RCG Corporation includes The Athlete’s Foot business, the only franchise system within its portfolio.

“RCG runs as a shell dealing with shareholders and the outside world and The Athlete’s Foot is run for the best outcome for franchisees,” says Hirschowitz. “You do have a structure at The Athlete’s Foot that somewhat protects franchisees from the investing public.

“We ensure that projects that are undertaken are for the long term benefit for the franchisee. Of course the franchisor view is that the franchisor is best off when the franchisee is just as well off.

“Shareholders want maximum returns and they want them now, as a board we are very cognizant of keeping shareholders happy but franchisees are the golden egg.”

But there is potential for a franchisor to gain through the loss of franchisees, he says. In looking at other companies for acquisitions Hirschowitz has come across some who are short term focused and squeeze the franchisees. The franchisor gets greedy and franchisees suffer.

“How we run our governance prevents this. In our business, the only difference is franchisees have greater access to financials and the management’s remuneration.

“TAF was respected but RCG has added to its credibility. Our largest institutional investors make it sustainable,” he insists.

“We have a number of franchisees who are shareholders and we would encourage any franchisees to invest in the business.”

Executive director Michael Cooper, is a member of both boards and communicates any information between franchisees and the board.

The franchise advisory council meets four times a year and Hirschowitz often attends as an RCG representative. There are four local meetings in each state.

“Here’s an example of franchisee involvement in the greater business: RCG acquired the three outlet strong Shoe Superstore. Franchisees have every reason to say what are they going to do with it? They raised these concerns, I went to answer the questions.

“We’ve had franchisees come to shareholder meetings. The doors are very much open. Any issues about franchisee security or concerns about the public company that is RCG have been resolved. Communication and transparency are vital.”