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Log In / Register | Apr 20, 2014

Insolvent Systems and Risks for Franchisees

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.

Darrell Lea Goes Under

After 85 years in business, the iconic Australian chocolate manufacturer has been placed in voluntary administration. The news of the demise of the family owned business has left both staff and franchisees in shock.

Retravision Franchisee Supply Co-Op In Administration

KordaMentha Australia has been appointed as administrator of Retravision Southern Ltd, the network’s central buying cooperative, amidst reports that creditors are owed $30M.  

Franchisor 10X Uses Administration To Restructure

The new chief executive of 10X and Business Strategy International (BSI) has placed the 10X franchise into voluntary administration as a means to restructure the organization. There has been no mention of a creditor’s meeting or any review of the franchisor's contractual obligations.

No Refund For Franchisees Asked To Buy Brand

Refund Home LoansAustralian franchisor Refund Home Loans joins the growing list of franchisors entering voluntary administration (bankruptcy). However, many of its disappointed franchisees can not wait to take their chances with a new franchisor, whomever that might be.

Go Gecko Tastes Voluntary Administration

Go GeckoThe collapse of Australian Go Gecko real estate franchise encompasses some common aspects of franchising with common questions about the future of it’s franchisees.

Administrator Challenges Franchisees’ Terminations

BordersAustralian 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.

Aussie’s Learn from REDgroup Collapse?

Ferrier HodgsonBorders 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.

Souvlaki Hut Down But Not Out

Souvlaki Hut 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.

Midas Australia: Is Lazard Ready To Run?

Midas 2008Midas Australia is a Lazard acquisition that has been considered by industry insiders as going against the natural order of worthwhile investment analysis. Lazard recently sold Dun and Bradstreet but is it preparing to shed again and is Midas ready to go?