" Franchising " !

The first job for many young people is " burger flipping " at one of the big fast food  companies that display their logo across the world.   Often, this starts while they are still at school and if they show promise, it can lead to permanent work.

There is a feeling of safety to be employed by a company that has a good name and reputation on the world stage.   It gives great job satisfaction to see your employers logo constantly advertised on television and know that you are working for a " world company ".

Unfortunately, that is only a part truth   Welcome to the wonderful world - of " Franchising " !

It all started many years ago when someone established a successful company which gained media attention.    Lacking the funds to expand into a multi outlet chain, a savvy proprietor offered to " franchise " the business name to others in exchange for a " rental " fee for the use of that name.

Today, that has become big business and  the familiar fast food outlets scattered across the globe are individual stores operating under a common name, but owned by traders who have a signed agreement to cover presentation and policy as dictated by the owner of the trading name.

Not all businesses are successful.  Sometimes some of these branches encounter financial difficulties - and close.  Employees are then dismayed to find that the owners of that brand name have no obligation to reimburse lost wages or unpaid taxation or superannuation entitlements.   It is a myth that they are employees of that hallowed brand.   They were employees of the person who held the franchise for the brand - and accountability ends with that person.

Franchising is a rapidly advancing business technique that has invaded many avenues of service provision.   From lawn mowing and gardening, to mechanical work on car engines, national brand names appear under common advertising to direct business to franchise holders in cities and towns.   It is wise for customers to remember that they are actually dealing with the individual who holds a contract with the national company - not directly with that company itself.

This came to public attention when such a franchise closed it's doors and employees found that many of it's statuary obligations had not been met.  In particular, their work agreements had included training to facilitate advancement , and this had been totally lacking.

Usually, when a business closes there is a lack of money and everyone concerned faces a degree of loss.   So it is with employees.   Young people working in the franchise field are warned that they are in the same situation as merchants who supply goods to a franchised store.   There is a risk that if the business fails, they will lose any money owed to them.

The fact that the Logo on the store is recognised world wide is no guarantee of solvency in a franchise operation !