The Greek restaurant franchise, Souvlaki Hut is yet another Australian franchisor to join the growing ranks of franchise brands placed into voluntary administration. Most recently Kleenmaid, Midas, Samsara, Kleins, Timbercorp, Baskin Robbins and Cookie Man in Australia all fell over but that is just the short list. Australian franchising is on a roll.
The US ice-cream chain Ben & Jerry's has announced its entrance to the Australian market with claims it has adapted its business model to avoid the failures of other US companies such as Krispy Kreme, Baskin Robbins, Starbucks, Midas, Quiznos, Borders, etc etc.
Australian administrator Ferrier Hodgson is taking action against Angus and Robertson franchisees who have moved to terminate their franchise agreements. This will get tricky but if REDgroup, franchisor for a number of brands including Borders, has failed in its contractual obligations the franchisees may have a case.
Borders Bookstores in Australia was either not big enough or small enough to be a viable player in an evolving market. When private equity wants to sell be suspicious. Big landlords need to better interpret and project big tenant performance.
