FRANCHISE Issue 29 Edition Three 2011 Official Journal of the Franchise Council of Australia FRANCHISEREVIEW FCA Excellence in Franchising Awards 2011 WINNER - ESTABLISHED FRANCHISOR OF THE YEAR HAIRHOUSE WAREHOUSE 1 Human Resource Focused Legal Advice and Solutions for Franchisors and Franchisees To grow and thrive, franchises need Fixed Cost Unfair Dismissal to focus on their businesses and not Defence on complicated legal compliance. Prevention is always better than cure. We Getting employment law wrong can can assist you to minimise the legal risk of result in poor staff morale, damage terminating employees. However, if you do to your brand and unnecessary face an unfair dismissal claim, with our fixed costs. At HRLegal our franchise price legal defence services, there are no specific solutions take the stress hidden surprises. out of employment law compliance for your business. Employment Law Health Check HRLegal offers: A quick audit to see if your franchise business is compliant with its employment obligations. HR Assurance HR Legal also provides complete employment, A comprehensive package that, for a fixed workplace relations and safety law services monthly fee, takes care of your employment law Australia wide. needs. Includes employment law compliance audit, complete set of employment contracts, For more information about how we can full Human Resources Manual, and most assist your franchise business call us on importantly, access to our experienced 1300 HR LEGAL. legal team. Enterprise Agreement Kits A complete kit for franchisees to put in place an enterprise agreement with the practical legal support to make it happen. www.hrlegal.com.au Issue 29 Edition Three 2011 FRANCHISE Franchise Review is published four times a year for the Franchise Council of Australia Publisher FRANCHISEREVIEW The Franchise Council of Australia inside Design and layout at+m integrated marketing Cover: Hairhouse Warehouse, winner of the Studio Manager 2011 Established Franchisor of the Year Eddie Mallinson Editorial content Stephanie Wells, Franchise Council of Australia T 1300 669 030 F +61 (0) 3 9508 0899 Cloud E [email protected] Computing Advertising Sales enquiries Making IT cheaper Angie Cooksey, and easier Franchise Council of Australia 9 10 T 1300 669 030 F +61 (0) 3 9508 0899 2011 Hall of Fame E [email protected] inductee: Franchise Council of Australia Noel Carroll ABN 17 002 789 988 PO Box 2195 Malvern East VIC 3145 T 1300 669 030 F + 61 (0) 3 9508 0899 E [email protected] W www.franchise.org.au General Information All material is published at the discretion of the FCA. Advertisements are published and positioned in the journal at the discretion of the editors. Editorial Teamwork and Leadership FCA Awards 14 contributions, advertising bookings and NFC11 Wrap Up The franchise sector’s night of nights artwork deadline information is available by 12 contacting the FCA on 1300 669 030. Disclaimer The publication of articles is for the purpose of promoting matters of Retail tenancy: Stephen Giles 4 interest to members of the Franchise Council South Australian Labor goes it alone: Steve Wright 6 of Australia (FCA). The views expressed in Legal Forum: ACCC audits underway 8 this journal do not necessarily refl ect the Hall of Fame Interview: Peter Ritchie 9 views or policies of the FCA. Publication of advertisements for products or services do Inaugural NFC Franchisee Success Forum 18 not indicate endorsement by the FCA. FCA 2011 State Conferences 22 Franchisee Success Club - Great Stories! 28 The New Emerging Franchise Direct 33 Consumer20 ‘Super FCA - meet the team 34 Segment’ By Amanda Stevens Franchise Review is printed by Whirlwind Print T 1300 129 227 22 Henderson Rd, Knoxfi eld, VIC 3180 www.whirlwindprint.com 3 Improving access to lease information in the retail tenancy market Chairman, Stephen Giles We have made a submission to the Government of WA urging it to forge ahead “The market mostly with its review. This is part of the Franchise Council of Australia’s campaign to create a operates fairly, but new Retail Leasing Code of Conduct (Code), of there have been enough which the fi rst draft was formally launched at the recent FCA national conference - NFC11 - instances of inappropriate held in Melbourne from 9-11 October. circumstances that This voluntary code for landlords, tenants and representative organisations has been something needed compiled to address member concerns over to be done. the extreme behaviour that occurs far too ” Stephen Giles Stephen frequently within the franchising sector. The Code has been developed based on the Some member concerns include: guidelines for industry codes, which were The Government of Western Australian • excessive rental increases in major developed with input from the ACCC, by the (WA) is moving ahead with a review of retail shopping centres Federal Government. tenancy regulations, focusing particularly • unreasonable behaviour in relation to The conduct of the proprietors of major on the disclosure imbalance that sees many end-of-term arrangements for sitting tenants shopping centres is a chief concern. The FCA still franchisees forced to provide a lot of economic • unreasonable and costly requirements in hears far too many stories which fair-minded data to landlords but who are not the recipients relation to shop fi t-out and signage people would regard as unacceptable. Part of reciprocal disclosure about rents. • the substantial information imbalance of the problem is the substantial information This imbalance is an historical anomaly and it is between landlords and tenants imbalance and inequality of bargaining power time it was removed. In the franchising sector between landlords and tenants. • abuse of market power where landlords off er we go to great lengths to ensure franchisees contracts on a take-it-or-leave-it basis. The FCA is concerned this information have all the information they need to make imbalance and inequality of bargaining power sound commercial judgments. When they The market mostly operates fairly, but there is distorting the free and fair operation of the enter into a lease, particularly in shopping have been enough instances of inappropriate market to the detriment of franchisors and centres, they often do so in the face of long, circumstances that something needed to franchisees in particular. fr complicated legal documents forcing them to be done. disclose store turnover, when they get no such The Code is intended to take eff ect as a disclosure about current rents. voluntary code pursuant to the Competition About one in three franchise systems are and Consumer Act 2010, with parties involved in retailing, with many franchisors subscribing to the Code and thereby agreeing and franchisees occupying tenancies in major to be bound by it. It is therefore important shopping centres. that the Code obtains broad support from Australian retailers, as it will then have suffi cient momentum to enable the FCA and others to persuade landlords to become signatories. Issue 29 Edition Three 2011 Our print is simply sweet • Franchise specialist • Dedicated Online Print Management system • Overnight services Australia wide • Complete tracking from order to delivery • Exceptional customer service • Certified quality print products FCA Alliance Partner since 2005 Visit www.whirlwindprint.com or call 1300 129 227 5 ww_FCA_FP_110218_v05FINAL.indd 1 18/02/11 5:03 PM South Australian Labor goes it alone FCA Executive Director, Steve Wright The FCA fought vigorously to explain the To back him up in these claims, Mr Koutsantonis likely negative impact of this policy, and we engaged the help of self-appointed franchising were not alone. The SA Liberal Opposition, expert, Associate Professor Frank Zumbo, of the the Federal Government, the Federal Small University of New South Wales (NSW), who has Business Minister, the ACCC, the Law Council of claimed credit for writing franchising legislation Australia, two state law bodies (SA Law Society for Mr Piccolo and for Western Australia (WA) MP and Queensland Law Society) and a plethora of Peter Abetz, and who told the WA Parliamentary franchising and other businesses, individuals Inquiry into franchising that he was an and organisations, including the SA Real Estate independent commentator. The SA Government Institute, opposed the move. has refused to reveal details of the terms of the engagement with the independent Mr Zumbo; SA Labor was simply not interested in listening. just as it has refused to reveal the content of the Left-wing MPs Tom Koutsantonis (elevated to Steve Wright Steve 57 submissions made to the Government during the position of Small Business Minister last year) a very brief draft legislation consultation period and Tony Piccolo have been on a three-year earlier this year. campaign against franchising. Mr Piccolo had Despite authoritative contrary advice and to apologise to Parliament for his behaviour State-based regulation of franchising is the opposition in Parliament, the South Australian in attacking the Liberals for opposing the FCA’s major concern with the Bill. It is important (SA) Labor Government has pushed through its Bill, but he was quick to claim victory, even to note that the FCA would not have opposed Small Business Commissioner Bill (Bill), paving though the Bill does not even mention the the Bill if it were based on the Victorian the way for the possibility of state-based word franchising. Mr Piccolo said the FCA was Small Business Commissioner model as Mr franchising rules. “disgraceful” for creating a “scare campaign” Koutsantonis told Parliament it would be. The Bill allows the SA Government to adopt the that the Bill would be bad for investment in The Bill goes way beyond the Victorian model, Franchising Code of Conduct (Code) into SA law. franchising in SA. which has been the basis for initiatives in WA, This alone is a negative development, as it opens On the contrary, he and Mr Koutsantonis NSW and Queensland.