Edwina Luck, Queensland University of Technology and Nicholas Grech, Queensland University of Technology
Many thought Jim’s Beauty – branded with a bearded tradie – was a social media joke. But don’t bank on it failing: sales data shows there may be a gap in the market for at-home beauty services.
Women are more willing to take risks and innovate than the stereotype suggests, but even more would likely go into business via franchising if they knew about all the start-up support they can get.
Two well-known franchises have come under fire this week for problems when reporting their business results. We answer four questions about the business model and why these scandals are reoccuring.
There are some hallmark problems within franchising in Australia and internationally and not all are within the franchisor’s or franchisees’ control to fix.
The obstacles workers face in successfully pursuing their entitlements and the inadequacy of our current penalties to deter underpayments means problems with franchises will remain.
The law assumes franchisees do their financial and legal homework when it comes to signing up to a chain, but research shows franchisees are often overconfident and ignorant of the risks.
7-Eleven’s decision to take charge of the compensation process for underpaid workers highlights the problems with voluntary commitments and underlines the need for increased legal accountability.