Hot Topics: Behind the Headlines

BehiND The

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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

court dismisses auto brand’s appeal over $125m fine

The High Court of Australia has dismissed an application by auto manufacturer Volkswagen to appeal a $125 million penalty ordered by the Federal Court in 2019 for making false representations about compliance with Australian diesel emissions standards. Volkswagen admitted in 2019 that it had made false or misleading representations when importing more than 57,000 diesel vehicles into Australia between 2011 and 2015 by failing to disclose that the vehicles were fitted with software designed to falsify emissions test results. The company was prosecuted in a number of other countries for the same offence. The $125 million penalty is the highest ever imposed for breaches of the Australian Consumer Law. Read more

Listed health group to acquire physio chain

Listed healthcare group Healthia will acquire both the franchisor and 64 clinics of physiotherapy chain Back in Motion in a deal worth $88.4 million, plus deferred and contingent consideration, according to a company statement. The diversified health group, which already operates a chain of 54 physiotherapy clinics, as well as more than 160 other health businesses in optometry, podiatry, orthotics, footwear, hand therapy and wholesaling, will partially fund the purchase via a $60 million capital raise. The acquisition will convert the franchised Back in Motion clinics to company-owned outlets, however former franchisees will continue to be involved in operating the clinics as employees, as well as receive a special class of Healthia shares as part of their clinic sale proceeds. All franchisor personnel will be retained, including Back in Motion founder and CEO Jason Smith who will stay on for at least another 12 months as a director and consultant to the new owners. Read more 1; Read more 2

Wesfarmers to acquire pharmacy chain

The parent company of hardware chain Bunnings will acquire 100% of Australian Pharmaceutical Industries (API) and its franchised subsidiary Priceline Pharmacy pending shareholder and regulatory approval, according to a media report. Wesfarmers successfully thwarted an attempt by rival pharmaceutical supplies company, Sigma Healthcare (SIG), to acquire API by increasing its ownership in API by 19% and announcing it would vote against SIG’s bid. The deal which is expected to be completed in the first quarter of 2022 is worth $1.55 per share, a 35% premium on the company’s July 9 share price. Read more

bunnings completes acquisition of tile brand

Home improvement retailer and hardware chain Bunnings has finalised its acquisition of flooring franchise Beaumont Tiles, according to a media report. Beaumont Tiles will remain separate and distinct from Bunnings but will benefit from investment in its future growth while Bunnings will capture trade and customers who require specialised expert service related to flooring. The acquisition was not opposed by the Australian Competition & Consumer Commission which, after consulting with stakeholders and examining financials and documents, concluded that the deal was unlikely to substantially lessen competition. Read more

rFg faces Michel’s franchisee class action

Multi-brand listed franchisor Retail Food Group, which featured prominently in the 2018 joint parliamentary inquiry into franchising, will face class action proceedings brought against it by former franchisees of its Michel’s Patisserie brand, according to a media report. The class action claims that a decision by RFG in 2015 and 2016 to supply franchisees with frozen, instead of fresh goods, resulted in a significant drop in the quality of food to be sold, which in turn, adversely affected the franchisees’ businesses. RFG issued a statement to acknowledge the commencement of the proceedings which

noted they relate to former leadership, and said it will be defending the claim. Michel’s is one of six brands operated by the franchisor, with others including Gloria Jean’s, Brumby’s Bakery, Donut King, Pizza Capers and Crust Gourmet Pizza. RFG is also currently the subject of Federal Court proceedings instigated by the Australian Competition and Consumer Commission investigation (ACCC). Read more 1; Read more 2; Read more 3; Read more 4

$60m deal for australian fitness chain

Australian fitness franchise Body Fit Training (BFT) has entered into a licensing deal with America’s largest boutique fitness franchiser Xpotential worth $60 million, according to a media report. The deal allows BFT to expand into the US and Canadian markets, a move which has been hampered by Australia’s pandemicdriven international border restrictions. BFT has been involved in legal proceedings with local rival fitness franchise F45 who allege infringements of its innovation patents relating to the management of its franchises through a central computer system, among other things. Read more

auto franchisees in $650m lawsuit against franchisor

Independent Australian Mercedes-Benz dealers have launched action in the Federal Court seeking $650 million in damages from parent company Mercedes-Benz Germany, claiming the company’s abrupt business model changes undermines millions of dollars in dealer investment, according to a media report. More than 80 percent of Mercedes dealers have joined forces seeking reparations under the Competition and Consumer Act and Australian Consumer Law alleging MercedesBenz forced dealers into non-renewable agreements, decimated the value of their dealerships, and failed to operate in “good faith”. The key issue relates to a change from a dealership model to an agency model, a move which effectively changes current independent retail business into MercedesBenz agents who receive a fixed commission for car sales at a fixed price, among other things. Mercedes Benz claims that it consulted with the dealer network about the introduction of an agency model over the past three years, however franchisees dispute the consultation and claim they were told to agree to the change or else they would not be provided with vehicle stock to sell. Federal Labor Senator Deb O’Neill who was a member of the joint parliamentary inquiry into franchising in 2018, claims that the change to the new agency model requires Mercedes Benz dealers to be compensated for the appropriation of the goodwill developed in their businesses, and will result in less competition and higher prices for cars. Read more 1; Read more 2

Franchise disclosure register details announced

Franchisors will be required to upload their disclosure documents to a publicly-accessible online register from next year, however will be able to redact certain parts of the documents according to new guidelines released by the Australian Government. The online Franchise Disclosure Register will be operated by the Government, but will not vet or check documents before they are uploaded. Franchisors will be responsible for the accuracy of all information contained in their disclosure documents, with access to the online register available for free to any member of the public. The Disclosure Register is expected to be ready to receive documents from March 31 next year, and will be voluntary for several months before all brands must upload current disclosure documents by October 31, 2022. Franchisors will be required to open an account on the Register and provide basic information about themselves before uploading their disclosure documents, and any other supporting documents that may be required. The Franchising Code of Conduct will again be changed to recognise the role of the Disclosure Register. An Explanatory Statement about the Register, as well as a plain English guide featuring eight questions for public consultation has also been released. Franchisors will be permitted to redact some information before uploading disclosure documents, including personal information in deference to the Privacy Act, site-specific information, and commercially sensitive quantitative information about rebates from suppliers (but potentially not the list of suppliers itself). The Register will not retain past versions of disclosure documents, and all franchisors will be expected to maintain a current disclosure document on the Register unless they have ceased offering franchises. For more information, click here. v

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COVER STORY: Roll’d Vietnamese JOIN THE

FRANCHISE FAMILY

Pictured Above: Mama Hoang (left) and Quinnie - Corporate Store Operations / Franchisee (right)

From studying to become a high school teacher to immersing herself within the family business, Quynh-Anh Hoang, known a ectionately as Quinnie, sister of Roll’d Vietnamese founder and CEO Bao Hoang, saw the rapid growth of Roll’d Vietnamese and trusted her gut feeling to get involved. Having grown up in a Vietnamese family, the Hoang children knew exactly how fresh and healthy Vietnamese food is, although lacking popularity of Vietnamese cuisine across Australia left it in the shadows of other prominent takeaway options. eir shared vision to reshape the Australian-Vietnamese dining experience remains a source of inspiration for Roll’d Vietnamese, who as a team collectively continue to advocate for food diplomacy, offer career growth opportunities and develop a strong mutual understanding of cultural differences. Quinnie, who owns four Roll’d Franchises across Victoria and Queensland, describes her Roll’d Vietnamese journey as one dedicated to service, education and passion, a philosophy she brings into her stores every day and encourages amongst her team members, who she calls family. In good Vietnamese fashion, all on-boarding Roll’d franchisees are welcomed into a the ‘Roll’d family’, a community of likeminded individuals and extension of the Hoang’s family heritage. Having adopted their parents strong work ethic and appreciation for Vietnamese culture has meant the Roll’d Vietnamese team have fostered a working environment built on patience, empathy, forgiveness, compassion, as taught in the home by the Hoang parents.

Now, with over 20 new stores slated for 2022 and an extensive omnichannel strategy that includes B2B sales and new drone delivery, the team are investing equally in providing stronger career pathways and opportunities for onboarding Roll’d Vietnamese franchisees and staff. Since the inception of the brand, Roll’d Vietnamese have offered ongoing support to its franchise network inclusive of first-time business owners, to multi-site investors. is includes on-going training and short up-skilling courses to better equip staff with skills that are valuable both in and outside the store environment. In a bid to open up further opportunities for young Australians, the team are taking their recruitment strategy to the next level, having recently paired with e Institute of Training and Further Education to tailor a suite of qualifications to suit individual employees. e new recruitment strategy is intensely focused on forging stronger career development pathways that supports the next generation of hospitality workers, by putting them through short courses and full qualifications to strengthen and develop important skills suited to hospitality and beyond. “Our role is to give the franchisees everything they need to succeed and provide on-going support. It’s important for prospective franchisees to ask themselves why they’re investing in a Roll’d franchise. We believe that profit is a by-product and if you do things well and with our values at heart, you’ll be successful. Being in the Roll’d family is about being a part of something special and being a trailblazer, because we’re a young business everyone in the franchise network has the opportunity to facilitate change and see their future and the future of Roll’d grow,” Says Quinnie. As a proud business that offers equal opportunity, the new recruitment strategy focuses more on the capacity and willingness to learn, rather than existing skills or experience. “Our door is open for people from all walks of life. It’s not about having a longstanding background in hospitality, but rather our approach is about people who have a willingness to learn, who are hard-working and invested in building a team.

10 BUSINESS FRANCHISE MAGAZINE

Being a part of the Roll’d Vietnamese family is about sticking to the basics of providing good Vietnamese food, good customer service and making it a memorable experience for each and every customer,” says Quinnie. Big picture thinking, flexibility and long-term strategies has allowed the brand to cultivate an environment to inspire staff through on-going support, new B2B opportunities and a range of store formats to choose from. Equally innovative as adaptable, Roll’d Vietnamese has shown great flexibility in its business model, offering a variety of store models for prospective franchisees to choose from: traditional retail store fronts, including kiosks in food precincts, high-street stores, concessions with supermarkets and the Roll’d Runner (Roll’d’s food truck). Alongside multiple store format options, Roll’d’s new business strategy is intensely focused on expansive omnichannels, with each store model having the opportunity to supplement revenue through new FMCG products and the Grab-and-Go range available in Coles Supermarkets. As Roll’d Vietnamese power ahead in the Australian market and continue to develop deeper relationships with more Australians, Roll’d are also looking ahead with aspiration to expand into international markets including the USA, New Zealand, Ireland, Japan and the UK. BAO HOANG

CEO / Co-founder

ABOUT ROLL’D

VIETNAMESE: A proud Vietnamese culture, focus on family, supporting franchisees and delivering healthy bites is at the heart of everything behind Australian QSR leaders Roll’d Vietnamese. One of the few genuine family-run QSR businesses, Roll’d Vietnamese has remained passionate about culture and forging long standing relationships with its franchisees since its rst store opened in Melbourne’s CBD back in 2012. Roll’d Vietnamese continues to honour the historic and proud roots of the Hoang family and their Vietnamese heritage through authentic Vietnamese food, recipes and strong cultural traditions. Not only has this enabled the QSR leaders to remain at the forefront of Australian healthy takeaway, but it has also enabled the brand to ourish into a range of new omnichannel strategies, bringing healthy Vietnamese food to more Australians, keep sta in reliable employment and excitingly prepare for international expansion o the back of the pandemic. With over 1,000 locations to pick up a fresh x of Mama-Hoang inspired delights, including famed Roll’d Soldiers®, steamy Vietnamese Phở soups, crisp Gỏi salads, Bánh Mì baguette, pantry items, Grab-and-Go meals, condiments, Roll’d Vietnamese is an incredible story of strong family ethics and determination. Led by Founder and CEO, Bao Hoang, Roll’d Vietnamese remains a passion driven business, with Hoang’s parents keeping a hand in every Phở that’s served. Now, his sister, Quynh-Anh Hoang is leading the corporate arm of Roll’d Vietnamese and championing the franchising space, with four Roll’d Vietnamese franchises under her own belt.

VOL 16 ISSUE 02 JAN/FEB 2022

SCAN NOW AND LEARN MORE OR CONTACT OUR NATIONAL FRANCHISE MANAGER: VENICE PHAN venice@rolld.com.au BUSINESS FRANCHISE MAGAZINE 11

JOIN THE ROLL’D VIETNAMESE FRANCHISE FAMILY

UNPACKING YOUR FRANCHISE FINANCE OPTIONS

FRANCHISING PRIMED TO LEAD SMALL BUSINESS RECOVERY IN 2022

$4.95 (AUD), $7.95 (NZ) inc. GST.