FCA becoming increasingly recognised

The FCA is increasingly becoming recognised politically, within the sector, and by the community at large. As the FCA cements its position as the reasoned and responsible voice of franchising, the value of its brand is rising exponentially. This newfound status places franchisors and consultants who are not members, and unable to display the FCA logo, in the position of having to explain why. Obviously, this provides additional incentive to abide by the Member Standards. The FCA is embarking on a campaign, aimed at prospective franchisees, to emphasise the importance of signing up with a franchisor endorsed by the FCA.

From July, individual franchisees and consultants can become members of the FCA at a new price, vastly below the cost of applying as a corporate member. The Franchise Advantage program provides members with a wide range of benefits, including access to the FCA complaints officer, discounted goods and services, discounts on education and educational/networking forums, access to free business advice hotlines and more.

Coinciding with the upcoming launch of Franchise Advantage, the FCA is focusing on providing value to franchisee members, including half-day franchisee state conferences in August. These events, in addition to other forums, will provide excellent opportunities for networking, and for franchisee voices to be heard.

Many intending franchisees consider potential capital gain to be an important element in their choice of system. Of course, success will depend on the energy applied to building the business, but there are a number of other factors in play. Typically, when it comes time to sell the business, franchisees are only able to sell the remaining term of their agreement. However, some systems now reset the entire term on resale – providing considerably greater value and flexibility. One system and FCA member, SafetyQuip , has also waived its right not to renew agreements at the end-of-term, by up to a period of 15 years. This enables franchisees to amortise start-up costs over a period of up to 15 years. In the case of typical agreements, the FCA advises franchises to amortise costs over the first term of their agreement – say three to five years.

The annual National Franchise Convention, NFC06, will be held on the Gold Coast from 21-24 October. Traditionally, mainly franchisors and suppliers have attended this event. However, there has been an increasing franchisee presence, with attendees reporting great value in the experience. More workshops are being created with specific franchisee issues in mind (for example, local area marketing), and franchisees say they find valuable learning in mixing with franchisors from other systems.

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