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headlines Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 30 years at franchisee, franchisor and advisor level. He advises both existing and potential franchisors and franchisees, and conducts franchise education programs throughout Australia. He has been awarded for his franchise achievements, and publishes Franchise News & Events, Australia’s only fortnightly electronic news bulletin on franchising issues. In his spare time, Jason is a passionate collector of military antiques. www.franchiseadvice.com.au
Management buyout for fitness chain
New model disclosure document available
The CEO and management team of Jetts Fitness Australia has led a management buyout of the brand’s franchise division from parent company Fitness & Lifestyle Group (FLG), according to a media report.
The Australian Competition and Consumer Commission (ACCC) has released a new model disclosure document in time for franchisors to update their disclosure documents using the new guide by October 31.
FLG retains full ownership of the brand and operations in New Zealand, Vietnam, and Thailand but has divested itself of 129 franchised clubs in Australia and international franchised businesses in the Netherlands and the UK. Jetts’ new owners are reportedly looking at targeted international growth in South-East Asia, India, and Europe, while maintaining and nurturing domestic operations in suburban communities.
Food brand kicks off huge Australian sports sponsorship Sandwich chain Subway has signed on as the Australian senior men’s soccer team’s naming rights sponsor in a deal reportedly worth around $12 million over three years, according to a media report. The senior men’s team, the Socceroos, have struggled to find a major corporate sponsor since the end of their 10-year arrangement with Qantas in 2013 after which they were without a sponsor for four years. Their most recent sponsorship contract, with Caltex, expired at the end of 2019. The deal is the largest ever national team deal in Australian football history and gives Subway naming rights to Australia’s junior male national teams, including the Olyroos, Young Socceroos, and Joeys. The Subway Socceroos are currently engaged in their 64 business franchise MAGAZINE
The model disclosure document is markedup with guidance notes throughout that provides tips and insights into how to correctly disclose information required by the Franchising Code of Conduct. Franchisors whose financial year ends on June 30 are required to update their disclosure documents no later than October 31. Click here to access the model disclosure document.
Holden parent offers buyouts to US dealers Holden parent General Motors (GM) is offering to buy out its 2,000 Buick franchise dealers as the brand moves to all-electric vehicles (EVs) by 2030 in the United States, according to a media report. Shifting to EVs would require significant investments by the franchised dealers in the US to ensure they are appropriately equipped to sell and service the vehicles. A similar offer to GM’s Cadillac dealers in 2020-21 reportedly cost the company USD$274 million to buy dealers who were unwilling or unable to spend up to USD$500,000 per store in equipment and training to move to an all-EV offering. GM rationalised its Australian network of Holden dealers in 2020, offering dealers compensation which was described at the time as “grossly inadequate” and prompting a
Senate inquiry into the company’s operations in Australia.
Pizza chain in 287-store Asian acquisition Listed pizza chain Domino’s Pizza Enterprises (DPE) has announced its acquisition of 287 stores in Malaysia, Singapore, and Cambodia, in a deal estimated to be worth $214 million and set to be finalised by the end of 2022, according to a media report. DPE intends to apply its technology, operational expertise, and high volume approach to the newly-acquired stores to drive growth in those countries. The acquisition aligns with DPE’s recently revealed plans to expands its footprint in Asia from 2,400 to 3,000 stores by 2033. DPE’s earnings for othe 2022 financial year before interest and taxes (EBIT) for Asia was $31.7 million, 59.4% higher than pre-Covid levels.
Former Soviet leader remembered for franchise ad Former Soviet leader Mikhail Gorbachev who passed away recently has been remembered simultaneously as the most significant political leader of the second half of the 20th century, and a spruiker of Western Capitalism for his appearance in a Pizza Hut commercial, according to media reports. Gorbachev’s political reforms during his seven
