry’s most prevalent concerns, but is it enough? While critics have been calling for an independent review of the franchising […]
Thinking of Franchising in New Zealand….?
Thinking of franchising into New Zealand? With relatively low barriers to entry for foreign franchise systems looking to enter the New Zealand market, it is becoming an attractive proposition. How so? Well, New Zealand is an exciting and fast developing market for franchising. The population of New Zealand is about 4.6 million and there are […]
Aventus is on the move…!
Aventus Commercial Lawyers is moving from its current location in Fortitude Valley, to new premises at The Cove, 59 Doggett Street, Newstead QLD 4006. The move will occur over the weekend of 15/16 June 2019, and we will open our doors for business on 17 June 2019. All phone numbers and email addresses will remain […]
Franchise Recruitment – Part One – Tinder for Franchisors
The vast majority of franchise systems employ a recruitment process to both obtain expressions of interest from prospective franchisees, and to qualify those franchisees prior to entering into more substantial discussions surrounding their entrance into the system. This recruitment ‘funnel’, is a critical element in any franchise system. From a franchisor perspective, it ensures the […]
Disclosures and the Franchise Code – The lesson of Ultra Tune
By a decision of the Federal Court on 18 January 2019 by Justice Bromwich, national franchisor Ultra Tune was ordered to pay fines totaling $2,604,000. The fines (known as pecuniary penalties) sought by the ACCC and awarded by the Court were for various breaches of the Franchising Code of Conduct (Code) and Australian Consumer Law. The […]
The ‘Fairness in Franchising’ Report and the future landscape of franchising in Australia.
Franchisors and investors in them are the subject of criticism in the latest Australian Parliamentary Joint Committee on Corporations and Financial Services ‘Fairness in Franchising’ report, and should expect some serious changes to the Australian Franchising Code of Conduct. In brief The recent Australian Parliamentary Joint Committee on Corporations and Financial Services ‘Fairness in Franchising’ […]
Psychometric testing for prospective franchisees. The way of the future?
Selecting a new franchisee can be a big risk for a franchise. Will this person perform well? Will they grow the business? Will their customers form a favourable opinion of the brand? But it’s also a big risk for a new franchisee, not only in terms of money, but also in terms of their time, […]
Franchisor Update – Franchisor holding companies potentially liable for franchisee’s workplace law breaches
The Fair Work Act of 2009 (the Act) is Australia’s principal legislation that dictates a legal framework that all Australian employers must comply with in employing staff. The Act prescribes comprehensive minimum legal requirements (including remuneration, hours of work, leave entitlements, and record keeping obligations), and sets out a penalty system for employers that breach […]
Calls for franchising sector inquiry gather steam, but should it only focus on the “negative stories”?
The prospect of a parliamentary inquiry into Australian franchising will be back on the table next week, but those familiar with the sector say it will only help the system if the good examples of franchising are also featured in a review. Nationals Senator John Williams is set to move a referral next week to […]
ACCC takes action against franchisor GEOWASH Hand Car Wash
The Australian Competition and Consumer Commission has applied to the Federal Court for leave to commence proceedings against Geowash Pty Ltd (subject to deed of company arrangement) (Geowash), a national car wash franchisor that has been marketing and selling hand car wash franchises since 2013. The ACCC proceedings will allege that Geowash made false or […]