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New frontman at FCA

Sarah Stowe

A novice to the franchising industry and in the job for less than a fortnight when interviewed, Wright has nevertheless been well primed on the issues at stake. He is clearly a man who has a way with words and that will no doubt come in useful in conveying the message and actions of the Council to the wider audience of membership, public and government.

But itÍs a very different role in terms of responsibility and actions. ñThereÍs a difference in a very good way, for me personally, in that itÍs a sector that I have had no contact with. ItÍs dynamic and growing fast, and is expected to do relatively well, should anything go wrong with the economy.

ñIn franchising you are dealing with entrepreneurs, enthusiastic and, generally speaking, established, good products and services. That makes it more attractive.î

FCA chairman John OÍBrien has highlighted WrightÍs experience in industry advocacy and stakeholder relations, including government relations, on the national level over the past 15 years, saying this makes him a strong fit for the industryÍs peak body.

ñIn Steve, we have secured a high calibre candidate from a strong field of applicants, with well-rounded skills to help take us to the next level of professionalism, representation and member service delivery.

ñWe are very excited about what Steve brings to the FCA. He has a breadth of experience in big and small business and at senior levels of other industry representative groups,î OÍBrien says.

ñHe knows from personal experience the challenges of small business and new business ventures and he understands the importance of translating that experience to the legislative and regulatory areas of Government, which can have such a profound impact on business.î

So what experiences can Wright call upon when dealing with the small and medium enterprises (SMEs) that form the front line of franchising?

ñMy father, brother and sister have all had small business since I can remember. My wife and I had a small business too, in consulting, and I have experience in start-up business, not equity sharing unfortunately because it has been very successful, but in set-up.

ñThat challenge and excitement people feel at start-up, IÍve been close to. I always thought it was the way to go. This job represents an opportunity to get close to the best in the business.î

He adds that he understands too the trials and tribulations that go along with any small business.

Your representation

The franchising sector is not without its challenges, even at its heart. Criticised for being franchisor-friendly at the cost of franchisees, the FCA has recently taken the first steps along the path towards a broader perspective.

The addition of franchisee representation on to the CouncilÍs board has been long overdue Wright says, confident the organization is applying itself to the transition.

ñIt has already happened. We are bringing forth the interest and concerns among franchisees through an online survey.

ñThe forum formalises it,î he stresses. ñThe life of the franchisee forum independent of other areas of the FCA family is very important, representation is important on the board.

ñWe have to make sure when we go in to bat for the franchise industry it is as much for franchisees as franchisors, thatÍs a very important aspect.î

How will that manifest itself? Well, he describes the upcoming enquiries on productivity as ña bit more pointy ended for franchisees, particularly in leased premises.

ñIÍm trying to paint a picture that throughout all FCA things, we need to be conscious, as much as we can, of franchisees.

ñThe FCA was born from a franchisor association. In the past it probably led to it being weighted in favour of franchisors. Everything the chairman has said in the last 12 months, that IÍve read, has recognized that it is now in the past.

ñItÍs not a winner, loser scenario. People who know the sector much better know itÍs not new but this is time for people to really move from thinking to acting.

ñAs people come to know me, they will see I can see both sides and I believe I am able to fairly represent the two sides without being biased one way or another, without a winner or loser.

ñWe need each other and it will be best for both if we both get on.î

He agrees that advocacy is familiar territory, the politics and the regulations but in addition believes he has a talent for understanding peopleÍs real needs.

ñI think that will be helpful, particularly with franchisees. One challenge has to be to act to really embrace the franchisee voice.î

The year ahead

So thatÍs the broader picture painted but what of the detail? What of the members? Membership services, especially education, are absolutely key, answers Wright, who is convinced the whole sector will benefit if there is a greater focus on learning; there are, he understands, particularly good programs which are helpful for franchisees just starting out.

Another overlooked service is insurance. ñThe insurance we provide is terrific but we need to put more effort into providing it,î he admits. He also has his eye on increasing member benefits from buying in bulk. ñItÍs not compulsory but we put a big effort into ensuring itÍs reliable but it also has to be attractive in price and terms and thereÍs more scope here.

ñWe have to make sure that the new programs running for suppliers and franchisees are successful because the FCA has a broad membership, representation includes people who do very different things. Its strength is that it can work this successfully.î

Of course there is the small matter of the introduction of the Revised Code in March. ñWeÍve put a lot of effort into the education sector but smooth implementation is very important. WeÍve encouraged the state chapters to do more of the same, of getting the message out through networking functions, putting it on the agenda, through direct and indirect means. For anyone thinking of buying or selling itÍs a very important issue.

ñI would like to make progress with the leasing issue. Without being an authority IÍm concerned that more work needs to be done on the productivity report. There are some very positive aspects to the draft which we will be supporting, but we will be trying to put the case for a better go for lessees than is implied by the draft.

ñThere is one pleasing thing,î he adds. ñThe report suggests the commission is supportive of our proposal that there need to be clear rules of engagement, even if not mandatory but acknowledged by parties, to show that we can try to get away from the feeling of big guys making it hard for the little guys.

ñItÍs hard to pin down in any precise way harm being done. We know big rent increases have done harm to small businesses but itÍs another step to say that canÍt happen again. But the commission has left the door open to consider a framework for agreement to be reached and implemented. There is some hope there might be a more level playing field.î

Controversy rules

It might be a $128 billion industry but often what the public is made aware of are the controversial issues most frequently highlighted by the sensational elements of AustraliaÍs media.

ñThereÍs been a lot said by a lot of people, I canÍt claim to have the silver bullet, except to say if you change the way people regard the franchise relationship, away from the winners and losers model, you are on the way. In no industry can you expect to get 100% engagement all along but you can try and encourage the right behaviour and where there are clear cases of misbehaviour, thatÍs clamped down on.

ñWhatÍs happened in New Zealand _ I looked at this and thought what is going on, is this a churning issue? But it seems to me to be straight out fraud and there is no lack of ability for the New Zealand system to deal with that. That has served as a good background for me that someone will always break the law.î

He cites a newspaper report of a business-to-business fraud conducted by siphoning fraudulent transport costs and says the disclosure system in Australian franchising couldnÍt allow for that, ñunless youÍre asleep at the wheelî.

ñComing into franchising I regard it as a pretty damn good set-up. There is a lot of protection for people coming into it thatÍs not there in the broader business community.î

New man, new government

A new government is at the helm, and Wright has had plenty of dealings with the people in power in previous employment. Does he predict any significant changes to the franchising sector sweeping in with the new governmental broom?

ñIt looks quite positive, the sector is favourably viewed, and that hasnÍt changed. The existing relationship is positive. The expectations are that this government believes this sector is working quite well and is not in need of an overhaul. But IÍm sure it will be only too happy to look at any ideas the sector has to improved it. To that end IÍll be working to get a dialogue going.î

But he perceives the industry issues are the bigger part of the job. ñMy energy is better directed here and I hope I will spend less time on government issues.î