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Another Australian export set to bedazzle the US market is the infamous Poolwerx brand. Since Brad Sugars of Action Couch infamy showed Australia just how many willing US investors don’t perform due diligence many Aussie franchisors have contemplated the land of opportunity.
Poolwerx claims an innovation advantage over US competitors.
The Poolwerx model of three business elements - one third each domestic, retail and B2B - will be unique in the US market. Franchising.net.au
But what is not new is the Poolwerx blanket approach to franchisee mandatory purchasing from grateful suppliers. This, along with having mastered the art of slicing up franchisee territories gave Poolwerx franchisor John O’Brien years of success until the brand’s franchising reputation degenerated. Growth virtually evaporated.
O’Brien started the Poolwerx business in 1992 but by the time the federal inquiry into franchising in 2008 came along franchisees had become vocal claiming brutal tactics against them to shut down complaints and/or terminate franchisees.
However, overshadowing their submissions to the inquiry was the finding by the Inquiry Chairman Bernie Ripoll that John O’Brien and his lawyer Stephen Giles, the current Chairman of the Franchise Council of Australia, had attempted to intimidate franchisees wanting to submit to the Inquiry and that their actions ‘may constitute a contempt of Parliament and a criminal offence.’
That’s the thing about Australian franchising. We only usually export when network growth has collapsed here. You can thank us later.