Australia has been experiencing an explosion of failing small business operators including franchise systems. Here Jason Gehrke offers ten types of risks franchisees face when their franchisor becomes insolvent landing in administration.
The Gold Coast Titans face their biggest challenge since entering the National Rugby League in 2007. Next month the team’s property arm will face a bankruptcy application after the Federal Court allowed one its creditors to replace the Australian Tax Office as a new plaintiff against the $35 million debt laden group of companies.
Appearing as a witness in the Victorian Supreme Court can be embarrassing. The former CEO of the Australian Spar franchisor probably had to reveal more information than he preferred. But that is just a preliminary issue to greater consequences going far beyond the regulation of franchising. Milk War!
Round Table Pizza, the 500 unit, privately held pizza coop, filed for Chapter 11 reorganization Wednesday. The company could not pay down a $30M balance on a initial $65M line of credit negotiated with GE Capital and Prudential in 2006 as required.