MATT COOKS UP HIS OWN SUCCESS AT LIFE POST-RFG

MATT Fleming learned the bakery trade at a Brumby’s outlet in Brisbane’s western suburbs in the 1980s.

Fleming was so impressed by the quickly expanding brand, then under the control of Brisbane businessman Michael Sherlock, that he became a franchisee at St Lucia.

But Fleming’s two decade career with the brand ended last year, when he dumped the Brumby’s name and struck out as an independent. Working from his old shop, he renamed the business Bread Hound in honour of his pet basset dog.

Fleming’s experience underscores a growing debate in Australia about whether franchisees are getting a fair deal in the $146 billion sector.

A Senate committee is currently gathering submissions into whether the Franchise Code of Conduct needs strengthening to protect franchisees.

“Michael (Sherlock) had the Midas touch,” Fleming said. “He would go through our profit and loss statement and tell you what you needed to do.”

But Fleming said that as the years progressed he started to get less and less out of being a franchisee, particularly when Retail Food Group (RGF) took over the brand in 2007. RFG has been criticised by other franchisees for imposing excessive fees and charges.

“I was just not getting anything for my franchise fees,” he said. “The relationship with the suppliers also began to sour.”

When Fleming’s lease ended last year he was prepared to sell out and leave. But after negotiations with his landlord, a new business was born. He said his strong local presence had allowed him to establish Bread Hound as a successful stand-alone business.

“I had been in the area for 23 years and people would get on their mobile phone in the shop and say “I am down at Matt’s do you want anything” rather than saying “I am at Brumby’s,” Fleming said. “I originally wanted to name it ‘Down at Matt’s’ but my partner Jess persuaded me to name it after our dog.”

Fleming said he remained a big fan of franchising. “Half the work is done for you,” he said. “But both the franchisor and the franchisee have to be happy and they both have to be making money.” He later found out he was paying a premium for flour and could get a better deal as an independent.

“The whole idea of franchising is that you’re buying in bulk and it should be cheaper,” he said.

RFG said it is now implementing a range of initiatives to improve franchisee profitability and support.

This included the appointment of a new Australia chief executive position to work with franchisees and the implementation of a significant reduction in fees.

The company said it was also beefing up field support for franchisees. The company has recently secured price reductions for a number of high volume products used within its network.

I WAS JUST NOT GETTING ANYTHING FOR MY FRANCHISE FEES MATT FLEMING