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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
New version of Franchising Code released An updated version of the Franchising Code of Conduct was released by the federal government on January 28 to include changes flowing from recent amendments to national insolvency laws. The changes are minor and technical in nature, and do not change the nature or substance of the Code, however franchisors will be expected to use the new version going forward. The most significant change requires franchisors to notify franchisees of the name and address of any restructuring practitioner appointed to the franchisor or an associate of the franchisor (where associate is already defined in the Code).
Union launches $100m claim against McDonalds' corporate stores The Shop, Distributive and Allied Employees Association (SDA) has lodged a statement of claim against McDonald’s Australia alleging systemic misconduct in contravening workplace rights, according to a media report. The Federal Court action involves 350 workers in company-owned stores seeking $100 million in back pay after they allegedly were not given paid 10-minute breaks under their employment award with the company. The action is the ninth of its type launched by the SDA, however is the first against 62 business franchise MAGAZINE
McDonald’s corporate which operates approximately 15% of the brand’s stores in Australia.
Chicken chain terminates zombie pay agreement Chicken chain Nando’s has terminated an enterprise agreement created in 2008 under which an estimated 1,900 employees have been working without receiving overtime, weekend, or public holiday rates, according to a media report. Despite workers earning less than the Fast Food Industry Award (minimum wage), Nando’s actions were deemed legal in a ruling by the Fair Work Commission because the enterprise agreement was reinstated regularly prior to expiration. Nando’s recently approached Fair Work to cancel the agreement which it described as outdated and out of step with current pay rates. Fair Work has ordered Nando’s to now pay its employees the industry award.
Woolies withdraws bid for pharmacy chain Supermarket chain Woolworths has withdrawn its offer to buy the parent company of pharmacy chain Priceline after its due diligence indicated it would not validate the financial returns required to make the investment, according to a media report. The late development follows a PR war between Woolies and initial bidder
Wesfarmers (parent company of hardware chain Bunnings) to convince pharmacists that their respective bids would provide the greatest benefit to pharmacy owners. In December, Wesfarmers confirmed to shareholders that it would attempt to block grocery giant Woolworths’ rival bid through its 19% stake in Priceline parent company Australian Pharmaceutical Industries (API) which it acquired in 2021 as part of its strategy toward full acquisition of the company. Wesfarmers made it clear it would exercise its vote against Woolworths’ 11thhour bid for API of $1.75 per share, which is higher than Wesfarmers’ $1.55-a-share deal. Wesfarmers contacted the Pharmacy Guild which represents more than 5,700 community chemists across Australia to assure its members that if they acquire API they are committed to supporting the community pharmacy model which determines who can own a pharmacy and prescribes location restrictions, according to a media report.
