deadline by which franchisees of Eagle Boys
located outside of the existing trade area of
Pizza Hut stores could opt to convert to the
Pizza Hut brand.
Startup wins first round in
trademark battle
The first stage of a David versus Goliath
trademark battle has been won by tech start-
up Sendle after a hearing by trademark office
IP Australia cleared the company to proceed
with its application to register “Post without
the office” despite opposition from Australia
Post.
The postal giant had opposed the initial
application on the basis that it infringed
existing Australia Post trademarks, however
IP Australia ruled that the application could
proceed as it was not similar to the Australia
Post trademarks. Although Australia Post can
still appeal the decision, the win is a milestone
for online delivery platform Sendle, which
secured $5 million in funding last year.
telstra franchisee silent on future
store plans
A listed operator of more than 100 Telstra
stores has said that it is neither planning to
close any existing stores or open any new
stores while it negotiates new commercial
terms with Telstra following the telco’s
announcement of a restructure of its network.
Shares in Vita, Telstra’s only master licensed
dealer and operator of 107 mobile phone
stores, plunged 30 per cent after the company
revealed its commission payments from Telstra
could be reduced due to increased competition
and the rollout of the National Broadband
Network.
Earlier this year, a leaked internal Telstra
document which considered taking back
control of a number of stores operated by
Vita sent shockwaves through the business.
The document was reported to indicate that
Telstra would make greater profits if it bought
back a number of stores as it would no longer
need to pay sales commissions to licensees.
At the time, Vita released a statement
indicating that its relationship with Telstra
goes back 22 years, and that its current master
license agreement is valid until 2020.
international students routinely
exploited by employers: SBS
An SBS radio report has found that
international students are routinely exploited
by employers in the hospitality industry in
Melbourne.
The report found that international students
often worked for employers from the same
migrant backgrounds and were initially
grateful to have a job, before later realising
they were being paid well below the minimum
wage. One employer was quoted by the show
as saying that if a potential employee asks
about the salary, they don’t get hired.
The report also indicates that wage fraud
is common among independent restaurant
operators, despite attempts by the Australian
government to specifically legislate against
wage fraud in the franchise sector.Franchisee in court for $18,000
cashback scam against one
worker
A Brisbane franchisee of The Coffee Club
is facing court for forcing a worker to repay
$18,000 cash shortly after paying him more
than $19,000 in outstanding wages, and
threatening that the worker’s 457 visa would
be cancelled if they did not comply.
Sandeep Chokhani, owner of The Coffee Club
at Nundah Village, consistently underpaid
the Indian worker over several months, and
paid outstanding wages of $19,334 before
demanding the $18,000 cash reimbursement.
Incidences of wage fraud committed by
migrant franchisees against fellow migrants
are common among prosecutions for
underpayment undertaken by the Fair Work
Ombudsman.red rooster stores investigated
for wage underpayment
Seven Red Rooster stores in Queensland have
been raided by officers from the Fair Work
Ombudsman after a report aired on Channel
7 about systemic underpayment of staff.
The stores on Brisbane’s southside at Camp
Hill, Mt Gravatt, Cannon Hill, Inala,
Underwood, Wishart and Forest Lake are
alleged to have targeted migrant workers,
particularly those from India, with most being
paid about half of the correct hourly rate.
However Red Rooster has since terminated
the franchise agreements of the stores under
investigation.Fuel retailer united petroleum
buys pie Face
After going bust in late 2016 for the second
time in two years, trouble-plagued food brand
Pie Face has now been sold by receivers to
family-owned fuel retailer United Petroleum
for an undisclosed sum, according to a media
report.
The sale includes Pie Face’s intellectual
property and 29-store retail network, but does
not include its central kitchen facility, whose
costs had previously been attributed as part of
the reason for the chain’s financial troubles.jason gehrke | director
FrANchise Advisory ceNtreUnited Petroleum operate 400 retail outlets
and expects to leverage this scale to grow
Pie Face, which had more than 70 outlets in
Australia at its peak, plus outlets in New York
and other overseas locations when it first went
bust in late 2014.
The US operations are now closed and
former CEO and company founder Wayne
Homschek is being pursued by former
investors who lost millions.
United Petroleum has also been in the news
recently after an investigation by the Fair
Work Ombudsman found that 46 employees
in 12 stores had been underpaid a total of
more than $20,000 following inspections in
September 2015.mortgage broker remuneration
under fire
Mortgage broking franchises may have to
review their franchise models if banks accept
the recommendations of an industry review to
limit the incentives paid to loanwriters.
The Sedgwick Retail Banking Remuneration
Review, commissioned by the Australian
Banker’s Association, has already
recommended reducing performance bonuses
based on sales alone, and for changes to be
made to third party (ie. broker) channel
remuneration.
The industry-based review is in addition to
a review being undertaken by the Australian
Government into remuneration and
ownership structures employed by mortgage
brokers as part of its overall response to the
2015 Financial System Inquiry.
The review of mortgage broker remuneration
will consider broker commission models,
moving away from bonus commissions,
increasing disclosure requirements and
oversight of brokers by lenders and
aggregators. There are more than a dozen
franchised mortgage broking brands in
Australia. Public submissions closed on
June 30.http://www.franchiseadvice.com.auBusiness Franchise Australia and New Zealand 91