Hundreds of franchisors headed to sunny Cairns last month for a three-day flagship industry convention. They heard from business leaders, networked with colleagues around the country, and threw their support behind the Franchise Council of Australia.
This masthead has obtained leaked copies of the organisation’s February and April board reports, which paint a bleak picture of its finances and reveal it is struggling to survive.“The bar for us at the FCA is set higher because we’re meant to be the standard-bearers,” one former staff member said. “We’re held to a higher standard, but no right-minded person thinks this is in any way acceptable.”
Its total wages and salaries expenses soared more than 120 per cent in one year , while travel and accommodation expenses nearly doubled in that period . The organisation’s financial burden is so great that the FCA considered increasing membership fees by more than 60 per cent before settling on a smaller increase following a backlash.However, this masthead can reveal the board is deciding whether to increase the cost of the prestigious Certified Franchising Executive program.
“Uncertainty exists regarding registration and payment processes with the IFA,” a leaked internal report states.Cracks began to emerge in May 2023, according to a dozen people who spoke to this masthead on the condition of anonymity, not long after the FCA board appointed Matthew Monaghan as chief executive.Without naming him, board chair Brendan Green effectively admitted that Monaghan’s appointment was a mistake.
But soon after Monaghan joined the small team of about seven people, complaints were raised. The FCA confirmed two formal complaints were made to the board about Monaghan, and three sources said Monaghan left the FCA in April after the second complaint triggered an investigation. “You just never saw it coming,” one person said. “Stress was high, productivity and turnover was high because we were constantly working. There was just constant pressure.”
The board and Monaghan were repeatedly warned about the dismal state of the accounts and that the FCA needed to increase membership revenue. In his final report to the board in February, the former chief financial officer reiterated his concerns the FCA was not hitting its membership targets.Board papers show the FCA had budgeted to rake in $16,000 from new members in December but collected only $6000. It also expected to raise $28,000 from partnerships but fell short.
Source: News Formal (newsformal.com)
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