http://franchiseesforum.com/directory en-us Copyright 2006, Kickapps feeds@kickapps.com (FeedMaster) webmaster@kickapps.com (WebMaster) Sat, 31 Jul 2010 17:00:00 GMT Thu, 07 Jan 2010 18:50:03 GMT Kickapps Feeds 1.0 http://blogs.law.harvard.edu/tech/rss 60 {pics-1.1 "http://www.icra.org/ratingsv02.html" l gen true for "http://kickapps.com" r (nz 1 vz 1 lz 1 oz 1 cz 1 ) "http://www.rsac.org/ratingsv01.html" l gen true for "http://kickapps.com" r (n 0 s 0 v 0 l 0 )) Search Domain q http://kickapps.com/search/direct/ http://franchiseesforum.com/topic/398/t/A-C-C-C-INSTITUTES-PROCEEDINGS-AGAINST-SEAL-A-FRIDGE-PTY-LTD.html
The ACCC alleges that Seal-A-Fridge engaged in unconscionable conduct towards its franchisees in contravention of section 51AC of the Trade Practices Act 1974.
The ACCC also alleges that Seal-A-Fridge failed to comply with the Franchising Code of Conduct, which amounts to a contravention of section 51AD of the Act.
The ACCC alleges that Mr Rooney was knowingly concerned in the contraventions.

Seal-A-Fridge is the franchisor of a mobile refrigeration seal replacement business which is run by franchisees located around Australia.

The ACCC alleges that Seal-A-Fridge engaged in conduct which was, in all the circumstances, unconscionable within the meaning of section 51AC of the Act including:
• unreasonably withholding consent to the transfer of franchises
•... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/398 Wed, 23 Jul 2008 15:04:53 PST http://franchiseesforum.com/topic/397/t/IT-S-ALL-ABOUT-TIMING-.html • You're satisfied that this business can make enough profit. (Make sure that your "satisfaction" is well-founded).
• Your about to go ahead and buy it/ sign the deal.

Ask yourself the following:
1. What do you know about the timing of the profitability and the cash-flow?
2. Will it take a month? A year? 2 years? More?
3. On what information are you basing your assumption?
4. How will you finance the cash requirements of the business in the period before it becomes cash-flow positive?
5. What about you and your family - Can you afford to wait for it to become cash-flow positive?
6. What happens if it "hits the fan". What is your fallback position? (Crying and screaming for help does not qualify as a fall-back position).

Remember, buying a business or franchise is as much about timing as it is about performance. Having similar... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/397 Mon, 14 Jul 2008 12:54:27 PST http://franchiseesforum.com/topic/396/t/IT-S-THE-LOCATION-STUPID-.html
Don't simply rely on what the franchisor tells you. The fact that a location "feels right" is really not a reason to commit to a lease.

Location-selection should be a disciplined exercise that takes into account the "Key Location Criteria" that the franchisor has determined are critical to success. The criteria will probably be weighted. If the franchisor has multiple units operating, this should be an integral part of his toolkit.
However, its mere existence does not necessarily mean that it's any good!

The first thing that you should ask for is to see the Checklist so that you can determine whether one exists.
If it does, you should determine whether your location has been selected using information that is relevant to the items on the checklist.

Now go and look at other locations that the franchisor has... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/396 Tue, 10 Jun 2008 16:01:13 PST http://franchiseesforum.com/topic/395/t/DON-T-BUY-A-FRANCHISE-DO-IT-YOURSELF-.html
This approach may not be right for you - but at least you will have properly considered it!

Your initial response is probably:
"But I don't know what to do! Where will I start? It's all too hard!"
Your initial response may well be w-r-o-n-g. Read on, and then decide.


STAGE 1 - THE BUSINESS
Answer these critical questions:
(Note: Ensure that you talk to someone who has industry knowledge who can answer these.)
1. Is the franchise in an industry or of a type that is heavily dependent on the franchise brand for custom?
2. Is the franchise a business that requires "peculiar" skills & know-how that cannot readily be purchased?
3. Does the franchise sell a service or product, or use a methodology of such... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/395 Tue, 03 Jun 2008 14:26:19 PST http://franchiseesforum.com/topic/394/t/--FRANCHISORS-TREAT-EX-FRANCHISEES--ORDER----RUBBISHED-.html
It is well recognised by franchisors, that having an unhappy ex-franchisee is bad for business. No. Really?

The seminar discussed the basic philosophy about "looking after" departing franchisees by conducting exit interviews etc. All great stuff.

It also discussed the "defensive" actions that franchisors should take - actions that do NOTHING to deal with the root cause of the problem, and that simply address the symptoms. (Example: Include clauses in the Agreement to stop franchisees using the franchise name in a website address that may be used to "rubbish" the franchise - www.XFranchiseSucks.com.au ).

The new Disclosure rules also make it mandatory for franchisors to list franchisees who have left the... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/394 Mon, 02 Jun 2008 15:22:36 PST http://franchiseesforum.com/topic/393/t/Are-there-franchisees-who-actually-MAKE-money-Tell-us-.html You pay your $200 - $400K for the franchise
You pay yourself a salary for the 50 hours a week that you work in it.
At the end of the year, is there anything left (Profit after interest & tax)? How much as a % of what you invested?

C'mon - tell us. There must be at least a few franchises that are making their 20% ROI.

The Franchisees Advocate Group
Business And Franchise Help ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/393 Thu, 15 May 2008 20:25:37 PST http://franchiseesforum.com/topic/392/t/I-PURCHASED-A-FRANCHISE-IT-S-NOT-PERFORMING-WHAT-NOW-.html
Your response is "I've been sold a lemon! I'm going to court!"

Whoa … That attitude is simply not going to help you!

Why? Because:
• Suing the franchisor is, in most cases, not a practical option.
If you go down the legal-action route, you had better have tons of money, time & fortitude to spare - you're in for a ride that you cannot imagine. And however "right" you may think you are, there is always the chance that you will lose. Legal action is a gamble!
• Selling a "dying" business means that you will take a serious financial hit. That assumes that it is in fact saleable (a huge assumption) and that the Franchisor will agree to your selling it.

Facts:
• Not every site that the franchisor selects/ approves for franchisees will be great. You... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/392 Thu, 08 May 2008 10:01:41 PST http://franchiseesforum.com/topic/391/t/GOT-A-HOOK-It-s-tough-without-one-.html Without at least one "hook" you will need to rely on "shouting louder" than your competition. That's a very expensive alternative.

So, what's this "hook" we refer to (with such affection)?
The hook is an outstanding characteristic (or 2) that makes your product/ or business particularly "special" in the eyes of the customer, and that is not easy for competitors to copy.

The "hook" may be included in any of the elements of the marketing mix - i.e. in any of the: Product, Price, Promotion (Marketing), or Place (Distribution channel). That's why we refer to the "product offering" above, and not simply the "product".

SOME EXAMPLES:
• Product hook: A chicken restaurant concept we established in Australia has "flat" chicken & peri peri spice.
• Price Hook: A... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/391 Tue, 06 May 2008 16:08:25 PST http://franchiseesforum.com/topic/390/t/Batten-down-the-hatches-Are-you-ready-for-the-tough-times-.html
If you haven't already completed these defensive actions (below) in your business, here are a few you may want to attend to. Soon. Like yesterday!

Debtors:
Pull them in. Customers who don't pay you aren't any good to you.
Manage this carefully, as you certainly don't want to chase good customers away just because you've "taught" them to be slow payers.

Stock/ Inventory:
Slow moving lines - Identify & reduce the stock. Be ruthless. Now is the time to convert stock to cash, not to "hope like hell" that you'll be able to sell it in 6 months time for an extra 10%.
Dead lines - Identify lines that should be discontinued, liquidate them and DON'T re-purchase.
Minimum & Max Stock levels - Recalculate these to take account of... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/390 Tue, 29 Apr 2008 07:02:00 PST http://franchiseesforum.com/topic/389/t/Bakers-Delight-NOT-being-pursued-by-ACCC.html For a more complete report see Bakers Delight franchise off the ACCC hook ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/389 Thu, 24 Apr 2008 12:00:32 PST http://franchiseesforum.com/topic/388/t/TIME-TO-GET-OUT-.html
This short post is not a DYI guide. It is intended to assist you think about the circumstances, and to TAKE ACTION if appropriate!

OPTIONS:
There are basically 5 options in considering IF and/or WHEN to GET OUT!

1. Close the business without taking any remedial action, OR
2. Try selling it without taking any remedial action, OR
3. Fix it by doing it better, and/or
4. Fix it by doing it differently, and then
5. Sell it, OR Keep it

Which option you choose will depend on the specific circumstances and your state of mind.

RULES IN DECIDING WHICH OPTION MAY BE BEST:
Rule 1: You are probably too "close" to your business to make a well considered decision on your own. Get skilled, experienced, objective advice.
Rule 2: Be wary of the quality of your decisions if your state of mind is... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/388 Thu, 24 Apr 2008 11:54:00 PST http://franchiseesforum.com/topic/387/t/Existing-franchisees-appear---doing---s-------SIGN--.html
It may sound obvious but past performance is not a reliable indicator of future performance.

Unless you know what's happening (or about to happen) in the Industry, and in the market in which you will operate, you could be in for a rude wake up call. We live in a time of rapid & continual change. Unless it is managed, you will be left wondering "What the hell happened to my business?"

In addition to seeing how others are doing, there is substantial additional research that must be done to ensure that the smiling faces will still be smiling in a year or two's time. "Looking into the future" is an essential aspect in deciding whether to buy into a franchise, or in deciding what changes to make to your business.

Anyone have experiences that illustrate how the past performance of your business or franchise has not been a reliable measure of future performance?

The Franchisees... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/387 Mon, 21 Apr 2008 15:00:37 PST http://franchiseesforum.com/topic/386/t/--fly---plane-----10-chance---crashing-.html
There is at least a 10% chance that your new business will fail. In fact new business failures in the first 5 years are above 70%. And franchises are less, but not so much less that you can throw caution to the wind.

If you (or your spouse) sign as Guarantor, that probably means that you're putting the family home at risk.
What would the effect be on your life/ marriage etc if you lost your family home? Devastating!

So why are franchisees so easily agreeable to taking such a risk in the face of "bad" odds?

What methods should you use to avoid "signing away the family home"?
Any street-wise solicitors out there who may wish to make suggestions?

We know what we suggest, but we'd like to hear what advice others give.
NOTE: Simply saying "Okay. Where do I sign?" is NOT valid strategy!

The Franchisees... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/386 Mon, 21 Apr 2008 14:49:57 PST http://franchiseesforum.com/topic/385/t/Video-Ezy-appears---keeping---technology-changes--keeping--f.html
We're delighted to see that Video Ezy appears to be "on top of it", and will be introducing a product delivery method which is more in keeping with where technology is headed.

The header of the news report is as follows: "Video Ezy, one of Australia's largest movie rental franchises, has selected Ireland's DigiSoft.tv's IPTV delivery platform and set top box middleware to enable the delivery of the Video Ezy Electronic Video Rental service, which will be rolled out in Video Ezy and Blockbuster stores in A/NZ."

For a full report click here

Comments by any franchisees in the DVD rental business? Let's hear about it. ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/385 Wed, 16 Apr 2008 10:11:20 PST http://franchiseesforum.com/topic/384/t/Allphones-Another-case-of-misleading-deceptive-conduct-.html

These extracts below from the ACCC News Release dated 27 march 2008.

The ACCC has commenced proceedings in the Federal Court in Sydney against Allphones Retail Pty Limited.
The ACCC alleges that, in operating this franchise system, Allphones failed to comply with Franchising Code of Conduct and engaged in misleading and deceptive conduct and unconscionable conduct towards its franchisees in contravention of sections 51AC, 51AD, 52 and 59 of the Trade Practices Act 1974.

What's Section 51AC?

It applies to conduct which is, 'in all the circumstances, unconscionable'. It sets out several factors the court can consider in deciding whether conduct was unconscionable. They include, but are not limited to:

• the relative bargaining... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/384 Mon, 07 Apr 2008 13:59:52 PST http://franchiseesforum.com/topic/383/t/Can-city-based-food-concepts-give-a-good-return-.html

1. Is it a furphy that the city is the best place to operate a food concept?
   
2. Is it reasonable to expect to make a good return on your investment plus payment of a reasonable wage for the work you put in?
   
3. What do you think is a reasonable return that you should be making on your investment (BEFORE paying yourself a salary)? Remember, you can get about 7% by putting your money in the bank at zero risk.
   
   Help each other get a realistic view of "what's happening out there"!
   
   General observations regarding city-based food outlets include the following:
   - Rentals are very high
   - There is a high level of competition which, against all logic, continues to grow through the opening of yet more outlets - often by operators who are not experienced in the... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/383 Mon, 07 Apr 2008 13:45:50 PST http://franchiseesforum.com/topic/382/t/Imagine-Services-made-misleading-representations-.html These are some extracts from a News Release by the ACCC.
   
   
   
   The Australian Competition and Consumer Commission obtained orders by consent
   
   yesterday in the Federal Court at Melbourne against Imagine Essential Services
   
   Limited and its founder and former Chief Executive Officer, Mr Richard Evans*, for
   
   breaches of the Trade Practices Act 1974.
   
   
   
   The ACCC alleged Imagine made misleading representations in connection with the
   
   sale of licences to operate a system involving agreements which Imagine claimed to
   
   have negotiated with essential service suppliers (such as telephony, electricity).
   
   
   
   Under Imagine's system, licensees would approach businesses with a view to having
   
   them take the purported benefit of Imagine's agreements to obtain the claimed
   
   savings (earning commissions when businesses signed up). Small business people
   
   invested... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/382 Tue, 01 Apr 2008 07:38:08 PST http://franchiseesforum.com/topic/381/t/--franchisor-expanding-overseas---probably-suffer--consequen.html
   My first thoughts regarding his business are:
   
   • Does he have any idea how "different" the market will be there?
   • Does he have massively deep pockets to enable him to deal with the multitude of screw ups he will make before he gets it right?
   • Does he have sufficient depth of management to do this without starving his Australian operation?
   • What about the rest of Australia? Is 30 franchises the limit for Australia (obviously not!)
     
   
   
   My first thoughts regarding his Australian Franchisees are:
   
   • They are going to suffer because his eye is going to be taken off the ball here. Whatever marketing & operational help... ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/381 Thu, 06 Mar 2008 12:44:46 PST http://franchiseesforum.com/topic/380/t/Disputes-between-Franchisors-Franchisees-are-common-.html 35% reported being involved in substantial disputes with their franchisees.
     
     (Thats according to a document received from Griffith University).
     
     So what?. So ... thats another very important piece of information that must be taken into account by prospective franchisees BEFORE they "get involved".
     
     Remember, a "substantial dispute" may imply legal action. It certainly implies much "heartache".
     
     What is the nature of the disputes that you have experienced or heard about. What are the "buttons" that create the problems?
     
     Be sure to take the steps necessary to minimise the prospects of a dispute.
     
     
     The Franchisees Advocate Group ]]> feeds@kickapps.com (Micmarcmm) http://franchiseesforum.com/topic/380 Tue, 04 Mar 2008 14:33:37 PST