T h e
m a g a z i n e
VOL 09 ISSUE 05 july/august 2015
f o r
f r a n c h i s e e s
AUSTRALIA and NEW ZEALAND
TDDA
LEADING THE FIELD taking the first step
to becoming a franchisee special feature
$4.95 (AUD), $6.95 (nz) inc. gst.
LATEST NEWS
on the road franchising FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
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Increase productivity More financial control Greater efficiencies More control of inventory More control of staff
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Being part of the Hairhouse Warehouse family has also enabled me to ďŹ nd that elusive balance between my professional and personal life. I am forever grateful.
- Deb Doran, Forest Hill Franchisee
HAIRHOUSE WAREHOUSE is Australia’s leading hair & beauty brand, with plans to expand its network by 20% over the next 3 years, across the nation. We are looking for passionate Franchise Partners with a desire to strive for results and take control of their own destiny. Whilst hairdressing experience is not required, strong work ethic and drive is essential.
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busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
From the
Editor BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 9 ISSUE 5, july / august 2015
Researching which franchise system to buy into can be a daunting task and Business Franchise Australia and New Zealand magazine is here to help you. As always, the magazine has page after page of sound advice from our stable of expert writers including lawyers, bankers, consultants and other franchising specialists. As a potential franchisee, you are always being advised to ‘Do your Due Diligence’. What does this mean? On page 36 we have a specialist Lawyer and Business Adviser from DC Strategy explain what you need to look out for when buying your franchise.
publisher: Colin Bradbury. colin@cgbpublishing.com
aware of the wide array of information and resources available to you. Also inside this bumper issue, we showcase mobile franchising. This includes expert advice from Jim Penman, Founder of Jim’s
SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com
Group, (page 62) who after 26 years in the industry knows a thing or two and we also highlight a number of different franchise
SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au
systems successful within this industry. If you are in the very early stages of researching a franchise system to buy, a great place to start is to meet face-to-face with the franchisors themselves. With two Franchise Expo’s taking place; there’s a great opportunity to do this, as well as meeting a wide range of experts from the franchising industry to help you on your way. Full details can be found on page 82, along
COVER IMAGE: the drug detection agency
Make sure you stop by the Business Franchise Australia and New Zealand stand to pick up more invaluable advice and Joanne Tuffy Editor
ACCOUNTS: Renee Gould. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006
tickets.
information.
SALES executive - Features: Christelle Rowley. support@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au
Brisbane in July and Melbourne in August;
with details of how to purchase discounted This issue includes advice from Ian Watt at Westpac (page 86) who gives you a six step guide to improve your cashflow and Griffith University’s Asia-Pacific Centre for Franchising Excellence (page 100) highlights a range of pre-entry education online courses to make sure that before you take the ultimate leap of faith into buying a business, you are
EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au
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The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
Contents july / august 2015 On the Cover
12 Taking the First Steps to Becoming a Franchisee
Cover Story:
The Drug Detection Agency: Leading the Field
47 Special Feature
On the Road Franchising
66
18
Warren Wilmot, FCA Chairman
96
10
In Every Issue
Franchisor in Depth
6
What’s New!
52
Jim’s Antennas
14
FANZ News
70
Jim’s Pool Care
48
Announcements from the industry
Franchise Association of New Zealand
Mobile Franchising
Profiles
104 Behind the Headlines
16 Vodafone
106 Professional Services Listings
24 Thermawood
108 Franchise Listings
56 Xpresso Mobile Café
110 A-Z Franchise Directory
60 Mobile Test ‘n’ Cal
On the Road
Jason Gehrke, Franchise Advisory Centre
Snapshots 46 Burger Urge 68 V.I.P. Home Services 76 Fitness Enhancement 84 Local Appliance Rentals 4 Business Franchise Australia and New Zealand
64 Cafe2U 74 Clean Green Strata 82 Franchising Expo 90 Thexton Armstrong 94 Bridgestone Select
22
18 Smoothing the Way Forward for Smaller Enterprises
Bianca Sevastos, Baybridge Lawyers
32 How to build Social Proof and Engagement on LinkedIn
Nathaniel Bibby, Bibby Consulting
100
Expert Advice
also in this issue: Appliance Tagging Services.......................... 110 Battery World............................................ OBC, 110
BK’s Takeaway............................................... 89, 110
36 What does Due Diligence really mean?
Blow ‘n’ Go....................................................... 21, 110
Brazilian Butterfly.......................................... 43, 110
Christina Andrews & Ben Hemphill, DC Strategy
40 What support should you look for when
Bucking Bull.............................................................. 111
buying a Franchise?
City Farmers Dogwash. .................................... 111
Mark Sherry, Harmans Lawyers New Zealand
Corporate Cabs............................................. 69, 112
44 The Wash-up in the Cleaning
Crema Espresso.................................................... 112
Domino’s Pizza............................................... 33, 112
Franchise Case Dr Michael Schaper, ACCC
Dream Doors............................................................ 112
58 Going Mobile
Fasta Pasta................................................................ 113
Jim Cornish, Nanotek
Fastway Couriers........................................ IFC, 113
62 To Buy or not to Buy
FC Business Solutions. ....................................... 15
Jim Penman, Jim’s Group
Freelease Copiers................................................ 106
66 Franchisee to Franchisee: Tips for Mobile Franchises
Hairhouse Warehouse................................. 2, 114
Kathy Smith, Fastway Couriers
78 No Exemption for Franchising under new Unfair Contracts Legislation
Jason Gehrke, Franchise Advisory Centre
Harmans Lawyers New Zealand............... 106 Jejak Graphics........................................................ 120
86 How to avoid a Cashflow Crisis
Jump! Swim Schools......................................... 114
Just Cuts. .................................................................... 115
Ian Watt, Westpac
92 Help Me to Help You: The Franchise Powerhouse
Just Lashes............................................................... 115
La Porchetta. ....................................................97, 115
Joe Papadatos, Icon Visual Marketing
96 Thinking of Buying a Franchise?
Luxaflex Window Fashions.................... 95, 115
Madgwicks Lawyers.......................................... 106
Stefan Kazakis, Business Benchmark Group
100 Education sets new Franchisees on the Right Path
Marsh & Maher Lawyers..................................107
Primal Pantry. ........................................................... 116
Griffith University’s Asia-Pacific Centre for Excellence
102 5 Ways to Make Franchising Easy
Puma Energy Australia..............................77, 116
Redcat................................................................................ 1
Spotlight on Service 26
Business Risk Advisers
34
National Franchise Insurance Brokers
Focus Feature
Scrooz........................................................................... 117 Seven Seas Seafood Café.............................. 117
102
Brent Grundy, Flip Out
Shift8................................................................................ 29 ShopInsurance.com.au....................................... 79
Skewerz Kebabz.................................................... 117
Smoothie Factory.................................................. 118 Snooze.............................................................. IBC, 118
22
Oxigen Fitness
The Sporting Globe Bar & Grill.................... 118
30
Shingle Inn
Wisewould Mahony. ............................................107
what’snew! Bucking Bull Opens in Baldivis wa Bucking Bull has welcomed a 14th Western Australian location in Stockland Baldivis Shopping Centre, taking the total number of outlets in Australia to 35. The roast & grill franchise was founded in WA over 15 years ago by franchise group Aktiv Brands, and has since expanded to Queensland, New South Wales and Victoria. Dean Vella, Aktiv Brands Executive Director said that the recent opening reflects the brand’s continuing dominance in the WA market. “There is now a Bucking Bull in nearly every major shopping centre destination in the Perth region,” he said.
SURGE OF JAMAICA BLUE CAFÉ OPENINGS Premium franchise café brand, Jamaica Blue, sees a surge of café openings this June and July, when the launch of six new local cafés will bring the brand’s global count to almost 160 outlets trading across seven markets – including Australia. June saw Jamaica Blue cafés commence trading in Richmond NSW, Erina NSW, Moore Park NSW, Mt Ommaney QLD, Toowong QLD and Karrinyup WA. Additionally, Jamaica Blue will soon launch two new stores in the United Arab Emirates (UAE) as well as further openings scheduled across the brand’s global network. Australian-owned and operated by The Foodco Group since its inception in 1992, Jamaica Blue currently trades through more than 100 Australian cafés, six cafés across New Zealand, more than 20 cafés in China, ten in the UAE and a growing presence in Singapore, Malaysia and the United Kingdom. Jamaica Blue National Brand Manager,
Drew Eide, cites Foodco’s well-considered, strategic and focused approach to expansion as a key factor of Jamaica Blue’s ongoing global success. “With a constantly evolving retail operations and marketing strategy to ensure Jamaica Blue remains relevant in each of the markets in which we operate, the fact that we thoroughly research and understand a market before we enter it is paramount to the ongoing global success of Jamaica Blue. “Unlike our competitors, Jamaica Blue will not enter a new market simply for the sake of presence. We will enter only with a focused strategy for long-term success that is based on a sound knowledge of the market. “We work closely with regional license partners on the ground of each international market and all Jamaica Blue café staff members receive thorough training to ensure that they deliver a level of customer service that is fitting of the Jamaica Blue reputation,” added Mr Eide.
6 Business Franchise Australia and New Zealand
“This is the birth place for the brand, and a region where we have experienced a great relationship with our customers for over 15 years now, and the momentum isn’t slowing down anytime soon.” Bucking Bull’s successful food court model has always focused around the art of roasting meat, an expertise that is gaining more customer recognition as the ‘foodie movement’ heats up. “Our menu is what we like to call ‘slow food, served fast’. Our roast meats are slow cooked for up to 12 hours, which results in phenomenal flavour and tenderness,” Dean said. “The slow cooking of meats is a massive food trend at the moment, but we’re proud to say that we’ve been refining our techniques since 1999.” Bucking Bull is part of the Aktiv Brands Group. Aktiv Brands’ business portfolio also includes Skewerz Kebabz, Primal Pantry and Seven Seas Seafood Café.
Top Snap Appointed as Google Trusted Agency Top Snap International has been appointed as a Google Trusted Agency for its Business View services in Australia. Google Maps Business View is a premium-quality, 360-degree interactive virtual tour of a business powered by Street View technology.
increase engagement with their customers online through better SEO and can have their presence across Google Search results, Google Maps, Google+ on desktop, smart phones and tablets.
Customers like to virtually experience and evaluate different product offering, through business decor & ambiance, before making any connection with the business. With Google Business View businesses can
• 3 out of 4 people visit business after seeing the ambience
• 97% of internet users look for local goods and services online
• 3 out of 4 smart phone users have contacted business they found on their phone
Top Snap Owner and CEO, Ralf Barschow, said, “We are excited and proud to be accredited as a Google Trusted Agency in Australia. This strategic partnership further broadens our commercial portfolio of services into the Australian retail market and adds value to our customers and stakeholders. ” Being listed on Google Maps and search allows businesses to increase their online presence and reach their online potential customer with a seamless experience from Search to Review, helping them attract more customers to their retail space. Get your business on Google today by emailing sales@topsnap.com or call 1300 TOP SNAP.
Explore every opportunity at Franchising Expo Interest rates are down and business confidence is up – there can be no better time to back yourself and check out the franchising and other business opportunities available. And there’s no better place to do it than the Franchising & Business Opportunities Expo, on in Brisbane in July and Melbourne in August. Both Expos will showcase a wide range of local, national and multinational franchises, and will also host a variety of business experts and support organisations to assist people who may be pondering the ins and outs of becoming their own boss. “The Federal budget offered many benefits
to small businesses, and the Treasurer is encouraging Australians to ‘have a go’,” says Exhibition Manager Fiona Stacey. “Attending the Expo in Brisbane or Melbourne is a great way to investigate franchising options and learn more about the is exciting and dynamic sector.” A popular feature of the Franchising & Business Opportunities Expo is the seminar series, which once again will bring together a wide range of experts and successful businesspeople. In addition the Soapbox Theatre at the Melbourne show will give exhibitors a platform to outline their franchise opportunity and take questions from the floor.
“One thing all the experts have in common is the emphasis they place on thorough research before investing in a franchise, or franchising an existing concept,” says Stacey. “Attending the Expo means you can investigate all the ins and outs and meet all the right people under one roof – it really is a one-stopshop, wherever you are in your franchising journey.” Discounted tickets are available now at www.franchisingexpo.com.au. For information about exhibiting in the Franchising & Business Opportunities Expo contact Fiona Stacey on 03 9999 5464 or email Fiona@specialisedevents.com.au
Business Franchise Australia and New Zealand 7
what’snew! Gloria Jean’s Coffees Expands into Hawaii Australian’s leading speciality coffee house, Gloria Jean’s Coffees, has announced further plans to expand internationally after the brand’s recent acquisition by franchising powerhouse Retail Food Group (RFG). One of the first markets targeted is America’s tropical tourist mecca, Hawaii. Gloria Jean’s Coffees will open a new coffee house in Hawaii’s capital Honolulu later this year as part of the major redevelopment of Waikiki’s Ala Moana Center. The coffee house is due to open in early November and will feature innovative concepts and ideas, creating a unique coffee experience to redefine Gloria Jean’s Coffees in Hawaii. Master Franchise Partners, John and Chris Giovas and Louis and Karolina Gjorsevski will help bring the new concept coffee house to life. Having operated several successful Gloria Jean’s coffee houses in Australia, the foursome are well placed to introduce the innovative coffee house in Hawaii. They expect to hire around 30 team members in Honolulu and plan to open up to 20 more Gloria Jean’s coffee houses over the next 10 years. “We have been part of the Gloria Jean’s Coffees family for many years,” said John Giovas, Master Franchise Partner with Gloria Jean’s Coffees Hawaii. “We know the brand, we love the coffee, we are proud of the community and we are excited to bring Australian coffee culture to Hawaii.” RFG spokesperson, Peter Jones said: “At RFG, we bring innovation and quality to all of our brands, offering guests the very best in product and service. Gloria Jean’s Coffees is Australia’s leading speciality coffee house and now, as part of RFG, we will continue driving excellence in Gloria Jean’s coffees houses all over the world.”
NEW EBAY INTEGRATION WILL HELP AUSTRALIAN SMALL BUSINESSES Australian couriering and logistics franchise PACK & SEND is helping Australian eTailers expand their business to international buyers by streamlining the international shipping process on eBay. By integrating its automated online selfservice system, PowerSender, PACK & SEND has established an innovative platform to assist eBay sellers in calculating, listing and printing labels for international parcel shipments – all at the click of a button. Michael Paul, CEO and Founder of PACK & SEND said its eBay integration will be helpful for all Australian small businesses selling product on eBay, however, it will be of particular assistance to those wanting
to sell internationally as up until now, the process has been cumbersome. “Before the PACK & SEND PowerSender integration, eBay sellers would have to manually work out international shipping prices by calling logistic providers for a quote, a very painful process when you have to do it for individual items. “We wanted to offer an online solution that allowed Australian eBay sellers to focus on selling their products and not have to worry about the logistics and shipping process,” said Mr Paul. With the Aussie dollar at more favorable price for many international customers, it’s a good time for eBay sellers to build their international customer base.
8 Business Franchise Australia and New Zealand
“International buyers can now put their location into the eBay system and get full transparency on parcel delivery costs. They won’t need to contact the seller and wait for a quote. That puts Australian sellers at an advantage,” said Mr Paul.
New Hairhouse Warehouse store open in Baldivis, WA When Doug Fogg chose Australia’s fastest-growing suburb to open his second Hairhouse Warehouse outlet in, he wanted a business partner with solid salon experience. With almost thirty years hairdressing experience and four successful salons to his name, James Fares ticked all the boxes. Doug identified an opportunity to open a Hairhouse Warehouse outlet in Baldivis, a semi-rural residential suburb 46 kilometres south of Perth’s CBD. The area’s appeal lies partly in its proximity to the pristine beaches of the Rockhampton coast, and partly in the relaxed, family-oriented lifestyle it offers while still being connected to Perth via the Kwinana freeway. However, while Baldivis is well serviced with roads, schools and recreational facilities, this rapidly growing suburb is crying out for retail outlets and quality services. James says, “Baldivis’ population is
B th W h m e b p p fo
soaring, it has grown so fast that retail and services are scrambling to keep up with demand. We saw a big deficit in the market, and a chance to bring a high standard of hair care to the area under a trusted national brand.� Doug opened his first Hairhouse Warehouse outlet in Hervey Bay earlier this year with business partner Melissa Krisanski. He was drawn to Hairhouse Warehouse’s strong name, as well as their superior buying power. With the Baldivis store opening June 1st, Doug speaks highly of the brand. “The support we have received from Head Office throughout the process has been very good,� he says. “Hairhouse Warehouse has a good culture – a good relationship between the franchisor and franchisees.� “The founders are still hands-on in the business, which is something I really like about Hairhouse Warehouse,� Doug says. “It gives me confidence in the brand.�
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current repayment arrangement in place is at risk of being wound for results and take control of their own destiny. Whil up by the ATO.
ATO commences assault In June 2013 the Australian Taxation Office (ATO) published its approach to taking firmer action in circumstances where taxpayers had not worked with it to meet their payment obligations. However, it seems the action has been trailing the policy until now. Over the last few weeks, the ATO has significantly ramped up applications for winding up, which is a strong indicator of the Government’s attempt to recover unpaid revenue to plug the deficit hole. This indicates a clear change of focus and increased enforcement for the ATO and the message is clear – get a payment plan in place ASAP, or face a real risk of being wound up. RSM Bird Cameron has observed the following from the recent ATO activity:
notPartner required, strong work ethic and dri Frank Lo Pilato, Managing – Canberra, RSM Bird Cameron said, “This is a sign of the times. In the 1980’s and 90’s most small business relied on bank or business finance of some type to fund their working capital requirements. In 2015, it is clear that many small businesses are using unpaid superannuation and GST/PAYG as an artificial form of finance. Ä‘ĆŤ ĆŤ,.+2!*ĆŤ,.+Ăź0 (!ĆŤ01.*'!5ĆŤ+,!. 0%+* . * $%/!!/ĆŤ .! “Where companies are wound up, unfortunately it is usually the Ä‘ĆŤemployees 1(0%,(!ĆŤ.!2!*1!ĆŤ/0.! )/ÄŒĆŤ%* (1 %*#ĆŤ.!0 %(ÄŒĆŤĆŤ 1/0. (% Äš/ĆŤ( .#! who suffer most, as although other entitlements are under the Fair Entitlements Guarantee (FEG) scheme, ĆŤ covered $ %.ĆŤ/ (+*ÄŒĆŤ,%!. %*#ĆŤ * ĆŤ ! 105ĆŤ/!.2% !/ " /0!.Ä‹ĆŤ +ĆŤ%"ĆŤ5+1 unpaid superannuation is not. The loss caused by unpaid GST and Ä‘ĆŤ 40!*/%2!ĆŤ0. %*%*#ĆŤ * ĆŤ/1,,+.0ĆŤ".+)ĆŤĆŤ *+3ĆŤ%/ĆŤ0$!ĆŤ0%)! PAYG obligations is also ultimately borne by the taxpayer when ĆŤ companies ĆŤ ! % 0! ĆŤ0! )ĆŤ+"ĆŤ,.+"!//%+* (/ are wound up and there is no distribution to creditors.â€? +Ăť!.%*#ĆŤ 00. 0
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Business Franchise Australia and New Zealand 9 CONTACT ĆŤ
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cover story: THE DRUG DETECTI O N AGENCY
LEADING THE FIELD The Drug Detection Agency (TDDA) CEO Kirk Hardy talks candidly about industry leading innovation, the frightening and rapid rise of the drug Ice and how TDDA franchisees are making a positive difference in both workplaces and the wider community. TDDA is the industry leader in on-site workplace drug testing and this year celebrates 10 years of operation. Illicit drug use costs Australian businesses alone more than $3.3 billion a year in lost productivity, absenteeism and injury, and recognising this issue needed to be addressed Kirk established TDDA. Now operating out of 37 territories throughout Australasia, TDDA specialises in on-site testing vehicles with qualified collecting and screening staff. This service is enhanced with policy design services and training and education. Over the years Kirk and the TDDA team have seen a huge change in attitude towards
workplace drug and alcohol testing - a positive change. “It’s fantastic to see that the work of our franchisees throughout Australasia is making a difference, not only in creating drug-free and safer work environments, but also positively impacting on wider community life outside the workplace.” TDDA is rapidly growing its franchise base across Australasia with plenty of opportunities available for the right people. “Honesty, integrity, hard work, attention to detail - these are all key attributes we look for in potential franchisees. If you relate well to people - staff and clients - enjoy a challenge and want to make a difference in the community then we want to hear from you.”
TDDA - the innovative industry leader TDDA continues to lead the field in on-site workplace drug and alcohol testing with the imminent opening of a state-of-the-art laboratory to enhance Australasian drug testing services. Kirk says, “We’re always striving to enhance our service offering to our customers, which in turn continually adds value to our franchisees.” To be known as TDDA Omega Laboratory Services it is a joint venture with USA based Omega Laboratories, Inc., also a leader in
10 Business Franchise Australia and New Zealand
its field. The laboratory will offer a range of drug testing services including hair, oral fluid (saliva), and urine testing, as well as testing program management services globally. Although well established globally, hair drug testing is a new emerging market in Australasia, partly due to the lengthy wait for test results, but the new laboratory will speed this process up considerably. Hair testing is a reliable way to detect lifestyle drug usage, as traces of drugs remain embedded in the hair shaft, while urine and oral fluid (saliva) testing will be used to detect recent usage. Kirk says the new laboratory means that clients will now have access to the most accurate testing options to address their needs and help create a safer workplace and ultimately community. “The last few years have seen tremendous growth in the drug testing industry worldwide. This partnership with Omega Laboratories offers employers in Australasia the benefit of having the fastest turnaround time in the industry in the region.”
The problem of the drug Ice Drugs trend, coming in and out of fashion, and joined by synthetic drugs continually evolving and new ones appearing all the time. Staff at the new TDDA laboratory will closely monitor this ever evolving drug scene. The drug Ice is the drug of choice with a lot
TDDA is expanding across Australia and needs your expertise Become a TDDA franchisee and no two days at work will be the same. Day-to-day business could include employee drug testing at a workplace, a pre-employment hair test at the office or a methamphetamine property inspection for a client before they purchase a house. Or it might be speaking at industry forums, delivering education seminars to workplace employees or training senior managers in how to recognise and deal with drug affected employees in the workplace. Due to the diversity and range of services offered by TDDA franchisees, the support and training given when they first join is vital and TDDA has developed a comprehensive 100-day training package that is delivered to all new franchisees. Kirk says, “Sitting in a room and learning theory is not effective enough as a component on its own, it needs to be backed up with other aspects, including ‘hands on’ workplace learning and ongoing training.” of people at the moment and is a frightening problem throughout Australia. Its use is growing at an alarming rate, which means it’s filtering into workplaces as well as the community. Kirk says the drug Ice promotes risk-taking behaviour and users can suffer serious impairment, including ‘rebound fatigue’ leading to dangerous errors. “Ice use poses all sorts of risks in workplaces, especially where heavy machinery is being operated or vehicles driven. Employees out on the road driving big rigs are a huge potential risk, not only to themselves but other innocent road users, and that includes families, it’s scary.” Ice is a stimulant drug, which means it speeds up the messages travelling between the brain and the body. It is a type of methamphetamine, which is generally stronger, more addictive and has more harmful side effects than the powder form known as speed. TDDA franchisees conducted 100,000 urine and oral fluid tests in workplaces in 2014. It is on track to complete more than 120,000 this year. Just over 9 per cent of workers returned a positive result for drugs, cannabis remained the most frequent, representing 56.7 per cent, followed by 32 per cent amphetamine (the majority involving Ice) and 29 per cent opiates (codeine/morphine).
The 100-day course delivery involves both internal staff and a group of external international experts in their field, once again ensuring the franchisees are receiving the best possible advice and processes. It starts with a 4-week induction program in Auckland, which is broken up into 2 x 2-week blocks. The course begins with an introduction to the company and background to the business, the inherent organisational values and the ‘TDDA story’. This is expanded to operational ‘hands on’ training in a franchise office that covers all aspects of drug testing and the tools and equipment available to TDDA franchisees. Kirk says, “From here on in it gets even better for the franchisees as we cover wider subjects like strategic business planning and sales processes, individualised business skills and public speaking, best practice for client interaction and logistical requirements for the set up of the business. “The concept of our 100-day program stems from the findings of a favourite business book of mine – Good to Great by Jim Collins – particularly in relation to getting the right people involved in an organisation. “The book identifies a key sentiment that resonates with me when it states ‘good to great companies know people aren’t their most important asset, the right people are. Good to great companies placed greater weight on character rather than education,
skills, or experience when recruiting. The reason: you can teach skills, but character, basic intelligence, work ethic and dedication to fulfilling commitments are values that are ingrained in a person’.” As well as gaining skills that can be transferred to other areas of a franchisees life, franchisees also receive an Australian Quality Training Framework (AQTF) qualification. The AQTF is the national set of standards which assures nationally consistent, high-quality training and assessment services for the clients of Australia’s vocational education and training system. Following on from the ‘classroom’ setting, the Master Franchisee then provides one-onone training with the new franchisee in their own home territory. “This initial one-on-one training is really important to starting a new franchisee off on the best possible footing. Not only does it help build a relationship with a mentor, it gives them invaluable assistance in setting the business up and local area marketing to drive those all important initial sales,” Kirk says. The Master Franchisee also assists in on-thejob coaching. In the first instance the master franchisee will coach by delivering the services with the new franchisee observing, and this quickly progresses to a role-reversal with the master franchisee observing and offering assistance as and where necessary. The goal is to set the new franchisee up as quickly as possible and instil confidence in the product and the individual. Kirk says that TDDA’s franchisees are striving to help create drug-free environments, both in the workplace and wider community. “Saving lives is part of our company’s mantra – our ultimate customer is the ‘girl on the bike’. An analogy we stand by whenever we do policy or education training, or testing within any industry. “Ultimately our work helping to ensure workplaces are drug and alcohol free to prevent accidents, extends beyond the confines of business walls into the community and beyond, ultimately ‘protecting the girl on the bike’ riding along in every suburb in Australia.” If you are interested in leading a TDDA franchise, please contact our Franchise Manager, Glenn Dobson: T: 04 3922 2422 E: glenn.dobson@tdda.com W: www.tdda.com
Business Franchise Australia and New Zealand 11
fr anch ise cou nci l of aust r a l i a
Taking the first steps to becoming a franchisee
There’s a good chance you’ve picked this magazine up at the Franchising & Business Opportunities Expo 2015, and are seriously considering purchasing a franchise. If that’s the case, congratulations on taking the first steps towards
becoming a small business owner, and joining the flourishing $144 billion Australian franchising industry.
12 Business Franchise Australia and New Zealand
“Becoming a franchisee can be a rewarding journey, but it is not a decision to be taken lightly.” Warren Wilmot | Chairman Franchise Council of Australia
Where do I start? Becoming a franchisee can be a rewarding journey, but it is not a decision to be taken lightly. The importance of doing your research and undertaking due diligence cannot be emphasised enough. Talking to existing franchisors and franchisees is a great way to begin building your knowledge of the sector. Events like the Franchising & Business Opportunities Expo provide an invaluable opportunity to speak face to face with franchisors and get answers to the tough questions (don’t be afraid to ask them!) and find out more about franchising directly from those who are already part of the industry. The Franchise Council of Australia website is another great place to develop your understanding of the franchise business model and whether franchising is a good fit for you.
How do I know if franchising is right for me? The opportunity to be your own boss, build your own business and tip the scales of work/ life balance in your favour is an enticing one. Investing in a franchise can be one way to do this, while also gaining the brand recognition and drawing on the training and support that comes with being part of an established franchise system. It’s important to understand however, that franchising is not risk free and buying a franchise business does not guarantee success. Nor is franchising a suitable model for every would-be small business owner. All businesses, including franchises, take time to become established. Are you prepared to work long hours to grow your business? Do you have adequate working capital to see you through the early stages of your business?
As a franchisee, you will be buying into the existing systems and processes of the franchise brand. Are you prepared to work as part of a team and stick to the established formulas? Do you have the support of your family and loved ones? Do they understand and accept the sacrifices that you, and they, may need to make in order to make the business a success? Don’t underestimate how important the support of loved ones will be in the tough times that may come. This is by no means an exhaustive list of questions, but answering them will provide you with a good starting point to assess your suitability to become a franchisee.
How do I choose a franchise system? Some of you may have already completed your preliminary research and your visit to the Franchising & Business Opportunities Expo might be about selecting the franchise that’s right to you. And with 1160 business format franchisors in Australia in 2014, there’s a franchising system to choose from in just about every industry. While non-food and food retail accounts for the majority of franchise networks in Australia, representing 45 per cent of franchise systems in 2014, franchising also encompasses administration and support services, education and training, rental, hire and real estate services to name a few. Take some time to consider your interests and skillsets. Whether you are looking to turn your passion for food or fitness into a business, or to take your experience in a trade or service sector and become your own boss, chances are there’s a franchise system operating in the space. Regardless of the industry that a franchise operates in, if you reach the point of
choosing a franchise system to join, you need to find out whether the franchise you are considering has a track record of success. As a prospective franchisee in Australia you are entitled under the Franchising Code of Conduct to receive from the franchisor documents including a disclosure document, franchise agreement and a copy of the Code so that you can make an informed decision about whether or not to proceed with purchasing a franchise business. Be sure to read these documents thoroughly and seek professional legal, financial and business advice to help you understand and verify the information contained in them, and also take the time to contact existing franchisees to find out about their experiences with the franchise. Remember too, the process of becoming a franchisee is a two-way street and just as you will be making an assessment of the franchisor, they will be deciding whether you are a good fit for their business.
Additional resources The Franchise Council of Australia website at www.franchise.org.au contains information for prospective franchisees, including a range of publications which are available for purchase. The Australian Competition and Consumer Commission’s franchisee manual, which contains information to help franchisees and prospective franchisees to understand their rights and responsibilities under the Franchising Code of Conduct, is available to download at www.accc.gov.au/publications/thefranchisee-manual W: www.franchise.org.au
Business Franchise Australia and New Zealand 13
FC_A
fanz
fr anch ise associ at i on of n e w ze a l an d
NEWS
Westpac New Zealand Franchise Awards 2015 - 16 This year will be the 21st time that these Awards have been held and it promises to be a bumper year for entries! Held under the internationally acclaimed Malcolm Baldrige business excellence criteria, the Awards are independently judged by the New Zealand Business Excellence Foundation.
their seriousness by bringing their Certificate of Completion with them for their initial discussion. Whilst completing the course, potential franchisees can also research franchise systems that are of interest by using the FANZ official online directory, www.buyafranchise.co.nz.
Although the closing date for Expressions of Interest is 5th June, if you wish to submit an entry, please contact the FANZ office urgently and it may be possible to fast track you through this stage. The close off for all qualified entries to be received is 14th August.
FANZ free online training course for prospective franchisees celebrates its second birthday!
Since it was launched in July 2013, 700 people have become better informed about franchising and their possible entry into the sector having registered for the free online training course, developed in association with Massey University that can be accessed through the FANZ web site www.franchiseassociation.org.nz. The availability of relevant information is part of the total solution for better informed decision making by prospective franchisees who are considering joining the 24,000 independently owned New Zealand businesses operating in a franchised format. Franchising research in Australia has previously found that improved pre-entry education is likely to have significant positive impact on the franchise sector. One key study found that 71.3 per cent of respondents felt completion of pre-entry education should be a mandatory requirement before entering a franchise agreement. Principal author of the five module course is FANZ Affiliate Member, Franchize Consultants, with contributions from other key FANZ Member experts from the banking, legal, accounting and property leasing sectors. Each module incorporates a mixture of downloadable text and short videos followed by a self-assessment questionnaire. Completion of a module allows access to the next in the series, with Massey University providing a Certificate of Participation to individuals who complete all five segments. Several franchise systems have already taken the opportunity to improve the quality of their potential franchisees by insisting that anyone wishing to discuss the purchase of a franchise first proves
14 Business Franchise Australia and New Zealand
Annual Conference 30th/31st July 2015
You may still have time to book a place at the 19th annual Franchising Conference, which is to be held at the Distinction Hotel, Rotorua. The agenda will be packed with the information; resources and tools needed to grow and take care of your business. Speakers already booked include Brendan Thompson, Specsavers NZ (last year’s Supreme Award winners at the Westpac New Zealand Franchise Awards); Cindy Buell, Mexicali Fresh and Burger Wisconsin; Jewli Simpson, The Franchise Relationship Institute plus live from America by AV link, Melanie Bergeron, Chair of Two Men and A Truck and Todd Rowe, Managing Director, Google SMD Global Sales. The conference will be wrapped up with a dynamic presentation by internationally renowned speaker, Murray Thom, who was named one of New Zealand’s Top 10 Entrepreneurs of the decade by NZ Business magazine The full delegate package including two nights’ accommodation with two evening events is $1,200 plus GST per person (member of FANZ) and $1,500.00 plus GST per person (non-member). Further information and online booking facilities can be found at the FANZ web-site www.franchiseassociation.org.nz
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Business Franchise Australia and New Zealand 15
PROFILE : vo dafon e
JOIN A
WORLD LEADER Although many years have passed since Vodafone was established more than 20 years ago, our mission remains the same; to deliver choice and value to Australians for mobile services.
have contributed to an acceleration of data services usage growth in Australia.
Recently announcing that over two million devices enjoy Vodafone’s fast 4G network, our retail team has played a key role in this success.
DELIVERING FANTASTIC CUSTOMER SERVICE
To support our desire to bring Vodafone 4G to the next million customers, we have determined new areas to develop and grow our retail footprint over the next 12 months, potentially creating hundreds of new jobs. Vodafone has 160 Vodafone branded stores established through dealer and licensee arrangements selling Vodafone products and services. These stores sell services to new customers, renew or upgrade services for existing customers, and in many cases also provide customer support.
RELEVANCE AND VALUE We endeavour to ensure that customer needs are at the centre of what we do. Using our 20 years of experience, we aim to deliver relevance and value for voice and mobile broadband services to each customer on an individual, household, community or business level. We offer voice, messaging, data and mobile broadband services through multiple solutions and supporting technologies to deliver on our mobile communications strategy. The advancements in 4G networks and download speeds, device capabilities and the mobilisation of internet services,
So that customers can utilise the services that Vodafone offers, many different plans and propositions are available, targeted at different customer segments. These propositions often bundle together voice, data and messaging, and increasingly additional services including IDD, roaming and premium content, so that customers can experience all the different services Vodafone has to offer.
As a licensee of Vodafone, you will act as a brand ambassador. With the customer at the centre of what we do, we are looking for people who are passionate about delivering fantastic customer service. People with a keen interest and professional experience in retail, telecommunication, business operations and marketing, will thrive. A Vodafone Licensee will operate their own Vodafone branded retail store with a focus on both consumers and small businesses (SOHO), and with access to Vodafone’s core products and services. In addition to a dedicated support team, the licensee and their team will also have on-going access to our comprehensive training programs via face to face and online training. Licensees will also have the backing of a dedicated Retail Partner Manager who will support the growth and development of the business. They’ll assist with strategic business planning, formulating targeted local area marketing campaigns, and sales initiatives to establish the licensee’s store’s presence in the local area. Consolidating a strong presence in major metropolitan cities throughout the country, to support our regional network expansion,
16 Business Franchise Australia and New Zealand
we have a number of Vodafone Licence opportunities throughout Australia. Key regions include: • Regional NSW • Central Coast NSW • Gold Coast QLD • Central QLD • Regional VIC • Regional SA • Regional WA
AN EXCITING 12 MONTHS AHEAD Over the course of this year, we are staying focused on choice, personalisation, and ensuring our customers don’t have any worries about using their devices, and we will bring that focus to some exciting new areas, including: • Local conversations will continue, including a hyper regional focus. We’re bringing choice and value to more places around the country. • We will continue to lead on international. We remain unbeatable on our combination of roaming and international inclusions. • Our Shared plans will continue to evolve, reflecting the way our customers are using their devices. • We will continue to recognise and reward our customers’ loyalty with new experiences and great deals. Now is the perfect time to join Vodafone on the next phase of our journey, for more information contact Frank Chang on: T: 0414 803 811 E: dealer.recruitment@vodafone.com.au W: vodafone.com.au/careers/select- dealer-recruitment
Be your own boss. Become a Vodafone Licensee and join a world-leading telco.
Vodafone Power to you
More than five million people across Australia share, play and do more on the Vodafone network. We’re about to get bigger and even better. We’re looking for new Vodafone Licensees to join us on the next phase of our journey. You’ll have an exclusive relationship with one of the world’s leading telco brands – and enjoy all the benefits that come with it.
Overview Generous commissions, bonuses and incentives Strong earning potential with multiple income streams No franchise fees or ongoing royalties/fees Low start-up costs to commence trading Exciting new store design incorporating live interactive devices Access to an exclusive store opening offer Comprehensive training to get you started and ongoing professional support • Dedicated Partner Area Manager to support licensees with business planning, local area marketing campaigns and sales initiatives. • • • • • • •
Check available dealer locations Regional NSW Central Coast NSW Regional VIC Regional WA Gold Coast QLD
Enquire now
Central QLD
Contact Frank Chang on 0414 803 811 or email dealer.recruitment@vodafone.com.au Visit vodafone.com.au/careers/select-dealer-recruitment
Regional SA
Business Franchise Australia and New Zealand 17
e x pert a dv ice
smoothing the way forward
for smaller enterprises
How will the proposed Small Business and Family Enterprise Ombudsman assist franchisees? As many participants in the franchising sector will no doubt be aware, the Federal Government introduced a new Franchising Code of Conduct effective on 1 January of this year in an effort to reduce red tape and redress some of the perceived imbalances in the relationship between franchisors and franchisees.
18 Business Franchise Australia and New Zealand
In what some might see as a further step to achieve these goals, the Government has recently announced plans to transform the role of the Australian Small Business Commissioner into the Small Business and Family Enterprise Ombudsman from 1 July. While the proposed Ombudsman is intended to benefit all small business owners, franchisees will now have a single entry-point for finding information about services and programs to assist them, for help in understanding their obligations under Federal regulation and another avenue for support in the event that they find themselves
promote competition, fair trading and to regulate national infrastructure.
“There is no doubt that business in Australia is highly regulated with many government regulations disproportionately affecting small businesses.”
It is proposed that the Ombudsman will develop its own mediation service to assist small businesses, including franchisees, in an effort to “resolve disputes early, in turn improving business productivity, preserving business relationships and avoiding expensive litigation”.
Importantly, the Ombudsman is not intended to replace or duplicate any of the dispute resolution mechanisms provided under the Franchising Code of Conduct, including referring the matter to the Office of the Franchising Mediation Advisor, but simply to act as a ‘triage’ service by undertaking preliminary discussions to determine the most appropriate avenue to resolve the dispute.
It is yet to be determined which dispute resolution services will be offered by the Ombudsman but they could include:
What is an Ombudsman? First established more than 200 years ago in Sweden, the institution of the ombudsman is designed to provide protection for the individual where there is a substantial imbalance of power. Initially, this imbalance was between the citizen and the state but as the institution has developed, it has embraced public, private and independent sectors. The typical duties of an ombudsman are to investigate complaints and to attempt to resolve them, usually through consultation, negotiation, recommendations or mediation (binding or not). Ombudsman are independent, neutral arbiters and complaints can be made very simply by way of telephone or in writing. Ombudsman offer their services free of charge, and are thus accessible to individuals and small businesses who could not afford to pursue their complaints through the courts or other avenues.
• Conciliation; • Facilitation of mediation;
1. Concierge for dispute resolution
Small business in Australia is a highly regulated arena requiring business owners’ diligence in relation to tax, wages, insurance and much more. The appointment of the Ombudsman is seen as a move closer to minimising compliance burdens and to “smoothing the way forward for smaller enterprises”. The Government’s deregulation agenda is intended to reduce “regulatory burdens to restore time, focus and resources back to small business owners to invest in the ongoing operation and success of their business”.
• Investigation;
• Assisted negotiation.
According to the Government’s Discussion Paper in respect to the introduction of the Small Business Family Enterprise Ombudsman, the key responsibilities of the Ombudsman are to be:
in a dispute with a supplier, customer or franchisor.
• Early-stage guided resolution;
• Independent, neutral valuation; and
How will an Ombudsman assist small businesses and franchisees?
• Providing information and education to small businesses and franchisees;
If a franchisee has a complaint about a government agency or is unable to resolve a disagreement with a supplier, customer, or its franchisor, the Ombudsman will make preliminary enquiries, consider the merit of the matter and determine the best course of action. If a matter is more appropriately dealt with by another government agency, the Ombudsman will refer the matter to that government agency. For example, if a franchisee raises an issue regarding unfair trade practices, the Ombudsman will likely refer the matter to the Australian Competition and Consumer Commission whose role is to enforce the Competition and Consumer Act 2010 and
The Ombudsman will be supported by legislated powers which may allow them to: • Make administrative decisions; • Investigate small business disputes, including obtaining information from parties; and • Compel parties to attend mediation before approaching a tribunal or court.
2. Commonwealth-wide advocate for small businesses and family enterprises It is proposed that the Ombudsman will act as an independent advocate for small businesses and represent their interests to the Government and the broader business community. It is intended that the Ombudsman will identify and report on the administrative burdens and compliance regulations faced by all small businesses in Australia, including franchisees, as a contribution to the Government’s deregulation agenda.
Business Franchise Australia and New Zealand 19
e x pert a dv ice
“It is clear that the Government’s intention is to build a strong and confident small business community through reductions in regulatory burdens and by giving time back to small businesses.” Bianca Sevastos | Partner Baybridge Lawyers
According to the Discussion Paper, “it is expected that the Ombudsman would advocate small business interests with a view to ensuring an enhanced fair and competitive operating environment for all businesses, no matter their size. For example, the Ombudsman could work with industry on the issue of unequal bargaining power and could promote best practice for bargaining and contracts to minimise the inherent power imbalance between larger and smaller businesses”.
3. Contributor to the development of small business-friendly Commonwealth laws and regulations
There is no doubt that business in Australia is highly regulated with many government regulations disproportionately affecting small businesses. The Productivity Commission in 2013 found that small businesses were particularly impacted as “many compliance costs are largely fixed in nature and do not vary with the level of a business’s output, so
small business cannot generally achieve economies of scale in compliance”.
The Ombudsman will be tasked with filling a gap at the Commonwealth level by ensuring that legislation and regulations are small business-friendly, thereby reducing the small business owners’ time spent on compliance issues resulting in an uplift in productivity.
What’s next?
4. Single entry-point agency through which Commonwealth assistance and information regarding small business can be accessed
It is proposed that the Ombudsman will be the keeper and ‘central nervous system’ for all information relevant to small businesses, integrating with existing channels and services offered by the Australian Government. The system is designed to make it easier for small businesses to access small business programs, as well as support and information to manage and avoid disputes.
It is likely that a dedicated website and telephone hotline will be set up to deal with any enquiries by small business owners and the general public.
The legislation to transform the Office of the Australian Small Business Commissioner to a Small Business and Family Enterprise Ombudsman will need to clear both houses of Parliament before it comes into effect on the Government’s proposed commencement date of 1 July. The impact that the Ombudsman will have on small businesses and franchisees alike remains to be seen, but it is clear that the Government’s intention is to build a strong and confident small business community through reductions in regulatory burdens and by giving time back to small businesses to concentrate on operating and building their businesses. This is likely to represent a positive shift for the franchising and small business sectors as a whole. Bianca Sevastos, Partner at Baybridge Lawyers, specialises in franchising and licensing and advises on all aspects of franchising industry compliance with the Code. Bianca has extensive experience and advises on a range of national and international transactions, industry master and area development rights and advises both franchisors and franchisees in dispute, obligations under the Franchising Code of Conduct and the Competition and Consumer Act. Baybridge Lawyers is a specialist corporate and commercial law firm and a leading authority on all franchise related matters. They are seen as trusted advisors to many brands nationally and internationally. Phone: 02 9232 3511 Email: info@baybridge.com.au Web: www.baybridge.com.au
20 Business Franchise Australia and New Zealand
A A Standout Standout Vending Vending Opportunity Opportunity
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Fast Fast return return on on investment investment 6OEFS XJUI GVMM JOWFOUPSZ 6OEFS XJUI GVMM JOWFOUPSZ 'JOBODF PQUJPOT BWBJMBCMF 'JOBODF PQUJPOT BWBJMBCMF
This This business business will will perfectly perfectly suit suit those those who who want want to: to: Achieve Achieve financial financial independence. independence. Work Work their their own own hours. hours. Earn Earn aa passive passive cash cash income. income. Work Work with with fun fun innovative innovative people. people. Maintain Maintain aa work work lifestyle lifestyle balance. balance. No No previous previous experience experience required, required, we we give give you you all all the the tools tools and support to succeed. and support to succeed.
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focus : Ox ig en Fi t n ess
BREATHE NEW LIFE INTO YOUR CAREER The fitness industry has evolved significantly in recent years; a key driver of the industry’s evolution has been a change in perception about the purpose of fitness. Now, it is widely accepted that the fitness industry encompasses a wide range of businesses, products and services, tailored to suit specific needs. Creating an interdisciplinary team with the right mix of skills has been a key to the ongoing success of the Oxigen brand, to cater for changing market demands. Trish has turned her focus to education and training, using technology to foster a distinct competitive advantage for Oxigen Fitness. Danielle has taken on the role of creating the franchise network, while Liana supports the group managing business services. The leadership team builds and motivates each other, creating an environment that is never boring, resulting in enthusiasm, energy and excitement in the workplace.
start your own oxigen club or rebrand your existing club
Engagement
In an increasingly crowded fitness franchise market, Oxigen Fitness stands out. A family owned business, the evolution of Oxigen Fitness started when Trish Freeman purchased a quarter share in the Penrith Fitness Centre in 1988. Eventually buying out her other shareholders, Trish expanded the Penrith site to 4500 members and a $4.5 million turnover under the Oxigen brand. The club was bought by Fitness First for a record sum. Trish believes being family is
what has helped the business to succeed; able to voice opinions and at times disagree on certain matters has helped Oxigen Fitness evolve. Trish says, “If we were to simply placate each other, I don’t believe we would have created our franchise model, nor would we have found other ways of creating improved systems and services for our customers, allowing them to better enjoy the fitness experience. Contention generates creative energy and requires you to pause and look at the way you’re doing things, mostly; it can only make the final outcome better.” Trish believes that the key to her success is treating everyone as an individual. “You need to really listen to other stakeholders, your staff and customers’ feedback, complaints and issues. To me, everybody is family, and I treat all those I engage with at Oxigen as a part of my family. It is a major priority in my business life to make sure that people who work with me and for me know how to treat people.”
22 Business Franchise Australia and New Zealand
Oxigen Fitness offers membership with 24 hour access to the health club. Personal and group training are also available, plus a wide range of classes scheduled during the day. Offering a day care service, Oxigen’s focus is to ensure that everyone is being looked after; they want their members to be engaged rather than just participate. A recent addition to the Oxigen brand is their mobile app, which allows clients to book classes and personal training sessions from their phone or PC. The management team are also looking at the potential of setting up challenges, workouts for the day and being accountable for the goals set and achieving them via this modern-day technology, setting them apart from some other franchised 24 hour fitness centres. Trish says; “We want to change the industry; it’s not about just offering the facilities, it’s about the service given so the client gets the results they want, which after all is the reason they join a club.” In an industry that is so male dominated,
february 2015
brand guidelines
these three girls offer a woman’s attention to detail. Trish is a business and industry award winner, passing on skills and knowledge acquired over 27 years in the fitness industry to her daughters, overcoming a lot of preconceived ideas as to how women run businesses in general, but more specifically how businesses operate in the fitness industry. Not everything has run smooth for the girls in recent years, but helping each other out has been critical to the success of Oxigen. It seems working together has been positive for their relationship. “When it comes to business decisions,” Trish adds, “they need to be made with the health of the business in mind and that’s what we do.”
A Turnkey Solution The franchise concept is Danielle’s driving force; it offers a turnkey solution. Allowing the franchisee to be hands off if preferred, the development of the concept is supported entirely by Danielle, her team of consultants and head office staff based in Penrith. The Penrith facility is also the training centre for new franchisees and key personnel. The focus of Danielle and her team has been to create a franchise that is stress free. Franchisees are given the option to either use the Oxigen business services division managed by Liana, or opt to employ their own staff to provide administrative services. The provision of business services allows Oxigen Fitness to service the needs of their franchisees and also the requirements of the customers. Incorporating an online system which looks after the administration and member database; this means the franchisee doesn’t have to worry about overdue payments or back-office administration. Marketing is supported by industry award winning experts, brought on-board due to their exceptional experience within their field; a marketing hub has been developed for the franchisees, which allows them to access the very latest in marketing tools. The girls have stepped away from the old way of running a fitness business, by bringing it to the twenty first century with online sales and marketing. Trish says, “An example of this new way of developing the fitness industry is our Penrith site; Danielle had 300 online sales before they had even opened the doors, without spending any money on sales people or promotional material.” This was an avenue that Trish wanted to trial as she has a love of software and programming and it’s proven to be a great success.
Becoming a Franchisee Demand for health and wellness services has grown significantly over the past five years, due to an increasing focus on health and appearance. The fitness industry in Australia is currently worth about $2 billion and is expected to grow exponentially at an impressive 4 to 5 per cent per annum over the next 20 years, well above other industries.
Secure your territory today
The franchise concept allows others to share the experience of working in the fitness industry under the auspices of a proven system. Franchising is popular for those wanting to own their own business, due to the fact that the failure rate of a franchised outlet is significantly lower than that of an independently owned business. Oxigen Fitness is focused on offering a limited number of franchises Australia wide, 140 in total. This is a distinct advantage for franchisees over others within the industry, giving each franchisee a bigger area to control. It provides franchisees with scope and choice, the option to open another fitness centre as and when demand dictates. “We want the Oxigen franchises to be exclusive, we’re not looking for massive growth; the focus is more about training and support to ensure success for the franchisees. As Oxigen head office are managing the software, club managers and personal trainers, a key determinant is not to jeopardise the brand or the franchise integrity by cannibalising and therefore weakening the strength of the brand,” says Trish. “We also want to screen prospective franchisees” says Danielle, to retain our existing shared values and beliefs. The girls believe potential franchisees should be focused on customer service and also possess a true belief that they are there to look after the client. “If you look after your clients your business will grow. We are more interested in looking at the results rather than just the numbers,” Trish adds. If owning your own business, enjoying the freedom of flexible working hours and helping people become healthier sounds like a possible career option for you, an Oxigen franchise could be the right decision. For more information, contact Danielle: T: 0410 455 520 E: Danielle@oxigenfitness.com.au W: www.oxigen.com.au
Business Franchise Australia and New Zealand 23
PROFILE : T h er mawoo d
join THE INDUSTRY LEADER
Established six years ago in New Zealand, the Thermawood Retrofit Double Glazing system has recently launched in Melbourne Victoria, with franchise opportunities still available in Victoria and in other states. Using a unique patented dry glazing drainage system for double glazing and installing draft/sound seals into existing timber windows and doors in your home, the system is designed to fit any wooden joinery and can be used in a number of configurations. Thermawood also has a drainage system designed for new timber joinery available to the market to avoid the inherent problems of installing double glazing into wooden frames with no drainage. Thermawood Retro-fit Double Glazing allows the home owner to keep their house warmer in winter, cooler in summer, reduces noise, drafts and allows the homeowner to maintain the original character aesthetic of their home while adding value to the property and saving money on energy costs.
Flying high Jacki Cook and partner Hawea Keremete bought their Thermawood franchise in April this year after looking around for a business to buy.
Previously living in New Zealand Jacki and Hawea were both aware of Thermawood Retro-Fit Glazing system and when the opportunity arose to buy a franchise in Victoria, they both jumped at the opportunity.
Although a draftsperson and project manager by trade, Jacki says that no experience is required with Thermawood as full training is provided. “Hawea had been working at the mines, flying in and flying out and we were both eager to start a business that we could run together. However, we didn’t want to take a backwards step and reduce our income as Hawea had been on great money. “We’d been looking for a while and couldn’t find anything that suited. Then we heard about the opportunity to open a Thermawood franchise in Victoria, it was affordable and it was something that I knew we could make a great success of. “As a previous business owner and with sales experience, I knew my background and skillset covered a lot of the bases, however, you don’t need to have any construction experience or be a tradesperson as the required steps and processes to follow can easily be taught,” says Jacki.
Training and Support The Thermawood business system has been developed following years of practical experience with the techniques of doubleglazing on projects large and small throughout New Zealand and has been adapted to Australian market conditions. The specialised tools and equipment, that are unique to Thermawood and subject to patent protection, are subject to exclusive supply arrangements with Thermawood NZ. This specialised equipment is a vital component in the effectiveness of the Thermawood System
24 Business Franchise Australia and New Zealand
and available only to franchisees. With franchising in mind, they have also developed and documented comprehensive management and operating systems. These are designed to help franchisees quickly learn the required systems and techniques. New franchisees joining the network receive comprehensive induction and training in workplace safety requirements, including both operational and practical training. Training is also tailored to each franchisee’s needs and existing skillset, including on the job training with an existing franchisee. Thermawood provides franchisees with comprehensive support and ongoing assistance, including technical advice and a well-structured field support programme. Jacki adds, “I complete the administration functions of the franchise, including the invoicing, ordering and local area marketing but I know that if I have any questions or require any assistance, Head Office is there to provide support and invaluable advice.”
Are you a potential Thermawood franchisee? Successful franchisees need to be well presented, fit, energetic, innovative and passionate about the Thermawood franchise network. You need to be determined to achieve excellent results and high levels of customer satisfaction with every project, taking pride in your work and valuing the satisfaction from achieving effective results. Thermawood are looking for people who share their vision and their passion, if this sounds like you contact Graeme Clarke at: T: 04 555 55 330 E: info@thermawood.com.au W: www.thermawood.com.au
Franchises are available in all Australian territories. The Thermawood Refrofit Double Glazing System is the most advanced double glazing system for existing timber windows. • keeps homes cool in summer • keeps homes warm in winter • saves on energy costs • gives greater security • creates a healthier home
Become part of the success story: • strong growth industry • full training and on-going support • full advertising and marketing support • patented product new to the Australian building industry • established company with a 5 year track record • affordable business opportunity • for existing and new homes twice the business opportunity!
ED SYS NT
M• TE
• PAT E
Contact Graeme Clarke 0455 555 330 or see our website www.thermawood.com.au
NEW TO AUSTRALIA
Telephone 0455 555 330 • info@www.thermawood.com.au • www.thermawood.com.au
Spotlight on Service : BUSI N ESS RISK A DVISERS
WE UNDERSTAND BUSINESS NEEDS Providing Positive Risk and Wealth Management Solutions to small businesses and professionals for over 15 years, Business Risk Advisers are a unique advisory firm. In what is believed to be an industry first, they have opened a division dedicated solely to the Franchise Market in catering to their unique needs.
Franchising is different to the SME market where several interested parties are involved in each Franchise. Specialising in providing succession planning, insurance and investment advice to the Franchise market, Business Risk Advisers will help you protect what you’ve worked so hard for and create a tailored plan to build your wealth outside of your Franchise.
business. Often this business is their primary asset and they haven’t planned or developed a secondary income stream outside of the business. Our consultative approach and strategic planning aims to protect their income, assets, lifestyle and brand and help build assets outside of the franchise,” says Gerald.
Founding Director and qualified Independent Financial Adviser Gerald Grubwinkler believes that the right advice is crucial in ensuring your future is secure, the way you planned it to be.
TAKING FINANCIAL PRESSURE AWAY
“Business owners take on enormous risk when borrowing money to purchase their
26 Business Franchise Australia and New Zealand
Running your own show means if you stop everything stops. Who will step in if you have to step out? What would happen to your brand? Business Risk Advisers help franchisees and SME’s by removing the
worry of financial hardship and unplanned events. They help you ensure you have a formal Business Succession Plan in place that documents what happens if you need to exit the business and the pricing and valuation formula for your business. The most important aspect of a properly structured and fully funded Business Succession Plan is to ensure the efficient withdrawal of a partner from a business (or jointly held property) in the event of accident, trauma, temporary or permanent disablement and death. If not planned for, any of these events can destroy a business and the livelihood of proprietors and their families. This can lead to: • The estate/family of the departed proprietor may demand involvement in the business with existing shareholders or partners; • The estate/family may make unrealistic demands on the value of their equity or want the business wound up and proceeds distributed; • Creditors may call in outstanding amounts, particularly if the departed proprietor had an impact of the business perceived credit worthiness; • Lending Institutions may stop or limit funding if they feel the business’ financial capability has been diminished; • The departing proprietor’s estate/family may have to take less that what the business is really worth; and • The brand may be affected and the clients take their business elsewhere if they feel the business’s ability to service their needs has been affected.
“We are in business, so we understand business. We know how hard it is to build a business which is why we are passionate about protecting yours.” Gerald says, “If a franchisee was to pass away unexpectedly, the franchise (asset) can be bequeathed to a beneficiary that may not be suitable to run that business. The ramifications of not having a fully funded exit strategy in place can be catastrophic. The franchisee needs to know how to protect their asset and clear the debt that has been created. During a period of incapacity, a franchisee can suddenly realise that their business is not worth much as they can’t operate/work within it. From a franchisor’s perspective, they’re likely to be saying at this point that they need to step in and take over the outlet to keep it running. Neither of these scenarios has a favourable outcome for anyone. “We place a funding mechanism in place that effectively pays the debt out. This mechanism keeps the franchisee in control of the asset, paying out the insured – this provides choice and certainty; dependent upon desired outcome. Ownership may revert to the franchisor for resale or for the Franchisee to sell without the pressure of a “fire sale” from the Banks or other creditors. This means that the right money ends up in the right hands at the right time.” A fully funded and structured buy out strategy will provide a clear and
predetermined exit strategy for all parties involved and avoid the dilution or damage to the brand through unintentional parties taking ownership. A lump sum or income can be provided to the franchisee upon accident or illness and this allows the franchisor to step into the business either temporarily or permanently with no strain on cash flow to either party. A structured buy out policy also avoids valuation disputes upon exiting the business due to disability or death as the valuation is predetermined and reviewed.
TEAM PLAYERS Business Risk Advisers work closely with Solicitors, Accountants, Finance Brokers and other Professional Advisers to ensure your best interests and goals are at the forefront of the decisions you make. Whether it’s SelfManaged Super Funds (SMSF), investment or risk mitigation solutions, their simple, uncomplicated approach empowers you with the confidence and support to achieve your financial goals. “We look at building a holistic financial plan for people, covering all contingencies. Our clients know that should anything happen, we’ve got their backs and they have a clear plan for their future, says Gerald.
Business Franchise Australia and New Zealand 27
Spotlight on Service : BUSI N ESS RISK A DVISERS
Gerald Grubwinkler, Business Risk Advisors at the 2014 National Franchise Convention
WEALTH BUILDER As well as protecting your assets, Business Risk Advisers will help you build your wealth through positive risk and wealth strategies. After analysing your financial situation and reviewing your insurance needs to ensure you are protected against unforeseen events, Business Risk Advisers can then look at a strategy of investment to see how long it will take to achieve your goals. Many Business owners are now taking greater control of their financial future through the use of SMSF’s – Self Managed Super Funds to create wealth outside of their business. Purchasing their own commercial premises via an SMSF is common amongst business owners and is often a simple yet effective strategy in wealth creation. Being fully accredited in providing SMSF Advice, Business Risk Advisers are ideally postioned to assist in this area. The strategies discussed may include
negative gearing or superannuation as well as debt reduction or income splitting. When planning for retirement; how much do you need? Assessing your retirement needs can be daunting; consultation with a trained professional is essential to make sure you are invested in the right areas, with an appropriate level of risk and through the right structures to maximise your asset base on reaching retirement.
THE VERY BEST Gerald and his team at Business Risk Advisers have achieved the very highest in educational standards, achieving FChfP (Fellow Chartered Financial Practitioner) and BRIA (Business Risk Institute of Australia) designations. Specialising in the Franchise and SME markets, they are understood to be the only financial planners in the country that have a dedicated team devoted to the franchise market. This gives them a unique understanding of what franchising is about and they are there to provide accessible and realistic financial solutions to franchisees
and franchisors and guide you through the financial maze. Knowing that their clients have heavy workloads and that they are time poor, Business Risk Advisers have the processes in place to provide simple and easy to understand plans that provide financial security. “We have a team dedicated to reviewing ongoing investments and we are always available, providing a claims and support function. We are in business, so we understand business. We know how hard it is to build a business which is why we are passionate about protecting yours,” says Gerald. If you would like help to build your assets outside of your franchise and achieve growth to allow the purchase of additional franchises should you wish to, contact Business Risk Advisers now on: T: 1300 799 102 E: info@businessriskadvisers.com.au W: www.businessriskadvisers.com.au
This information has been prepared without taking into account a potential investor’s objectives, financial situation or needs. Before making a decision based on this information, you should consider its appropriateness having regard to your objectives, financial situation and needs. When deciding whether to acquire or continue to hold a product, please refer to the Product Disclosure Statement available by contacting your financial planner or the product provider. Gerald Grubwinkler is an authorised representative of Suncorp Financial Services Pty Limited ABN 50 010 844 621, AFSL & Australian Credit Licence 229885 which is a related body corporate of Suncorp Group Limited ABN 66 145 290 124 (Suncorp Group). The different entities in the Suncorp Group are not responsible or liable in respect of products or services provided by other entities in the Suncorp Group.
28 Business Franchise Australia and New Zealand
focus : Sh i ng l e Inn
Shine with
Shingle Inn n’s business At the heart of Shingle In us coffee. It’s a is a dedication to delicio es share – to passion all new franchise coffee. perfect the art of making
t of Shingle fee for ms an integral par The business’ focus on cof g from making gram covering everythin Inn’s six week training pro , marketing n, business management coffee to food preparatio through a w franchisees are taken and human resources. Ne ll as a complete theoretical training as we comprehensive series of ure complete ens ment over four weeks to in-store practical assess ed to run a uir req s cesses and procedure understanding of the pro fé. successful Shingle Inn Ca ting n by Shingle Inn’s Marke Recent research, undertake the café to ard wc dra coffee is a major Depar tment, shows that ering coffee per cent of customers ord chain with more than 80 er regular treats. Research and oth with their meals or sweet n by the t development, undertake initiatives, such as produc in their p to suppor t franchisees Marketing Depar tment hel tradition of g company’s long-standin businesses, continuing the superior quality products.
Shine Shingle Inn’s Best Baristas
ents coordinate and Operations Depar tm Shingle Inn’s Marketing rce the nfo rei Year competition to an annual Barista of the lls and to ski s’ ista provement for bar message of continuous im ‘best of the the is o wh out petition to find create some friendly com selected from work. A representative is best’ throughout the net ners in each the State Finals with win each store to compete in h year. for the National Final eac state heading to Brisbane es from Western als in May, representativ In the recent National Fin competitors les and Victoria, took on Australia, New South Wa g four kin ultimate competition, ma from Queensland in the
30 Business Franchise Australia and New Zealand
families, and now with an ever-increasing franchise family, Shingle Inn is proud to retain the heritage and tra dition that has guaranteed the café’s pla ce in the hearts of generations of customers in it’s almost 80 year histor y. The franchise was recent ly recognised for its proactive approach at the 2014 Franchise Council of Australia Ga la Dinner, where Shingle Inn was recognise d as the winner in two categories, being awarded 2014 Emerging Franchisor of the Year and Shingle Inn Mt Ommaney was nam ed Franchisee of the Year (2 or more staff), after being named the Queensland Finalist in both 2013 and 2014.
In-keeping with the focus on family, Andrew Bellchambers says he’s gra teful for the valuable contribution oth er families have made to the business by buying a franchise. “We have had a number of families come on the journey with us over the past five years,” says Andrew, “and these families now share in the collective histor y by being par t of our franchise family. “We’re ver y grateful for their input and continued dedication to our brand.”
Winner of the 2015 Bar
ista of the Year, Alex Gro ves, (in the middle with and Runner-Up Amy Telf grey shir t on) er (second from right)
espressos, four lattes and four signature drinks for a panel of top industry judges. “The competition was tight and showed the immense skill of our barista network,” says Megan Riek, Shingle Inn Area Manager who oversees the chain’s Coffee Portfolio. “We were immensely proud of what the baristas put up and the level of competition at the finals.” Alex Groves of Shingle Inn Garden City (Upper Level) was announced as the winner at the Friday evening event, with Amy Telfer of Shingle Inn North Lakes the Runner-Up. The competition is seen as a preliminary final for external competitions Shingle Inn is expecting to compete in later in the year.
Solid foundations Shingle Inn was established in 1936 when the first store opened in Edward Street, Brisbane. The decision to franchise the café was implemented by second generation owners, Peter and Andrew Bellchambers in 2009 when the eight-caféstrong company-owned chain introduced its first franchisees. Shingle Inn recently celebrated the opening of its 50th store as part of an expanding network of stores in Queensland, New South Wales, ACT, Victoria and Western Australia. According to Directors Andrew and Peter Bellchambers, one of the most important factors of expansion was ensuring the company heritage stayed intact. “On the other hand, innovation as a company value is as equally important
as tradition. I suppose these may seem at odds with one another. It is definitely an interesting balance for us to not lose Shingle Inn’s heritage for the generations of customers who love to visit our stores, whilst at the same time challenging ourselves to be innovative and stay at the forefront of a fast-moving industry,” Andrew admitted.
Looking for more informa tion?
For further information about owning a Shingle Inn Café, con tact Franchise Development Manager , Patrick Mulcahy on:
“The family component is inherent in franchisees operating their Shingle Inn store. They manage it as an individual family unit, but at the same time, they are a part of the broader Shingle Inn family… I don’t see that feeling changing.” The most personally rewarding part of this expansion, according to Andrew, is the fact that it brings a boutique-style café, which is steeped in tradition and features exceptional service, delicious food and premium coffee, within geographical reach of everyone.
T: + 61 7 3399 3000 E: patrick.mulcahy @shin gleinn.com W: ww w.shingleinn.com/ franchising/
With a reputation for not only great coffee, but also unsurpassed atmosphere, a diverse lunch menu and decadent sweet treats, the strength of the network lies in the foundation of eight overarching brand values, with ‘family culture’ and ‘brand belief’ at its core. In remaining true to the brand values of ‘embracing tradition’ and ‘superior quality’ Shingle Inn’s Directors have aimed to retain the traditional recipes and intimate atmosphere of the original store, while ensuring longevity of the brand in modern times with a constant focus on ‘innovation’, being ‘environmentally proactive’ and ‘exceeding customers’ expectations’. Having only ever been owned by two
Business Franchise Australia and New Zealand 31
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How to Build Social Proof and Engagement on LinkedIn Social Proof is one of the key influencers that people use when making a decision on who to do business with via the internet. People look to the experiences of other customers, and that’s why testimonials and celebrity endorsements have been so powerful for businesses for decades. In fact, social proof is one of the main reasons why social media itself became so popular. We saw our friends, family and other professionals using it, and mastering this concept can make a huge difference in your success on social media. When done right, social media success grows exponentially over time. Your time and money investment – unlike other most traditional media – becomes more and more profitable over time, and those numbers and the benefits grow exponentially. That is why it’s so hard to track accurate metrics, if you’re only looking at the shortterm financial return on investment. The longer you have been using social media and the more strategic you are about the time you put into it, the more results you get from it. The basic Social Proof items to be mindful of on LinkedIn are: • Network
• Engagement
Group that I manage, The Entrepreneur Club Australia & NZ.
to create a high-quality stream of LinkedIn Company Updates.
Follow channels and influencers
Dive into comments
It’s important to stay in the know — follow channels and thought leaders (Influencers) to create a curated feed of industry news and insights that can inspire your own Company Updates.
Engage with followers who comment on your updates to help build loyalty, continue the conversation, and further establish your thought leadership. People like to know they’re heard - give them some encouragement!
Post company updates Showcase your expertise and build relationships with followers with Company Updates. Share articles, company news, industry trends, and insights. On average, companies that post 20 times per month reach at least 60 per cent of their unique audience. Follow a regular posting schedule to develop relationships with your followers, drive brand loyalty, and bring about new opportunities.
Broadcast through your networks inhouse
Demonstrate value to followers
Sponsored Updates let you reach beyond your follower base and target your exact LinkedIn audience to raise brand awareness, build relationships, and drive quality leads. Sponsored Updates appear in feeds across devices (smartphone, desktop, and tablet), giving you more opportunities to reach the people that matter.
Build engagement and trust with a stream of rich, insightful content. For every post promoting your company, make sure four posts focus on thought leadership or industry trends.
Encourage engagement Prompt colleagues and followers to take action on your post – every like, comment, and share increases your reach throughout the LinkedIn network.
Create diversified content
• Publications
Rich media such as photos and video is known to increase both comments and shares. Incorporate these formats — along with SlideShare presentations and links to articles — to maximise engagement with your posts.
Here are some tips on how to generate more engagement on LinkedIn:
Monitor and refine company updates
• Endorsements
• Recommendations • Projects • Groups
Contribute in LinkedIn groups Find relevant groups talking about your brand or industry and join them to better understand customer needs and industry trends. Apply these insights to the Company Updates you post to engage followers with relevant content. You’re welcome to join the
Monitor your Company Update reach and engagement numbers to see what’s resonating with your audience. Test days, times, topics, and formats, and adapt as you learn.
Leverage your content Use successful blog posts, articles, and updates from your other social platforms
32 Business Franchise Australia and New Zealand
Prompt colleagues to share your Company Page updates. Not only will this increase your company’s visibility to new customers and potential hires, it’ll also help establish a company culture where employees are engaged with your brand and mission.
Sponsor your updates
Become a publisher The Publications section is a great place to get the word out on your writing and show the world you are an expert. Everyone can be an author or publisher on LinkedIn. Do not think this section is only for books you have written. You can add already published articles or post new ones, you’ll have an option to add pictures, links to share it with the readers of your LinkedIn profile. Publishing posts and articles is a great way to build credibility on your profile. Even with franchise sales that you can’t source back to the internet, you can safely assume that a vast majority of candidates will research your franchise online either before or during their decision making process. For more information on how to use LinkedIn to grow your business visit: W: www.bibbyconsultinggroup.com.au
SUCCESS?
Domino's is not just Australia and New Zealand's leading pizza brand – it's also one of the world's most advanced digital retailers. So if you're looking for a franchise that delivers on your goals, you can't go past Domino's.
Undisputed leaders in online ordering. Australia and NZ's first and most advanced mobile ordering apps.
State of the art digital store management tools in the hands of every franchisee.
Australia and NZ's only pizza creation app and only real-time pizza tracker.
Ongoing training and support for franchisees and their teams.
Innovative digital marketing with millions of customers assessable via email and social media.
A proven and trusted brand that's passionate about pizza and people.
Call 1300 131 888 or visit: dominos.com.au/franchising Business Franchise Australia and New Zealand 33
Spotlight fr anch ise cou on Service nci l of aust : N FI Br a l i a
Streamlining the Process of Insurance for Franchised Businesses Franchised businesses have the same requirements for insurance as any other business, with one marked difference. In franchised businesses, both the franchisors and their franchisees need to each have their own insurance in place for the risks they carry. It also remains the responsibility of the franchisor to ensure their franchisees have at least sufficient compulsory insurance in place, such as public liability cover and business interruption insurance to cover the franchisor’s royalties. There are also many other types of insurance that may be required in a franchise, depending on the business – such as property, goods and stock, business interruption, landlord insurance, and burglary cover. For example, a retail business will most likely need cover for stock, money, equipment, and burglary. A service business, such as bookkeeping or consulting, will not require insurance for stock and goods, but will require professional indemnity cover and public liability insurance. Insurance can be a complex affair and possibly even more so when it comes to the multiple relationships that exist within a franchised business. However, there is a very good way of streamlining and simplifying the process that can be beneficial to both franchisors and their franchisees.
specifically designed for franchises. In this type of program, the franchisor and the insurance provider enter into an agreement where the appropriate cover is provided for the franchised business, and any franchisees who come on board only need to join the existing system. This type of setup means franchisees can be assured of not only having the compulsory insurance they need in place, but also the right kinds of other cover for their businesses. In addition, franchisors can also be confident that their insurance compliance obligations regarding their franchisees are being met, without having to check up with each of their franchisees every year. Another advantage is that of uniformity of cover throughout the franchised business, rather than having different providers, policies, and cover levels spread throughout the franchise. Since a managed program utilises wholesale or group cover, money is usually saved on premiums compared to when individual insurance policies are in place.
The NFIB system National Franchise Insurance Brokers (NFIB) provides managed insurance cover specifically designed for franchised businesses. Franchisors negotiate the cover they need for their franchised business, and their franchisees simply need to hook into that program through an easy-to-use customcreated online process, to ensure they have the right types and levels of cover for their own businesses. NFIB has partnered with many blue chip franchised business systems in Australia offering them and their franchisees many benefits, including:
Endorsing a managed insurance program
The benefits of a managed insurance scheme
One way of simplifying the process is through a managed insurance program
This system has numerous benefits for both parties.
34 Business Franchise Australia and New Zealand
Franchisors: • Have the assurance that their compliance obligations regarding insurance are met without the need to follow up each franchisee. • Are given access to their own customised online portal. • Have the ability to track their franchisees’ insurance activities. • Are provided with advanced reporting mechanisms, the capacity to tailor their group’s cover according to risk level, and greater control of their insurance in general. Franchisees: • Avoid the time and stress that tends to go with sourcing the most appropriate types and levels of cover required to financially cover their businesses. • Avoid the need to complete application forms and read complex documents. • Are assured of having the most appropriate forms of cover as it has already been negotiated and secured. General benefits include: • Common due dates for all policies, preventing the risk of delayed or missed payments. • Savings on premiums due to wholesale group cover. • 24/7 online claims reporting service and fast claims processing. • Each franchise is provided with a dedicated account executive who not only fully understands the franchising process, but also the individual franchised businesses. • NFIB offers risk management review as part of the service. For more information on insurance for franchises contact NFIB directly on: T: 1800 776 747 W: www.MYNFIB.com.au
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What Does Due Diligence Really Mean? A specialist franchise lawyer and business advisor tell you what to look out for when buying your franchise.
The Franchise Business Advisor
not be more than 10 per cent of sales. A current franchise system that has recently experienced some major financial problems was rumoured to be paying in excess of $300,000 a year in rent for some of their sites. This would be fine except their expected sales were about $1.5milion. In this case the franchisor did not put any thought into the financials that they put forward to prospective franchisees, and unfortunately for many of these franchisees, they did not do their due diligence.
When looking to buy a franchise, you will often hear the phrase “Make sure you do your due diligence” from family, friends and advisors. While most people realise it involves an investigation into the business, many people don’t realise or appreciate what that actually involves. Due diligence will vary from business to business, however here are some key areas you need to consider when looking to purchase any business.
The financials The most important consideration is whether the business is a sound financial proposition, so you need to be sure that the financial data you are given makes sense. You will want some kind of business plan that includes a financial model, preferably a P&L and ask the franchisor what the numbers are based on – other franchisees and/or corporate store performance? Break the numbers down so that you know how many products or services you need to sell and how many clients you need to service per day and what would they have to spend on average to break even, after meeting all your overheads. If you don’t have the information, ask the franchisor
for the average ticket price or the number of clients they service a day. This will allow you to see if the financial assumptions being put forward add up, and also whether the franchisor has a good understanding of their own business. It will also assist you to determine whether a site will generate enough revenue. For example, will there be enough passing foot traffic to ensure you make sufficient sales. This may mean that you sit in a shopping centre and literally count the number of people that walk past your intended site at different times of the day and on different days of the week. You will want to get a good understanding about the operating costs of the company as well. As a rule of thumb, rent should
36 Business Franchise Australia and New Zealand
Your commitment Another aspect you need to consider in your due diligence is the amount of time that you will be required in the business. Is this a seven day a week business, such as a quick service food business when you may be required to work public holidays and nights? Will you need to employ staff? Will members of your family work in the business or be giving up a job to work with you? This will impact not only your lifestyle but also the lives of your family and may not be ideal if you have a young family. But there are many kinds of franchises, such as work from home and mobile opportunities that allow greater flexibility as do many B2B businesses that only require a Monday to Friday commitment
Trading cycles An area that a lot of potential franchisees don’t always think about is what the trade cycle of a business looks like. Are sales consistent throughout the day or are they focused on specific times? Do sales vary significantly throughout the week/year? These considerations will impact how you staff the business, the hours that you should work and also whether the franchisor has considered a product or service offering for all parts of the day/month/year. Is there any seasonality to the business? This is important as it can impact your return on investment. It can also vary the time it takes for your business to be profitable.
Assess the documentation A critical part of your due diligence is to examine every piece of information the franchisor provides as this is should outline what you are purchasing. The Operations and Procedures Manuals should tell you exactly how to run your business with all the systems and procedures clearly explained. How will training be delivered, will there be an additional cost, what about training your staff and what ongoing support is offered? What marketing will the franchisor do, what marketing collateral is provided and how will you be able to use that to market your business locally?
Cultural fit As part of your due diligence you should also consider whether the culture fit of the franchise network is right for you. While this may seem less important, as a franchisee you will be spending on average seven years in this network. It is important that you are aligned with the company’s vision and that you support and believe in the company’s values, so that you don’t end up working with people you might not respect or whom you deem incompetent.
Get verification The core of your due diligence is to ask questions (and get answers!). You should speak with the franchisor (or recruiter) with any concerns and see what independent verification you can get for what they tell you. And very importantly speak with other franchisees, former franchisees (and even competitors of the franchise you are considering), to gain as much information as
Christina Andrews | Lawyer DC Strategy
Ben Hemphill | Senior Consultant DC Strategy
“While most people realise it involves an investigation into the business, many people don’t realise or appreciate what that actually involves.” possible. Other franchisees in the network can tell you how long it took to become profitable, how much operating capital they needed, about seasonality, staffing, what the training and support are like and how the franchisor is to deal with. At the end of the day, you want to make the most informed decision possible before committing your money and a sizeable portion of your life. So the final piece of the due diligence process should be to consult a franchise lawyer and an accountant and/ or business advisor who understands franchising. My lawyer colleague will discuss the Franchising Code provisions of the Disclosure Document about taking legal and financial advice, and I will add – take professional independent financial or business advice because together with what you can do – this is the best risk mitigation policy to ensure your success.
The Franchise Lawyer You know you need to do your due diligence – but what does this actually mean from a legal point of view? You will get a lot of legal documents so let’s start by looking closely at the Disclosure Document (“DD”). The DD is legally required under the Franchising Code of Conduct and will give you important information about the franchise you are thinking about buying.
Franchisees The DD has a list of current and previous franchisees as well as their contact details. You should contact at least three existing
franchisees and a number of former franchisees who have left the network. Some important questions to ask them are the level of support given by franchisor, the level of training provided and the financial performance of their individual franchises.
Litigation The DD will also let you know about any litigation or disputes past or present so you will know if there are any serious issues between franchisees and the franchisor.
Experience of directors Be sure to look at the experience of the directors and officers of the franchise. A franchise system that is run by professionals with years of management experience should be more secure than a franchise that has been operated for a short period of time or one where the directors do not have much experience in management or the nature of the franchise system. But you need to exercise your judgement as every system starts out small and sometimes even established networks can experience difficulties, retraction or even collapse.
Trademarks An important issue when purchasing a franchise is the intellectual property. Some franchise systems do not own the trademarks they use, especially if the franchise is not yet well established. If no registered trademarks appear in the DD or if the trade marks have only been
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applied for and are not yet registered, this could mean that third parties are using similar trademarks which could compromise the business model and reputation of the franchise network. You should make sure that the system you invest in has exclusive ownership of the trademarks they use.
Operations Manual You should ask for access to the Operations Manual. The Operations Manual will often include the minimum performance criteria and other legal obligations, which you are required to comply with. Remember, a breach of the Operations Manual is also a breach of the Franchise Agreement and could lead to termination of your franchise. Therefore it is really important that you read the Operations Manual carefully. Franchisors are often reluctant to provide you with a copy of the Operations Manual before you sign the Franchise Agreement because it contains confidential information. However, you should be able to look at the Operations Manual at head office.
Lease If you are purchasing an existing franchise, you need to check the details of any lease or licence agreement to make sure there is enough time left on the lease to get a reasonable return on your investment. A large number of franchisees have purchased existing franchises without realising there is only 1 - 2 years left on the lease. It is also important that you make sure there is no plan for demolition or redevelopment by the landlord. If the landlord needs you to relocate for redevelopment this would be very disruptive to your business and may mean you are left with large unexpected costs. The person selling their franchise should give you a Disclosure Statement which will have information about demolition and redevelopment. However it’s a good idea to contact centre management personally and confirm there are no plans for redevelopment that will impact your business for the rest of the lease.
Fit Out Costs Fit out costs are also one of the most overlooked parts of a franchise. You should check with the franchisor whether the fit out costs are fixed or just rough estimates that could change at any time during the fit out period. If the costs are only estimates (as they often
are), you should contact the fit out contractors directly to make sure you understand how the costs could change and make sure you have enough finance to deal with any unexpected increase. Some franchisees have been left with very large unexpected invoices during the fit out period and this has caused serious issues with their finance as they only borrowed enough money based on a lower estimated fit out cost.
Franchisor interview Finally, your interview with the franchisor (or recruiters) should not just be one where you answer questions about your background and ability to run the franchise. It is also a chance for you to ask the franchisor questions about their business plans, the level of support they give franchisees and the details of training including where it will take place and what expenses may be involved.
Due Diligence and your Protection under the Franchising Code Purchasing a franchise is an exciting opportunity however it is important that you do your due diligence so you’re comfortable with any decision you make. The Franchising Code of Conduct requires franchisors to recommend that you seek legal and financial advice. This is because it is understood that entering into a franchise is a serious investment and requires the input of legal and accounting professionals. If you choose not to take professional advice, you have to sign a statement saying that you’ve decided not to. The Franchising Code of Conduct is there to protect you so it is a good idea to take the opportunity to speak
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to a lawyer and an accountant/business advisor who specialises in franchising. This could potentially save you thousands of dollars through negotiation of the Franchise Agreement and give you peace of mind that you’re making an informed and legally and commercially sound decision. For over 30 years DC Strategy has been the region’s leading end-to-end franchise consulting, legal, recruitment and branding firm. Our multi-disciplinary team is committed to providing professional, practical advice and ongoing support to clients. Christina Andrews is a lawyer in the law firm at DC Strategy who specialises in franchise documentation and franchisee reviews. She is also an experienced intellectual property lawyer. Contact Christina on: P: 02 8220 8704 E: christina.andrews@dcstrategy.com Ben Hemphill is a senior consultant involved in business development, strategic analysis, franchisee recruitment and client management. With experience in accounting, financial services and budget responsibility, he has a detailed understanding and hands-on experience in running and growing successful businesses. Ben has strong skills in building relationships with team members, clients, business partners and institutional stakeholders. P: 61 2 8220 8714 E: ben.hemphill@dcstrategy.com
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What support should you look for
when buying a Franchise? A franchise is a special type of business and people should do appropriate background research and due diligence when they are considering the purchase of one. The way franchises operate isn’t for everyone, and like everything else in the world, not all franchises are created equal. Some are much better than others. There are a lot of resources and expertise available for franchise buyers to access for assistance, if only they know where to look. A few of these sources are discussed below.
Franchise Association of New Zealand The Franchise Association of New Zealand (FANZ) is a voluntary organisation that New Zealand franchise systems can join. Membership requires those franchise systems to, amongst other things, have their franchise documentation vetted and approved to meet minimum standards from a fairness prospective. Those franchise systems must also subscribe to the FANZ Code of Practice and Code of Ethics. Where a franchisor is selling a new franchise operation, the franchise agreement must contain a cooling off period allowing a prospective buyer to walk away from a transaction within seven days of signing the agreement if they change their mind. Therefore, there is a good expectation that buying a franchise from a member of FANZ will result in the documentation of the franchise being reasonably fair and equitable, with a robust and fair dispute resolution process that can be followed if issues do arise. FANZ however goes further in offering
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“Like everything else in the world, not all franchises are created equal.� Mark Sherry | Partner Harmans Lawyers New Zealand.
resources to people interested in buying into a franchise system. In addition to helpful publications it has produced, it has links to a portal on its website that it has set up in conjunction with Massey University which is effectively a franchise pre-entry education programme. There are modules and videos covering topics such as franchising basics, the money side of franchising, systems and start up, operating and support, and due diligence. All of these topics are extremely relevant to gaining an understanding of the basics of franchising. They can help a person assess whether they believe franchising is right for them. It has often been said that people with an entrepreneurial streak are not necessarily well suited to franchising because, whilst a franchise operator is running their own business, they are strictly bound by rules, processes and procedures that must be followed. People who want the freedom to operate their business as they choose should look for business opportunities elsewhere. Franchises are more suited to people who wish to operate their own business, have some business experience (whilst not necessarily having operated their own business before) and want to be systematic and willing to follow a model.
Business.govt.nz An excellent place to start looking for general business information, particularly if you are going into business for the first time, is the website www.business.govt.nz. As well as having a lot of general information and advice on what to do and who to approach if certain situations arise in business, there is a great deal of commercial, tax, legal, accountancy and management advice all bundled into one coherent website. This website has tools for business plans, tax and compliance advice, mentoring links and management advice, as well as basic information on employing staff and appropriate business structures. The
information on this website is general by nature and does not profess to have all the answers or to supersede advice that you should take from your lawyer or accountant. However, it is an excellent window into concepts that should be understood by a business owner and it gives some basic information which will help the reader school up on areas that they are unsure of. Having some basic knowledge will also lead to more in-depth discussions with your professional advisors, which in turn will more likely lead to better decisions being made in a more timely and cost effective manner.
Specialist Franchise Lawyer Most lawyers are capable of looking at a franchise contract and telling you what it says. However, the difference between lawyers without specialist knowledge and a specialist franchise lawyer is that a specialist knows what to look for in a franchise agreement that might raise warning signs. Even more importantly, they also know what should be in an agreement even when it is absent. A specialist franchise lawyer will be able to talk to you about issues that fit into the bigger picture surrounding your franchise business and how they should best dove-tail together, (for example, issues such as the leasing of premises, the employment of staff, business structures and financing) and they will be able to talk to you about experiences they have seen in the franchise sector, what in the franchise agreement is fair and reasonable and what issues might raise warning bells. One of the biggest issues that people fail to think about when entering into a franchise agreement is what their exit plan is and what their rights and obligations are when their franchise comes to an end. By entering into a franchise agreement which has particularly onerous terms, a franchisee may find that they are bound to it for a considerable period of time, they are obliged to pay fees through
that whole period regardless of how the business is trading and, because of the nature of the franchise document, it may be hard to sell to anyone else. Finally, there are often restraints of trade and restrictions on what the franchisee can do when the franchise comes to an end. These can often be particularly onerous. For example, there is little point taking an existing plumbing business into a branded franchise system in order to increase public exposure and increase the client base for a 10 year period to then find that upon the expiry of that period, the client base belongs to the franchisor and the plumber is restricted from plying their trade within the city where they had been operating. Obtaining expert legal advice when it comes to franchising is crucial.
Expert Franchise Accounting Advice Specialist franchise accountants tend to understand the upfront costs involved in going into a franchise, as well as the ongoing fees and obligations involved in operating a franchise. They can help prepare budgets and analyse cash flows, utilising their knowledge without having to school themselves up on how franchises operate. This in turn will provide their clients with the ability to work out how much is needed to buy, set up and run their franchise, either prior to signing a contract or during the due diligence phase. They can then determine if it is affordable to purchase the franchise and, even when it is affordable, they can provide good advice to their client on the likely profitability, the risks involved and the likely time and effort that will need to be invested, particularly in the early stages while the business is being established. Just because a franchise system is involved and there is support and advice in the background, this does not negate the need for a new franchisee to have lots of drive and a willingness to put in long hours and face
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challenges in getting their business off the ground. All franchise disclosure documents have exclusion clauses recording that there are no guarantees as to the likelihood of the success of the franchise and that the franchisee is purchasing it, after taking appropriate advice, at their own risk. It is not uncommon for people having taken expert accounting advice to make a decision not to proceed with a particular franchise purchase after the accountant has helped them weigh up the likely profitability and the risk. They may decide that they would be no better off than continuing in their existing role (especially if they are employed and a regular income is guaranteed), as opposed to taking the risk of being in business, which may mean that their income could actually drop even though they are working harder than ever.
Specialist Franchise Bankers Many mainstream banks these days have set up specialist departments to deal with franchising. Particularly when it comes to bigger franchise brands, these specialist banking teams have analysed many systems and the way they tend to operate. This research gives the bank a good idea of how likely the business is to succeed. These specialist banking teams are more likely
“Having some basic knowledge will also lead to more in-depth discussions with your professional advisors, which in turn will more likely lead to better decisions being made.” to recognise the benefits of a successful franchise system and assist with the funding requirements of a buyer. Further, good senior bankers are often an excellent sounding board for commercial queries. They can therefore provide good, impartial commercial advice at the same time they are discussing funding applications. Whilst most banks are still bound by their overall credit criteria, it is not uncommon for members of decent franchise systems to actually have been approved to borrow at higher lending percentages than may otherwise be the case for an independent business, just because the bank’s due diligence shows the likely success levels of the franchise system. Generally, a franchisor will be able to point a franchisee in the direction of any bank that has assessed their system and is willing to assist in this way.
Summary As a wise man once said, “To succeed in business, one needs preparation, dedication and hard work”. When looking to purchase into a franchise system, one of the smartest
moves would be to utilise the modules and portals described above to school up on franchise and business issues, and to then take good advice from appropriate professionals so that you have the best chance of success. The dedication and hard work that then needs to follow has to come from within! Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: Phone: +64 3 352 2293 Mobile: +64 21 524 890 Email: mark.sherry@harmans.co.nz Web: www.harmans.co.nz
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BBF
PROFILE: BRAZILIAN BUTTERFLY AUSTRALIA
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:K\ 3DUWQHU ZLWK %UD]LOLDQ %XWWHUȪ\" • They are one of Australia’s most recognised successful and SURȴWDEOH IUDQFKLVH JURXSV LQ D SURJUHVVLYH JURZLQJ LQGXVWU\ • You’ll be part of a great team with all the support you need from training to operations, to marketing and recruitment. You’ll be in business for yourself, but not by yourself. • Using both traditional and digital media, they have proven national marketing and advertising strategies, plus local area marketing initiatives that drive growth and ensure business success.
7KH %UD]LOLDQ %XWWHUȪ\ 3DUWQHUVKLS • 7 KH %UD]LOLDQ %XWWHUȾ\ EUDQG LV RQO\ DV VWURQJ DV WKRVH ZKR represent it and they know that their continued success is down to our franchisees sharing and embracing the vision for business success and growth. • Ζ Q UHWXUQ IRU WKDW FRPPLWPHQW %UD]LOLDQ %XWWHUȾ\ SURYLGHV WKH highest level of support, training and coaching to ensure you and \RXU EXVLQHVV LV D SURȴWDEOH DQG VXFFHVVIXO RQH • Experience initially in the beauty industry is not a prerequisite; you just need to be committed, driven, customer service focused, and have the desire to succeed – the rest they can teach you! • As your business partner, they have an invested interest in your VXFFHVV 7KLV LV ZKDW GULYHV WKH HQWLUH %UD]LOLDQ %XWWHUȾ\ IDPLO\ – it’s in everything they do and they’re all about you.
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Business Franchise Australia and New Zealand 43 BBFLY0122_Franchise Mag Ad_210x297_v3.indd 1
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THE WASH-UP IN THE CLEANING FRANCHISE CASE
By imposing a $500,000 penalty against a cleaning franchisor, the Federal Court has sent a clear message to the franchise industry about complying with the law.
The Australian Competition and Consumer Commission took court action against Coverall Melbourne* after the franchisor misled two franchisees about the income they would earn and then failed to pay them, whilst at the same time still demanding money from them for franchising fees. In handing down the penalty against Coverall Melbourne, even though it is in liquidation, Justice Murphy said there is also a strong
44 Business Franchise Australia and New Zealand
requirement to deter other franchisors from acting unfairly and unconscionably when providing information to prospective franchisees and those operating a franchise. The court found Coverall Melbourne made false or misleading statements to two prospective franchisees about the volume of work they would get and the resulting payments they would receive each month. The representations included providing the
“Buying a franchise is a big step. As such, there is a mandatory Franchising Code of Conduct to help ensure prospective franchisees can make an informed investment.” Dr Michael Schaper | Deputy Chairman ACCC
Coverall Melbourne’s most egregious conduct involved refusing to pay the two franchisees for work completed and continuing to demand payment for franchising fees. Justice Murphy said Coverall Melbourne had deliberately acted without regard to appropriate norms or standards within society. The court found that the franchisees had a significantly weaker bargaining power than the franchisor and ruled that Coverall Melbourne had engaged in unconscionable conduct in breach of the ACL. This is a significant finding.
prospective franchisees with a ‘franchise plan’ that specified monthly earnings. The court declared that Coverall Melbourne breached the Australian Consumer Law (ACL) because it did not have a reasonable basis for making the earnings forecasts.
Buying a franchise is a big step As such, there is a mandatory Franchising Code of Conduct to help ensure prospective franchisees can make an informed investment. In this case, the court declared that Coverall Melbourne had contravened the Code in two ways. First, it provided false or misleading earnings information, and secondly it failed to notify one of the franchisees about the need to seek independent advice before entering into a franchise agreement.
The court made earlier orders, by consent, against Coverall Melbourne’s former director, Brett Jones, who was found to be knowingly concerned in Coverall’s unconscionable conduct contraventions. The court ordered Mr Jones to pay a penalty of $30,000 and compensate the two franchisees. It is important to note that the $500,000 penalty was only for contraventions of the ACL. There were no financial penalties available for breaching the Franchising Code at the time the offences occurred, but that has now changed.
A revised Code On 1 January 2015, a revised Code came into effect which allows the ACCC to seek penalties in the court of up to $51,000 for certain breaches of the Code. The new Code also provides the ACCC with the power to issue infringement notices for breaches of certain provisions of the Code. Franchise operators are also required to observe new disclosure obligations and have a duty to act in good faith.
Ensuring compliance With the new Code ensuring a compliance is a priority for the ACCC. As well as enforcement, the ACCC will continue educational activities to ensure franchisees and franchisors are aware of their rights and obligations under the new Code and the ACL. *South East Melbourne Cleaning Pty Ltd (in liquidation) (formerly Coverall Cleaning Concepts South East Melbourne Pty Ltd) was the Victorian franchisor of Coverall’s national professional cleaning franchise system. Dr Michael Schaper is Deputy Chair of the Australian Competition and Consumer Commission. The Australian Competition and Consumer Commission is an independent Commonwealth statutory authority. The ACCC enforces the Competition and Consumer Act 2010, which includes the mandatory Franchising Code of Conduct. For the latest small business and franchising news and events you can now follow the ACCC on LinkedIn. The ACCC and Griffith University offer a free pre-entry franchise education program at www.franchise.edu.au/preentry-franchise-education.html. For franchising information, go to: W: www.accc.gov.au/franchising
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Burger Urge – Turning food retail on its head When it comes to burgers, Sean and Colby Carthew know their business. Born and bred in Brisbane, the Carthew brothers started the Burger Urge brand while both still in their early 20s. Fast forward 8 years and the boys have transformed a tiny hole in the wall burger shop in Brisbane’s original hipster suburb of Fortitude Valley into a $15 million dollar burger empire. Serving over a million burgers a year, Burger Urge currently has 15 stores across South East Queensland with a view to expand to 100 stores nationally by the end of 2017. Not a bad feat for two brothers who just wanted a good tasting burger at a decent price. How did they do it? “We saw a massive gap in the market,” said Sean as we sat down for lunch at their newest flagship store in the heart of Westfield Chermside. “There was fast food and there was restaurants, but nothing in between,” he added.
addiction’, the brothers decided to take a risk in 2012 and distributed 20,000 custom made syringe ballpoint pens to the local neighborhood. This unconventional marketing stunt was picked up on every major news outlet including the ABC’s Gruen Transfer. “Money can only take you so far,” Sean said. “Sometimes you just have to think about things from a completely different perspective.” These days Burger Urge is not as dark as it was before. The same out of the box ethos, however, is still reflected in many areas of the brand. The store fit outs feature a huge upside down Burger Urge logo above the entrance. There is synthetic grass plastered over an entire wall. Adjacent to one grass wall is another, even bigger wall, covered in comic books. Toto, I’ve a feeling we’re not in Kansas anymore.
For Sean and Colby, the key to finding their point of difference was always about thinking outside of the box.
As my burger arrives I’m greeted with the message ‘BITE ME’ emblazoned on a little black flag sitting in the middle of the burger…oh, and did I mention there were four vintage push bikes hanging off the ceiling?
In the beginning, a very limited budget forced the pair to get creative on how they could gain maximum exposure for the business at minimum cost. Drawing inspiration from their tagline, ‘taste
Marketing wise, Burger Urge has continued to push the boundaries, gaining both domestic and international coverage. One of their more recent marketing campaigns, the Big Bad Vlad burger, paid homage to
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the great Russian president during his visit to Brisbane in November 2014 for the G20 summit. Featuring two presidential chicken breasts, two ruthless rashers of bacon, thick cut KGB style chips, two oppressive slices of cheese, Siberian lettuce, sweet chilli mayo and regular tomato, local Brisbanites were presented with the ultimate challenge to ‘shirtfront one today’. While Burger Urge may have grown from a hole in the wall shop to Australia’s fastest growing gourmet burger chain, it is clear that the brothers have not lost their tongue-incheek humour and humble beginnings. As we wrap up the interview I ask Sean what his vision for the next five years of the business is. Chuckling, he says, “let’s just stick with the immediate goal of 100 stores but hey, who knows, we could be serving burgers on Mars one day. Truth be told, I just want to continue turning food retail upside down. I want people to walk past our stores and think What the...?” After all, what is life without a little fun? For more information contact Ray Villari on: P: 0409 760 169 E: franchising@burgerurge.com.au W. www.burgerurge.com.au
VOL 09 ISSUE 05 july/august 2015
on the road
JIM CORNISH
going mobile JIM PENMAN
TO BUY OR NOT TO BUY cafe2u
enjoy the daily grind
Business Franchise Australia and New Zealand 47
FE ATURE
d a o R e h t On franchising
Ever felt tied down by travelling day in and day out to the office, staring at the same four walls? Then perhaps a mobile franchise is for you. The freedom and diversity you will gain by hitting the road and visiting your clients could be the change of scenery you are looking for. The variety of mobile franchise opportunities is vast and ever-expanding. Everything from food vans, dog washing, lawn mowing, house cleaning, car washing, selling tools, servicing cars, package delivery, fence building, business consulting…phew! The list just goes on and on. You name it, and there will probably be a mobile franchise available for you to make all your own. The one thing they all have in common is that they do not operate from fixed premises.
TERRITORY Territory, as with most franchise business, is particularly important when operating a mobile business. With a mobile franchise, your income will be received from the clients that you establish within your specified territory, so of course it is imperative that you know the exact parameters of your allocated territory. It is also important that when doing your research into a mobile franchise that you investigate whether it is actually possible to
generate the income you require – or desire! The ways in which franchise systems divide their territories may differ – whether it is by postcode or physical boundaries – you will need to investigate the area thoroughly. Some franchise systems offer exclusive territories, in which you will be the only operator of that franchise in that area, while others offer non-exclusive territories. In non-excusive territories you will face competition from not only other similar businesses but also from other franchisees in your network. Always check with the franchisor as to the specifics of territory allocation for the
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franchise system you are investigating.
FREEDOM As a mobile franchise operator, you are master of your own daily schedule. Need to drop the kids at school? No worries! Surf’s up? Grab the board and hit the waves! Obviously you’re not going to make much money if you spend all your time running errands and hanging ten, but when the occasion does arise, it’s great to be able to have some flexibility in your day. As with any business, you are only going to get out of it as much as the hard work you put into it.
FE ATURE “The freedom and diversity you will gain by hitting the road and visiting your clients could be the change of scenery you are looking for.”
With a mobile franchise you can choose to work as little or as much as you want.
CUSTOMER SERVICE Good customer service can set you apart from your competitors, and is what will keep your clients coming back. When operating a mobile franchise, this is truer than ever before. Be on time, be well presented, and ensure that you have everything you need to perform the job, or have the stock your client wants, every time. The presentation of your vehicle is also imperative. It is representative of your business – keep it clean and well
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FE ATURE
The presentation of your vehicle is also imperative. It is representative of your business – keep it clean and well maintained and it will show your clients and members of the community that you take pride in your business.
• What level of support will you receive with managing your business? • What kinds of marketing activities are conducted by the franchisor? • How will you receive leads? Will they be provided by the franchisor or will you be responsible for generating them for yourself? maintained and it will show your clients and members of the community that you take pride in your business.
$$$ In most cases a mobile franchise will be cheaper to purchase than a franchise operating from a retail outlet, the obvious difference being that fixed premises is not required therefore eliminating the need for a lease and rent payments and the cost of a shop fit out. Mobile businesses often operate from a home office, also keeping overhead costs at a minimum. To get started all you may need is a phone and computer. In addition, mobile franchises often eliminate the need to employ additional staff members into the business, so the costs of doing so, and the associated paperwork, also disappear. However, just because your investment into the business may not be as high as that of
a retail outlet, this does not mean your due diligence should be cut short.
DUE DILIGENCE Regardless of the type of franchise you choose to purchase, by conducting thorough due diligence you will increase your chances of making a good decision and of future success. Due diligence is the process of evaluating the prospective business purchase by getting information about the financial, legal, operational and other important aspects of the business. Some of the questions that need to be answered include: • Do you enjoy the work involved in this franchise? • How much will you need to invest to buy and operate your business? • What initial and ongoing training will you receive?
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• Does the franchise have the ability to remain competitive and maintain its brand value? Evaluating a prospective franchise business is not an easy process and professionals in franchising can help you carry out your due diligence. An accountant, lawyer and your bank are important sources of advice and knowledge. Talking to those already involved with the franchise system is a great starting point; franchisees can share firsthand their experiences with operating within the franchise system. The franchisor should be forthcoming with the contact details of current franchisees. It’s also recommended you read the Franchising Code of Conduct to understand your rights as a franchise and those of the franchisor. The Franchise Council of Australia has an abundance of information relating to the code as well as recent changes and reviews of these changes on their website www.franchise.org.au.
Resources at your fingertips!
CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGB’s website also provides an additional advertising and information format and complements our publications.
www.businessfranchiseaustralia.com.au
FE ATURE
Jim’s A ntennas
australia’s
modern technology experts Established in 1999 by Andrew Parke, Jim’s Antennas has grown into Australia’s largest antenna installation company. With over 150 franchisees across all states and territories in Australia as well as New Zealand, their success is attributed to a combination of experience, outstanding service and a great team. After being approached by Jim’s Group CEO Jim Penman, Andrew, with 10 years’ experience already within the industry, has grown the Antenna division of Jim’s into a brand customers can trust. Over the next 12 months, targeted areas for growth include Sydney, Queensland and Tasmania as well as regional areas of Australia due to the large amount of contract work available. “As an approved installer, working with the NBN roll-out, we are part of an installation group which brings NBN technology to rural and regional areas. By mounting outdoor antennas to properties, this enables homeowners unable to connect by cable to have access to high-speed broadband,” says Andrew.
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fe feature at u r e More than antennas Modern technology is constantly moving forward and with the recent switching off of analogue transmissions and replacing them with digital only transmissions, now is the perfect time to join Jim’s Antennas. The bygone days of simply plugging one cable into the back of the new television have long gone. Consumers these days have to contend with satellite and pay television, Plasma, LCD, LED alongside blu-ray, home theatre systems, phone and data points. As a Jim’s Antennas franchisee you will specialise in a range of quality digital antenna systems and conduct a free signal test at customer’s premises, before providing them with a free quote on the best antenna for their reception levels. Jim’s Antennas franchisees specialise in the following aspects of antenna installation: • New antenna systems; • Diagnosing reception problems; • Cabling to new houses at lock up stage; • Antennas to shared housing (units, dual occupancy); • Digital Antenna systems to commercial premises; • FM Radio Antennas; • New TV Points to existing antennas; • Supplying and installing new set top boxes;
“Being part of the Jims Group brand sets Jim’s Antennas apart from the competition; it’s a brand customers know and a brand they can trust.” • TV Wall Mounting; and
Why become a Jim’s franchisee?
• Home Theatre Installations Jim’s Antennas will help you arrange any necessary licenses, so you are able to provide all types of telephone cabling services and in addition to extra phone points, Jim’s Antennas franchisees can also assist with computer data cabling, plus data points to connect computers to the internet, without running leads across the floor. Trained to professionally install new flat panel screens onto walls, including cable concealment to hide all those messy cables, franchisees have access to a wide variety of specialised brackets and tools, for all types of TV’s. Alongside this, you will also be able to complete Home Theatre Installations, which includes hidden cabling, surround sound, speaker mounting and custom wall plates, projector installation, installation of projector screens , installation of Plasma, LCD and LED TV’s and supplying and programming home theatre remote controls.
A Jim’s Antennas franchise allows you to set your own hours and achieve that elusive work / life balance. As you are responsible for your own scheduling, working hours and holidays, you are in control. A Work Availability Guarantee of $1500 per week, including GST, net of stock is available to all new Jim’s Antennas franchisees. This means that should you request and not receive work to this value, your Regional Franchisor will make up the difference in work or in exchange for you providing free promotional services designed to promote and build your business. Although there is a $1500 work availability many franchisees earn well in excess of this guarantee. A Franchise Management System (FMS) computer program has been specially developed by Jim’s IT team and allows franchisees flexibility and control over their business. Territory rights are nonexclusive, meaning that if a franchisee is
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Jim’s A ntennas
not requesting work within their territory on a particular day, it will be allocated to an operator who wants the work. You are also able to provide personal referrals in any area you wish and these do not attract fees. Franchise fees consist of a monthly base fee, plus a lead fee. The lead fee is charged once only on each new lead requested by, and sent to you. This is a ‘user pays’ system, with those taking more leads paying higher fees. This encourages all operators to contact clients as soon as the lead is received, and to log off for work when busy, leading to a higher level of customer service. Jim’s do not charge a percentage of your income or a fee on personal referrals or walk up clients. Jim’s Group have over 3,300 franchisees across the different divisions, therefore the strength of the Group often lends buying power for national deals. This means Jim’s Antennas franchisees are able to enjoy significant savings on work vans, mobile phone deals, insurance, stock and more.
Training and Support Initial franchisee training is completed at the Jim’s Group National Training Centre, located in Melbourne. This covers areas such as bookkeeping, customer service and sales, the Jim’s Group ethos plus the Jim’s Antennas specific training covering the technical aspects of antenna installation. Once the classroom training is completed, franchisees are then on the road for four weeks, completing their on-the-job training with an existing franchisee who is qualified as a trainer. “This means that our new franchisees are literally working on the tools and learning on the job, all whilst being paid a training rebate,” says Andrew. With regular training plus meetings every six weeks which keep you up to date with industry changes and the latest Jim’s news, Jim’s Antennas also host an annual national conference, last year it was held in Bali, which all the national franchisees are invited along to. As well as the conference they have annual training camps where the franchisees will get away for two days and two nights so they can immerse themselves in training. When it comes to administration, Jim’s Antennas supply state of the art mobility software, named ‘Jimbo’, which was designed by Andrew Parke, running on either your computer or iPad. This
“A Jim’s Antennas franchise allows you to set your own hours and achieve that elusive work / life balance. As you are responsible for your own scheduling, working hours and holidays, you are in control.” completes all the scheduling and invoicing as well as showing KPIs for the week and month. This ensures that franchisees always have up to date information at their fingertips. Jim’s Antennas complete the majority of your marketing for you and are proven to be successful at it, by averaging more than 4,000 jobs per month. In addition to this, franchisees are encouraged to bring in their own work by liaising with real estate agents, builders, electricians and A.V. shops directly. Being part of the Jims Group brand sets Jim’s Antennas apart from the competition; it’s a brand customers know and a brand they can trust. Andrew says, “As part of the Jim’s Group, our customers know that our lifetime warranty means just that. While there may be other antenna installation companies out there in the market-place offering comparable warranties, who knows where they’ll be in 12 months’ time. Our customers know that if they are unhappy with our service, which is highly unlikely but if so, then they can contact Jim himself for assistance.”
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Could you be a Jim’s Antennas franchisee? Jim’s Antennas most successful franchisees share a common drive and passion for their business. “When we are looking for a new franchisee, we don’t necessarily look for someone with a technical background. We actively seek franchisees that have exceptional customer service and communication skills, with an interest in antennas or home theatre and TV; usually it’s that one person in the family that has a genuine interest in plasmas, home theatre and technology and is always being asked to tune the parents, aunties or grandparents’ TV. “We can teach the technical skills but require our franchisees to be self-motivated and possess a drive to succeed,” says Andrew. If this sounds like you, contact Jim’s Antennas today to find out more. T: 131 546 E: getstarted@jimsantennas.com.au W: www.jimsantennas.com.au
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X presso M obile Café
Setting the benchmark! 100 per cent Australian owned and operated, Xpresso Mobile Café is the ultimate mobile café franchise system! We use the best vans and the best coffee – Di Bella Coffee. This coupled with extensive training, smartphone/app/beacon technology and our innovative mobile café fitout ensures that each and every franchisee is successful! We ARE the benchmark in Aussie mobile cafés! We operate in areas where businesses have limited access to quality espresso coffee and related products as well as café style snack food items such as cookies, banana bread, muffins, chocolate and protein balls etc. We also stock bottled water, energy drinks and ‘Coffee Kick’ – a ready-to-drink cold pressed coffee in a can product. Franchisees work their own hours Monday to Friday within their own large territory and then on weekends are free to roam outside their territory to service events that are provided by the franchisor or other events that the franchisee may source. Part of the intensive training is territory-based. A mentor accompanies the new franchisee, after their Di Bella Coffee barista training, for two weeks and assists with quality control and building a solid customer base (the daily run). The mentor also assists with
stock ordering and all areas of operation of the business. We practically hold the hand of each and every new franchisee until they are comfortable working on their own. Xpresso Mobile Café franchisees are marketed and promoted through our dedicated Facebook page at www.facebook/ XpressoMobileCafé, Youtube and the fully interactive website www.xpresso.com.au Everything is included! We also throw in a marketing kit including branded Di Bella Coffee breeze barriers, mini tables and chairs as well as a branded Di Bella Coffee umbrella – perfect for those events where you wish to draw a crowd!
Your new Xpresso Mobile Café will include: • an INCOME GUARANTEE!! $2500 PER WEEK FOR FOUR (4) WEEKS
• a brand new Mercedes Benz Vito (auto diesel) 3-seater van fully customised to sell the full suite of Di Bella Coffee products • NO RULES on what food you can sell! (all foods must be individually wrapped and we do not sell heated foods) • NO NOISY & SMELLY GENERATORS! We use an innovative LPG gas/battery/inverter power source
• three weeks of training which will leave you with a customer base and instant cash flow
• Smartphone and beacon technology that notifies your customers that you are outside, manages loyalty and communication to your customers!! Very cool!
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• Bluetooth wireless connectivity to your smartphone to play music at the rear of van (speakers also fitted) AND mobile payment systems!! • A dedicated huge display fridge to stock food/drink items as well as innovative Di Bella Coffee.
Awards 2013 Di Bella Coffee awarded the BRW top 50 most innovative company’s award 2014 ‘Coffee Roasters Industry Choice’ award - in the large specialty roaster category at the 2014 Golden Bean Competition - Australia’s most prestigious specialty coffee awards
Length of Agreement: 5 + 5 Years Year Business Established: 2013 Year Franchising Commenced: 2013 Number of Franchisees: 17 Cost: $119 500 + GST (includes the van!) Only exclusions are insurance and franchisor legals. Finance available to approved applicants.
Skills required None! Just your friendly personality! If you follow the comprehensive Xpresso Mobile Café training system and procedures, you will be successful. We will fully support you in every aspect of the business. Xpresso Mobile Café is on a national hunt for happy and positive people that are as passionate about coffee as we are. If this sounds like you and you want to become self-employed in Australia’s billion dollar espresso coffee industry, contact Xpresso Mobile Café today and ask for a new franchisee pack. T: 1300 655 559 W: www.xpresso.com.au
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E x per t Ad v ice
Going Mobile Mobile franchises offer the ultimate combination of business and lifestyle. They have been around a long time, but it is only recently that the combination of technology and an increasingly time poor population has made them an integral part of our everyday life. So whilst a mobile business mightn’t have been on your radar, it is an option well worth considering. When going into your own business, particularly for the first time, it’s tempting to be attracted to the bright lights and the idea of a business sitting prominently in the main street of town. This is the traditional picture of small business and it has also become the norm for many of the big franchising brands. But with our increasingly hectic lifestyles and our interconnectedness through technology, especially social media,
“A mobile business is as much a lifestyle choice as it is a financial one, so it is important to plan.” new opportunities have arisen – mobile businesses are coming into their own. This is being led by the customer – the ability to jump online or make a call and have someone come to you, whether it be lawn mowing, car cleaning or even a coffee, epitomises convenience and gives back the one thing you can’t buy… time.
A lifestyle choice From a business owner perspective, being mobile provides a number of unique benefits - the obvious one is the elimination of a lease and all the expenses that come with it which means that from a ROI (return on investment) perspective, mobile businesses are extremely attractive. However, there are other benefits that only a mobile business can provide. • The ability to choose your own hours and schedule your business around other aspects of your life; • The freedom of being outdoors and in a different location every day;
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• Now, with technology, the ability to literally turn off your business when you turn off your car; and • The ability to expand (depending on the terms of your franchise agreement) and duplicate your efforts. Probably the hardest thing initially for the first-time mobile business operator is learning to ‘switch off’ from their business and enjoy the lifestyle benefits that it offers. A mobile business is as much a lifestyle choice as it is a financial one, so it is important to plan and ensure that you realise all the rewards that this business model potentially provides.
Initiative The biggest operational difference between a fixed location business and a mobile business is that in a mobile business you go to the customer. This sounds obvious, but the implications are massive. In a fixed location, you turn the sign on the door to ‘open’ and wait (hoping that your marketing
fe feature at u r e “As a mobile business operator you have to take responsibility for getting your business in front of potential clients within your area.” Jim Cornish | CEO Nanotek
initiatives have paid off) for customers to walk through the door. In a mobile business, you are the main marketing initiative! Your ‘door’ is you, whether it be your website, your social media presence or your most powerful tool, actually knocking on your clients’ door. This is the difference between a good mobile business and a great one. Waiting for the phone to ring (no matter what initiatives your franchisor may or may not have in place) is not a marketing strategy. As a mobile business operator you have to take responsibility for getting your business in front of potential clients within your area.
Mobile-Techno evolution Today, technology is all about mobility and the ability to be ‘connected’ wherever you are… but this is a relatively recent focus. So now that technology has caught up with mobility, mobile business is perfectly positioned – when we started our business back in 2004 mobile payment technology was brand new and mobile ‘point of sale’ (POS) systems were virtually nonexistent. There was no iPhone or iPad and if you wanted a mobile CRM (customer relationship management) or POS system, it was going to be complicated and very expensive. Now there are a number of ‘apps’ that will do the job, and all on subscription. We introduced ‘Vend’ on iPad to our operation a few years ago and it revolutionised the administration side of our business – invoices were issued in real time and ‘after hours’ financial management was virtually eliminated.
Expansion This was often a daunting thought for the mobile operator – trusting employees with your customer (and a car!) unsupervised. But technology has also given the mobile
operator more power than ever before to expand their business with full visibility – from full GPS tracking (even available through iPhone apps), to shared calendars, dispatch software and ‘real-time’ customer transactions. As a business owner you can literally have a virtual ‘presence’ with every customer, even when you’re not there! All this makes the process of expanding your business not only easier and less stressful, but more measureable, trackable and therefore profitable.
Choosing the right mobile franchisor Here the principles are similar to any franchise business model. As a business operator you want to be able to focus on your customer by providing great service and building relationships. Everything else, from your website to the design of your business card and uniform, to the sourcing of your products etc, you shouldn’t have to worry about – this is where the economies of scale of a franchising model come into play. A franchise system should be able to provide you with the framework for your business at a much lower cost than it would be if you put it together and then managed and maintained it yourself. When assessing this, remember to take into account the expertise and time required to design, implement and manage a business model, particularly on a national or international scale. This is where a franchised business gets a big head start on an independent small business operator. In mobile business, look for a franchisor who has the runs on the board in the industry that interests you – if possible, spend time with some of their franchisees to get a feel of what it will be like to operate your own franchise. Remember, it can sometimes take a while for the business to
build and become well established, so this is something you should plan to do for a few years – you need to like it!
What is right for you? The answer to this is different for everyone – some are focused purely on financials and some purely on lifestyle, and then there is any combination of the two in between. Just remember there is a balance – the more lifestyle you go for, the less financial rewards you can expect. A good strategy is to run hard with the business for the first year or two, and then assess the work/ lifestyle balance you’re looking for and work out what your business needs to look like in order for you to be able to realise it. Mobile businesses offer a range of industries, lifestyles and financial returns, but all of them upfront offer a level of freedom that is hard to find in any other business model. With the right approach, dedication and strategy, they can be as financially rewarding (particularly in terms of return on investment) as any franchise model out there. Jim Cornish is the CEO of Nanotek, and a Director on the Board of the Franchise Council of Australia. Jim’s business career included senior positions with multinational companies such as Mars, Merial and Nestle Purina prior to cofounding Nanotek in 2004. Through a combination of exclusive polymer nanotechnology and a unique service delivery model, Nanotek has grown into an international multi-award winning franchise system with operations in over 15 countries – establishing itself as the number one mobile car cleaning franchise in the world. Contact Nanotek on: P: 1800 Nanotek (626 683) E: info@nanotek.co W: www.nanotekcarcleaning.com.au
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Manch obile ise Testcou ‘N’ nci Call of aust r a l i a fr
THE OPPORTUNITY
YOU’VE BEEN LOOKING FOR has high entry barriers to entry (into the industry). This means that the franchise you are buying is a premium and highly demanded service. On top of all this, it is a mandated and required service. Because it cannot be cut back on, the demand for testing and calibration won’t be hindered even by industry decline or recession. With Health and Safety regulations tightening in all industries and states, testing and calibration will continue to be mandated, and will likely become more heavily policed. This will increase the profitability and value of your franchise.
With mandatory testing of electrical safety products and calibration of meters and instruments in all states, Mobile Test ‘n’ Cal provides a service that is in high demand and has high repeat business. In the past, the delivery of this testing and calibration service left much to be desired. Electricians had no choice but to wait weeks to get their tools back, causing unnecessary and costly downtime. One mobile service did exist alone in the market, but it had all the hallmarks of a monopoly: overly expensive rates and poor customer service. Andre Borell, having worked in the family electrical business from the age of 12, recognised that the industry was not being serviced properly. After attending The University of Queensland, Andre joined the family firm, Extreme Safety, full-time and in four years helped transform the company from a two-person operation run by his
parents into a company that employed nine staff and has a multi million dollar turnover annually. After negotiating the sale of the business that allowed his parents to retire, Andre turned his sights to the testing and calibration industry and set about building a company he could be proud of. Mobile Test ‘n’ Cal was first launched in Queensland and quickly grew to three vans within 18 months. The demand for the Mobile Test ‘n’ Cal service was massive and the need for quick expansion was evident, with each new van added to the fleet being booked solid within weeks. Delivering a quality on-site testing and calibration service to electricians and electrical contractors throughout all of Australia, Mobile Test ‘n’ Cal are now actively seeking new franchisees to assist with their speedy expansion.
AN OPPORTUNITY LIKE NO OTHER The Mobile Test ‘n’ Cal franchise opportunity is unlike any other in the Electrical Industry. By its nature, testing and calibration is very technical and
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The highly technical nature not only deters new entrants and competitors to the area, but makes it vital to be part of such a strong, experienced and thriving company and franchise group as Mobile Test ‘n’ Cal. With technical experts available to you year-round as part of your franchise royalty, someone will always be just a phone call away to assist you and your business, no matter where you are in the country. The franchise and business model is designed so that you are truly buying a business, not a job. The franchise is designed so that you can employ a technician and draw a passive income from the profits. This is not a job, it’s a business. With territories available in all states, except Queensland, each territory has been calculated to include a known number of electrical workers and electrical contractors that can sustain a profitable Mobile Test ‘n’ Cal on-site van. If you would like to know more about how Mobile Test ‘n’ Cal can benefit you and your family contact: T: 1300 662 119 E: sales@mobiletestncal.com.au W: www.calibrationfranchise.com.au
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E x per t Ad v ice
I’ve been asked to write a short article as a guide to anyone considering a franchise. After 26 years I should know something, but bear in mind that different people have different views. The more information you can seek out, the better. Jim Penman | Founder & CEO Jim’s Group
To buy or not to buy To buy or not to buy a franchise is one of the toughest decisions you’ll ever make, and one of the most crucial. It can be the passport to independence and comfort or even wealth, and it can be a really bad decision. The important thing is to decide whether you have what it takes. In this respect I’m going to give you some of the same advice I give my franchisors on how to choose suitable franchisees. An important key is emotional stamina. Do you have the determination to drive through the hard times? There will be some! A certain maturity, a mortgage and a family are good, because you have responsibilities and can’t simply chuck it in when things get tough. Advanced age is much less of a problem, even in jobs requiring physical work. We have franchisees going strong in their 60s. A responsible job and a steady work history is good, without too much changing around. If you’re the kind of person who gets bored and restless every six months, then your
own business is not usually a good idea. The more responsibility you enjoyed in your previous work, and the more you were paid, the better. Don’t even consider a business without the full support of your partner, and make sure the relationship is solid. A new business can bring considerable strains, and relationship breakdown is a notorious business wrecker. Do you really care about doing the job well? Good business operators take pride in their work for its own sake, and not just to make money. At Jim’s we monitor this very carefully. Franchisees who give poor service are many times more likely to report poor income and to fail than those who do not.
Franchise versus independent Buying a franchise is, for most people, a good way into business. I don’t need to bore you with statistics, but it’s well known that most independent service businesses fail within their first year. With us it’s less than 10 per cent, and I’m sure many of our competitors would do as well. However, and this is important, a franchise is not for everyone. Franchisees need to toe the line in all kinds of areas, including what may seem petty details such as the exact placement of signage. At Jim’s we’re especially rigorous about customer service issues and we get quite a bit of flack from
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franchisees at times. I tell them it goes with the territory, and I also warned them about it quite emphatically at induction training (which with us usually happens before they sign). It’s not a coincidence that people from organisations that require both discipline and initiative do well as franchisees. These include such people as Army NCO’s and bank managers. But if you want to run your own business in exactly the way you want to, go it alone.
Mobile versus fixed I probably shouldn’t even answer this because I’m biased! Mobile franchises, for me, have huge advantages. Investment is limited but the upside can be unlimited. Provided customer service is good it’s normally remarkably easy to build a business. Fixed businesses rely on foot traffic, or if they’re in shopping centres incur huge rents and you can be kicked out if the centre decides you’re not part of their required mix. We hear plenty of horror stories like this. However, I’m sure there are many who would disagree with me, and certainly many people have been successful with fixed franchise businesses. The important thing is to find the right business for you.
fe feature at u r e Which franchise? There is one piece of advice worth more than everything else put together: Do your homework. I am utterly astonished that people can spend tens of thousands of hard earned dollars on a business without spending even a few hours properly checking it out. One thing I didn’t mention earlier when discussing our selection system is that we look for people who have completed a proper investigation. If they haven’t then they’re idiots, and a franchise system doesn’t need idiots. The first and best way to check is to talk to existing franchisees. One major benefit of the Franchise Code is that it requires prospects to be given a list of current franchisees. Make sure you get that list at a very early stage, and if you don’t get it then walk away. I’ve actually seen such a list where the phone number given for each franchisee was the office number, so no-one could check! With the list in hand, start phoning. Ask how much work they get, what’s the support like, the positives and negatives. Knowing what they know now, would they do the same thing again? A single bad answer need not be fatal. Sometimes even the best franchisors can make a mistake in selection. But more than one or two, watch out. And phone as many as possible to make sure you get a reasonable sample. It’s also worth stopping franchisees in the street to ask them. Even if you’re interested in a specific franchise system, check out the competitors and see what they have to say. Good franchisors shouldn’t bag the competition, but they will give advice on the specific advantages that they have. This helps you to understand better what you’re getting into. Plus, of course, talk to their franchisees as well. When talking to a prospective franchisor, prepare yourself and ask as many tough questions as you can. If they don’t like this then they’re not the place for you. I love it when people bring out a pad full of difficult quesitons. They’re often apologetic, but in fact it’s a sign of people worth having. And here’s another test that will really sort the sheep from the goats. Are they selecting you? Are they trying to find out everything they can about you, letting you know you’ll have to pass their selection system, telling you about the negatives as well as the
positives? There’s a widespread saying in our industry that many franchise systems choose their franchisees through a ‘mirror test’. You hold a mirror up to their face and if it fogs, you sign them. Or, as one man said to me when I asked him what he looked for in choosing franchisees for his previous employer: “$50,000 and a pulse”. If you’re not being selected then they really don’t care whether you succeed, and it’s a system with poor standards that is likely to have a poor reputation with the public. We try very hard to choose good people, but even so the great majority of our complaints come from a small minority of franchisees. As mentioned earlier, not everyone should be in business for themselves. You might object from this that surely with a business like Jim’s which is well-known and well established, such careful checking is not necessary. Checking is necessary. I have around 300 regional franchisors in 40 odd divisions and most do a pretty good job, but some do not. In the past year alone we have ‘persuaded’ several franchisors to sell out because the support they gave their franchisees was not up to par. There are some really good systems out there, and some utterly appalling ones. It’s up to you to work out which is which.
Getting Started You’ve made your choice and got started. Here is some general advice about how to succeed. Care about your customers. As discussed earlier, the best business owners are those who love what they do, take pride in their work, and would be horrified to let customers down. Do the right thing and be sensible about your decisions, and the money will come. I’ve made many and
terrible mistakes in my business career but I have always been passionate about my clients. Follow the system. There’s no point joining a franchise if you constantly buck against it. Some aspects you may object to, but it’s been worked out over time as an effective way to run a business. Every day, work to improve what you do. Never give up. Founded in 1989, Jim’s Group is Australia’s largest franchise system, with 3420 franchisees in 40 different divisions. It also operates in New Zealand, Canada and the UK. Dr Jim Penman is the founder and CEO of Jim’s Group Pty Ltd. He is the author of ‘Selling by not Selling’, a business autobiography which can be downloaded from Amazon, or for free as a pdf from www.jims.net. He also funds a research program into epigenetics and behaviour through RMIT University and the Florey Institute, has ten academic publications to his name and has published two books on the biology of history (details at www.biohistory.org). W: www.jims.net
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Cafe2U
enjoy the daily grind
For Damien Tyler of Bayswater North in Melbourne, making the shift to Cafe2U has been a positive experience. After 20 years in a large corporate company, he made the move to franchising.
“When it came to choosing Cafe2U, compared to other franchises, the decision was a no brainer. The franchise has a very strong brand and I’ve had nothing but good experiences with the people I dealt with, from our initial enquiry until now - two and a half years on. “It’s a challenge going into business on your own, which is why opting for a franchise was so appealing to me. I felt I had a very clear process to follow – a process that had been tried and tested over 170 franchisees plus everyone wants you to succeed and is there to help you.” John Stanton, General Manager for Cafe2U has nothing but praise for Damien as a franchisee, “Since launching his business in October 2012 we have seen Damien’s franchise continue to improve, to the point where he was awarded Australasian Franchisee of The Year 2014. Damien has shown that following a proven system truly works. He doesn’t stray from the system or the recommendations of the support staff. “As his speed and barista skills improved after his first few months in the business we have seen consistent, incremental growth in a very competitive territory. That is the way to build a business.”
Following the recent acquisition by Retail Food Group (RFG), the company has been working hard to improve Cafe2U’s operating procedures and running costs. This will see Cafe2U present an enhanced investment opportunity when unveiling 20 new Victorian territories. “For Cafe2U, the RFG acquisition has been an exciting development. We will retain the essence of our existing business model with regards to training and operational support, but RFG will bring new benefits to the table for franchise investors,” said John. “With RFG now behind the brand, Victoria is the key market in our plans for 2015. The franchise has proven to be extremely successful in other areas of Australia, as well as internationally. We believe our new offering will appeal to Victorians like never before.”
John’s years at Cafe2U have taught him a thing or two about a successful franchisee.
From a one-van coffee business, a decade on Cafe2U has become a bona fide global franchise operating in seven countries including Australia, New Zealand, the UK, South Africa and the United States.
“As we say, follow the system and do it with a smile and you can’t go too far wrong in a Cafe2U franchise. Damien is a great ambassador for our brand, we are very grateful for having franchisees of this quality to represent Cafe2U.”
Cafe2U’s state of the art equipment housed in a Mercedes Benz van has been instrumental in raising the standard of mobile coffee products, along with constant staff training aiding the evolution of the ‘mobile barista’.
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As the first mobile coffee franchise to launch in Australia, the company recognised two things - the demand for high quality coffee and the time poor nature of the average person. The spread of Cafe2U franchises across Australia and beyond can be attributed to the low cost and low risk investment opportunity. More than 98 per cent of all of its franchisees have achieved or exceeded the level of success they aimed for prior to starting their business.
c t
“For 90 per cent of our franchisees, it’s their first business. Many have never made an espresso before joining. They’re looking to work hard and grow their business, with the support of Cafe2U management.” Cafe2U franchisees are from all walks of life, including recently redundant baby boomers looking for a fresh start, young families striving to achieve work/life balance and budding entrepreneurs. If you too would like to join the world’s largest mobile coffee franchise, contact Os Castañeda on: T: 1300 223 328 E: franchises@cafe2u.com.au W: www.cafe2u.com
CAF
Cafe
coffee, tea... and me! Put yourself in the picture. Get out of the rat race and into your own Cafe2U Mercedes Benz. Enjoy meeting people and making money with the proven techniques of the world’s largest mobile coffee franchise. Enjoy your work. Spend time with your family. Be your own boss!
1300 223 328 (AU) 0508 004 388 (NZ) www.cafe2u.com CAFE2U004
Cafe2U004_BusinessFranchiseMagazine_V1.indd 1
Business Franchise Australia and New Zealand 65 24/11/2013 10:12 pm
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E x per t Ad v ice
FRANCHISEE TO FRANCHISEE:
TIPS FOR MOBILE FRANCHISES “To your customers, you’re the face of your brand.” Kathy Smith, Regional Franchisee Perth, at Fastway Couriers offers her top tips for future mobile franchisees.
With the appeal of a flexible and dynamic work environment, many, including myself, are drawn to operating mobile franchises. There are a few key factors to keep in mind when considering a mobile franchise.
Research your market The first step to operating any franchise
66 Business Franchise Australia and New Zealand
is to research the market. While you need to know your industry inside out, understanding your business environment is just as important. Many mobile franchises have the potential to cover a wide geographic area, therefore conducting research into all potential locations and customers is crucial. Keeping up to date with the latest economical, legal and technological developments, can also assist you in identifying growth opportunities, distributing resources, and ultimately, staying ahead of your competitors.
fe feature at u r e “Operating a mobile franchise can offer an avenue to explore your entrepreneurial spirit with a smaller degree of financial risk than a bricks-and-mortar franchise.” Kathy Smith | Regional Franchisee Perth Fastway Couriers
Consider the costs
Grow your business
In some cases, operating a mobile franchise can offer an avenue to explore your entrepreneurial spirit with a smaller degree of financial risk than a bricks-and-mortar franchise. Although set up and overhead costs are lower for some mobile franchises, keep in mind that you are susceptible to changes in variable costs, in particular, oil prices. Therefore, monitoring costs, creating a flexible structure and adapting to change is essential to ensuring your lasting success.
As a franchise owner, it’s in your interest to consider ways of maximising growth opportunities in order to stay ahead. In my experience, I’ve found that the most effective way of achieving this is by expanding your network, developing your contact base and, above all, providing the best customer service. At Fastway, we’re renowned for ‘delighting our customers at the door’ and being the friendly courier experts. This is something we’re very proud of.
Seek innovation One of my most important tips is to ensure you’re aligned with a franchise that heavily invests in technology and innovation. This will secure your competitiveness in the months and years ahead, which is hugely important to the success of your franchise. Fastway’s franchisees benefit from the continuous roll out of new technology and innovations across the network. Due to this, our customers have access to the best levels of service and products. In the last 12 months, Fastway has invested heavily in developing innovations, for example, Fastway has developed a new delivery service called Parcel Connect, which offers customers a more convenient way to send, collect and return parcels. As a franchisee it’s important to embrace the technology that’s available to you and seek new opportunities to improve your operations. Also, as a mobile franchise, you’ll be on the road for a large part of the day, therefore, technology becomes a crucial tool in communicating with your customers and, if appropriate, your franchise network.
Efficiency is key Logistics management is a key factor for all mobile franchisees. By developing a streamlined process you can reduce unnecessary tasks and expenses and in turn, offer your customers the most efficient and timely service. Additionally, technology plays an important role in efficiency, along with having the best staff on your team.
It’s a team effort Although you may spend most of your time in your vehicle, teamwork is an integral part of operating a mobile franchise. The Fastway network is made up of Regional Franchisees, Courier Franchisees and support staff. Each person has a part to play in bringing the brand to life and ensuring the customers’ needs are met and exceeded. By working together to solve problems, encouraging new ideas and attracting and retaining people that approach their work with heart and enthusiasm, together you can grow your business and drive its success (literally). At our Fastway Perth franchise, we host a fortnightly lunch at the depot to give the
team an opportunity to interact and share ideas and experiences. Something as simple as this goes a long way in creating a team culture and spirit for a team that is rarely in the same place at the same time.
Put your best foot forward A strong brand is one of the most valuable assets an organisation owns. To make it powerful, the brand needs to be applied consistently, so that anyone dealing with it knows exactly who you are and what you stand for. Keep in mind that, to your customers, you’re the face of your brand, so ensuring you always represent your brand’s identity and culture is important. Prior to joining Fastway Couriers, Kathy gained extensive knowledge in retail sales and senior management by owning and operating a large supermarket franchise, managing over 70 staff members. Joining Fastway in March 2015, Kathy has focused her initial efforts on restructuring and streamlining the operations and logistics of the Perth franchise, in order to enhance efficiency. Established in New Zealand in 1983, Fastway Couriers’ global network includes 63 regional depots and 1,200 Courier Franchisees across Australia, New Zealand, Ireland, Northern Ireland and South Africa. Through its industry-leading franchise system, Fastway Couriers has developed a reputation for providing a fast, friendly and cost-effective service to its customers. To find out more contact: T: 1300 FASTWAY W: www.fastway.com.au
Business Franchise Australia and New Zealand 67
FE ATURE
v.i.p. H ome Ser v ices
Like father, like son It’s a midweek afternoon and Peter Ault has finished his work for the day. He grabs his bag and heads out of the door to his local football club where he coaches the under 17’s team. Peter has been a coach on and off for the last 20 years, and before that loved playing the game just as much. Finding the time to balance a family life, work and a hobby that can take so much time isn’t all that easy for most; and that’s where Peter’s V.I.P. franchise business comes into play. For the past 20 years Peter has owned his own lawns and gardens franchise with the
award winning V.I.P. and has no plans on changing this any time soon. Before joining V.I.P. Peter worked at a well-known bank in the area of commercial lending. Ironically it was a friend of Peter’s who asked him to do a little research into the V.I.P. business model; his friend never joined V.I.P. - but Peter did! “I had young children at the time, the work in the bank was stressful and I really needed a change. I simply didn’t have enough time for the family or for myself, and wanted to take charge of my financial future. Having the franchise over the 20 years has given me so much more than I would have had just being a number at the bank,” explained Peter before heading out to the football club. In fact, Peter feels so strongly that he made the right decision all those years ago that his son Michael, after advice from Peter, has now joined V.I.P. with his own lawns and gardens business. “Michael has helped me out with work over the years so understands a little about what running his own franchise might be like. If I had any
68 Business Franchise Australia and New Zealand
doubts whatsoever about if it was right for him or not I would of course have raised them. I would certainly recommend V.I.P. to anyone considering running their own business so didn’t hesitate to do the same for Michael. I was delighted for him when he decided to take the next step.” Michael is set to follow in his father’s footsteps and cannot wait to get going. “I’ve seen at first hand the lifestyle dad has had with his business. That’s something I’m looking for too. I still wanted to do my own homework as well so went out for a day with another V.I.P. lawns and gardens franchisee which just cemented my decision even further.” commented Michael. If, like Peter and now Michael, you are interested in finding out more about running your own franchise business or would like to spend some time with an experienced franchisee to give you an impression of what life could be like as a franchisee, simply contact V.I.P. today. P: 13 26 13 W: www.viphomeservices.com.au
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FE ATURE
Jim’s Pool Ca re
Jim’s Pool Care:
Dive straight in!
Appealing to people from all backgrounds; now is the perfect time to join the Jim’s Pool Care team. Pool owners, Hotels and Body Corporates need to keep a close eye on their pool and equipment all year round to ensure that as soon as the swimming season returns, they can dive right in. Jim’s Pool Care are providing a genuine labour and retail opportunity to service this growing and lucrative residential and commercial market. From cleaning, regular maintenance, heating and inspections through to lighting, pool blankets and robotic cleaners, Jim’s Pool Care is a true Mobile Pool Shop and have Australia’s pools covered. As part of the Jim’s Group, Jim’s Pool Care opened for business 11 years ago in Western Australia. Owner and General Manager Brett Blair took on the Australian Franchisor role six years ago and has seen the franchise chain grow from around 30 to 85 franchisees. With a presence in all capital cities, except Darwin, Jim’s Pool Care has enjoyed phenomenal growth over this time. Brett says, “The Jim’s Pool Care concept is a true mobile pool shop that not only provides pool maintenance but sells a full and complete range of pool equipment and chemicals. This means our franchisees can charge for their time and earn great margins on lucrative chemical and pool equipment products.” Multiple streams of income are available from your own Jim’s Mobile Pool Shop
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fe feature at u r e and include casual pool servicing; regular maintenance programs; the sale and installation of new equipment and a range of pool accessories.
BECOMING A FRANCHISEE The recruitment and application process starts with an initial meeting, usually over a coffee and is a discovery phase for both parties. Once further information is requested or an application received, potential franchisees are then offered a day on the road with a franchisee. This is a great concept and the potential franchisee is free to choose any working franchisee as Jim’s Group fully believe in being transparent all the way through the process. Applicants can simply contact their local Pool Care franchisor and see what the job entails first hand. They are also encouraged to ask as many questions as they want. After they have been out on the road and experienced for themselves how the business works; the next step is to start formalising the application and selecting a territory to build the business. Usually the location is close or near to home to help reduce travel times and to help maximise chargeable hours for the franchisee. It also means that they can pop home if needed or help out with family commitments if they arise. If you meet the Jim’s selection criteria, you will be given a contract and disclosure document for consideration and encouraged to seek legal, accounting and business advice. “When looking for a franchisee, we are ideally looking for somebody that is personable and able to build great customer relationships, as we are not only about
“As part of the Jim’s Group – there are currently over 3300 franchisees; making it a nationally recognised brand.” one-off jobs in pool care, it’s about the ongoing regular maintenance. We are looking for people that are motivated to get into business for themselves, have a positive attitude and are able to get out on the road and build their own business with our systems. “We have franchisees from all walks of life. Our franchisees don’t need to have existing industry skills as Jim’s Pool Care provides comprehensive training; they just need to be willing to try new things, follow the systems we have developed and provide great customer service,” Brett says.
EXCEPTIONAL TRAINING Working with the best brands in the pool industry, including Astral, Davey, Zodiac, Maytronics and Sunbather, the support that the franchisees receive from the brands with regard to ongoing training and product support is impressive. Franchisees are encouraged to enhance their professional development each year, attend local team meetings and training sessions. Jim’s Pool Care also encourage franchisees to become specialised if they wish in certain pool areas. To help franchisees be the best they can be, all new franchisees are now required to complete the Certificate III &IV Pool Technician course, which is a national accredited qualification. This is done by a third party Registered Training Authority and is
provided in conjunction with the in-house training completed by Jim’s Pool Care. This in-house training starts with three days at the Jim’s Group Training Centre in Melbourne. All franchisees, from around the country, fly to Melbourne to meet Jim Penman and to learn more about the Jim’s system and how to become successful in business. The franchisees then go back to their respective cities and states where they complete an on-the-road and face-to-face pool school training program which lasts approximately 15 days with their local franchisor and trainer. “Ongoing training is provided by using a local master franchisor model. We have someone on the ground in every region that provides the ongoing training and support. Once trained, every month, as a minimum, the master franchisor will contact the franchisee to provide technical and business support. There are between 6 - 8 local regional meetings a year, which allows all the franchisees in that particular region to get together and share ideas and attend a range of supplier training. This provides our franchisees with a strong support network,” says Brett. This strong support network is reinforced with an annual franchise convention, where franchisees fly in from all around Australia. The conventions are usually 3 - 4 days where they get to hear from other franchisees, industry experts and sales and
Business Franchise Australia and New Zealand 71
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Jim’s Pool Ca re
motivation coaches, which provides a great opportunity to learn and network with other franchisees. There are some really great stories shared each year of success and innovative ideas.
SUPPORT Part of the Jim’s Group – there are currently over 3300 franchisees; making it a nationally recognised brand, Jim’s Pool Care get to leverage off the other divisions who are also out every day in customers’ homes and backyards. While each Division has a dedicated marketing team and website, all Jim’s franchisees are encouraged to cross-promote the other 35 divisions, using local area marketing, which is extremely useful to a newly launched franchise. This enables the Jim’s Pool Care franchisee to gain traction because of the existing local brand recognition. In this day and age of multiple trades and services, customers like knowing that they are guaranteed a 2 hour call back as a new customer and that they are dealing with a recognised company who offer a 100 per cent guarantee on all the work they complete. While Jim’s is a strong brand, there are still obligations that are required when joining as a franchisee. All franchisees must make sure they are well presented, they show up on time, provide great customer service. Jim’s is one of the few franchise systems that sends out a survey to every new Jim’s customer. Jim’s take information from the customer surveys seriously and record that feedback against each franchisee’s record and where there is opportunity, provide feedback. This ensures that the franchisee is continuously improving and highlights if a franchisee is performing outside of the benchmarks set. If this happens consistently, they are then invited back to do additional training. There is help all the way along the startup process and Jim’s Pool Care makes it easy for new franchisees when they start by providing all the back office systems and step by step startup guides. Utilising online cloud software, they have a customer management system as well as a national call centre which deals with half a million calls each year from across the country for all Jim’s services. On a day to day basis franchisees are responsible for planning their work load,
responding promptly to new customer call outs for pool cleaning and equipment, invoicing, account management, local area marketing and ongoing professional development. Brett told us “Jim’s Pool Care has worked hard to develop a strong and supportive culture. The great thing about the Jim’s system is if new franchisees ever need any help, the support team is only a phone call away as we have an amazing network of friendly and helpful franchisees, franchisors and suppliers.”
HOW MUCH DOES IT COST? Jim’s Pool Care franchises are now for sale in selected locations across Australia. The price for a new site starts at $66,000 and includes a complete startup package. Jim’s is committed to new franchisees and their success by offering a Pay for Work Guarantee of $1500 (incl. GST) per week. This means if you follow all the systems, and do not meet the weekly guarantee at the end of the month, you can be topped up the difference.
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Another exciting point of difference is a flat monthly franchise fee is charged, which is not percentage based. This means the harder you work; the more money you can make. When a franchisee first starts trading they can ask to be introduced to customers; which incurs a lead fee cost. But once they have their own customer and referral base and are happy with their income, they can remove themselves from this introductory lead system; and no longer take leads. A Jim’s Pool Care franchise is a mobile retail business with huge opportunities. This system provides you with the opportunity to work outside, to work your own hours, to be your own boss and to build your business without limit. If you too would like to take control of your future, contact Jim’s Pool Care now on: T: 131 546 E: info@jimspoolcare.com.au W: www.jimspoolcare.com.au
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Clea n G reen S trata
JOIN THE STRATA PROPERTY SPECIALISTS With a determination to become the number one strata maintenance company in Australia and more than 20 years’ experience of managing, cleaning, gardening and maintaining strata properties, now is the perfect time to join Clean Green Strata in their East Coast expansion. Offering a selection of different franchise models to choose from, Clean Green Strata appeals to a broad spectrum of franchisees. Managing Director, Chris Earthrowl says, “Our franchisees come from very different backgrounds, including brothers, husband and wife teams as well as individuals, all with the desire to work outdoors, to keep a Monday to Friday schedule and grow their business into a valuable asset. “Each franchisee possesses dedication, the drive to succeed, a strong work ethic and a passion for the brand and we are looking for the same qualities in our new franchisees to help us on our journey to become number one.”
Why Clean Green Strata? Clean Green Strata gives you three different turnkey franchise models, Strata Cleaning; Strata Gardening or a full service Cleaning and Gardening franchise. Strata Cleaning: Is the cleaning and maintenance of common areas including the internal and external areas car park areas and bin management. Strata Gardening: Is the maintenance of common area garden beds and lawn areas on a strata block. This includes hedging, trimming, pruning, fertilizing, weeding and mowing lawns.
“Each franchisee possesses dedication, the drive to succeed, a strong work ethic and a passion for the brand.” Full service Cleaning and Gardening: This is the preferred turnkey model because a franchisee can earn more by offering both cleaning and gardening services. As each property is different, a unique ‘block specification’ is created which highlights the cleaning and gardening tasks and frequencies you need to follow. With these easy to follow systems and procedures, your chosen business model is extremely simple. Chris explains that the support given to each franchisee helps to maintain the quality control and excellence across the network. “From the very first day, Head Office supports each franchisee with sales leads, marketing, news campaigns, uniforms, branding and SEO. Alongside this we also complete all invoicing as well as provide a credit control function, using a cloud based accounting package. “Training never stops. At the beginning, we accompany the franchisee in their territory completing on the road training and once they are up and running and feel comfortable, the Operations Manager will then complete regular on site reviews
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to check their work and bring them up to speed with the ever changing industry techniques and products.” In addition to this administration support, each franchisee also receives a vehicle fitout, with the branded and customised vans and utes designed to ensure they are easy to use, complete with racking to ensure that each item is easily accessible while on-site. All franchisees are assigned their own strata companies with whom they work with closely; no strata property is too big or too small.
Becoming a franchisee While experience in cleaning or gardening is preferred, the right attitude and commitment to the Clean Green Strata service standard is the essential qualifying factor. So if you’re looking for a change and want to get out from behind your desk, Clean Green Strata is the franchise for you. For more information contact: P: 1300 66 11 82 E: franchise@cleangreenstrata.com.au W: www.cleangreenstrata.com.au
HAVE YOU NOTICED HOW MANY BLOCKS OF UNITS THERE ARE? Ever wondered who looks after them and how you might be able to get a piece of the action?
LOOK NO FURTHER - CGS CLEANING AND GARDENING WHY CGS FRANCHISE? s .O PREVIOUS EXPERIENCE REQUIRED s %STABLISHED BRAND IN THE STRATA INDUSTRY SINCE s .O AFTER HOURS WORK s .O WEEKEND WORK s 0ROFESSIONAL HEAD OFlCE SUPPORT s 6ERY PROlTABLE s (UGE GROWTH POTENTIAL
To learn how to get your piece of the action and get the perfect work life balance Call: 0410 633 536 | Email: franchise@cleangreenstrata.com.au
www.cleangreenstrata.com.au
FE ATURE
Fitness Enha ncement
DO YOU WANT TO CHANGE LIVES? Since starting his business at the age of 19 with just $400, Scott Hunt is a man committed to helping Australians achieve their healthy lifestyle goals. Historically Gold Coast and Brisbane based, Fitness Enhancement have now expanded into select Melbourne and Sydney areas and with dedicated staff and franchisees they have a team of 26 Personal Trainers, all working within a niche market that the gyms neglect – helping real people achieve real results.
Passion Scott says that if you are looking for a franchise that keeps you active and is about helping others, then this is the franchise for you. Most fitness franchises or Gyms are about selling memberships and giving absolutely no customer service to the majority of members. It’s not really a business focussed on the customer if you never even see most of them after sign up. And many mobile service based businesses are about doing the jobs that aren’t exactly a passion, such as cleaning the house, washing the dog or mowing the lawn. A Fitness Enhancement Personal Training franchise solves these problems, if keeping fit and active, whether it be at the Gym, running, sports or just a healthy lifestyle is your hobby, you can own a franchise that lets you make a living out of your hobby that’s both financially and personally rewarding. As a Fitness Enhancement franchisee you get to spend your days working with clients’ one on one or in groups from their home, a local park or your own 100% private Studio. Our target market is everyday
Aussies who hate the Gym scene or simply don’t have time for it. While Gyms are great places for the body beautiful, they’re understandably the last place many older, larger, injured or under confident would go to. And of course these are the people who need to exercise the most with our ageing population and over half of the country overweight or obese. There’s not only a huge number of people that need the likes of a Fitness Enhancement Personal Trainer, with little competition from image conscious Gyms, but it’s also extremely rewarding training people. Scott says, “We’ve had so many amazing success stories such as Shari who lost 100kg (you can see her amazing story at www.fitnessenhancement.com), however the biggest reward is knowing that you’re changing each and every clients life for the better, whether that be dropping a few kilos, being fit enough to keep up with the kids or feeling years younger.”
Everything you need to succeed A mobile franchise territory starts from $29,000 and includes all equipment, advertising and everything you need to become a successful Personal Trainer and business owner. A 100 per cent private Studio is well under $200,000 for a full turn key business. Both options are a fraction of the price of 24/7 Gym franchises, yet the average Fitness Enhancement client spends over $5,000 and many have gone on to spend over $30,000! “Although we are relatively new to franchising, we’ve been in business for 16 years. We practice what we preach within our own franchise and provide all
76 Business Franchise Australia and New Zealand
the support a franchisee could need. If you’re not a qualified Personal Trainer you can do your Certificate III and IV qualifications through us for an extra $3,000. Our franchisee training is tailored to the franchisee’s needs and existing skill set. As long as you love practising what you’ll be preaching, you’re down to earth, passionate about helping people and have great customer service skills, we can teach the rest,” says Scott. As a Fitness Enhancement franchisee you’ll receive your own exclusive marketing territory of over 40,000 people and all the marketing material you need to make your small business look big and professional. Alongside this, you’ll receive extensive back-end business and marketing systems as well as a custom made CRM (Customer Relationship Management) program to help you quickly, easily and effectively run your business from your lap top or tablet. The 1800 PT for U number ensures that you never miss a new enquiry as their Trainers in head office are there to book your new clients straight into the booking system. With over 15 years of experience, Fitness Enhancement has the strategies and resources to make you successful and take away the headaches most small business owners have! So, if you’re passionate about building relationships, changing lives and want to be part of team invested in YOUR future, contact Fitness Enhancement on: T: 1800 PT for U (783 678) E: franchise@fitnessenhancement.com W: www.fitnessenhancement.com/ franchise
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e x pert a A dv ice
No exemption for franchising under
new unfair contracts legislation Despite the introduction of a new Franchising Code of Conduct on January 1 this year, the Australian franchise sector is set to be further impacted by additional regulation with the introduction of unfair contracts legislation to apply to small businesses.
The exposure draft of the new unfair contracts legislation was released on April 28, with a short consultation period of just two weeks with submissions closing on May 12. Small businesses that enter into contracts worth an upfront investment of up to $100,000, or an upfront investment of up to $250,000 where the contract lasts longer than 12 months will be subject to the new legislation. The legislation will allow an unfair term in a standard form contract to be declared void, however the contract will continue to bind the affected parties (as long as the contract is
78 Business Franchise Australia and New Zealand
capable of operating without the term). Consumers have been protected by unfair contracts legislation since 2010, and the new legislation will allow these protections to be extended to small businesses, which are defined as employing less than 20 people (excluding casual employees). In announcing the new legislation, Small Business Minister Bruce Billson said that the protections “will give businesses access to a level playing field to grow, invest and create jobs”, and was part of a 2013 commitment by the Abbott Government to give businesses “a fair go”.
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“Consumers have been protected by unfair contracts legislation since 2010, and the new legislation will allow these protections to be extended to small businesses.” Jason Gehrke | Director Franchise Advisory Centre
“A ‘general review’ of franchise agreement terms may well have significant underlying consequences for the enforcability of some terms and conditions under franchise agreements.” The legislation is expected to impact standard-form contracts such as franchise agreements, tenancy agreements for shops and offices, and finance agreements for small businesses. The investment thresholds of $100,000 upfront or $250,000 for contracts longer than 12 months mean that Australian franchisees of almost all mobile service franchises, as well as many fixed-location service and some retail franchises will potentially be covered. Suggestions that franchising be made exempt from unfair contracts legislation due to specific regulation of the sector via the Franchising Code of Conduct appear to have gained some traction with the government, but is not specifically enshrined in the legislation. According to a Fact Sheet published on the Treasury Department’s website, the Business Minister will have the discretion to “exempt the application of the unfair contract term protections for small business where an industry-specific legislation or regulation is deemed enforceable and equivalent”. It is unknown if the Minister will use this discretionary power to offer an exemption to the franchise sector, or any other sector currently covered by a mandatory industry code of conduct. (If exemptions are offered, it may encourage the development of future mandatory codes in sectors where only voluntary codes currently exist).
The Decision Regulation Impact Statement for the unfair contracts legislation acknowledges the Franchising Code of Conduct’s usefulness in addressing specific issues in contractual relationships between franchisees and franchisors, but notes that it does not provide scope for “a general review of unfair contract terms”. A ‘general review’ of franchise agreement terms may well have significant underlying consequences for the enforcability of some terms and conditions under franchise agreements. Of particular concern for franchise agreements may be the common provision that requires franchisees to operate their business in accordance with the policies and procedures laid down in the franchise operations manual, and which franchisors typically reserve the right to change from time-to-time.
legislation to avoid unfair provisions of agreements that they enter themselves, such as contracts with suppliers. The public consultation period closed on May 12, however Treasury officials are expected to hold further targeted consultations after this date. An initial round of submissions and consultations was held mid last year before the legislation was drafted. State and territory governments have also indicated their support for the legislation. The Australian Competition and Consumer Commission (ACCC) has been allocated an additional $1.4 million to support the implementation of the new legislation, including conducting an information campaign. It is expected the unfair contracts legislation will apply to contracts entered into, renewed or amended after the implementation date, which is expected to commence in 2016. Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for more than 20 years at franchisee, franchisor and advisor level.
Retail lease agreements may also be covered by the new legislation. This could be a silver lining for the franchise sector, with both franchisors and franchisees often holding leases on sites and offered standard form lease agreements witth little or no room for negotiation.
He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia, and publishes Franchise News & Events, a fortnightly email news bulletin on franchising issues and trends.
The definition of a small business as employing fewer than 20 people (excluding casual employees) could also be good news to start-up and developing franchisors, as they themselves may be covered by the
Contact Jason at:
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T: 07 3716 0400 E: jason@franchiseadvice.com.au W: www.franchiseadvice.com.au
Be part of something great Shingle Inn is unsurpassed in today’s café culture, offering a unique experience founded on almost 80 years of tradition. Join our franchise family to be part of a growing network of cafes built on brand values of ‘family culture’, ‘superior quality’ and ‘exceeding customers’ expectations’, with a commitment to providing a customer experience that is decadent delicious and deserved. If you’re interested in joining Shingle Inn’s network at this exciting time in our company’s history, please contact Franchise Development Manager, Patrick Mulcahy, on + 61 7 3399 3000 or patrick.mulcahy@shingleinn.com
shingleinn.com shingleinncityhall.com Business Franchise Australia and New Zealand 81
fr anch isi ng e x p o
Best time to fulfil your
franchise dreams Interest rates are down and business confidence is up – there can be no better time to back yourself and check out the franchising and other business opportunities available. And there’s no better place to do it than the Franchising & Business Opportunities Expo, on in Brisbane in July and Melbourne in August. Both Expos will showcase a wide range of local, national and multinational franchises, and will also host a variety of business experts and support organisations to assist people who may be pondering the ins and outs of becoming their own boss. “The Federal budget offered many benefits to small businesses, and the Treasurer is encouraging Australians to ‘have a go’,” says Exhibition Manager Fiona Stacey. “Attending the Expo in Brisbane or Melbourne is a great way to investigate franchising options and learn more about the is exciting and dynamic sector.” Fiona Stacey says that the Melbourne Franchising & Business Opportunities Expo will once again be a highlight of the Victorian Small Business Festival, which runs for the whole month of August. Stacey adds that people dreaming of their own café, restaurant or takeaway outlet will find many ideas to inspire them at the Expo, with brands such as Lenard’s, Movenpick, New York Slice Pizzeria, La Porchetta and new player Woodfired Pizza exhibiting at one or both shows. In addition the team from Retail Food Group will be on hand at both Brisbane and Melbourne to discuss their brands and provide information.
“Franchised cafes, QSRs and restaurants are appealing because very often they represent well known, established brands,” says Kym De Britt, General Manager of the Franchise Council of Australia (FCA). “Almost everyone at one time or another has visited a franchised café or quick service restaurant, so the brands are easy to relate to. This familiarity provides prospective franchisees with peace of mind in the stability and security of the franchise brand.” CEO of New York Slice Todd McGregor says he is looking forward to meeting visitors who are seeking a pizza franchise. “We are looking for people who have entrepreneurial flair, and who bring their own ideas to help the business grow and succeed,” he says. “The beauty of a franchise business is that it has been de-risked, you are investing in a business that is already performing and has systems in place.” A popular feature of the Franchising & Business Opportunities Expo is the seminar series, which once again will bring together a wide range of experts and successful businesspeople. In addition the Soapbox Theatre at the Melbourne show will give exhibitors a platform to outline their franchise opportunity and take questions from the floor. “One thing all the experts have in common is
82 Business Franchise Australia and New Zealand
the emphasis they place on thorough research before investing in a franchise, or franchising an existing concept,” says Stacey. “Attending the Expo means you can investigate all the ins and outs and meet all the right people under one roof – it really is a one-stopshop, wherever you are in your franchising journey.” Special Reader Offer - register now for your FREE ticket using code BFM11 at www.franchisingexpo.com.au For information about exhibiting please contact Fiona Stacey on P: 03 9999 5464 E: Fiona@specialisedevents.com.au
Diary Dates: Brisbane 18-19 July Brisbane Convention & Exhibition Centre
Melbourne 21-23 Aug Melbourne Exhibition Centre
Sydney 18-20 Mar 2016 Royal Hall of Industries, Moore Park
Business Franchise Australia and New Zealand 83
snapshot: LOCA L A PPLI A NCE REN TA LS
Help yourself while helping others of running the franchise on a day to day basis so all that’s needed is enthusiasm and the desire and determination to grow your own successful business. With an annual conference each year you will be able to attend you will keep up-todate with new methods, new products, and sales and marketing techniques, whilst at the same time interacting with other franchisees and discussing what works for them. Systems and procedures are continuously updated, allowing you to take advantage of this time to increase your skills and improve your business.
Exclusive territories
In an ever increasing home appliance rental market, Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs, outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want.
Differing entry levels As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. With initial investment required from just $29,750 plus GST, there are three levels of franchise available, Silver, Gold and Platinum.
Silver: This is the smallest franchise level and comes with the minimum territory size of approximately 16,500 people. This franchise level is suitable for operators in a regional area, usually in a small country town.
Each franchisee receives their own exclusive territory. Divided into franchise units, with each unit consisting of approximately 16,500 people, which experience tells Local Appliance Rentals is the minimum number of people required to run a successful small franchise on a part time basis.
Gold: This franchise level comprises of three franchise units with a territory size of approximately 50,000 people. This is more suited to the full-time operator with more time and capital to invest, and would ideally suit a couple or motivated sole operator.
For a full time business, ideally there would be three franchise units, totalling a territory size of approximately 50,000 people and these differing territory sizes are reflected in the three levels of franchise available.
Platinum: This franchise level comprises of 6 franchise units with a territory size of approximately 100,000 people. This enables a full-time operator to either operate the franchise themselves or to have several subfranchisees working under them. How many hours you work in your franchise each week is up to you. If you intend to operate the business part-time it’s recommended that you start with the silver level of franchise. The hours are also very flexible, so you may choose to work 35 hours one week but only 10 the next.
Training and ongoing support The business is easy to understand and easy to run, therefore no specialist skills or experience are required. The Franchisee Kit and training provided will cover all aspects
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Each exclusive territory is individually tailored for each franchisee, with areas delineated by postcode.
Why choose Local Appliance Rental? With a team dedicated to providing customers with brand new, high quality products that meet their needs and circumstances, Local Appliance Rentals pride themselves on the service provided to their customers, from the initial contact through to the end of the rental term. Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit: W: www.localappliancerentals.com.au/ franchising
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How to Avoid a Cashflow Crisis A six step guide to improving your cashflow for growing and slowing businesses There are two ways to get into a cashflow crisis; growing or slowing your business.
contracts will impact your cash position for a
In fast growing and seasonal businesses (retail or service) increasing sales mean that you need higher stock levels or more work in progress which you will need to fund before getting paid by your customers.
business with the assistance of their local
In a slowing business cost-cutting measures such as smaller premises and reducing employee numbers won’t be enough to ride out a cashflow crisis. Your previous cost levels and fees involved in exiting
significant time. The power of this six step guide is illustrated by a Sunnydale Dairy business that found a year’s worth of revenue tied up in their business banker and CashScan (Westpac’s in-bank cash analysis tool).
Working Capital Cycle If you want to understand how your business is trading from a cashflow perspective it is essential to understand the Working Capital Cycle.
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Every business, regardless of what they do, has a working capital cycle (WCC) which ties up available cash. To start any business, cash is required. This cash is then used to purchase stock or equipment in order to generate a sale. When the stock is sold it is either by way of a cash sale or is charged to an account, creating a debtor. When the debt is collected the WCC continues. In a service industry the stock is ‘work in progress’. Imagine that the stock a business buys sits on the shelf, on average, for fifty five days before it is sold and that it takes an average of forty five days to collect the debtors. Each dollar tied up in the WCC takes one hundred days
“A cashflow budget is a powerful financial tool to help you predict the availability of cash in your business at any point in time.” Ian Watt | Senior Business Development Manager - Franchising, NSW & ACT retail & business banking, Westpac
before it returns to the cash position where it can be used again to purchase more stock as shown below: While waiting for that dollar to return, more stock has to be purchased to keep the business operating and to do so, many businesses use their overdraft facility which is costing them money. If there is no overdraft, they are using their credit funds that could be better used elsewhere. The faster you can turn the WCC, the faster the dollar returns and the less overdraft or surplus funds you have to use. Improperly managed the WCC can be your worst enemy and the cause of a cashflow crisis.
So How Can I Run My Business To Avoid A Cashflow Crisis? Step 1 Forecast with a cashflow budget A cashflow budget is a powerful financial tool to help you predict the availability of cash in your business at any point in time. Using your previous sales and expense records coupled with reasonable assumptions about the year ahead you can quickly determine if there could be any crisis points ahead.
Step 2 Eliminate cash-draining initiatives These fall into two categories: unnecessary expenses and incorrect asset finance. Unnecessary expenses are often found by looking at the capacity of the business compared to its current or forecast requirements. Examples include premises space/location, IT maintenance contracts and redundant stock.
The golden rule when financing a business is to match the life of the loan to the life of the asset. You wouldn’t buy a house with your credit card, so why would you use an overdraft facility to buy equipment that you expect to use for the next three years?
Step 3 Collect debtors and establish appropriate procedures
• a merchant facility was setup to give customers a more convenient way to pay (instead of cash and cheque being the only options) Within two months, 40 per cent of sales were on account and average debtor days had reduced by 15. This seemingly simple change greatly reduced the credit requirements for this business.
Asking your customers to pay just a few days earlier could have a dramatic impact on the amount of cash you have in hand.
Step 4
Some strategies to help achieve this are:
Increasing stock turnover can rapidly consume cash on hand. To manage this, look into:
• issue invoices on the first day, not a week later; • charge an upfront deposit; • create and communicate a terms of trade policy with customers; • put credit control procedures in place to minimise bad debts; • always check credit references; and
Control your stock
• improving stock forecasting; • sales pipeline management; • building supplier relationships; • adjusting your pricing strategy; and • additional financing. Decreasing stock turnover can mean that significant amounts of cash are tied up in stock. To manage this, look into:
• collect your overdue debts and work with customers to avoid the same issue recurring.
• sales pipeline management;
Your credit control procedures should monitor debtors and ensure that collecting on accounts is a priority, not a once per month event. Establishing a clear debt collection system will give you the ability to minimise the impact of bad debtors; a $5,000 debt can quickly balloon to $20,000 if proper procedures are not executed. An example where this strategy was implemented was a regional hardware store that was passed down from father to son. A quick review showed that 90 per cent of sales were on account. This was paralysing their cashflow so with two simple steps they saved time and administration costs: • small accounts were stopped and all sales to these customers became cash only
• ‘just in time’ ordering systems; • only ordering when you need to; • outsourcing; • stock management systems; and • centralised monitoring. Conducting an inventory review can be one of the easiest ways to liberate cash in your business. Knowing which products are selling and how quickly will enable you to adjust your ordering patterns. You may be able to achieve higher discounts on larger orders of fast-moving stock and you won’t have cash tied up in slower moving items. Another example is a Queensland saddlery which discovered they had two and a half years of stock on hand. The store was
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“Another example: a Queensland saddlery discovered they had two and a half years of stock on hand. The store was cluttered and unappealing.”
cluttered and unappealing. When they reviewed sales, 80 per cent of sales were from 20 per cent of their range and many items hadn’t sold for over six months. Urgent action was needed so they: • immediately stopped ordering stock; • sent some excess stock back to suppliers; • renegotiated with suppliers to establish smaller, monthly orders for core stock; • ran clearance sales to sell old and unreturnable stock; and • donated remaining stock to charities which helped to boost their profile. Within six months they had reduced stock levels to one year of stock, vastly improving their cash position and the procedures that they established have helped reduce the likelihood of them getting into financial trouble again.
Step 5
structure and it is important to understand yours. Break even analysis is a simple financial tool which uses your fixed costs, variable costs combined with your sales volumes to determine your profit margin. It is easily adjusted to show: • how many extra sales you have to generate to compensate for reducing your price; and • how much your sales can reduce if you increase your price before impacting your bottom line. The main impact on cashflow is the time between stock purchases or work in progress and recouping your costs. Recalculate your cashflow budget (Step 1) with your new scenario to see the effects on your cashflow.
Step 6
Review your pricing
Adjust your financing
Many business operators base their prices on the competition. They assume that the competition has their pricing structure right, they are making a profit and they have the same cost structures as themselves. In reality every business has a different cost
Once you have completed the above steps you may identify some short-term financing requirements going forwards. Armed with the above information you will be in a strong position to talk to your banker and explore options for financing to cover these needs.
An appropriate overdraft facility can smooth out periods of high cash demand. You may also be able to refinance your long-term assets with a more appropriately termed loan. Finally, you will find that the cashflow budget tool may become one of your most important and powerful ongoing financial management tools. By reviewing this monthly, you will stay on top of your finances and may be able to avoid a cashflow crisis.
w
Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT Westpac continues their long-term commitment to franchising in Australia. The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Ian at: P: 0419 271 995 E: ianwatt@westpac.com.au W: www.westpac.com.au/business- banking/industries/franchising/
0
88 Business Franchise Australia and New Zealand
Unti
DO YOU WANT TO: Take control of your future, Create the lifestyle you want? Are you customer focussed and driven for success? If yes, then this could be what your looking for. Be your own Boss and enjoy the rewarding life style associated with the Food & Hospitality industry.
www.bkstakeaway.com.au
Our team is here to help you succeed Stores ready for imidiate occupation, Apply now!
0356332131 Business Franchise Australia and New Zealand 89 Untitled-3 1
14/05/2015 1:12:29 PM
PROFILE : T h e x ton a r mst rong
A GOLDEN OPPORTUNITY
Time for a New Career as a BUSINESS SUCCESS PARTNER
Business consulting is big business. It is also smart business. Thexton Armstrong realises this and has developed a unique and incredibly effective program to help you utilise your professional experience to create your own business and assist other business owners to achieve their maximum potential. The Thexton Armstrong Business Success Program is designed to enable a Thexton Armstrong franchisee to offer very high end consulting services to small and medium sized businesses. Franchisees work with the owners and managers of a business (the franchisees clients) to help make their business stronger, more profitable and more valuable. The programme provides the framework for the franchisee to go into their clients business and do a complete analysis and overhaul. One of the many benefits of being a Thexton Armstrong consultant is the fact that the programme is not a ‘quick fix’ for clients. It is a comprehensive system which allows you
“Franchisees come from a wide and varied background. Most have spent around 20 years in corporate life and/or have owned their own business.” to build a long-term relationship with your clients, across ALL areas of their business. Developing these strong relationships allows you to gain and retain clients. This produces better results for your clients and for you! Franchisees come from a wide and varied background. Most have spent around 20 years in corporate life and/or have owned their own business. These individuals now want to take their experiences and pass on this knowledge and advice to other up and coming businesses. Thexton Armstrong harnesses this vast amount of knowledge from their franchisees and teaches them how to put this information into a successful, structured programme which they can then take to potential clients. They provide comprehensive training to all franchisees to help equip them with the skills, tools and resources to approach potential clients and show them the enormous benefits of working with a professional business consultant. Clients initially sign on with a Thexton Armstrong franchisee because the franchisee can clearly demonstrate the financial advantages of having the franchisee as their ‘business partner’.
90 Business Franchise Australia and New Zealand
Businesses often see an increase in profits from four to ten times the consultancy fee paid. That is strong motivation for any company to jump on board. There is also room for growth, once the franchisee has become successful in their own right, they then have the opportunity to build their own consulting firm, employing multiple consultants under one roof. There is also the opportunity to join an existing firm if you would prefer to be a part of a team environment. Within Thexton Armstrong there may also be the option to work in one of their already established firms. The cost to entry may suit your budget better than the Master Franchise Model and gives you the added mentoring and experience of the Firm Owner. If you are interested in becoming part of the success of Thexton Armstrong you will find more information on their website or email them directly at: E: thextonhq@thextonarmstrong.com.au W: www.thextonarmstrong.com.au/ presentation
Business Consulting
Business Consulting
MASTER FRANCHISEE OPPORTUNITY
FRANCHISEE/ CONSULTANT OPPORTUNITY
There limited New There are are Limited opportunities for Zealand Opportunities motivated and passionate for motivated and professionals to join our passionate professionals international consulting to join our international network. consulting network.
There limited New There are are limited opportunities for Zealand opportunities motivated and passionate for motivated and professionals to become a passionate professionals Franchisee/Consultant in one to become a Franchisee/ of our consulting firms. Consultant in one of our
Are Are you you tired tired of ofthe thecorporate corporategrind? grind?
Are you currently Are you currently working workinginincorporate corporateand and are looking for become a a are looking foran anopportunity opportunitytoto become business business consultant? consultant?
Do profession and learn a Doyou youwant wanttotochange change profession and learn new setset offoff skills as aasbusiness consultant? a new skills a business consultant?
Doyou youwant wantthe theopportunity opportunity build Do to to build a a consultingfirm firmininyour yourlocal localarea? area? consulting
New Zealand consulting firms.
Doyou youhave havegood goodrelationship relationship building skills Do building skills and enjoy enjoyworking workingwith withbusiness business owners? and owners? Have you owned your own business and
Doyou youhave havemanagement management skills and can Do skills and can demonstrateaasuccessful successfulwork workhistory? history? demonstrate
Have you owned your own business and appreciate the plight of the small business appreciate the plight of the small business owner? owner?
Do you want to be a part of the fastest growing Do you want to be a part of the fastest growing business consulting brand in Australasia? business consulting brand in Australasia?
WE ARE PASSIONATE ABOUT BUSINESS TERRITORIES TERRITORIES
& HELPING BUSINESS OWNERS! We have opportunities in Auckland,
We have opportunities in Northland, Waikato, Bay of Plenty, Gisborne, Manawatu, Wellington, West Coast South Island, Queenstown and Timaru.
Northland, Central North Island and
BECOME A THEXTON ARMSTRONG Christchurch. BUSINESS SUCCESS PARTNER AND JOIN OUR growing network
THEXTON
ARMSTRONG Bu sin e ss Su cc e ss Par tners
Log on todetails our website or Email Now For further contact David Thexton for a09-965-3861 Free Information Pack david@thextonarmstrong.com.au Email: thextonhq@thextonarmstrong.com.au www.thextonarmstrong.co.nz
Web: www.thextonarmstrong.com.au/presentation
Business Franchise Australia and New Zealand 91
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Help me to help you
The franchise powerhouse When someone decides to buy into a franchise, they aren’t just buying into the successful business model the company has established – they’re also buying into the support the franchise puts behind marketing the brand. However, the challenge for any franchisor is maintaining the balance between growing the brand into new territories while supporting existing franchisees with their local area marketing. Marketing can become a strain on company time and resources when every enthusiastic franchisee comes to you with individual marketing ideas for their location. Spending the time to filter through the many requests can detract your attention from overall marketing strategies and business goals.
Eventually, you may find your marketing team scrambling to support marketing activities for individual franchisees to the detriment of the overall brand marketing plan. The only way to grow the franchise brand and gain momentum is the replication of the business model and marketing strategy across all territories, regardless of location or size. The best way to achieve this is by developing a centralised online marketing hub to ensure both the brand and franchisees are receiving the marketing support they need. Implementing a central system that is administered by your team can supply all the tools you need to support national and local area campaigns while also driving consistency and sales growth that will satisfy both brand and franchisee needs. The online marketing hub should house customisable artwork templates that give your franchisees 24-hour access to on demand resources such as specials flyers, branded collateral, email newsletters, and promotional assets. All these assets they can
92 Business Franchise Australia and New Zealand
personalise for their territory and print or use online to attract customers.
You control the brand Maintaining brand consistency is crucial for franchisors. After all, the brand represents value in attracting new franchisees and sales. An online marketing hub allows you to offer a range of customisable collateral pieces where you control which elements can be edited. This protects your brand’s elements, regardless of the promotional platform, and still gives your franchisee network the freedom to create localised advertising materials.
National campaign roll out A centralised online marketing hub that is accessible by all franchisees also makes rolling out national campaigns seamless. By offering customisable marketing collateral national campaigns can quickly proliferate through franchisee territories while maintaining brand consistency. National Campaign Kits can include a range of printed materials alongside digital marketing assets
“The only way to grow the franchise brand and gain momentum is the replication of the business model and marketing strategy across all territories, regardless of location or size.� Joe Papadatos | Managing Director Icon Visual Marketing
such as e-mail marketing templates and web banners.
Local area marketing activities The real strength in an online marketing hub is when it can be customised to support a wide range of local area marketing activities without the need to alter templates or overall plans, regardless of the territory. However, the key to this is building a platform that works for the brand and franchisees through marketing strategies and activities that are scalable and a true template that will fulfil any individual franchisee request. You are not only supporting the innovative franchisees who are always
looking for ways to grow their business but also franchisees unsure of where to start with marketing ideas to help their business grow. The main obstacle to building such a robust marketing hub is the time needed upfront for planning and developing the templates. However, spending the time to develop the strategy, templates, and platforms will save money and time down the track when trying to fulfil all the individual franchisee requests. Having the right online marketing hub in place will minimise administration time for franchisors, giving small teams more time and capacity to grow and innovate.
Joe Papadatos is Managing Director of Icon Visual Marketing, a full service marketing agency that for over twelve years has been equipping businesses with the marketing and sales tools to help them reach their next customer. Icon Visual Marketing are highly experienced at strategically planning and building robust marketing hubs that help franchisors deliver the right marketing tools and resources to their franchisees grow. For more information contact Joe on: T: 1300 138 984 W: www.iconvisual.com.au
Business Franchise Australia and New Zealand 93
PROFILE : B RIDGESTO N E SELECT
BRIDGESTONE SELECT
THE INDUSTRY LEADER When you’re weighing up the options of purchasing a franchise, one very important consideration is the power of the brand you’re buying into. Having a global reputation as the tyre industry market leader, the Bridgestone brand is synonymous with quality products and being at the forefront of technology, innovation and continuous improvement. The Bridgestone brand is the most recognisable tyre brand with Australian customers and it’s this brand power that sets Bridgestone Select apart from other franchise systems giving you a significant advantage.
A revolutionary concept In 2005, Bridgestone Australia conducted an extensive consumer research project that showed many consumers wanted a comfortable tyre purchasing environment. Traditional outlets were viewed by consumers as masculine, intimidating, cold and uninviting and made them feel disempowered. Consumers wanted access to more userfriendly information in the purchase process, telling Bridgestone they were more interested in a buying experience that helped them choose a tyre that was right for them, not just their car.
Bridgestone Select believe their franchise system is the best in the industry. A core component of the success of Bridgestone Select is the ability to offer consumers a one-stop-shop for all their tyre and auto servicing needs. This allows franchisees to improve customer loyalty and retention by engaging with their customers throughout the year which generates additional revenue. Joining Australia’s Bridgestone Select network is like joining a family, with support and advice being shared freely. Once you join you’ll experience a level of support that’s unparalleled among automotive franchises. Bridgestone Select ensures their franchise training, marketing, promotions, research and product development is industry leading, believing that their success only comes from your success.
Proven systems
In 2006, after listening to the research, the Bridgestone Select concept was launched which revolutionised the industry. Today, the Bridgestone Select franchise network exceeds 140 stores nationwide and caters for around 300,000 tyre and auto service customers each year.
As a Bridgestone Select franchisee, you’ll benefit from an established, proven system that provides everything you need to succeed. This includes:
Part of a family
• National and Local Area Marketing
Being associated with the industry’s strongest brand is a good start but if that brand is leveraged through a truly great franchise system, it becomes an unbeatable combination. With processes and systems honed over 30 years of retailing in Australia,
• An extensive franchisee Induction Programme • Ongoing Training and Support
• Access to exclusive tyre products • Signage and branding funding • Immense group buying power
• A proven business system developed over many years
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• Exclusive geographical marketing zone • Auto Services program and team • Rebates and buying packages at attractive market leading rates • Premises • Industry-standard Point of Sale system • Comprehensive Operations Manual. As Bridgestone is also a manufacturer, the ongoing levels of support may be high but the fees are not. With a low ongoing franchise fee of 3.5 per cent, calculated on sales of all qualifying products and services, they don’t charge a separate marketing levy like many other franchise systems. The investment required to open a Bridgestone Select store depends on the size and location of the property and whether you’re purchasing a new or existing store. Indicative cost of setting up a new store or purchasing an existing one is from $285,000 including your franchise fee. Only you can know for sure whether being a Bridgestone Select franchisee is the right choice. Previous experience in the automotive industry might be useful but it’s not essential–all training is provided but management capabilities and a commitment to fantastic customer service are essential. For further information contact: T: 08 8206 0200 W: www.bridgestonetyres.com.au/ franchise-opportunity
An opportunity to join the Bridgestone Family. Bridgestone is Australia’s most trusted tyre brand and market leader. Right now we’re looking for enthusiastic people to join our successful franchise network. With Bridgestone Select franchise opportunities available in every state, we offer a great lifestyle with; a 5-and-a-half day trading week low entry cost and low ongoing fees full training and ongoing support from Australia’s strongest tyre brand. For initial enquiries, please call 02 8756 4516 or visit bridgestonetyres.com.au/franchise-opportunity to submit an enquiry form.
Don’t just buy yourself a job, build yourself a business BUSINESS TRAINING & SUPPORT BRAND STRENGTH
“There is a great sense of family at Luxaflex - you get to know everyone that you deal with, in retail, sales or INTEGRATED MARKETING
at head office on a first name basis. Overall I feel the Luxaflex team goes above and beyond to support us in
HIGH YIELD PRODUCT RANGE
every way. They’re a pretty impressive organisation to be honest!”
Jonathan Pretty, Shades of Pittwater With the market leaders by your side, establishing
and showroom fitouts to support our innovative
and managing your own Window Coverings
high yield product range. With opportunities
business is a highly rewarding experience. The
available in numerous prime positions, the time
Luxaflex Window Fashions alliance programs
to join our highly successful network
provide comprehensive marketing, training,
of over 150 specialist Luxaflex Window
development, networking, incentives, events
Fashions showrooms is now.
See us at the Franchise Expo in Sydney or Brisbane or call Mark Futeran on (02) 9638 8000
luxaflex.com.au
© Copyright 2015 Hunter Douglas Limited [ABN 98 009 675 709]
® R e g i s t e r e d Tr a d e M a r k s o f H u n t e r D o u g l a s L i m i t e d
C13491_01.2015
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Thinking
of buying a franchise? Why you need to know your target market and customer hunting and farming abilities before you do Before you invest in a franchise you need to be absolutely clear about who will buy your product and why. You need to be able to identify them with great clarity. There’s no room for vagueness, guessing, crossing fingers or hopeful estimations when it comes to this stuff.
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The skills and tools required to create an idea are very different to the skills and tools required to grow market share. Having made the decision that you are going to invest in a franchise, you know this will provide you with a product or service that you think other people or organisations want to buy. But thinking this and knowing how and why it will happen are two very different things. At some point in their busy lives, with
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Own a Slice of La Porchetta! Join our 70 restaurants in Australia and New Zealand and help us show why we are the market leaders in cooking quality Italian food with fresh ingredients. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the dream and La Porchetta will provide the recipe for success.
WHY LA PORCHETTA? • A proven profitable operation.
• We are a much loved and recognisable national brand.
• We have strong local area marketing support and advice.
• Be part of franchisee regular meetings where you can network and learn from other like-minded professionals. • We offer a flat fee structure that allows you to build your business faster.
Opportunities now available Australia-wide in key metropolitan and regional areas. Visit: http://www.laporchetta.com.au/franchising, email: franchising@laporchetta.com.au OR call (03) 9460 6700.
Follow us on Social Media
/LaPorchetta /LaPorchettaOfficial /LaPorchettaChefsTV
Download our New iPhone App or Android App
www.laporchetta.com Business Franchise Australia and New Zealand 97
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“The more you understand the who, where, what, when, why and how of your target market the better you’ll be able to shape your franchise.” Stefan Kazakis | Renowned Business Strategist & Founder Business Benchmark Group
“In our modern, highly connected world it’s more important than ever to make it easy for people to interact with you and buy from you.” all sorts of other options available to them, you want people to look at your product and say, ‘Yes, this is what I need’. These people or organisations are referred to as your target market, and you need to know exactly who they are, how you are going to grow and service them. Why is this so important? Because if you are investing in a franchise, expecting to shape your business from the foundations up, focusing on how you can serve your target market, you are going to try to be everything to everyone and actually be no good to anybody. It’s important to know who your target market are and how you are going to attract and farm for new opportunities.
SO, WHO ARE THEY? So now that you know why it’s so important to find out who your target market is, let’s have a look at how you go about doing it. There are six questions you must be able to answer about your target market. If you can’t answer all of these questions you won’t be able to meet the needs of your target market.
These six questions are: Who is the person or organisation you wish to serve? You need to be able to define them in detail. For example, ‘parents’ is not a well-defined target market. What age are they? How many kids do they have? Where
do they live? Defining ‘parents’ as a target market is just the beginning. Where do they congregate in their greatest concentration? Where are they being influenced? What is their desired #1 Big Outcome? What is the problem you solve for them? When is their highest level of frustration? When will they say, ‘I need to buy this’? One in 10 of your future clients is not ready to buy right now but is thinking about doing so. When do they say ‘now is the time’? Why will they choose you? Why will they discriminate in your favour and open their wallets for you? This is one of the hardest questions to answer. Whatever your product or service, your potential ‘A’ clients have other options available to them. Your challenge is to ensure you make it easy for them to buy from you. How do you expect them to do business with you? How do you expect them to communicate with you, contact you, and correspond with you? How can they let you know they are interested in your services? Will this be online, face to face, over the phone, or a combination? In our modern, highly connected world it’s more important than ever to make it easy for people to interact with you and buy from you. There are always other businesses they can buy from if you make life hard. How can you let
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them know about you and your service or product? The more you understand the who, where, what, when, why and how of your target market the better you’ll be able to shape your franchise. Remember, you need to create your own uniqueness within the guidelines of the franchise, customer delight is of paramount importance. Your target market can be broken down further into niches that will help give you even more clarity about your customers. Each one of the niches you identify needs to be defined and dissected, just like your overall target market. If you don’t know who your target market are and what they want, how you are going to service and grow them, the only way you can solve their problems is by getting lucky, and luck is not a strategy for success. Stefan Kazakis is a renowned business strategist, sought-after presenter and founder of Business Benchmark Group, which helps clients from a variety of crossroads and industries seize opportunities to achieve ongoing business success and substantial profit growth. Stefan is also the author of From Deadwood to Diamonds (Major Street Publishing, $29.95) and has over 20 years’ experience running successful small to medium sized businesses – including a family business which he took from near bankruptcy to be a multimillion dollar business. For more information: W: www.businessbenchmarkgroup. com.au E: info@businessbenchmarkgroup. com.au
SECURE YOUR TERRITORY TODAY
START YOUR OWN OXIGEN CLUB OR REBRAND YOUR EXISTING CLUB
A TURNKEY SOLUTION
OFFERING A LIMITED NUMBER OF FRANCHISES AUSTRALIA WIDE
brand guidelines february 2015
The fitness industry in Australia is currently worth about $2 billion and is expected to grow exponentially at an impressive 4 to 5 per cent per annum over the next 20 years, well above other industries. Oxigen Fitness is focused on offering a limited number of franchises Australia wide, 140 in total. This is a distinct advantage for franchisees over others within the industry, giving each franchisee a bigger area to control. Oxigen Fitness is a turnkey solution in owning your own Health Club Franchise. As a Franchisor, our focus is on training and support to ensure success for the franchisees. If owning your own business, enjoying the freedom of flexible working hours and helping people become healthier sounds like a perfect career option for you, an Oxigen Fitness franchise could be the right decision. With our 2nd release now becoming available don’t miss out. Secure your territory today.
www.oxigen.com.au Danielle@oxigenfitness.com.au Business Franchise Australia and New Zealand 99
educat i ona l r esou rce
Education sets new franchisees on the right path
Knowledge is the key to Franchising Success The first steps are the most important in ensuring a successful and sustainable journey in the world of franchising. This does not just start with buying a franchise. Pre-entry education is crucial in plotting the right path for your future as a franchisee.
Knowledge is power and nowhere more so than in the franchising sector, where new franchisees are making the ultimate leap of faith into their own business. But just how do potential and new franchisees navigate their way through the myriad of information they are presented with, and which will dictate their future prospects in franchising? At the other end
of the scale, how do those with access to no information at all make informed decisions on their business future? Griffith University’s Asia-Pacific Centre for Franchising Excellence is an invaluable resource for anyone looking to take the plunge into an exciting new career as a franchisee. The Centre operates impartially and completely independent of franchisors, there are no vested interests or selling of franchise systems. The focus is solely on education and professional development in franchising, including the foundation stones of knowledge for new entrants to the sector. It is worth noting that both the ACCC and the FCA have entrusted Griffith University’s AsiaPacific Centre for Franchising Excellence to supply educational courses and/or undertake research for the sector regularly. It provides a range of convenient, easy-toaccess and in many cases FREE online franchise pre-entry, business survival and management essentials education programs. These sector-based educational resources should be the first port of call for anyone looking to buy a franchise as well as recent franchisees and small business owners. Potential franchisees need to rely on much more than just ‘gut feel’ when making such an important decision as a franchise investment, and the Centre is committed to providing the early education required for future business success.
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Its educational programs are designed to not only aid improved decision making through enhanced knowledge levels, but to also improve understanding of the franchising sector, compliance with the Franchising Code, and practical issues that could be faced.
into franchisee recruitment processes.
The authentic and ethical nature of these resources is what sets the Centre apart in the franchising sector. There is no selling of franchise systems or products. In fact, these educational tools may even lead you to a decision that franchising is not for you.
1. What is franchising?
The focus of the Centre’s educational activities is to get franchisees thinking, asking questions, finding answers, and making well-informed decisions about their future. This, in turn, raises knowledge levels, understanding of franchising and compliance, and best practice standards across the sector. The end result of better education is more successful and sustainable franchisees and franchise systems throughout the sector. Anyone new to franchising or thinking of buying a franchise should consider the following programs offered by Griffith University’s Asia-Pacific Centre for Franchising Excellence:
1. FREE ‘Buying a Franchise’ Pre-entry Franchise Education – Short Online Course If you are thinking of buying a franchise, this FREE online short course is available to help you assess franchise business opportunities before deciding which one is right for you. It is important to know how to correctly assess franchise business opportunities to ensure you make the correct choice. The ‘Buying a Franchise’ Pre-Entry Franchise Education Program sets the solid foundations for business success, before you actually buy a franchise business.
Even if you’ve already started looking for a franchise to buy, you will still benefit from the ‘Buying a Franchise’ Pre-Entry Franchise Education Program. Its five short online course modules cover: 2. Understanding franchise disclosure, 3. Franchise support services, 4. Franchising intellectual property, and 5. Questions to ask franchisors.
2. Franchise and Small Business Survival eClass – FREE Online Education This new FREE Franchise and Small Business Survival eClass is specifically designed for people looking to buy a franchise, recent franchisees and small business owners. Recent franchise sector research by the Centre showed that many franchisees and small businesses overlooked critical issues in their management that could lead to business failure. The Franchise and Small Business Survival eClass investigates key areas in business management, including contractual understanding, partnerships, expectations and debt levels. While these have all been identified as being critical areas, it has been shown that most failed business owners were lacking in knowledge in one, or more, of these areas. They are all issues which, without proper understanding and management, directly place the future prospects of business success at great risk. This valuable online educational resource comprises four animated eClasses to improve business management knowledge in these critical areas.
It is designed to assist franchisees to better understand the due diligence process and create more realistic expectations when entering franchising.
Knowing what these issues are before buying a franchise or small business is the best peace of mind for any business.
Research into the effectiveness of this program reveals franchisees that complete the program will not only have more realistic expectations, they are also more likely to become franchisees.
3. Franchise Business Management Essentials eClass – Online Short Course
This program is kindly sponsored by the Australian Competition & Consumer Commission (ACCC) and it is strongly recommended to incorporate the program
The Franchise Business Management Essentials eClass is for people buying a franchise or who have recently bought a franchise business and have become a franchisee.
It is focussed on building strong business fundamentals for franchisees and is designed to supplement franchisor training by addressing key areas which often lie outside of this, such as core business management skills. Whether you are looking to buy a franchise, or have recently become a franchisee you will need to gain an understanding of how to manage a small business effectively. Most franchisors do not address business management in their training for franchisees, instead focusing more on the operational aspects of running the business. That’s where this short online course can help as it is specifically designed to fill this skills gap. The eClasses cover all the fundamental business skills you will need to run a successful business, including preparing budgets and cash flow forecasts, managing staff and supply chains, introduction to small business and franchise marketing, managing growth and identifying opportunities, franchise conflict causes and resolutions, and profiting when exiting your business. This resource incorporates the latest franchise research and best practice examples to accelerate success and is ideal for people with no or limited previous business experience. As well as setting franchisees on the right path to franchise business success, the Centre offers a wide range of ongoing, sector events, resources, and educational programs for both franchisees and franchisors, as part of its commitment to lifelong learning and professional development for all in the franchising sector. For more information on these invaluable franchising sector educational resources you can subscribe to the centre’s regular newsletter, LinkedIn or Twitter accounts to keep up with the sector education and current news or: T: 07 3382 1401 W: www.franchise.edu.au 1. www.franchise.edu.au/home/education/ for-franchisees/pre-entry-franchiseeducation 2. www.franchise.edu.au/home/education/ all-education-and-training/franchise-andsmall-business-survival-eclasses 3. www.franchise.edu.au/home/education/ for-franchisees/business-managementessentials-eclass
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Ways to make
Franchising Easy Brent Grundy, CEO of Flip Out, founded Australia’s largest trampoline arena franchise just over two years ago, when he saw a clear gap in the entertainment market for kids and adults of all ages. In this time he has grown the company from the confines of a car-park in Penrith in Western Sydney, to 36 locations globally.
This growth can largely be attributed to franchising and the business model that Brent has created. As company director, Brent has made conscious decisions to ensure that his business has effective structures, and that procedures have been put in place at all levels. Through these strong business values, Brent has been able to drive Flip Out’s growth not only in Australia, but internationally at a remarkable speed. In the two years that Brent has been launching successful franchised arenas, he has amassed five key tips for franchisees to make their new business a success.
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1
Rely on your parent company
One of the best things about owning a franchise is that you aren’t really your own boss. By buying a franchise you are not only securing a tried and tested business concept, but also gaining a ‘business family’. This is because franchisees instantly have access to an entire support network which has been set up by the parent company who has already made all of the hard decisions. Here, it is important to rely on the parent company for ongoing assistance, as this is what they are there for; they are the primary reason that you are buying the franchise. Something that I like to tell my franchisees is that we are always here for them to bounce their business ideas and that we are only a
“By buying a franchise you are not only securing a tried and tested business concept, but also gaining a ‘business family’.” Brent Grundy | CEO & Founder Flip Out
phone call away. Like any franchise, through buying into the Flip Out concept, they already have a team of people rooting for them to succeed. Furthermore, franchisors can be incredibly useful in developing a series of micro business plans for your franchise. This can be for business functions such as a marketing plan, ideas for the location’s grand opening, as well as assisting in your ongoing business efforts. These support areas are the major benefit of buying a franchise as these systems are already in place. Companies such as Flip Out manage a range of the larger business operations, from marketing, public relations and business growth tactics. Through this experience, the company generally has larger buying power too, ultimately saving your business big dollars. This support network is the primary reason why I encourage people to buy a franchise, particularly if you have limited business background.
2
Manage your debts
One of the most attractive reasons for starting your own franchise is that you get to avoid much of the risk associated with starting a new business. This is because all of the basic set-up decisions have already been made for you, as the parent company would have a proven track record in establishing locations similar to yours. Subsequently, they have knowledge on key financial information including predicted ROI and managing a suitable loan. In order to effectively handle your debt, having open and regular dialogue with the franchisor is important, as it allows them to continually support you.
3
Training
Most franchise companies offer a 1 - 4 week training program or a ‘crash course’
in running their business. This type of advice is integral to learning how to run your franchise effectively. Having this level of support is one of the main reasons why franchises stand out from other business models. Here, a franchisor will train you to run your franchise exactly the same way as other franchise locations who have succeeded to date. This training ensures each franchise location run their business efficiently, thus, eliminating the majority of common mistakes a new business owner makes. At our training sessions we like to focus on a range of topics to assist our franchisees in the day-to-day running of their store. This includes issues such as micro level marketing, as well as staff management. These training sessions will also teach franchisees about the ethos of the company. Furthermore, they are able to tap into intellectual property, as franchisors stay abreast of changes in their industry and subsequently inform their franchisees of any important details that they need to know.
4
Store and construction assistance
More often than not, a business’ success comes down to location. Parent companies such as Flip Out make sure that the franchisee chooses the right location for their new store. Once the position of the store is chosen, Flip Out then assists with the physical build, as decisions like the layout and design has been made. Franchisors will also help with repairs and any upgrades that are needed. As these basic decisions have already been made for franchisees, they are able to focus on the more important aspects such as business development and sales.
5
Create your own business culture
Becoming a franchise owner means that now, whilst the major business decisions have been made by the franchisor, you can still create your own unique business culture at your store’s location. I like to suggest to our franchisees that they make sure they hire the right people, which results in creating a positive business ethos. For a company such as Flip Out, having fun and energetic staff is imperative to creating the right environment for our customers. Furthermore, creating a positive work culture for your employees is incredibly important as it will make them leap out of bed and love coming into work every day. At the Flip Out head office, we have a series of team building activities that encourage our staff to bond and get to know each other on a better level. Through a combination of these key tips, franchisees are able to create a successful and thriving business, where they can focus on the primary business activities of their franchise, as opposed to the growing pains often associated with starting your own business. Brent Grundy was a man with a simple business idea who built his empire from the ground up, and became living proof that someone can go from flat broke to running a business that turns over millions per year, in just 18 months. In this time he has grown Flip Out into one of Australia’s most successful franchises. The zealous businessman now has his sights set on global domination; currently building centres in Dubai, Brent expects to open in 13 more countries in the next year. To find out more visit: W: www.flipout.net.au
Business Franchise Australia and New Zealand 103
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Behind the
headlines Subway tops 44,000 outlets globally
Unions allege McDonald’s dodges Australian taxes
International sandwich giant Subway now has 43,945 outlets across 110 countries, making it the largest food brand by number of outlets in the world.
A report commissioned by a coalition of international trade unions, including the Service Employees International Union (SEIU) which is targetting McDonald’s in the United States in a campaign to increase minimum wages, has claimed that the fast food giant uses loopholes to avoid paying millions of dollars in taxes.
However in the United States, home to more than half of Subway’s outlets, the chain has experienced a three per cent decline in sales, while planning to roll out a further 8,000 outlets. The US sales decline has been attributed to the growth of newer and even healthier fast food brands, according to a media report.
McDonald’s has avoided paying around $500 million in Australian taxes over a five year period by shifting profits through lower tax jurisdictions such as Singapore, according to
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the report. The report stops short of alleging illegal conduct, and appears to be another attempt to apply pressure on the international chain, which is currently resisting moves in the US for franchisees’ workers to be treated as employees of the franchisor for the purposes of setting uniform pay and employment conditions. In other news, McDonalds’ international business has announced that it will cease public reporting of monthly sales figures following a year of mild declines and to minimise commentary while it rolls out its new turnaround plan.
Optus moves away from franchising to cut retail store costs Telecommunications provider Optus has announced it will conduct a “hard-nosed” review of its 160 stores to reduce costs as the company seeks to increase expenditure on developing its mobile phone network. Optus will seek to move more customer interactions online, after moving away from a retail store model and returning all but 10 of its existing outlets to company ownership in order to exercise greater operational control, cut costs and achieve higher levels of productivity, according to a report which quoted the company’s chief executive.
Food brands launch massive hiring spree Pizza chain Domino’s has announced it is seeking to hire up to 3,000 more staff across its network to keep up with home delivery demands, while McDonald’s has announced it will hire another 15,000 Australians across its local network as part of its new domestic positioning.
1,000 outlets to receive $51.4 million in payments from franchisor Australia Post has announced that it will increase annual payments to more than 1,000 postal outlets as a $51.4 million lifeline to sustain postal services in rural and remote areas, according to a media report. The money would increase payments to 478 licensed post offices, and 495 community postal agencies and was announced following an independent review of the cost of running services compared to revenue in these locations.
Metcash prepares auto franchise brands for separate listing Publicly-listed grocery retailer Metcash has indicated it will spin off its Automotive Brands Group subsidiary, owner of franchise brands Autobarn, Midas and AutoPro, in a separate listing that may raise as much as $350 million. The Automotive Brands division is reported to have generated turnover of $250 million in the year to April 2015, and is prime for listing following the successful listing and subsequent share growth of rival automotive
parts retailer Burson Group, according to a media report. Metcash will reportedly use the proceeds of the listing to pay down debt related to its grocery business. Meanwhile the company has recently announced plans to slash 400 jobs to reduce costs across its businesses, while its share price has slumped to its lowest level since 2001 Jason Gehrke | Director Franchise Advisory Centre
No exemption for franchising under new unfair contracts legislation Despite the introduction of a new Franchising Code of Conduct on January 1 this year, the Australian franchise sector is set to be further impacted by additional regulation with the introduction of unfair contracts legislation to apply to small businesses. The exposure draft of the new unfair contracts legislation was released on April 28, with a short consultation period of just two weeks with submissions closing on May 12. Small businesses (including franchises) that enter into contracts worth an upfront investment of up to $100,000, or an upfront investment of up to $250,000 where the contract lasts longer than 12 months will be subject to the new legislation.
South Australia to introduce specific franchise dispute legislation Despite the introduction of a new Franchising Code of Conduct in Australia on January 1 this year, the South Australian government has announced its intention to introduce state-based legislation specifically dealing with the resolution of franchise disputes. The legislation is being introduced under powers created during the formation of the South Australian Small Business Commissioner, and will regulate the cost and process for mediating franchise disputes in South Australia. At the heart of the legislation is the right for the Small Business Commissioner or an authorised officer to compel the parties to a dispute to engage in a dispute resolution process through its office, with fines of $500 applied to individuals and $4,000
for companies who do not comply. The legislation also prescribes a fee of $195 per party per day, which is considerably lower than the cost of commercial mediation services. The draft legislation was released with little fanfare, and the public consultation period for feedback to the South Australian Government closed on May 15.
Franchisees join workers in push for unionisation A coalition of franchisee associations representing 35,000 franchisees is joining a push to unionise their workers under the collective banner of their respective franchisors so that the franchisees themselves can apply union pressure to obtain better conditions under their agreements. The move is the latest development in a long-running saga by the Service Employees International Untion (SEIU) in the United States to grow membership among US fast food workers by pushing for an increase in the minimum wage from its current level below USD$8 to just over USD$15. Franchisees in a number of brands in the US have their own brand-specific franchise associations, which are unrelated to any franchise advisory councils operated by the franchisor, and which lobby the franchisor for concessions under the system. However, the alignment by the franchisee associations with the union is a double-edged sword, as they will be required to support wage increases that will cost their members’ businesses more, but will also potentially gain further negotiating leverage with their franchisors if they themselves are considered both employees and union members.
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PROFESSIONAL SERVICES LISTINGS h ot to pics
Freelease Copiers Pty Ltd
HARMANS LAWYERS
Offices in Sydney & Brisbane P 1800 63 63 44 Contact Tim Holland E info@freeleasecopiers.com.au www.freeleasecopiers.com.au COPIER AND PRINTER LEASING WITH NO LOCK-IN CONRACTS If you are thinking of starting a new business then you should not have to commit to a long term lease or rental. We do not believe in lock in contracts. We believe that our machines and services should be good enough for you to want to keep us as your photocopier and printer supplier, not lock you into a contract. By supplying you with free equipment and just charging per page, we both have the same goals; to have a reliable, working printer. You supply the paper and we supply everything else.
485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help.
• All toner, maintenance and consumables
Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for.
• No repair bills ever
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• Free Toshiba E-Studio Multifunction Printer/ Copier/ Scanner • A4/A3 Printing & copying • No price rises ever
- Legal rights and obligations under franchise documentation
• All toner included
• Network assistance (we are not a network company but we will do our best to help, for free) • Free upgrades as machines wear and technology changes Also
- Business structures and asset protection structures - Financing issues - Employment issues and health and safety
• No financial references required
- Lease arrangements and agreements
• Any options: fax, staple and fold - at no extra cost
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We have machines ready for immediate delivery, feel free to call or visit the our webpage at www.freeleasecopiers.com.au
- Dispute resolution
jejak graphics
We are members of the Franchise Association of New Zealand
Madgwicks Lawyers
JEJAK GRAPHICS
a lasting impression
P 03 8790 8006 M 0422 267 639 Contact Michelle Quinn E jejak@bigpond.com www.jejakgraphics.com.au CREATIVE DESIGN SOLUTIONS
Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E franchising@madgwicks.com.au www.madgwicks.com.au Madgwicks’ Franchising team has experience across a variety of franchise industries representing both franchisors and franchisees.
Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including:
Our Franchise team is made up of lawyers from our Business Services, Litigation and Property areas, enabling the group to address the broad nature of legal needs associated with establishing and operating a franchise system.
• Corporate stationery
Our services include:
• Brochures and flyers • Poster and banner design • Educational manuals • Sports programs • Monthly Newsletters • Product labels and packaging Artwork is tailored to your brand and focused on your message and target audience. No job is too big or small. Contact me today to discuss how Jejak Graphics can make your company or organisation leave ‘a lasting impression’.
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O
A key part of our service delivery is partner accessibility and in-depth industry knowledge. • Franchise agreements and disclosure documents • Advice on business structures appropriate for franchise systems • Franchising Code of Conduct Compliance
• Trade Practices advice including ACCC notification/authorisations • Acquisition, disposal, joint venture and partnership advice • Supplier and terms of trade agreements • Workplace Relations
• Commercial and retail leasing, as well as general property advice • Tax, duty and GST advice
• Litigation and dispute resolution
• Advice on branding, intellectual property and trade marks.
1
MARSH & MAHER LAWYERS
Wisewould Mahony Lawyers
Wisewould Mahony Lawyers
Lvl 2 100 Wellington Parade, East Melbourne VIC P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E rxt@marshmaher.com.au www.marshmaher.com.au
Level 8, 419 Collins Street, Melbourne VIC 3000 P 03 9612 7297 F 03 9629 4035 Contact Melissa Strain E melissa.strain@wisemah.com.au www.wisewouldmahony.com.au
Robert Toth has moved!
Specialised Franchise Knowledge
The new Franchise Code commenced 1 January 2015:
• What you need to know?
up to date information about the new code of conduct
• What you need to do?
Email Robert Toth for a complimentary guide for franchisors to the new Franchise Code. Robert has over 30 years’ experience and industry knowledge and has published articles on franchising and international franchising in journals and online. Marsh & Maher Lawyers provides fixed fee services to franchise clients for most aspects of work. Member of the Franchise Council of Australia (FCA) and International Franchise Lawyers Association (IFLA), MARSH & MAHER PRACTICE IN THE FOLLOWING AREAS: • Commercial and Corporate Law • Corporate Reconstruction and Insolvency • Discrimination, Employment Law and Industrial Relations • Media Law • Litigation and Dispute Resolution • Trade Practices and Competition Law
Member of the Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service. FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises! Services Provided • • • • • • •
Legal and consulting advice to Franchisors & Franchisees Code compliance requirements Dispute resolution – mediation – strategies & solutions Sale/Purchase of Franchise Systems and businesses Employment Law and Workplace Relations Specialists Master Franchising International Franchising
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Call or email for a complimentary brochure for Franchisors & Franchisees
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FRANCHISE LISTINGS LISTINGS FRANCHISE APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 0428 082 474 Fax: 07 3373 1770 Email: alex.forbes@batteryworld.com.au Website: www.batteryworld.com.au/franchising
BK’S TAKEAWAY 95 Princes Highway, Trafalgar VIC 3824 Ph: 03 5633 2131 Email: admin@bkstakeaway.com.au Website: www.bkstakeaway.com.au
BLOW N GO 31/251 Varsity Parade, Varsity Lakes QLD 4227 Ph: 0412 517 817 Email: info@blowngo.com.au Website: www.blowngogroup.com
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
ELECTRICAL TEST AND TAG
44
FCA
$35,000
$47,000 + GST + Vehicle
RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES
82
FCA
$49,900 + GST
$150,000 + GST
TAKEAWAY FOOD AND DRINKS
2
Franchise Council of Australia
$30,000
$150,000
Coin Operated Breathalyser Machines
28
-
$10,000 Incl GST+Training & support
$18,500 Incl GST
BEAUTY SALONS
32
-
-
-
TYRE RETAILING & AUTO SERVICING
Over 200 stores nationally
Franchise Council of Australia
$50,000 Franchise Fee
$285,000 inclusive of Franchise Fee
BOUTIQUE CARVERY FRANCHISE
36
Franchise Council of Australia
$60,000 + gst Incl. Training
$200,000
GOURMET BURGER RESTAURANT
15
Hogwarts School of Witchcraft and Wizardry
$30,000
$300,000
MOBILE COFFEE VANS
Over 240 worldwide
FCA, FANZ, IFA
INITIAL FEE INCLUDED IN PURCHASE PRICE
FROM $129,990
MOBILE DOG WASH
34
Franchise Council of Australia
$20,000
$30,000
STRATA CLEANING, GARDENING MAINTENANCE SERVICE
4
FCA, SCA
$40,000 $60,000
$40,000 - $60,000
TAXI AND LIMOUSINE SERVICE
395
-
$26,000
FLEXIBLE
PREMIUM CAFÉ FRANCHISE
13
Franchise Council of Australia
$50,000 + GST Incl. Training
Dependent on Site conditions $300k$500K
PIZZA FRANCHISE
1460+
-
$60,000 + GST
$300,000 $600,000
KITCHEN, BATHROOM & BEDROOM REMODELLING
71+ worldwide
FCA & FANZ
From $60,000
$75,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
33
Franchise Council of Australia
$50,000 + GST
$650,000 $950,000
COURIER SERVICE
650+
FCA & FANZ
From $25K+GST
$25K+GST
COURIER SERVICE
250+
FCA & FANZ
$10K
$10K
PERSONAL TRAINING & FITNESS
6
FCA, Fitness Australia
$29,000 inc. equipment & marketing
$29,000
HAIR & BEAUTY – RETAIL & SERVICE
140
FCA
$66,000 plus GST
$390,000 incl. stock, for Greenfield sites
ANTENNA & HOME THEATRE INSTALLATION
150
ADTIA, FCA
$59,000
$59,000
Mobile Pool Shop & Pool Service
85
FCA
$66,000
$66,000 plus Vehicle
SWIM SCHOOL
4
-
$20,000 + GST
$110,000 + GST
HAIRDRESSING
180 across Australia & New Zealand
FCA
$35K
$160K-$240K
BRAZILIAN BUTTERFLY AUSTRALIA Unit 5, 23 Kelletts Road, Rowville VIC 3178 Ph: 03 9756 5700 Email: franchise@brazilianbutterfly.com Website: www.brazilianbutterfly.com
BRIDGESTONE SELECT 196 Greenhill Road, Eastwood SA 5063 Ph: 02 8756 4516 Website & enquiries: www.bridgestonetyres.com.au/franchise-opportunity
BUCKING BULL 5 Henry Street, Loganholme QLD 4129 Ph: 07 3423 0555 Fax: 07 3423 0600 Email: franchise@buckingbull.net Website: www.buckingbull.net
BURGER URGE Level 1, 4/15 Lamington Street, New Farm QLD 4005 Ph: 0409 760 169 Email: franchising@burgerurge.com.au Website: www.burgerurge.com.au
CAFE2U Building 7, 81 Frenchs Forest Road East, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com
CITY FARMERS DOGWASH 1 90 Main Street, Osborne Park, WA 6017 Ph: 0402 902620 Fax: 08 9440 1065 Email: scott.mcintosh@cityfarmers.com.au Website: www.cityfarmers.com.au/dogwash CLEAN GREEN STRATA Unit 8/ 41- 43 Higginbotham Road, Gladesville NSW 2111 Ph: 1300 66 11 82 Fax: 02 9808 5498 Email: franchise@cleangreenstrata.com.au Website: www.cleangreenstrata.com.au
CORPORATE CABS LTD 161 Manukau Road, Auckland Ph: 09 632 0600 Fax: 09 375 3103 Website: www.jointhefleet.co.nz
CREMA ESPRESSO 16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au
DOMINOS PIZZA ENTERPRISES LTD Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
DREAM DOORS 26A Alfred Street, Milsons Point, Sydney NSW 2061 Ph: 08 8351 8588 Email: cam@dreamdoors.com.au Website: www.dreamdoorskitchens.com.au
FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au
FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au
FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz
FITNESS ENHANCEMENT PERSONAL TRAINING 20 Lawrence Drive, Nerang QLD 4211 Ph: 1800 PT for U / 1800 783 678 Email: franchise@fitnessenhancement.com Website: www.fitnessenhancement.com
HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au
JIM’S ANTENNAS National Office-25 Rocklea Drv, Port Melbourne VIC 3207 Ph: 131 546 Email: getstarted@jimsantennas.com.au Website: www.jimsantennas.com.au
JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au
JUMP! SWIM SCHOOLS
6/52-56 Paradise Avenue, Miami QLD 4558 Ph: 0477 800 181 Email: amy.hempstead@jumpswimschools.com.au Website: www.jumpswimschools.com.au
JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 0439 130 499 Fax: AUS 02 9527 5144 Email: luke@justcuts.com Website: justcuts.com
108 Business Franchise Australia and New Zealand
FRANCHISE JUST LASHES PO Box 592, Warners Bay NSW 2282 Ph: 0414 491 977 Email: franchising@justlashes.com.au Website: www.justlashes.com.au/franchises
LA PORCHETTA 192 Mahoneys Road, Thomastown. VIC 3074 Ph: 03 9460 6700 Fax: 03 9460 3099 Email: franchising@laporchetta.com.au Website: www.laporchetta.com.au
NATURE OF BUSINESS
OUTLETS
ASSOC MEMBER
INITIAL FEE
MIN INVEST
EYELASH EXTENSIONS, THREADING & MORE
5
NEESA
$25,000
$40,000
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
70
FCA & FANZ
-
Dependent on Site Conditions $400k$600K+
APPLIANCE RENTAL
100+
-
-
$29,000
WINDOW COVERINGS RETAIL SHOWROOM
75
-
N/A
$90,000 - $120,000
ELECTRICAL TESTING, CALIBRATION AND INSPECTION
9
FCA
$49,000 + Equipment
$230,000
Turnkey solution health club
140 to open
Fitness Industry Australia
$50,000
$250,000
HEALTHY EATING CAFÉ
3
-
$60,000 + gst
$200,000
217
Partnered with ACAPMA
Variable
Variable
FIXINGS AND FASTENER TRADE SALES
1
-
$150,000
$350,000 Incl. stock
MODERN SEAFOOD CAFÉ
2
Franchise Council of Australia
$60,000 + gst
$200,000
CAFÉ FRANCHISE
50
FCA
$45,000 + GST
From $290,000
MEDITERRANEAN FAST FOOD CONCEPT
11
Franchise Council of Australia
$60,000 + gst
$200,000
SMOOTHIES, JUICE BAR, YOGHURT
-
-
$40,000 + GST
$250,000
BEDDING RETAILER
77
Franchise Council of Australia
$50,000
$450,000+
DRUG TESTING & EDUCATIONAL SERVICES
30
FCA (pending)
Circa $150K
+ mobile testing unit
SPORTS BAR & GRILL FRANCHISE
5
-
$50,000
$750,000
RETRO-FIT DOUBLE GLAZING
2
AWA
$40,000
Varies depending if vehicle needed
BUSINESS CONSULTING
70+
FCA
$25,000
Options available from $25K-$75K
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
1100
FCA
$16,000 + GST
$25,000
RETAIL / TELECOMMUNICATION
160
-
Nil
$70k - $150k
DI BELLA COFFEE MOBILE ESPRESSO VAN
28
FCA, Australian Franchise Registry
LOCAL APPLIANCE RENTALS SOUTHERN GROUP 807, 1 Queens Rd, Melbourne VIC 3004 Ph: 1800 980 650 Fax: 07 3396 8311 Email: sacha@localappliancerentals.com Website: www.localappliancerentals.com.au
LUXAFLEX® Window Fashions Gallery 338 Victoria Road, Rydalmere NSW 2116 Ph: 02 9638 8000 Fax: 02 9638 8832 Email: mark.futeran@hunterdouglas.com.au Website: www.luxaflex.com.au
MOBILE TEST ‘N’ CAL 11 River Rd, Dinmore QLD 4303 Ph: 1300 662 119 Fax: 07 3282 0922 Email: sales@mobiletestncal.com.au Website: www.mobiletestncal.com.au
OXIGEN FITNESS Unit 3, 8-16 Eighth Avenue, Campsie NSW 2194 Ph: 0410 455520 Email: Danielle@oxigenfitness.com.au Website: www.oxigen.com.au
PRIMAL PANTRY 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.primalpantry.com.au
PUMA ENERGY
PETROLEUM & Level 1, North Tower, Green Square, 515 St Pauls Terrace, Fortitude Valley QLD 4006 Ph: CONVENIENCE RETAILER 1300 723 706 Email: retailpartner.au@pumaenergy.com Website: www.pumaenergy.com.au
SCROOZ
5-11 Jardine Drive, Redlands Business Park, Redland Bay QLD 4165 Ph: 07 3829 1993 or 1300 794 499 Fax: 07 3829 1283 Email: franchising@scrooz.com.au Website: www.scrooz.com.au
SEVEN SEAS SEAFOOD CAFÉ 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.aktivbrands.com
SHINGLE INN FRANCHISING PTY LTD PO Box 7067, East Brisbane QLD 4169 Ph: 0431 649 450 Fax: 07 3399 3077 Email: patrick.mulcahy@shingleinn.com Website: www.shingleinn.com
SKEWERZ KEBABZ 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: franchise@skewerz.net.au Website: www.skewerz.net.au
SMOOTHIE FACTORY AUSTRALIA L54, 111 Eagle Street, Brisbane QLD 4000 Ph: 1300 880 382 Email: franchise@smoothiefactory.com.au Website: www.smoothiefactory.com.au
SNOOZE SLEEP WELL PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au
THE DRUG DETECTION AGENCY PTY LTD PO Box 301678, Albany, North Shore City 0752 NZ Ph: +64 9 479 4332 Email: glenn.dobson@tdda.com Website: www.tdda.com
THE SPORTING GLOBE BAR & GRILL 207/120 Bay Street, Port Melbourne VIC 3207 Ph: 03 9645 4798 Fax: 03 9646 6939 Email: franchise@sportingglobe.com.au Website: www.sportingglobe.com.au/franchise
THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au
THEXTON ARMSTRONG AUSTRALIA & NZ Email: thextonhq@thextonarmstrong.com.au Website: www.thextonarmstrong.com.au/presentation
V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au
VODAFONE HUTCHISON AUSTRALIA 40 Mount Street, North Sydney NSW 2060 Email: dealer.recruitment@vodafone.com.au Website: www.vodafone.com.au/careers/select-dealer-recruitment
XPRESSO MOBILE CAFÉ PO Box 57, Carina QLD 4152 Ph: 1300 655 559 Email: joinus@xpresso.com.au Website: www.xpresso.com.au facebook.com/XpressoMobileCafe
Included $119,500+GST (incl. FAST TRACK program) in turnkey Turnkey business. purchase price
Business Franchise Australia and New Zealand 109
A-Z DIRECTORY APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.
No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au
BATTERY WORLD AUSTRALIA
everyday battery needs.
Join the leading battery retailer in Australia! Battery World is embarking on a new era of rapid expansion and provides franchisees the chance to be your own boss but have the security of a national market leader with 18 years of stable growth behind it.
Battery World stores carry a product range of over 8,000 batteries for everything from mobile phones and laptops to vehicles and boats. With 85 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category.
Count the number of batteries you rely on every day. Now, multiply it by 9,117,033* households. Whatever figure you come up with it’s a very compelling reason to join Battery World, the nationally established franchise that a growing number of Australians rely on for their
BK’S TAKEAWAY BK’S Takeaway is a specialty retail chain selling convenience foods with traditional Australian flair for every meal of the day, seven days of the week. BK’S sells sandwiches, hamburgers, fish & chips, hot and cold drinks, ice creams the list goes on and on. BK’S always selects and uses only the best suppliers who can provide them with the freshest ingredients and where ever possible locally provided, this is one of the reason a BK’S burger tastes so good.
Blow ‘n’ Go Blow ‘n’ Go is an Australian owned company supplying the world with high quality wall-mounted coin operated Breathalyser equipment through a well-structured and wellmanaged distribution group.
Franchises are currently available in NSW, VIC, WA, QLD, SA and TAS for motivated individuals with strong communication skills and a passion for retail. (*Source: Australian Bureau of Statistics, number of private dwellings in Australia 2011)
BK’S Takeaway is known for having the best burgers in Gippsland even Melbourne’s Herald Sun newspaper agreed when it featured BK’S Takeaway in its “5 of the best burger” article. Choose BK’s Takeaway for a great, relaxed, rewarding, country lifestyle. Investment required from $150,000 to $250,000 subject to size, location and condition of your chosen site. Visit us at www.bkstakeaway.com.au For further information call Tegan at BK’S Franchising on 0356 332131 or admin@bkstakeaway.com.au
• Work their own hours • Build a long-term business. • Earn significant profits through a reliable cash flow business. • Have a work lifestyle balance.
Blow ‘n’ Go Group distribute their machines internationally through an exclusive distribution network, and this is the first time it has been introduced to the Australian market.
• Achieve financial independence.
This business will perfectly suit people who want to: • Earn ongoing cash income through a low cost, low maintenance business. • Work with fun innovative people.
Christopher Adam - National Franchise Manager 31/251 Varsity Parade, Varsity Lakes, QLD 4227 M +61 412 517 817 | ACN 604 254 766 info@blowngo.com.au | www.blowngogroup.com
Brazilian Butterfly Australia
standard and specialty waxing for men and women, to the latest in laser hair removal, spray tan applications, and exclusive skin care products, Brazilian Butterfly have it covered!
Since opening in 2002, Brazilian Butterfly is now one of Australia’s largest and most successful beauty salon groups. With more than 30 successful franchised salons across Victoria, Western Australia, Queensland, and the ACT, the immediate expansion plans have progressed. The best franchised locations have been secured and now they are seeking the very best franchisees. As the leaders in Brazilian waxing, experts in
110 Business Franchise Australia and New Zealand
• No previous experience required, we give you all the tools and support to succeed.
If you are serious about partnering in a business where you will be rewarded quickly both personally and financially, please make contact today; Abbey Dalgleish, Franchise Development Manager (03) 9756 5700 or 0488 030 048 franchise@brazilianbutterfly.com brazilianbutterfly.com/franchise
Bucking Bull has built its success on a very simple recipe- providing great value ‘home cooked’ style food that people love to eat, serving nearly 3 million customers each year. Bucking Bull commands
If you have the urge, please contact our Franchising Team on franchising@burgerurge.com.au • Up to 50% finance from ANZ Bank & Silverchef • Ongoing support from our senior management and inhouse creative marketing team • Unique fit-out that is set up and ready for trade • Fully developed operating systems and procedures • Extensive operational and business training As a Burger Urge Franchise Partner, you will receive: follow a ‘would you like fries with that’ template. We are proud of our unconventional and out-of-the-box approach.
CAFE2U Cafe2U is Australia’s first and most successful mobile café system. With over 250 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.
City Farmers Dogwash
strong brand awareness, a unique positioning and a proven business model. As part of the Aktiv Brands portfolio, Bucking Bull franchisees benefit from comprehensive training, detailed operational procedures and marketing tools and assistance to assist in reaching their business goals. For more information regarding Bucking Bull franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: franchise@buckingbull.net W: www.buckingbull.net
BURGER URGE
Bucking Bull is Australia’s largest and most successful carvery franchise with nearly 40 store locations around the country. Australian owned and operated, Bucking Bull first opened in Perth in 1999 and has since expanded throughout Queensland, New South Wales and most recently, Victoria.
For initial enquiries, please call 02 8756 4516 or visit bridgestonetyres.com.au/franchise-opportunity to submit an enquiry form.
TURNING FOOD RETAIL UPSIDE DOWN…
BUCKING BULL
Only you can know for sure whether being a Bridgestone Select franchisee is the right choice for you.
Queensland’s fastest growing Gourmet Burger Restaurant Chain is about to turn food retail upside down!
With over 300 stores nationally, the Bridgestone philosophy is one of total support for our franchisees. Whether you are purchasing an existing business or starting out with a new site we are with you 100% of the way.
With a growing number of stores in prime locations throughout Queensland, Burger Urge is headed for national expansion and is looking for suitable Franchise Partners to join our growth and success.
Exciting opportunities now exist to join the Bridgestone Select Franchise network Australia wide. Bridgestone Select offers consumers a one – stop – shop for all their tyre and auto service requirements.
Our franchisees benefit from the strength of the Bridgestone brand, our comprehensive training, field and head office support, standardised retail systems and processes coupled with our extensive tyre product range to meet all your customer’s needs.
The Burger Urge brand represents fast, fresh, quality gourmet burgers, which is served in a distinctively vibrant, young and urban environment. At Burger Urge, we do not
BRIDGESTONE SELECT
The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator. If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny. Contact Os Castañeda - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: franchises@cafe2u.com.au www.cafe2u.com
City Farmers comprises 42 specialty large format pet stores throughout Australia with many more planned, a mobile network of over 30 City Farmers Dogwash vans as well as pet insurance business and an online store.
Australia, we’ve got plenty of work to do and are always looking for Franchisees with big smiles and big hearts to come on board and enjoy the ride. • No experience necessary • Full training & support • Strong brand recognition • Exclusive Marketing Zone • All-inclusive start-up package • Work outdoors & be your own boss
Our Franchisees love what they do and are so passionate about the part they play in a dogs’ health and wellbeing. But with more than 3.7 million pet dogs in
For more information call Scott McIntosh on 0402 902 620 or visit www.cityfarmers.com.au/dogwash.
Beginning more than 20 years ago as a small enterprise, City Farmers Dogwash is now part of the City Farmers Group.
Business Franchise Australia and New Zealand 111
A-Z DIRECTORY clean green strata Strata Cleaning and Strata Garden Maintenance Franchises Why Clean Green Strata? • We supply the customers from the 1st minute you start • Earn a guaranteed income with work scheduled year round to suit your situation • Work flexible hours to suit your life
Corporate Cabs Become a Corporate Cabs Owner Operator. Corporate Cabs operates a successful model that is the envy of the taxi industry. We offer a standard of unmatched excellence and we set high standards of performance, behaviour and service.
• No weekend or night work so more time with the family • Fully supported by energetic, experienced management team • Recession proof industry • Earn above average returns for the cleaning & gardening industry For more information call 1300 66 11 82 or email franchise@cleangreenstrata.com.au
command of the English language, enjoy dealing with the public, have a great knowledge of your city, like the thought of being your own boss and working hours that suit you and wish to become part of a successful team, contact one of our Sales Managers now.
We operate in Auckland, Wellington, Christchurch, Dunedin and Queenstown.
Auckland - Azib Hussein 09 632 0600 Wellington – Kevin Sheen 04 387 4606 South Island – Gerard Gibb 03 379 6162
If you are service orientated, have an excellent
www.jointhefleet.co.nz
Crema Espresso
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising.
The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point
DOMINO’S PIZZA Domino’s Pizza Enterprises is the master franchisor for the Domino’s Pizza brand in Australia, New Zealand, France, Belgium, The Netherlands and Japan. Across these markets, DPE franchisees currently operate over 1460 stores and sell over 90 million pizzas annually. New franchises are supported through every
DREAM DOORS Dream Doors is a kitchen, bathroom and bedroom remodeling business that has a proven track record internationally. Established in 2000 in the UK, Dream Doors takes the hassle, and the cost, out of remodeling outdated home interiors. Now with 50+ locations in the UK, 10 in New Zealand since 2009 and now with 11 locations in Australia, we are looking to expand our network of Franchisees throughout Australia.
112 Business Franchise Australia and New Zealand
“As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au
step of the process including site selection, lease negotiation, store fit out, comprehensive preopening training, coordination of suppliers, group purchasing power, store appraisals, ongoing training and support, and marketing promotions. Australia: www.dominosfranchise.com.au or call the Franchising Team on 1300 131 888 New Zealand: www.dominospizza.co.nz or call the Franchising Team on 0508 4Franchise
Dream Doors is looking for people with managerial, organizational/communication skills or real go-getters, no formal kitchen design experience is necessary – as long as you have the drive, ambition and enthusiasm to succeed in business we will supply you with the internationally proven and tested formula of the Dream Doors business model. For more information contact Cam Hadlow on: T: 1 800 373263 E: cam@dreamdoors.com.au W: www.dreamdoorskitchenfranchise.com
FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great
FASTWAY COURIERS AUSTRALIA
opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au
• Low start up costs
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au
• No weekend work
*Conditions apply
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
FASTWAY COURIERS New Zealand Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income packages* • Low start up costs • No weekend work
Fitness enhancement personal training 100% private Personal Training Studios and Mobile Personal Trainers. Over 80% of clients we meet with join and go on to spend an average of over $5,000 with us...and we never have to give away free sessions or free trials to get these clients! Our clients are primarily people who don’t like the Gym scene, or simply don’t have time for it, but know they need to get in shape.
AUSTRALIA AND NEW ZEALAND
• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz *Conditions apply
With mobile and studio franchisees available, and the option to upgrade from mobile to a fully staffed studio at any stage, we offer an ultra-low cost franchise solution with unlimited growth potential. With amazing head office support (we even take and book your new enquiries when you can’t) and exclusive marketing territories so you will never have to compete with fellow trainers, we help you build a rewarding business and a lifestyle to match. Email: franchise@fitnessenhancement.com Website: fitnessenhancement.com
Business Franchise Australia and New Zealand 113
A-Z DIRECTORY HAIRHOUSE WAREHOUSE
Hairhouse Warehouse has become a household
Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.
name in Australia, with a proven business model
We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.
that continues to evolve and generate strong returns for franchisees. For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.
Jim’s antennas
• No Experience Required
Join Australia’s leading Digital TV & Home Theatre installation specialists.
• Paid On the Road Training
Jim’s Antennas is a division of the Jim’s Group of companies- Australia’s leading home services company with over 3500 Franchisees operating throughout Australia across 38 divisions. With a reputation for excellence in customer service, Jim’s Antennas has an excess of work available across Australia and is looking for self-motivated and enthusiastic people to join the team.
JIM’S POOL CARE MOBILE POOL SHOPS Join one of Australia’s largest franchise systems and reap the benefits of a strong national brand. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. Not only can you charge for your time you can also charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can
Jump! Swim schools
• Work Availability Guarantee • Work Where You Want, When You Want • Franchises Available Across Australia Contact Jim’s Antennas today on 131AUSTRALIA 546 or AND NEW ZEALAND getstarted@jimsantennas.com.au to find out more and arrange your free trial day on the road. Alternatively visit our website www.jimsantennas.com.au
work and gives you scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same flat fee with all training and ongoing support included. We have selected opportunities all over Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au
JUMP! Swim Schools is leading the way in bringing fun, private facilities for our little swimmers to learn the basics away from the busy aquatic centres If you are looking for a flexible lifestyle franchise, in a secure and established industry, with huge market opportunities then this is the franchise for you. Absolutely no experience necessary, and no need to be in the water! Great locations are still available, no experience necessary and a comprehensive training program provided.
Due to the bookings in advance system, the business is easy to manage as well as consistent ongoing support with our proven management systems. To find out more information on a JUMP! Swim Schools Franchise contact Amy Hempstead on: Phone: 0477 800 181 Email: amy.hempstead@jumpswimschools.com.au www.jumpswimschools.com.au www.jumpfranchising.com.au
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
114 Business Franchise Australia and New Zealand
JUST CUTS™
Just Cuts™ are also excited to announce our NEW kiosk option! With only 49 sites available Australia wide, buy yourself a new lifestyle from $85,000!
Join the largest hairdressing network in the Southern Hemisphere! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business coaching and support.
Just Cuts™ Franchisees have exclusive access to our professional retail range made in Europe; JUSTICE Professional™!
Did you know that most Just Cuts™ Franchise Owners are not hairdressers and on average own 2.3 salons each! Why? Because proven systems, support and training means your Stylists become the technicians and easily run the business for you.
Contact: Luke Manning 0439 130 499 or luke@justcuts.com Website: justcuts.com
Just Lashes
turnkey system, you don’t need any formal business experience as our Business Coach will guide you, or prior education in Beauty Therapy as our Lash Expert will train you the right way.
The leaders and only Franchise in Eyelash Extensions in Australia. Clients making an appointment at a Just Lashes lounge expect consistent, professional service and rely on our reputation for delivering the most beautiful results. We help you become an administrator of this truly profitable business ethic! It’s not just the superior workmanship that Just Lashes has mastered, but our exclusive premium products that are manufactured just for us. With the support and encouragement of the Just Lashes
We provide everything you’ll need to run this highly flexible, uncomplicated enterprise. Rely on the ongoing professional support supplied by the Just Lashes network and experience the benefits of a rewarding working lifestyle! e: franchising@justlashes.com.au m: 0414 491977 w: www.justlashes.com.au/franchises
LA PORCHETTA
La Porchetta is now looking to expand the network of franchisees throughout Australia and New Zealand
La Porchetta has over 70 restaurants in Australia and New Zealand, and are the market leaders in cooking quality Italian food with fresh ingredients.
We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the dream and La Porchetta will provide the recipe for success.
The first La Porchetta Restaurant was opened in Melbourne’s Italian hub in 1985, and soon it became renowned as a special place to experience good food, love and a passion for life. Currently celebrating 30 years in business,
local appliance rentals Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom. With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs,
luxaflex® Window fashions Join the Luxaflex Dealer Network There are over eight million households in Australia – think about how many window furnishings that amounts to! The LUXAFLEX® Window Fashions brand is one of the most widely known and respected window furnishing brands in Australia, having sold its products under the Hunter Douglas Group in Australia for over sixty years – and is currently recruiting entrepreneurs looking for a new venture! Hunter Douglas offers an unrivalled partnership to meet
For more information T: (03) 9460 6700 E: franchising@laporchetta.com.au W: laporchetta.com.au
outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want. As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers. Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit www.localappliancerentals.com.au/franchising
specific business needs, under our LUXAFLEX® Window Fashions Gallery and LUXAFLEX® Window Fashions Showcase Alliance programs. This includes marketing support, manufacture and production of all products and fabrics, as well as local on the ground sales support. No experience is required to enter the Programs as all training is provided, which focuses on enhancing the customer experience and increasing your profitability. For more information on our programs, contact National Sales Manager, Mark Futeran on 02 9638 8000 or mark.futeran@hunterdouglas.com.au
Business Franchise Australia and New Zealand 115
A-Z DIRECTORY Mobile Test ‘n’ Cal The Mobile Test ‘n’ Cal franchise opportunity is unlike any other. By its nature, testing and calibration is very technical and has high entry barriers to entry. This means that the franchise you are buying is a premium, mandated and required service. Because it cannot be cut back on, the demand for testing and calibration won’t be hindered even by industry decline or recession. The highly technical nature of the service also not
oxigen fitness The fitness industry in Australia is currently worth about $2 billion and is expected to grow exponentially at an impressive 4 to 5 per cent per annum over the next 20 years, well above other industries. Oxigen Fitness is focused on offering a limited number of franchises Australia wide, 140 in total. This is a distinct advantage for franchisees over others within the industry, giving each franchisee a bigger area to control.
For more information, call 1300 662 119, email sales@mobiletestncal.com.au or visit www.calibrationfranchise.com.au
own Health Club Franchise. As a Franchisor, our focus is on training and support to ensure success for the franchisees. If owning your own business, enjoying the freedom of flexible working hours and helping people become healthier sounds like a perfect career option for you, an Oxigen Fitness franchise could be the right decision. With our 2nd release now becoming available don’t miss out. Secure your territory today. www.oxigen.com.au
Oxigen Fitness is a turnkey solution in owning your
Danielle@oxigenfitness.com.au
PRIMAL PANTRY
Australia wide. Backed by the award-winning Aktiv Brands franchise system, all aspects of the Primal Pantry business and operation are supported by the category leading marketing, training and operational systems that Aktiv Brands provides.
Primal Pantry is a new healthy eating café concept based on the Paleo lifestyle and way of eating. Since opening the pilot store in Brisbane in 2013, Primal Pantry has become a phenomenon, gathering a loyal and passionate fan following. Ranked in Brisbane’s Top Ten Favorite Restaurants, Primal Pantry is fast becoming the undisputed leader in Paleo fare in the marketplace.
AUSTRALIA AND NEW ZEALAND
only deters new entrants and competitors to the area, but makes it vital to be part of such a strong, experienced and thriving franchise group as Mobile Test ‘n’ Cal. With technical experts available to you year-round as part of your franchise agreement, someone will always be just a phone call away to assist you and your business, no matter where you are in the country.
If you are genuinely passionate about the positive difference that clean-eating can make, then please contact Dean Vella:
With a clean-eating dining experience that is in such high demand, Primal Pantry is now franchising
P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.primalpantry.com.au
Puma Energy Australia
advice and the backing of a trusted, global brand.
If it’s your dream to be your own boss, you may as well start at the top. Puma Energy is one of Australia’s fastest growing fuel companies. Since entering Australia in early 2013 we have developed a network of more than 240 retail sites and we’re not stopping there.
With almost 40 franchisees already in our family, we are always looking for passionate, forward-thinking people to join the Puma Energy team. We currently have active franchisee opportunities available right across the country.
Puma Energy is changing the fuel game in Australia and want you to be a part of it. We’re leaders in the fuel space and our franchisees benefit from that with access to our proven business systems, specialist support and
Fuel your dreams and become a Puma Energy franchisee today. To find out more contact John Austin (Puma Energy Australia Partner Manager) on 07 3727 1787 or john.austin@pumaenergy.com.
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
A-Z Listings re a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
116 Business Franchise Australia and New Zealand
scrooz We’re Australia’s biggest online and multi-channel retailer of premium range fasteners, fixings and consumables for tradesmen, light industry and serious DIY’ers and we’re revolutionising fastener retail. We’re growing rapidly and to meet the high customer demand for our products we’re starting the launch and roll-out our network of Scrooz® Trade Centres across Australia right now. Want to earn some real money and get involved in
business franchise australia and new zealand A-Z Listings re a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
SEVEN SEAS SEAFOOD CAFE Seven Seas Seafood Café is a re-invigoration of the classic Aussie Takeaway Shop with a whole lot more style, sophistication and value. Seven Seas offers a casual dining experience that meets the continually shifting tastes and rising expectations of today’s consumers, serving a refreshing and modern selection of seafood with a contemporary flair. Seven Seas is 100% Australian owned and
Shingle Inn Shingle Inn offers budding cafe entrepreneurs an opportunity to own an exceptional boutique cafe in one of our key locations. Shingle Inn was first established in 1936 and now currently operates a network of 50 cafes in Australia. In our cafes the Shingle Inn ‘experience’ starts the moment customers enter our store. Luxurious high-back chairs, warm rich colours and decorative lamps together with our signature range of decadent cakes, superior quality coffee, delicious gourmet sandwiches and emphasis on exceptional customer service has helped
SKEWERZ KeBABZ Skewerz Kebabz is an exciting and innovative retail fast food concept offering authentic Mediterranean cuisine combined with fresh and exciting flavour profiles for the Australian market. Spicing up food courts in shopping centres around Australia, Skewerz is becoming the nation’s fastest growing kebab franchise. Providing an exciting alternative to the traditional kebab, Skewerz serves up a truly satisfying menu supported by a friendly and fun casual dining environment. The unique menu caters for all three primary trading periods and has
• A $650 billion dollar industry • With highly profitable repeat sales of consumables to the trades and DIY industries • Retailing our premium quality Scrooz® branded product range • With National and webstore driven multi-channel sales • Full training and on-going support provided • Outstanding opportunities for early take up We have limited opportunities for highly motivated people looking for a serious business, so to find out more contact us now for an information pack at franchising@scrooz.com.au
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
scrooz f a s t e n e r s
AUSTRALIA AND NEW ZEALAND
operated and benefits from the award winning franchise support at Aktiv Brands. As a Seven Seas franchisee, you can enjoy the advantages of being associated with a well-known and successful franchise group, supplying you with the tools to help your business grow and prosper. For more information about Seven Seas franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.aktivbrands.com
us establish a renowned boutique cafe brand. All of these elements provide a proven business system to kick-start your success. Shingle Inn was named the FCA Emerging Franchise of the Year in 2014, & Shingle Inn Mt Ommaney was awarded FCA National Franchisee of the Year in 2014 (2 staff or more). For more information please contact Patrick Mulcahy, Franchise Development Manager: M: 0431 649 450 E: patrick.mulcahy@shingleinn.com W: www.shingleinn.com
been strategically designed to ensure the concept will thrive in the competitive food court environment. Skewerz Kebabz is part of the Aktiv Brands group of franchise brands, which means that the model has been developed based on years of experience in the retail fast food franchising sector. For more information regarding Skewerz Kebabz franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.skewerz.net
Business Franchise Australia and New Zealand 117
A-Z DIRECTORY Smoothie Factory Smoothie Factory is an internationally-known smoothie and juice bar franchise with existing stores in the US, and international development throughout China, India, and Vietnam through our founder Olympic athlete James Villasana & SF Inc. Founded in 1996 with an emphasis on owner-operator success, approximately 95% of all Smoothie Factory locations are operated by the owner. We are dedicated to: • Being the best employer and attracting, developing, and retaining a superior team. • Realizing exceptional growth through a balanced and ethical concern for people, quality, and profitability.
Other Benefits of Smoothie Factory Franchise Ownership: • A high-quality product line made with real, fresh fruit – no concentrates, syrups or purees • Not just a smoothie franchise – it’s like owning a juice bar, frozen yogurt shop, and health supplement retail store under one roof • Continual improvement to the Smoothie Factory franchise system, stores, and overall brand image • Flexible store formats, including the “Minifactory” which allows stores to be placed in food courts and other small spaces • A long and successful history with strategic plans for growth – in business since 1996 and franchising since 1997 • Outstanding franchisee training and support
• Empowering our team to exceed franchisee and guest expectations through a ‘Whatever it takes!’ culture.
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SNOOZE™
• NAB & ANZ accreditation
As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.
• Sales and product training
With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.
https://www.facebook.com/smoothiefactoryaustralia
• Business management support • A national marketing program • IT services
Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:
To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.
• Vendor finance assistance
Email: alistairb@snooze.com.au
The Drug Detection Agency (TDDA)
training program; Australasia wide business networks; State Office support and large-scale clients that need services in your area.
The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients.
TDDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model.
With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses.
If you are seeking a next generation business opportunity with huge potential then contact us now to find out more. Phone: +61 439 222 422 (AUS) / +64 21 917 148 (NZ) Contact: Glenn Dobson Email: glenn.dobson@tdda.com
You will also benefit from a comprehensive 100 day
Website: www.tdda.com
The SPORTING GLOBE BAR & GRILL®
model offers people who aspire to own their own venue many competitive advantages over an independent operator, especially the ability to stay focused on what matters most – the customer.
The Sporting Globe Bar & Grill® is an innovative hospitality and sports entertainment brand with a mission to be Australia’s most loved sports bar and grill. Offering high quality casual dining and a social & welcoming bar atmosphere with the ultimate stateof-the-art sports fit out, The Sporting Globe is a great place to eat, drink and enjoy sport. The Sporting Globe business has been designed with distinct branding, product specialisation, and operating systems to allow it to be a successful franchise. This
Franchise opportunities exist across Australia, so it’s time to be your own boss with Australia’s leading sports bar brand! Enquire today: Brad Dekkers Franchise Development Manager E: franchise@sportingglobe.com.au P: 03 9645 4798 M: 0400 616 285 W: www.sportingglobe.com.au/franchise
Thermawood
Become part of the success story with:
Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.
• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. If you are looking for passionate self-motivated people to join the Thermawood team.
Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.
Please contact Thermawood Retro-Fit Double Glazing for more information.
Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.
Info@thermawood.com.au www.thermawood.com.au 0455 555 330
118 Business Franchise Australia and New Zealand
Thexton Armstrong Become a Thexton Armstrong Business Success Partner! At Thexton Armstrong we are passionate about Business and helping Business Owners.
Our Business Success Programme is designed to offer high end consulting services to small to medium sized businesses. The consulting industry is growing rapidly as most Business Owners do not have the skills to manage or grow their businesses. Only one in five businesses survives over ten years.
With over 70 Franchisees and growing rapidly across Australia and NZ we believe that we have the No1 Business Consulting System in Australasia. We are looking for people with previous business or corporate experience to join our team. A Thexton Armstrong Business Success Partner works long term with Business Owners to help improve the profit, growth and value of their business.
PLEASE LOG ON TO www.thextonarmstrong.com.au/ presentation for a copy of our franchise presentation or email us at thextonhq@thextonarmstrong.com.au
V.I.P. Home Services
owners by providing:
V.I.P. was the first company to start franchising in home services in 1979.
• Initial and ongoing training, coaching and mentoring
V.I.P. has over 1100 franchisees across Australia and New Zealand.
• National and local marketing
V.I.P. has franchise opportunities available in:
• Access to a network of franchisees
• Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning
• An initial start-up kit so that you are ready to go
Over the last 35 years, V.I.P. has helped over 4,000 people just like you become successful business
Vodafone Australia More than five million people across Australia share, play and do more on the Vodafone network. We’re about to get bigger and even better. We’re looking for new Vodafone Licensees to join us on the next phase of our journey. You’ll have an exclusive relationship with one of the world’s leading telco brands, be a part of a retail brand with over 315 Vodafone branded stores nationally – and enjoy all the benefits that come with it. Key features of the program include a generous
XPRESSO MOBILE CAFE Xpresso Mobile Cafes operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts. Partnering with Di Bella Coffee ensures the quality of our hot and cold beverage products is unequaled in the mobile café industry. Our customers enjoy frappés, energy drinks, chilled cold brew coffee in a can (KICK), bottled water and light food options such as gourmet cookies and chocolate that are designed to complement the enjoyment of high quality specialty coffee products. The Xpresso Mobile Café high grade, bespoke fitout not
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
Enquire now about joining our great network of people. Like to know more?
• Affordable franchise options • An established client base
Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au
commission model with multiple income streams, comprehensive training to get you started and ongoing support from a dedicated Partner Area Manager to help you grow a profitable and successful business. All this with no ongoing fees or royalties! We currently have a number of existing and new store opportunities available in locations around Australia. Interested? Contact Frank Chang on 0414 803 811 or email dealer.recruitment@vodafone.com.au or visit www.vodafone.com.au/careers/select-dealerrecruitment
only utilizes new technology that no longer requires noisy/ expensive generators but also ensures franchisees can display food and beverage items in a large secondary fully integrated fridge. Franchisees are encouraged to source some food and beverage items from local wholesale suppliers rather than through the franchisor; this ensures an increased net profit through reduced costs. Franchisees are supported nationally by both the franchisor and Di Bella Coffee as well as a fully integrated website, call centre, social media and Internet presence. We’re setting the benchmark for coffee vans – will you join us? Contact us TODAY for a detailed information pack: joinus@xpresso.com.au OR 1300 655 559
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
AUSTRALIA AND NEW ZEALAND
Business Franchise Australia and New Zealand 119
JEJAK GRAPHICS
a lasting impression
CREATIVE DESIGN SOLUTIONS
LEAVING A LASTING IMPRESSION Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: t $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ /FXTMFUUFST t 1SPEVDU MBCFMT BOE QBDLBHJOH Artwork is tailored to your brand and focused on your message and target BVEJFODF /P KPC JT UPP CJH PS TNBMM $POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT DBO NBLF ZPVS DPNQBOZ or organisation leave ‘a lasting impression’.
120 Business Franchise Australia and New Zealand
P: 03 8790 8006 M: 04222 676 39 E: jejak@bigpond.com www.jejakgraphics.com.au
JOIN THE
DREAM TEAM
Vendor finance now available* *Available to approved applicants.
We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: Marketing and Promotional Support Product Development and Buying Power Proven operating system that includes comprehensive product and sales training Business Management support from our on the ground field team Assistance in site selection and property negotiations Business finance available to approved applicants
For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169
It’s amazing what a little snooze can do. snooze.com.au
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