25 Jun 2024
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Yesterday, the WA Coffee Connect event brought together a distinguished group of experts to delve into the significant recommendations from the Franchising Code Review. The focus of the morning's discussion was Recommendation 8: "All franchise agreements should provide a reasonable opportunity for the franchisee to make a return on their investment." This recommendation sparked lively conversations about the challenges in quantifying this opportunity due to various uncontrollable factors affecting franchisee outcomes.

Key takeaways from the event underscored the necessity for franchise brands to continuously evolve, monitor their data and industry trends, and ensure they remain relevant and viable. It was emphasized that franchisees should perform thorough due diligence before making a purchase, which includes seeking advice from franchising accountants and lawyers to safeguard their interests. Additionally, brands entering the Australian market must consider local labor conditions and other costs that could impact franchisees' ability to achieve a reasonable return on investment.

A special thanks goes to Tamra Seaton from Keypoint Law for facilitating this insightful discussion. The session highlighted the collaborative effort required from both franchisors and franchisees to navigate the complexities of the franchising landscape successfully.