This article appeared in Issue 3#4 (May/June 2009) of Business Franchise Australia & New Zealand
ARA Executive Director reflects on recent changes within the employment market, how this is affecting retail franchises and what businesses can do to adapt to this change.
Franchisees should not solely rely on their franchisors for advice on job classification levels in awards.
This is the key message from the widely reported decision of Fair Work Ombudsman (FWO) v Chamdale Pty Ltd. The case highlights the complexity of award interpretation and the risks associated with franchisees attempting to delegate that responsibility to others.
Intellectual Property (IP) rights are fundamental to a franchise. When IP rights are mentioned in a franchise agreement, those rights often relate to trademarks – which essentially represent the franchise ‘brand’.
Brand protection is very important for franchises, because a franchise is a type of business model which involves the utilisation of IP, including trade marks. The franchisor typically exerts a lot of influence over the use of that IP by the franchisee.
Robert Toth, Franchise Partner, Wisewould Mahony Lawyers
If you are considering buying a franchise, it is vital to know what the terms of the contract are concerning selling the franchise at a later date. This may be the furthest thing from the minds of potential franchisee owners, but must be taken into consideration at the time of purchase.
When entering into a franchise business, new franchisees will expect to undertake some training in the operation of the franchise system into which they have entered and to provide induction training to new staff.
This article appeared in Issue 3#4 (May/June 2009) of Business Franchise Australia & New Zealand
The franchising relationship is often described as being something akin to a marriage. This is because the relationship is planned to be long-term and both parties are dependant upon each other. Keys to a successful marriage include commitment, support and respect, all of which need to exist for a good franchisor/franchisee relationship.
When someone is looking to purchase a franchise, it is both an exciting and stressful time. In many instances, the main focus is on the franchise itself and other issues are only given peripheral attention. However, when a franchise is being purchased that requires premises to operate from, it is important to give due consideration to the following issues:
By Philip Colman, Partner, Mason Sier Turnbull Lawyers
This article appeared in Issue 3#5 (July/August 2009) of Business Franchise Australia & New Zealand
It must be daunting, once you have made a decision to at least think about running your own business, to surf websites and attend expos only to be hit with sales pitches and brochures that contain words that you may not have come across before.
This article appeared in Issue 3#3 (March/April 2009) of Business Franchise Australia & New Zealand
A search through many franchisor websites and magazines such as this magazine will find franchisor advertisements highlighting that their systems offer franchisees "designated territories" from which they may conduct business.
By Lana Rubinstein, Principal Consultant, Risk Strategies
This article appeared in Issue 3#4 (May/June 2009) of Business Franchise Australia & New Zealand
As an employer, you are responsible for the health, safety and welfare of your employees while they are at work. Although this is generally an accepted fact for franchisees, not many truly understand their obligations and how to adequately fulfil these requirements.
Many franchisees believe that, in buying a mobile franchise, their business will be simpler to operate and will involve less complex legal considerations merely because the franchise system is conducted as a mobile model. However, franchisees of a mobile
system will still be affected by most of the issues which are relevant to ‘fixed site’ franchises, and may also be required to contend with additional matters that are specific to mobile businesses.
The following are some of the legal issues that franchisees of a mobile system may be faced with:
Many franchised businesses are conducted from premises that are leased, with either the franchisor or franchisee required to sign a lease to obtain the right to occupy the premises.
It is important to remember there is no such thing as a “standard lease”. Lease terms, especially the commercial terms, are negotiable and to a certain extent, the non-commercial terms are also negotiable, especially for premises that are not located in shopping centres.
In response to recent parliamentary inquiries, amendments to the Franchising Code of Conduct (Code) were enacted and now apply to all franchise agreements entered into on or after 1 July 2010. Since the announcement, most of the discussion has focussed on how the amendments affect franchisors and their disclosure obligations.
By Elisabeth Ritchie, Partner, HWL Ebsworth Lawyers
This article appeared in Issue 3#4 (May/June 2009) of Business Franchise Australia & New Zealand
A discussion of the legal regulations and commercial practicalities of Operations Manuals in the modern franchise system.
What are Operations Manuals?
Operations Manuals are a central part of many modern franchise system. They set out the operational rules and requirements of the franchise system and provide important information about the practicalities of running the franchise business.
This article appeared in Issue 1#6 (Sept/Oct 2007) of Business Franchise Australia & New Zealand
Nearly every franchisee employs, or needs to consider employing, employees. Franchisees cannot always rely on Franchisors to tell them how to hire and fire their staff, although some of the more sophisticated systems do provide guidance in this regard.
This article appeared in Issue 3#2 (January/February 2009) of Business Franchise Australia & New Zealand
FRANCHISE AGREEMENT FINANCIAL OBLIGATIONS
Franchising can be an excellent way for someone to own their own small business. Owning a franchised business can offer many advantages over owning a non-franchised business, such as the comfort of operating a proven system, support from the franchisor and the network, assistance in establishing the business and training staff, and a greater likelihood of survival than other small businesses.
By Dr. Michael Schaper, deputy chairman of the Australian Competition and Consumer Commission
This article appeared in Issue 3#3 (March/April 2009) of Business Franchise Australia & New Zealand
Enthusiasm is an essential ingredient in running a successful business. But like a good wine, too much of it can quickly go to your head and lead to decisions you may later come to regret. Nowhere is this more evident than with first-time entrepreneurs eager to jump into a franchise.
The thud of a hefty disclosure document landing on the desk can come like a wet blanket on top of all that enthusiasm to get started.
The success of any retail franchise is inextricably linked to the success of the lease negotiations. Rent generally constitutes the largest fixed cost in any retail business, ranging from 8 per cent of sales up to 25 per cent of sales in some cases. Given the significance of the cost impost on any retail business, negotiating the lowest gross occupancy costs, and keeping them low throughout the tenancy, is a key skill to be acquired by all good retailers.
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