A Queensland fast food franchise that has been operating for 27 years has collapsed into receivership.
A notice lodged with the Australian Securities and Investments Commission shows Jonathan Paul McLeod of MacLeod & Partners was appointed as administrator of Brodies Mealmakers on July 29, with Michael McCann and Graham Killer of Grant Thornton appointed receivers and managers.
Brodies Mealmakers currently operates 11 fast food restaurants in Queensland, with the stores a mix of company-owned and franchised stores.
McCann confirmed to SmartCompany he is the receiver and manager for five entities in the Brodies Mealmakers Group, but it is not clear if the franchised stores are also in receivership.
McCann says he is continuing to operate the group on a “business as usual basis”, but declined to specify the annual turnover of the company or the reasons for the collapse.
A spokesperson for Brodies Mealmakers also confirmed to SmartCompany the company is in receivership but declined to comment when asked if all 11 stores in the group are in receivership.
According to the Brodies Mealmakers website, the business was established in the Queensland town of Gympie in 1987.
The restaurants specialise in roast chicken lunches and dinners, offering dine in, takeaway and drive through services.
SmartCompany attempted to contact MacLeod & Partners but did not receive a response prior to publication.
Jason Gehrke, director of the Franchise Advisory Centre, told SmartCompany it is “business as usual” for franchisees when their franchisor goes into administration or receivership.
“The receiver assumes the role of the franchisor,” says Gehrke. “The franchisees will continue to trade while the receiver seeks to find a buyer if they can.”
Gehrke says it is a misconception that franchisees are automatically released from their franchise agreement when a company collapses and they will still be required to pay their franchise fees, participate in group marketing and buy from approved suppliers.
The challenge for the receivers is to manage the receivership process without letting adverse publicity affect the franchised stores, says Gehrke.
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Prior to joining SmartCompany, Eloise was news editor at Books+Publishing, the trade press for the Australian book industry. Eloise has degrees in media and communications, marketing and business management, and political science. You can follow her on Twitter at @ellykeating.
