Below are links to the ACCC website for a full comprehensive explanation toward the changes, what you need to know, and what you need to do now, should you be involved (in any way) with a franchised business. The Franchising Code – what you need to know and do now http://www.accc.gov.au/about-us/tools-resources/social-media/transcripts/the-franchising-code-what-you-need-to-know-and-do-now  Source-ACCC website

Franchisor Compliance Manual

http://www.accc.gov.au/publications/franchisor-compliance-manual Source-ACCC website Enforcing the Franchising Code: Recent activities & proposed reforms http://www.accc.gov.au/speech/enforcing-the-franchising-code-recent-activities-proposed-reforms Source-ACCC website   Ian Salter – LREA Franchise Specialist

For the business owners currently sweating blood and tears to make their venture a success, the thought of later selling up and walking away from the company might seem far off. Yet, at some point in the future you may want to see a return on all of your hard work, enabling you to take a step back, explore new challenges, or move away from a changing market. The decision to sell your business is not one that can be taken overnight. Careful planning is essential if you are going to reap the rewards of all your hard work. Yet, all too often when it comes to selling their business, people get caught up in profit and turnover and forget who their potential buyers are and what they might be looking for. Your business is only worth what someone is willing to pay for it, so it’s vital that you understand your buyer’s point of view. Put yourself in their shoes: If you were looking to buy a company what would you want or expect? What would grab your attention and what would put you off? You should consider these questions if you want to make the most out of your business’ sale. Risky Business: One of the key things a buyer will assess is risk. There is no point paying a large sum of money for a company if the business is likely to lose a significant proportion of its customers, suppliers or staff following a sale. The infrastructure of the business needs to be able to withstand its sale, so you have to make sure that your company and its culture are transferable and compatible with the types of company that might buy you. For example, does your business have contracts or regular orders? If you have customers who buy from you on a regular basis or long standing agreements with suppliers, consider turning the relationship into a contractual one. Not only will this add stability to your company, but it will also give you something tangible that can be passed on to the buyer. Contracts give the buyer more confidence than ongoing business and this added security could add significantly to your company’s value. Preparation is also key when it comes to your staff. Keep them in the loop, let them know your plans for the company and they will be more likely to stay on after its sale. Make it easy: The purpose of buying a business is often a ‘short cut’, a quicker alternative to the years of work and effort that go into building a business from scratch. Therefore the more confidence that you can build in potential buyers and the easier you can make the process, the more attractive your company will become. Leave something for the buyer: Sell your business before reaching the top. You do not want to try and squeeze every last sale out of your business before you sell, only then to find it difficult to find a buyer. Buyers will be looking for a return on their investment and will seek out companies that have the potential to grow. You will get far more value out of an exciting prospect than a spent force so be sure to sell the future, not the past. A buyer’s agenda: Run your business as if it could be sold at any time, working to what you might see as a buyer’s agenda and not your own. You will need to plan well in advance to generate the most possible value out of your venture. Bruce Rylance Business Broker Specialist

There are several advantages to buying an existing business as opposed to starting your own. Most obviously, you save time. Suppose you want to start a retail business. It may take months for you to build an adequate inventory. Opening your own restaurant means creating your own recipes and menus; building a manufacturing business from scratch can take years. But when you purchase an existing business, the "dirty work" has already been done. If the business you want to buy offers a product or a service, you can evaluate the operating history and better understand the demonstrated market. Are people buying the product or service? What are they willing to pay? What type of advertising has been most effective? When you start your own business, it can take many years of trial and error to establish your market. Purchasing a business can alleviate this process. Buying an existing business will allow you to evaluate its cash flow and operating expenses, giving you a better idea of how much investment capital you will need. When you start your own business, these numbers are much more difficult to estimate, and investors consider start-up businesses higher risk than existing ones with operating histories and proven track-records. Perhaps the biggest advantage to buying over starting a business is the existing business's potential. You may see growth opportunities the current owner doesn't, or maybe you have a superior business plan. Your enthusiasm and excitement for the business can revive it and help it to grow, and often relatively minor changes in advertising, personnel, or procedure can greatly improve profitability. Always consult a Business Broker who is a specialist in the industry that you are looking to invest in.   Bruce Rylance Business Broker

There are 3 golden rules for of starting a new hospitality business. Every day I see business owners in hospitality and feel for those that have entered into a lease, which ends up destroying them financially. Before purchasing or starting your own hospitality business, you should research and educate yourself as much as you can. Network and communicate with industry experts, and don't be afraid to ask for assistance.  – They will be happy to assist you. My 3 golden rules:

1. Rent should NOT equate to 10% or higher on gross annual sales.

A higher % will put financial strain on your business, and rarely will you be able to run the business profitably under management.

2. Your lease should (at least) cover your payback period plus a number of years post payback equating to the revenue you wish to earn over the total lease period.

You should keep in mind when you want to sell, the number of years remaining on your lease is a determining factor of price. Generally a lease over 10 years & in particular 15 years with options of 5 x 3 or 3 x 5 is seen as good lease.

3. Always have a lawyer review your lease before signing and hopefully highlight any areas of concern for example:

Body Corporate Fees Restraint of trade Renovation clauses Demolition clauses Etc… You're entering a business to be profitable, don't rush and take the time to understand what is in front of you. If it feels wrong, then it generally is. For obligation free advice and assistance call me on 0412 817 059   Emil Parthenides Specialist – Food Service Division emil@benchmarkbusiness.com.au

For too long, Australian shoppers have used the word “local” when talking about farmers and locally grown produce. Hence the popularity of farmers’ markets, which are indeed a delight. Let’s not limit our language to produce. For in the right kitchen, “local” can take on any number of meanings. Consider the rich tapestry of producers and products that come to life every day within a 25-mile radius of the typical Australian home:

1. That corner restaurant that specializes in the very best organic cauliflower soup.
2.  Your neighborhood bakery that worships at the altar of “gluten free” and painstakingly produces these items in the safest of environments.
3.  The regional caterer that creates specialty items and delivers them in packaging constructed from recyclable items.
4.  Homemade jams and jellies, pickles and relishes, pastas and salsas.
5.  Farm-to-table herbs.

For the smart retailer, these products present a golden opportunity. The smart retailer will join forces with these independent inventors, and producers and feature their food in their stores. Do you need more customers? Then partner with a local manufacturer. Want to strengthen your relationship with existing customers? Again, partner with a local manufacturer. Once a customer becomes savvy, they begin to see your store as more than just a building to fill up a shopping cart. Your store becomes a brand — a temple that offers endless ways to prepare the freshest, most delicious meals for one’s family. – and where they knew that they can find something different – something of quality – and with value to them. These strategic partnerships allow retailers to “grow the pie” while supporting our local community. For retailers, non-commodities don’t compete on price, so selling them is a profit-producer. For manufacturers, by gaining greater exposure, they sell more products. It’s a win-win. Now, none of this is easy. Actually, it’s much easier to stay the course than to embrace change. Supermarkets face unique challenges in selling local products. They have traditionally favoured large suppliers, capable of reliably providing a large volume of product and who have large marketing budgets to pay supermarkets for advantageous product placement. The introduction of local products in supermarkets can create special hurdles in delivery, extra work regarding the need for individual contracts and invoicing, and a need to differentiate local products that must be placed near high-volume products, forcing the two to compete on price. On the other hand, local products provide customers with a more personal connection to the community and to their food. As we see in every industry today, companies that stagnate ultimately die a slow death. By contrast, those that innovate, those that wake up every morning thinking up new ways to perfect the customer experience — those are the companies that are gaining market share. Here is your golden opportunity to standout from other retailers – and produce more sales for a bigger pool of regular customers, who appreciate your unique range of quality products.   Mathew Hartley Supermarket Specialist Business Broker

If you’re reading this I can assume you have an interest in purchasing newsagencies and are possibly considering buying one as opposed to some other business or franchise. Well personally I think you are making a good decision. I have had 20 years’ experience running my own newsagency and feel I have a pretty good insight into the strengths and weaknesses of the business. And yes there are some weaknesses to consider which I will touch on in time, but first here is an overview of the type of newsagencies there are and what it is that sets them apart or rather their differences. Broadly there are 3 classes of newsagencies, keeping in mind newsagencies are territorial, that is the area in which the business can operate is specifically defined by both a contractual arrangement and a lease. The first is retail only, these are normally located in shopping centres from small centres with around 10 tenancies to major regional centres of 100’s plus.  The contractual arrangements with the publishers who supply the business with the newspapers and magazines restrict the area of operation to the boundaries of the shopping in which the business is located. In some cases, in particular within the very large shopping centres, the publisher may allow another tenant such as a major supermarket to receive supply of their products as either direct supply or as a sub agent of the newsagency in which case the agent receives 50% of the margin for products sold, in accordance with the “supply contracts’” terms and conditions. The second is retail and delivery. These types of newsagencies are generally found in what is termed “strip shops” and normally the territory attached to the business would include the surrounding suburbs and it is the responsibility of the newsagent to deliver the publishers products, newspapers and magazines to any delivery subscriber on a daily basis for which he receives a fee as well as the original profit margin. Similarly as in the first instance should the publisher agree to supply another business within the Newsagents territory the business is appointed a sub-agent and is supplied direct by the newsagent for which the agent receives 50% of the profit margin. It is possible in some areas for an agent to have dozens of sub-agents. Thirdly is delivery only. These businesses also have a territory defined by a delivery contract with the publishers. These businesses do not normally operate out of a retail shopping prescient, mostly because the area required to operate the business is too large and the cost of a shopping centre tenancy would be too prohibitive. One thing is sure, over time all things change. Over the years there have been many changes to the way newsagencies operate. Already there are newsagencies that blur the lines I have described. The design and layout of the newsagencies and the type of products sold and distributed are all changing and for the better. The Golden Casket Corporation and their products, gold lotto and instant scratch tickets is the main driver of the newsagency industry. The guaranteed foot traffic brought to each business is the heart of the business and what underpins its value. As an owner of a business, guaranteed a huge traffic flow through the door, you are off to the best start any retailer could ask for. In my next blog I will expand on the role the Golden Casket has to play in the continued success and growth of the Newsagency industry. I have many newsagencies for sale on my books. If you would like to discuss them with me feel free to call me Neil Barry on 0419 720 262 or Benchmark Business Sales on 1300 366 523.

November has seen an unprecedented number of new inquiries on my listings, and many of the inquirers are stating that they are “cashed up and ready to buy”. This is the first time since the Global Financial Crisis and comes at a time when the banks seem to be looking for quality business lending.  ANZ Bank approved more than $1 billion of lending to new small business owners between April and December in 2013 and in March this year ANZ pledged, (on their Small Business Hub), another $2 billion to new small businesses over the next twelve months to February 2015. Other banks are also beginning to come to the party.  This really promotes the ability for business transactions to be made. Better trading figures are beginning to appear in small business circles, and I believe that many small businesses will be showing excellent half yearly results after December 2014. Finding the right business will depend on the size and quality of the brokerage firms that Buyers use, coupled with the experience of the individual brokers they deal with. Benchmark Business Sales has a formidable team of highly experienced Brokers around Australia and some excellent businesses to sell. But we need many more to meet the demand. Highly profitable businesses are likely to achieve great prices as the demand builds even further. Call your local Benchmark office to discover what your business might be worth in today’s market and how you can plan to extract yourself from the business in the most profitable way. On the Sunshine Coast we have significant demand from buyers looking to acquire quality businesses. Now is a great time to prepare for sale. Call John Dawkins on 0412 713 154. John Dawkins B.Bus.(Accounting), C.Dec., MAIBB

You (understandably) may have a few things that you are not quite sure of, or have concerns about. Speak to one of our experienced hospitality specialist brokers; they are there to assist you. One of the most common concerns Vendors have is “I don’t want anybody to know that I am selling, it would be very unsettling to the staff.   I wouldn’t want my customers to know either.” This is by far the most common concern for sellers. Professional Business brokers are very aware of the confidentiality issues around the sale of any business, and they take this very seriously. When the business is marketed generally only generic photos are used in the advertising. When potential buyers inquire on a business, they will only be given very basic information until such time as the broker receives their completed confidentiality agreement. In most instances prospective buyers will only be given very vague details on the locality. – Until their bona fides are confirmed. How can we maintain confidentiality when buyers start visiting business? Brokers have a number of different strategies that they can employ when purchasers start looking at businesses and want to conduct inspections. All buyers are reminded of their obligations under the confidentiality agreement that they have made. Sometimes the broker will encourage Buyers to go to the business and have a coffee or bite to eat. The broker will remind them not to speak to the staff about the business being up for sale. It is good for potential buyers to go in independently and get a real feel for the business. The customer perspective will give them ideas on what they could do with the business, how they could expand, and how competent the staff are. Buyers are often able to formulate some ideas on how they could improve the business. Quite often the inspections of the business can occur after hours when staff are not around. If purchasers have viewed the business when it is busy from the prospective of a customer, they can then view the business in detail, right through the kitchen and storage, etc – when staff are not there. They get the best of both worlds-the customer “feel”, as well as the detail behind the scenes. These after hours meetings can also be good in that Buyers can ask detailed questions of the owner, and the owner has time to devote to them. The Business owner will not be worried about what is happening in the kitchen, or why table 10 has still not been served….. Rest assured confidentiality is paramount – and it is in the interests of both buyer and seller, that confidentiality be maintained. Jo-Anne Wilson Hospitality Specialist Business Broker