The Social Responsibility Issue
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FRANCHISE Issue 33 Edition One 2013 Official Journal of the Franchise Council of Australia FRANCHISEREVIEW Russell Jenkins on keeping it local Bendigo Bank Page 22 The Social Responsibility Issue INSIDE Page 6 Federal Small Business Minister talks Code review Page 8 NAB - The outlook for 2013 Page 14 An inside look at the IFA Convention: Australian franchise systems among world’s best practice 1 NEW ORGANISER Now even bigger! N T O U I R T N C A A M TO BITION IN If you want to start your own business then come to the Franchising & Business Opportunities Expo. Sydney 14-16 June 2013 Meet over 100 exhibitors, attend Brisbane 20-21 July 2013 ENDORSED BY free seminars and talk to experts. Melbourne 30 Aug - 1 Sep 2013 Turn ambition into action! Register online and SAVE $15. Enter code FRW at franchisingexpo.com.au Issue 33 Edition One 2013 FRW-FP.indd 1 19/02/13 2:41 PM FRANCHISE The Social Responsibility Issue Franchise Review is published four times per year by the Russell Jenkins on keeping Franchise Council of Australia (FCA) inside Cover story: it local Bendigo Bank Publisher FRANCHISEREVIEW The Franchise Council of Australia NAB 2013 Economic Outlook Design and layout 22 at+m integrated marketing Studio Manager Eddie Mallinson Social Responsibility Editorial content and in 2013 Advertising Sales enquiries Stephanie Wells, Where is your focus? Franchise Council of Australia 16 T 1300 669 030 8 F +61 (0) 3 9508 0899 E [email protected] Franchise Council of Australia ABN 17 002 789 988 PO Box 2195 Malvern East VIC 3145 T 1300 669 030 28 The benefits of giving F + 61 (0) 3 9508 0899 E [email protected] with no strings attached 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 contributions, advertising bookings and artwork deadline information is available by 30 contacting the FCA on 1300 669 030. Why CSR and Social 18 Disclaimer The publication of articles is for Media belong together Social Responsibility: the purpose of promoting matters of interest to members of the FCA. The views expressed Why gather kindling when in this journal do not necessarily reflect the GEN Y - you can fuel a fire? views or policies of the FCA. Publication of A new breed of franchisee? advertisements for products or services do not indicate endorsement by the FCA. Franchising represents successful small business 4 32 Government awaiting independent franchising review 6 New organiser for Franchising Expo 12 IFA 2013 Australian franchising among world’s best 14 NAB FCA Excellence in Franchising Awards 2013 26 The Social Franchise: How franchising can improve social outcomes without philanthropy 34 I’ve done marketing and it doesn’t work 36 3 Franchising represents The Simplest & Most Comprehensive successful small business Online Accounting Software FCA Chairman, Michael Paul For SME’s and Franchise Networks However, despite the current impressive (to curb the excesses of major shopping growth, there is an underlying concern among centres) and promoting the introduction of a FCA members about where the nation is Small Business Act (to improve small business heading with costs, productivity and finance access to finance and government contracts). access for small business relative to other However, it will become even more markets in the world, and the potential Proudly owned, operated & 100% securely important for the FCA in the future to work • constraints these things will place on future hosted in Australia collaboratively with government to influence long-term small business growth. good policy for small business growth, Further, there is a frustration that political with our most important message being • Enjoy the freedom of accessing your accounts leaders express the importance and the need for rigorous and good process in from your laptop or iPad, anywhere, anytime commitment to small business growth to making legislative decisions. Commitment to our economy, yet tend to focus energies and regulation by political leaders through media Michael Paul, FCAChairman resources in areas that will have little, zero or announcements and regulation making in • For small businesses that require the minimum even negative impact on growth. This includes the absence of thorough discussion with to run their business through to complex for some, a preoccupation in increasing stakeholders, analysis and debate is simply As the peak body that represents franchisors, businesses requiring flexible payroll, online regulation and compliance costs to franchise not good process. We know only too well that franchisees and franchise service providers, networks with no empirical evidence to justify these shortcomings will manifest themselves timesheets, job costings, divisional reporting, the Franchise Council of Australia (FCA) is such actions. into poor regulation, with a permanent cost to inventory, debtor management & more totally committed to developing a strong the small business economy. and financially viable sector. We continually To ensure our ongoing commitment to a strong measure our performance to ensure the and financially viable franchise sector, it will In contrast, the FCA develops policy positions Increase business efficiency while saving be important that the FCA takes a broad, non- based on rigorous research, international • activities we undertake (education, events, best time & money through central performance practice standards, government lobbying) are sectoral view of the issues facing small business best practice standards, long term vision and reporting tailored for your network continually making a contribution towards a and lead informed national discussion on what tapping into the vast on-the-ground experience healthy growing sector. are the key issues. of members who operate across all business sectors throughout the Australian economy. Give your bookkeeper and accountant access From that perspective, it is pleasing to note that Franchise networks are a major contributor • two separate market research reports that were to the economy with a $131 billion turnover, The franchise sector not only represents to real time data, remotely published in 2012 (by PricewaterhouseCoopers achieving growth rates that outperform the franchising, but it represents successful and Griffith University) highlighted a franchise broader small business market. The leaders of small business. As small business leaders, sector that continues to show strong growth Australian franchise systems are highly skilled the use of our knowledge and expertise is in challenging economic conditions. These men and women who generate national wealth, very important to ensuring Australian small results show that the sector is well-managed create jobs and through innovation ensure business has an environment that enables it Visit us at www.shoebooks.com.au/franchises overall and certainly back up the premise that Australia keeps up with rapid, ongoing change. to thrive in what is becoming a vastly different as a method of doing business, franchising is They operate across every business sector competitive world. fr Or call TODAY for a FREE consultation on 1300 882 428 definitely the optimum small business model. in different parts of Australia (capital cities, regional and rural centres) and internationally. The strong growth also highlights that leaders All of this gives the FCA a remarkably broad “These results show that of franchise systems have a strong eye on the overview of the economic circumstances for future. The PricewaterhouseCoopers report small business today and in the future. the sector is well-managed identified that a key reason franchise systems overall and certainly back up achieved strong growth in difficult times The FCA has actively lobbied to government was that they had a robust strategy taking to improve the business environment for small the premise that as a method into account the impact of an ever-changing business generally, notably championing the of doing business, franchising business and socioeconomic environment. initiatives of the Retail Leasing Code of Conduct is definitely the optimum small business model. ” Issue 33 Edition One 2013 The Simplest & Most Comprehensive Online Accounting Software For SME’s and Franchise Networks • Proudly owned, operated & 100% securely hosted in Australia • Enjoy the freedom of accessing your accounts from your laptop or iPad, anywhere, anytime • For small businesses that require the minimum to run their business through to complex businesses requiring flexible payroll, online timesheets, job costings, divisional reporting, inventory, debtor management & more • Increase business efficiency while saving time & money through central performance reporting tailored for your network • Give your bookkeeper and accountant access to real time data, remotely Visit us at www.shoebooks.com.au/franchises Or call TODAY for a FREE consultation on 1300 882 428 5 Policy and Regulation Government awaiting independent franchising review to fine tune industry practice The Hon Chris Bowen, MP Minister for Small Business The 2010 amendments mainly dealt with “I understand a number end-of-term arrangements, disclosure of additional information by franchisors, of submissions were behaviour by franchisors and franchisees in received which will the dispute resolution process, and good faith. Additional enforcement tools for the Australian ensure the review is Competition