Edward Christian & Co has extensive experience in the area of franchising. Franchising is certainly a growth area in the current environment with recognition of international brands becoming commonplace.
Franchising [and licensing] is a very efficient means of growing the size and reach of any business.There are many mis-conceptions about what franchising really is and expectations are varied amongst both the potential franchiser and the franchisee. Franchising is based on a systematic model with great reliance placed on these systems, to the extent that they are the success of otherwise of any franchise.
We have experience acting on both sides of the franchise model, for both the franchisor and the franchisee, therefore understanding what makes a good franchise tick.
Key points to consider in any franchise arrangement are:
- The success of the franchise to date. Is it performing already or are you the test-case and risk taker?
- Does the franchise have a comprehensive operational manual? This is the heart of the franchises success therefore it should cover every aspect of the business and its operation.
- Does the franchise agreement fully cover the relationship between franchisor and franchisee? What are each parties responsibilities and are they by way of a partnership or a one-sided document in favour of the franchisor.
- What fees are payable by way of sign-up fee, ongoing fees, and who is responsible for their management in cases such as marketing levies that may be applied across regions greater than that your outlet is based in?
- Is there any ability to negotiate terms?
- Is there a support network in place if the franchisee strikes difficulties? Many successful franchises have operational managers whose sole responsibility is to assist franchisees with management issues.
- As a package does the franchise model being offerred stack up? This is most likely the key question to ask, and often requires independent advice from your accountant as they are able to run a range of measures across the business being offerred to assess not only financial viability but compatibility and any practical issues.
Historically we have seen many people becoming over enthusiastic about a business without realising the range of factors which require consideration prior to signing on the dotted line. Typically the passion outweighs these considerations and the commitment that is being made and also what the business [and personal life] may look like going forward.
Very little consideration is given to any exit strategies.
Edward Christian & Co would be pleased to provide any necessary guidance in the area of franchising, including assessment of any particular franchise being persued, funding applications to banks, or negotiating the terms of the franchise agreement. We have been involved in acting for both Franchisors [the seller/owner of the franchise] and the franchisee [the operator of the franchise]. In fact Eddie has been a franchise operator in the hospitality industry himself prior to buying the franchise himself resulting in him becoming the franchisor!
We have been involved in a range of franchise negotiations including - McDonald's, Carpet One, Quinovic Property Management, Realty Returns, Subway, Valentines, Esquires Coffee, Jamaica Blue, Robert Harris Coffee Shops, Foodstuffs Supermarkets [Co-operative], various real estate and cafe outlets. We are currently looking at an international hospitality franchise for a client.
Please contact Eddie in the first instance to discuss your requirements - 04 562 8394 or 0274 755 844 - further contact details on our Contact us page.
Restructuring & Insolvency - includes Liquidation/Receivership advice
The current economic environment is very challenging for the majority of businesses. Whilst some businesses have found success it is clear that the last two years have been one of cost trimming and rationalisation of operations to fit the new trading market. Statistical information such as the ANZ Small Business Barometer Survey indicate that this scenario fits almost unilaterally across business over the last two years. The good news is that this trend appears to have bottomed out [in our view] and that we are faced with a somewhat different playing field going forward.
In light of the above we at Edward Christian & Co believe that there exists an opportunity for business to create a platform for future growth in the new economy. Moving forward the demand boom may have disappeared for the forseable future any business which has adapted itself to perform efficiently in the current market should reasonably expected to outperform other similar businesses which have not become more efficient. Reasons may include:-
1. They understand their core business and critical operating factors
2. The cost base will be minimised, with any increased costs being driven by sales growth
3. Key financial operating ratios will be aligned and monitored via quality business practices and systems
4. Sound financial reporting systems will support the KPI monitoring process
5. Sound governance practice, supported either by boards in larger businesses or via assistance by qualified financial advisors in the smaller business, will provide guidance to you as the business owner in making calculated and justified business decisions.
It is important for a small business owner to have support and a sounding board to assist them in the decision making process. Being a business owner can be lonely and it is often said that any successful business person is only as good as the people around him.
We are confident that a review of your business operations can lead to margin growth, efficiencies, and cost savings. Edward Christian & Co is experienced in more than just the numbers, our wider commercial experience can benefit you in assessing potential improvements to your business.
We have access to a range of comprehensive tools to assist us in looking at these areas of improvement and have the confidence to offer a money back guarantee that we can improve your bottom line.
Liquidation & Receivership Appointment
Being appointed as either a Liquidator or Receiver is an appointment taken in a personal capacity. Eddie Jansen has considerable experience in this area, being appointed as either a Liquidator or Receiver on numerous occasions in both solvent and insolvent situations.
We would be happy to discuss your individual circumstances to assist you in reaching a well considered decision as to the future of your business. Our aim is to work with you and consider all of the practical solutions available to you. We understand the stress and anxiety that these circumstances create and we look to guide you through the process and your obligations.
Having stated this it is important to understand the role of the liquidator/receiver on appointment, and the obligation to act on behalf of creditors/appointers. The obligation to maximise returns to these parties is integral to the role of any liquidator or receiver. The integrity of our appointment and the proper conduct of any liquidation or receivership is paramount to us, and will not be compromised.
The area of liquidation and receivership work is highly complex, with a detailed list of practical and statutory requirements. Prior to the consideration of any appointment there would be a requirement to discuss individual circumstances.