Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Remove Barriers To Franchise Sector To Boost Asian Growth


Wednesday 6th February 2013

Remove Barriers To Franchise Sector To Boost Asian Growth - Business School

The University of Sydney Business School has launched a two year research project to identify the structural, regulatory, commercial and legal barriers to franchising in South East Asia and develop a strategy to stimulate the growth of the sector across the region.

Franchising, which began in the United States and now delivers goods and services from hamburgers to office printing to almost every corner of the globe, is yet to make major inroads into less developed nations including Cambodia, Laos, Vietnam and Indonesia.

The Business School project, funded by the Australian development assistance agency, AusAID, will audit conditions affecting the franchise sector in individual nations and across the region.

A research team, led by the Business School’s Professor of Business Regulation, Professor Andrew Terry, will also make recommendations on ways of improving the local and regional environment for franchised businesses.

“The franchise business model can make a significant contribution to economic development through the small to medium sized enterprise (SME) sector, said Professor Terry.

“Franchising gives small business access to the world’s biggest brands, it introduces new business systems, takes customer service to a new level, provides much needed training and leads to a new way of thinking about the best way to do business,” Professor Terry said.

“Franchise networks can also take advantage of their buying power to put downward pressure on the price of stock which flows through to the consumer.”

“While McDonalds, 7 Eleven and Kentucky Fried Chicken are very well known franchisors, there is hardly a product or a service that isn’t franchised these days,” added Associate Professor Nigel Finch, another member of the Business School team. “Accounting, post, gardening, real estate and many other services are now available from franchise operators.”

“Worldwide, franchise businesses generate thousands of billions of dollars each year and we believe that business in our region ought to be sharing in that wealth,” Associate Professor Finch said. “But, unfortunately, the sector in South East Asia faces structural, cultural, regulatory, commercial and legal barriers.”

For example, Professor Terry says that contract law and intellectual property protection are major challenges in a number of South East Asian nations. “Franchisors and franchisees want to know that contracts between them are enforceable and that their IP is safe,” he said.

In addition to working with governments and businesses in individual nations, the researchers will consult with the Secretariat of the Association of South East Asian Nations (ASEAN) on a strategy to deliver uniform conditions for the franchise sector across the region.

“Franchising cannot turn a bad business into a good business,” Professor Terry concluded, “But, it can turn a good business into an even better business through branding, training and ongoing support.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news