Franchising model is resilient

Franchising can sustain business, even in tough times. That’s the message from Steve Wright, chief executive of the Franchise Council of Australia , who told delegates at the NSW state conference the franchise model is resilient.

Wright cited the example of Midas franchisees still in business during the company’s period of administration as proof franchising is a sustainable model.

“Profitable franchisees have traded through these times to profitability,” he said.  

But his positive words about the franchising sector were countered by a warning the franchising Code of Conduct would be back on the agenda in the second half of 2009 along with a number of legislative issues.

In his address to franchise members Wright also emphasized the role of education in underpinning the sector and said the FCA would be looking to lift standards across the board, including with suppliers.

“There will be new initiatives to lift standards across the sector and achieve best practice,” he said.  

The association is reviving its marketing campaign based around the slogan ‘Don’t sign without the sign’, referring to the FCA logo displayed by member franchises and suppliers.  

Wright also applauded the recent Australian Retailers Association call for a code for shopping centre landlords, a move he said the FCA had long promoted, and revealed a task force has been set up by the FCA to look at the current imbalance of information in retail tenancy.  

“In a leasing situation franchisees don’t get much information, landlords get a lot. We want to redress that,” he said. 

This article appears courtesy of 5 Minute Franchising Newsletter