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Are traditional franchise models dead or on life-support? … A 4-Step Action Plan for Survival
1. Prevent Cardiac Arrest The demise of some big franchise brands has led many franchise commentators to argue that traditional franchising models have reached a degenerative stage and some even reckon that âfranchising as a business method will need to be dismantled and reconstructedâ to Prevent Cardiac Arrest. Many franchise systems are either dead and […]
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Mitre 10 facing calls to end company-owned outlets but both franchisees and franchisors win when head office owns stores
Some franchisees of hardware chain Mitre 10 are calling for an end to âcompany-ownedâ stores. These are stores owned and run by Metcash, which owns the Mitre 10 brand and is a supplier to the franchisees. But research shows that brands with a mixture of franchised and company-owned stores are not only more profitable but […]
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Both franchisees and franchisors benefit from company-owned stores
Some franchisees of hardware chain Mitre 10 are calling for an end to âcompany-ownedâ stores. These are stores owned and run by Metcash, which owns the Mitre 10 brand and is a supplier to the franchisees. But research shows that brands with a mixture of franchised and company-owned stores are not only more profitable but […]
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Franchisors Beware- Government Targets Friends With Benefits
Most of us donât want to see the wage entitlements of vulnerable employees being short-changed by their hegemonic employers. Recent evidence of employee exploitations by 7-Eleven, Caltex and Yogurberry franchisees has created a feeding frenzy for mainstream media and impelled Government to propose new laws that make franchisors responsible for franchiseesâ non-compliance of workplace laws. […]
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Franchises shouldnât share responsibilities for stuff-ups
The governmentâs plan to combat recent cases of franchise misbehaviour by holding franchisors responsible for wage underpayments by their franchisees, could undermine the business model of franchises. Franchisors and franchisees operate as separate legal entities. Until now, franchisors have relied on this separation to avoid responsibility for franchisee non-compliance with workplace laws. Itâs this separation […]
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Goodwill and good faith: 7-11 Short changes the Australian Franchise Systems
One of Australiaâs largest and oldest franchise systems has been rocked t with revelations of underpayment of wages by its franchisees and allegations of dubious reporting. 7/11 brand reputation has been bruised and battered amidst franchisee discordance and scrutiny by Australian regulators. The 7/11 wage price scandal reinforces that every franchisor has obligations of good […]
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