Franchising – Marketforce

Both franchisees and franchisors benefit from company-owned stores

Some franchisees of hardware chain Mitre 10 are calling for an end to “company-owned” 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 […]

10Feb

Good Faith in franchising… bad for Goodwill

One of Australia’s largest and oldest franchise systems has been rocked to its core with revelations of underpayment of wages by its franchisees and allegations of dubious reporting. 7/11 is 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 faith […]

20Sep

Breakthrough methodology for valuing franchise goodwill- what’s all the fuss about?

The chief examiner of my thesis commented- “It makes important contributions/advances in the scholarship of governance structure, risks, returns, and valuation of franchisee-operated businesses – areas of scholarship that have received only scant attention over the last three decades” Complexities of franchise contracts Government intervention in the Australian franchising sector means that franchisors and franchisees […]

09Sep

The future of franchisng in a digital age

The rise and rise of digital and social media coupled with the increasing popularity of on-line businesses raises the question of the future of franchising in the digital age. With challenges evolving with some of Australia’s biggest big franchise brands (Eagleboys, Seven Eleven to name a few) many franchise commentators argue that traditional franchising models have reached […]

19Aug

Goodwill and good faith: 7-11 Short changes the Australian Franchise Systems

One of Australia’s 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 […]

24Feb

Why franchisor must hold the reins to the brand

Brand is integral to franchising, and taking control and ownership of a business brand away from the franchisor and handing it to individual franchisees is just not franchising, a Griffith Business School researcher has claimed. Maurice Roussety says such a business model is nothing but a fix-all solution that will fail in the face of […]