Company Overview
Harvey Norman Holdings Limited (HNHL) is a public company that is listed on the Australian Securities Exchange. HNHL operates an integrated retail, franchise, property and digital system across eight countries.
The Franchise Operating Model in Australia
HNHL and subsidiaries of HNHL own valuable intellectual property rights, including the trademarks Harvey Norman®, Domayne® and Joyce Mayne®, software and confidential information to promote and enhance the brands.
A subsidiary of HNHL (a franchisor) grants separate franchises to independent franchisees to use the Harvey Norman®, Domayne® and Joyce Mayne® trademarks in Australia and to conduct the retail business of the franchisee at or from a store within a particular branded complex, pursuant to the terms of a franchise agreement.
Each franchisee owns and controls the franchisee business of that franchisee, and has the discretion and power to make the decisions necessary to drive sales, control floor margins and contain operating costs to maximise the profitability of the franchisee business. Each franchisee pays franchise fees to a franchisor pursuant to a franchise agreement between the franchisee and that franchisor.
The franchising operations segment in Australia captures and records the franchise fees received from franchisees including franchise fees in accordance with franchise agreements, rent and outgoings for the use of a branded complex and interest on the financial accommodation facility that is made available to each franchisee. The franchisee operations segment also includes the costs of operating the franchised system and monitoring and evaluating the performance and compliance of franchisees with their franchise agreements.
Company-operated Harvey Norman® Stores Overseas
There are company-operated Harvey Norman® stores in New Zealand, Singapore, Malaysia, Ireland, the United Kingdom, Slovenia and Croatia.