Franchising magazine January / February 2013

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What’s so great about

BONUS FREE MAG

MULTI-UNITS?

The Profiler

Franchising www.franchise.net.au

FRANCHISING

Jan/Feb 2013 VOL.26/No.1

Your essential guide to buying a franchise

MULTI-UNIT FRANCHISING

DON’T RUSH! 5 steps to buying the right franchise

JAN/FEB 2013

The caffeine fix

You CAN fund your franchise WAYS TO FINANCE THE DREAM

INVEST IN A COFFEE FRANCHISE

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Queen of clubs FRANCHISE WOMAN OF THE YEAR

Carolyn McManus

SHARES THE SECRETS OF HER SUCCESS

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How to be a

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BE INSPIRED: JAMAICA BLUE, EAGLE BOYS, POOLWERX

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Contents jan – feb 2013 |YOuR eSSentIaL GuIDe tO buYInG a fRanCHISe 54 Gearing up for business Indulge your passion for cars and run your own business 66 build your own business Could you run a building services franchise?

Issues 80 nurturing a network what multi-unit franchising is all about 90 Lifting the franchisee performance ceiling jason Gehrke looks at what drives franchisee success

40

96 You can fund your franchise where to go for finance

Inspire

16 from field support to franchise eagle boys franchisee story

36

18 all going swimmingly Poolwerx award winners 23 One-stop solution why a café couple rebadged their business 26 It’s a wrap! the story of a food franchise

54 ReGULaRS 5 6 10 121 122 124 126 127 128 142

editorial news Interview Legal Sketch People Opinion Checklist Glossary Company listings

30 Get threaded a beauty franchise with a difference 36 Wheels of fortune Making a living out of dirt bikes

How to...

105 Resist the rush How long should due diligence take?

108 be prepared How franchisors can handle a pr crisis 112 Spread the word tips on working with local media 116 Keeping customers loyal and engaged the importance of communication

96

Opportunities 40 The caffeine fix which coffee chain will suit you?

49 The service solution Getting it right in the telecoms sector www.fRanCHISe.net.au

jan/feb 2013 fRanCHISInG | 3

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Welcome

Franchising Publisher Martin Sinclair martin.sinclair@reedbusiness.com.au Editor Sarah Stowe sarah.stowe@reedbusiness.com.au Direct: 02 9422 8900 Journalist Danielle Bowling danielle.bowling@reedbusiness.com.au Direct: 02 9422 2667

Make 2013 your year of new horizons

W

Sub Editor Richie Kenzie richie.kenzie@reedbusiness.com.au Direct: 02 9422 8851 National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905 Contributing Journalist Domini Stuart Columnists Greg Nathan Andrew Terry Esther Gutnick Production Co-ordinator Laura Panameno laura.panameno@reedbusiness.com.au Direct: 02 9422 8772 Creative Art Director Julie Coughlan julie.coughlan@reedbusiness.com.au Designer Louis Santos louis.santos@reedbusiness.com.au Managing Director Jeremy Knibbs jeremy.knibbs@reedbusiness.com.au Editorial Inquiries Tel: 02 9422 8900 Advertising Inquiries Tel: 02 9422 2905 Fax: 02 9422 2722 Subscription Inquiries Tel: 1300 360 126 Fax: 02 9422 2633 Franchising is a publication of Reed Business Information ABN 132 719 861

SYDNEY OFFICE Tower 2, 475 Victoria Ave Chatswood NSW 2067 Tel: (+612) 9422 2999 Fax: (+612) 9422 2722 www.reedbusiness.com.au

Average Net Distribution Period ending Sep ’12 7,281

AM

SARAH STOWE Editor

hat do the 12 months ahead promise for you? For many of us getting back into the routine postfestivities and summer holiday means there will be little change to our horizons. Perhaps you’ll be working hard for someone else or you might be facing an uncertain financial future with control of your career taken out of your hands.

As we traditionally make our New Year resolutions and look to what the year might hold, this is the perfect time to review lifestyle and work choices. Perhaps you’ve always dreamed of running your own business, perhaps the need to be your own boss has been forced on you, perhaps you are just ready for a new challenge.

It could be the perfect time to invest in a franchise.

As surveys released in October 2012 indicate, franchising is proving a growth area – and it’s worth $131 billion in Australia.

Some franchisees are loving their business so much they are investing in multiple units. In this issue you can read about the trend in multi-units – it doesn’t suit everybody, or every franchise system, but there are some great stories of success. One of these is our cover girl this month, Carolyn McManus, franchisee extraordinaire at The Coffee Club, and the FCA Excellence in Franchising Franchise Woman of the Year 2012. You can read about her experience in our interview on page 10.

Carolyn’s clearly a high performer and has avoided the danger of complacency that Jason Gehrke discusses in his article on raising franchisee performance (page 90).

Franchising is all about relationships, and the first relationship to get right is the one between franchisee and franchisor. Deb Shugg shares her thoughts on how there needs to be shared passion and good communication in the Opinion piece on page 126.

Of course we have all our great regular sections: inspirational stories about franchise brands, franchisors and franchisees; we’re highlighting opportunities in various sectors; there is guidance from the ACCC on the due diligence process; and food for thought on crisis management and creating local PR. If this is your first time as a Franchising reader, then welcome, we’re happy to have you aboard. Don’t forget to check out our online activities too – our website www.franchise.net.au is packed full of useful information and you can sign up to our regular email newsletters for free, follow the latest news as it happens with Twitter and join our Facebook community.

This issue also has the fabulous supplement The Profiler, showcasing franchise opportunities and business support. Take a look – perhaps your franchising year will get a kick-start!

Franchising is all about relationships and the first relationship to get right is the one between franchisee and franchisor

Sarah Stowe All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2013. Opinions expressed in Franchising are not necessarily those of Franchising or Reed Business Information.

Editor

WWW.FRANCHISE.NET.AU

JAN/FEB 2013 FRANCHISING | 5

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

ACCC takes Harvey Norman franchisees to court Eleven Harvey Norman franchisees have been accused of misrepresenting consumer rights, and the Australian Competition and Consumer Commission has started legal proceedings against them in the Federal Court of Sydney.

The ACCC alleges that the franchisees engaged in misleading or deceptive conduct by making false or misleading respresentations to consumers about E their rights under the consumer guarantee provisions of the Australian Consumer Law. ACCC chairman Rod Sims said “The Australian Consumer Law provides consumers with rights to certain remedies from retailers and manufacturers when an item purchased breaks down within goods fail to comply with the consumer a short time of being puchased, the guarantee provisions, including that consumer may be entitled to a refund or a goods are of acceptable quality and fit for replacement item.” the purpose for which they were sold.

A D _ F R F U R MA Y _ 1 2 . p d f Pa ge 4 1 9 / 0 4 / 1 2 , 3 : 3 0 The ACCC alleges that consumers These rights cannot be excluded, were misled by franchisees on a number restricted or modified. For example, if

of issues including: that the franchisee had no obligation to provide remedies for damaged goods unless notified within a specific period of time such as 24 hours or 14 days; that the franchisee had no obligation to provide remedies for goods still covered by the manufacturer’s warranty; that the franchisee had no obligation to provide refunds or x replacements p E r tfor particular F r aitems n such c has i large appliances or items priced below a certain amount; and that consumers must pay a fee for the repair and return of faulty products.

The ACCC alleges that the misrepresentations occurred between April 2011 to mid 2012; that in all 11 cases the misrepresentations to customers were verbal and made by employees of the relevant Harvey Norman franchisee; and that in one case PM there was also a misrepresentation on the customer’s receipt.

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

NEWS BRIEFS

Smartline tops franchisee survey Smartline Personal Mortgage Advisors has scooped the top spot in this year’s topfranchise awards which recognises the level of franchisee satisfaction in franchise networks.

Close on the heels of Smartline were Aussie Pooch Mobile in second place, Drummond Golf coming in third and Pandora Jewellery taking the fourth spot.

Common amongst the satisfied franchisees was passion for their jobs, even in an uncertain economy.

Ian Krawitz, 10 Thousand Feet and topfranchise.com.au’s head of intelligence, said the survey of more than 1000 franchisees showed a shift in what makes franchisees happy.

“Finances, lifestyle and the support received from franchisors are still critical factors in making the top 10 in the topfranchise awards and having satisfied franchisees but we have seen passion for what franchisees do and the customers they serve increase to over one sixth

New Donut King and Esquires Coffee Houses in Queensland will have an added attraction - the outlets will sport drive-through facilities.

This is a new concept for the parent company Retail Food Group.

Eleven years after launching as a juice bar in Adelaide the Boost Juice Bars franchise business has opened its 200th outlet in Australia, at Port Macquarie.

The New Zealand franchise sector turnover has reached $20 billion and employs 101,800 people, according to a recent survey.

of what makes franchisees happy,” Krawitz said.

Visit our website www.franchise.net.au for the full story.

THE COFFEE CLUB ROLLS OUT NEW LOOK

Franchise home delivery food business Aussie Farmers Direct is partnering with Organic Dairy Farmers of Australia in a $1.2 million butter manufacturing joint venture.

Bedding franchise Snooze has unveiled a mobile and tablet compatible website, designed to ease the browsing experience on devices such as iPhones, Galaxy S111 and iPads.

The first franchisees in the Mortgage Choice Financial Planning network have opened their doors for business.

Lenard’s, the Australian franchise chicken retail chain, is changing the look of its stores and staff uniforms nationwide to complement the launch of its new brand campaign ‘Let’s Make Something Special’.

The home-grown Australian café group, The Coffee Club, has unveiled its first new-look cafe, at Sydney International Airport. This is the first in a series of newly designed cafes that will incorporate elements from the company’s global business approach and its familiar branding.

The Coffee Club director John Lazarou said the brand is all about inclusiveness.

“The care and attention we put into our cafes is why people love us and our brand. I do quite a bit of travel so I have spent my fair share of time in airport lounges that traditionally lack a warm, inclusive and welcoming atmosphere. The new design strategy meets the needs of the modern cafe customer who seeks a welcoming and relaxed experience” Lazarou said.

So natural, warm, modern textures are mixed with features and fixtures that give individual cafes a sense of their location and local environment.

The Coffee Club now has 253 cafes in Australia and will be rolling out the new look fit out to several stores in the coming months.

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Rams is expanding its presence across South Australia with the opening of the second retail Home Loan Centre in the state and the appointment of a third franchisee.

Quest Serviced Apartments reached 150 properties in its accommodation portfolio when it opened the doors to its Breakfast Creek venue.

Zarraffa’s Coffee began its WA expansion with the opening of the Canning Vale store in November. This follows the purchase of the One For The Road coffee chain earlier this year.

JAN/FEB 2013 FRANCHISING | 7

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

World class accreditation program for Australian franchise sector The Franchise Council of Australia is launching an internationally recognised professional accreditation program for franchisees and franchisors.

The Certified Franchise Executive program comes to Australia’s shores in association with the American-based Institute of Certified Franchise Executives (ICFE).

Existing and aspiring franchising professionals and franchise entrepreneurs undertaking the program will have the opportunity to reach a recognised standard of excellence within the local and international franchising community.

FCA chairman Michael Paul of Pack & Send said the already vibrant Australian franchising sector can only benefit from a stronger focus in the education space.

“This is a great opportunity to enhance what are already high standards in franchising and is a fit with the FCA mantra of constantly looking for ways to improve business performance. We see education as a critical element in lifting

standards across the board,” Paul said.

While the program is familiar to franchising communities in North America, Europe and Asia, its structure has been customised for Australian candidates and will include core education units from FCA/Franchise Academy suppliers, along with international online curriculum units, and credit for sector experience and participation.

FCA deputy chair, Stephen Giles of Norton Rose believes the program is a must for franchisors, franchisees and suppliers.

“To me, it’s an absolutely essential plank in any advisor’s platform for quality service delivery to franchise businesses. I’ve seen this program from the franchisor and supplier perspective and I know it’s the best program we could bring into the Australian market,” Giles said.

The joint venture will allow those in the Australian franchise sector the

opportunity to distinguish themselves as recognised professionals using the CFE post nominal title following designation.

The CFE designation will be presented annually at the FCA’s National Franchise Convention to candidates who have completed all the requirements and been approved by the ICFE Board of Governors.

Australian CFE designates will also have the opportunity to be recognised at the IFA Annual Convention during the CFE graduation program Program participants will work towards accreditation on an individual basis and the course is expected to take between 18 and 36 months to complete.

Franchisees, franchisors, and suppliers and educators actively engaged in the franchising sector are eligible for the program; costs are $495 for FCA members, and $990 for non-members.

PoolWerx predicts $350m revenue by 2020 Pool and spa care network PoolWerx will be bringing in $350 million in revenue by 2020, CEO John O’Brien has predicted.

O’Brien said the 20 year old company’s eight year plan is realistic given the company has grown almost tenfold in the last decade, from $7 million to nearly $70 million turnover.

“The past 20 years have been an absolute rollercoaster but we’ve always hit our targets and maintained solid growth,” he said. “For each twist and turn the business or the economy has taken, we’ve come out on top and the fact we have achieved 25 per cent compound growth since 2002 proves that.

8| FRANCHISING JAN/FEB 2013

“We are able to set such a large reach target for 2020 as the potential for the business is huge, as we’ve only tapped into about 20 percent of market potential to date.”

The intended growth will increase the active franchises network to more than 300, O’Brien predicts. There are over 200 territories operating with more than 300 mobile vans and 70 retail hubs.

The diversified business model that also includes online retailing and business to business services has helped the network grow, but the multiunit retail operation will be a particular focus for the chain.

“Our goal is for all franchise partners to adopt our

revolutionary Generation 4 franchise model – a multi retail store operation,” said O’Brien.

WWW.FRANCHISE.NET.AU

O’Brien said the company has continued to find new ways to market.

“We’ve relocated retail stores to neighbourhood shopping centres, introduced a hybrid online/offline e-store and we’re always exploring the pool after-care market for opportunities like offering certified pool fence inspections.

“The commercial sector is also a big opportunity for us, currently contributing over 25 percent of total turnover through business relationships in real estate and hospitality and providing insurance claim services, all of which we will continue to capitalise on over the next few years.”

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Inspire|Interview

QUEEN OF

CLUBS Carolyn McManus’s story is certainly a feel-good franchising tale. Previously a regional manager with the National Australia Bank – a job which involved a lot of interstate travels – it wasn’t until Carolyn was on maternity leave with her second daughter that she decided she wanted more flexibility in her life.

10| fRanCHISInG jan/feb 2013

“

Franchising really stood out to me as the right option because it would be a balance between the corporate sector that I was used to and it would also enable me to be more entrepreneurial and to put my business skills to practice working for myself,” she says.

Carolyn knew the food and coffee industry was a strong one, and so after doing her own due diligence, she opened The Coffee Club in Stockland Townsville in 2006.

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She hasn’t stopped since.

In 2008 she opened another outlet in Domain Central, then The Strand Townsville and Willow Townsville in 2009, Airlie Beach in 2011 and in July this year Carolyn became the first franchisee to open a Ribs and Rumps steakhouse – a restaurant brand acquired by The Coffee Club in 2011.

“I always set out to be a multi-unit franchisee but I didn’t envisage it would be this many,” she tells Franchising. “I always

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Interview|Inspire

liked people management and people development and I liked the idea of multi-unit franchising because it meant I was able to create career paths for people.”

With six stores and over 220 staff in The McManus Group, Carolyn admits she spends hardly any time in store, and is more focused on how she can grow her mini-empire.

“It’s now an organisation that runs franchise businesses, so one day is never really the same each week. On every Sunday I have to plan what will happen in that week, what meetings I have, and they might be around new sites that we’re looking at. Generally my role involves spending a lot of time with the general manager of the business. We have a general manager, an operations manager, and our own financial controller all within our group,” she says.

“I Dreview A _ F Rthe H Ostore’s WS E results P_ 1 2 . p but I’m more focused on the forward planning and where the

“It’s the biggest reward for business is going. That’s where me,” Carolyn says. “We’ve got my energies are now.” a manager at one of our stores But Carolyn hasn’t always had who started at 17 years old the luxury of being able to take and the most rewarding part a step back from the coalface, of being in business and in trusting others to run her franchising is seeing them grow. businesses as she wants them run; I get such a sense of pride seeing in the early days of franchising my staff work together and one of the hardest parts of her job knowing that they’re friends was understanding the wants and outside of work – it’s nice to needs of her staff.

“I came out from managing bankers and had good people management skills but then I had to manage a younger generation who didn’t have the same motivators as those career bankers did,” she says.

“I had to go back and learn and understand what the motivators of Gen Y are. I needed this workforce and I needed to figure out how to create a motivating environment for them.”

Six years later, she’s got that down and df Ppat a g e says 1 watching 2 0 / 0 her 8 / 1 2 , 6 : 0 9 PM staff grow and develop is one of the Carolyn McManus at the FCA awards most rewarding parts of her job.

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Inspire|Interview

Award winner Carolyn McManus with NAB’s Stuart Zalunardo

I always liked people management and people development and I liked the idea of multi-unit franchising because it meant I was able to A D _ F R MA D J A N _ 1 3 . p d f Pa ge 1 create career paths for people SFG_mag_add_Jan_Feb_Trim_marks.pdf 1 12/3/2012 3:33:59 PM

look back and say that you actually helped to create that.”

Fostering growth and career progression in The Coffee Club is what has allowed Carolyn to finally achieve the flexibility that formed part of her initial attraction to the franchising model. She is her own boss, has complete control over her working hours, is able to be a hands-on mum while still driving the growth and expansion of The McManus Group.

“I really do control my time now. I have three daughters and I’m able to go to their school events and swimming carnivals and things like that.

I have control over where my time is. If I choose that I can’t do anything on a Wednesday then I can’t do anything on the Wednesday. It’s given my family a lot more flexibility.

“People see the size of the 4 / 1 2 / 1 2 , 4 : 1 4 PM business and always say ‘I just don’t know how you do it

all’ and the answer is, I don’t.

I have more people working with me now and my time is spent on creating careers and opportunities for clever people.

I have more freedom now than I did when I had one or two stores,” she says.

The past 12 months have been action-packed for Carolyn.

Not only did she lead the way by being the first franchisee to open a Ribs and Rumps outlet, also located in Townsville, but in October she was also named Franchise Woman of the Year at the FCA’s Excellence in Franchising awards, which formed part of the National Franchise Convention in Canberra. And while Carolyn has been presented with a number of other industry awards – including The Coffee Club’s Franchisee of the Year in 2007, 2009 and 2010; FCA’s National Multi-Unit Franchisee of the Year in 2011; and

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Seeking New Franchise Partners Pizza Hut is the world’s largest pizza restaurant company with more than 12,000 restaurants in over 90 countries. A subsidiary of global QSR giant Yum! Restaurants International, Pizza Hut boasts a strong history in Australia since opening its first Australian store in 1970.

Pizza Hut has exciting new store opportunities available throughout: s¬ Melbourne & Regional Victoria s¬ Perth & Western Australia s¬ Regional New South Wales s¬ South East & Regional Queensland

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Inspire|Interview

Townsville Business Women of the Year in 2009, Carolyn says being acknowledged as a successful woman in the franchising industry is something sheâ&#x20AC;&#x2122;s particularly proud of. â&#x20AC;&#x153;To be recognised in that way, you feel very honoured because there are a lot of strong women in the franchising sector. I know that I donâ&#x20AC;&#x2122;t do everything perfectly but there are some things that I must be doing right and I must be getting

the balance there. I actually enjoy talking to people and helping them, particularly in regards to multi-unit franchising which can be really confronting, so to be recognised for something that Iâ&#x20AC;&#x2122;m actually enjoying is a complete honour. I do take that very seriously,â&#x20AC;? she says.

One of the key benefits of growing your business to the extent that Carolyn has with The McManus Group is that continued expansion is much easier than for those

Once youâ&#x20AC;&#x2122;ve got a good structure there with good people, you can plug on a few more systems or a few more franchises and it just means you need more roles to AD_ F RAC N O Vnot _ 1 2daunted . pdf P a by g e that 1 1 1 / support it.E 1Iâ&#x20AC;&#x2122;m

just starting out on the multiunit path. So now that sheâ&#x20AC;&#x2122;s created a well-oiled machine sheâ&#x20AC;&#x2122;s not prepared to call it a day just yet. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking at another Coffee Club in the near future. There are about two 1 0 / 1 2 , 1 2 : 4 8 PM or three things on the go at the moment,â&#x20AC;? she says.

â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ll still continue to grow.

We donâ&#x20AC;&#x2122;t want to slow down just yet. Once youâ&#x20AC;&#x2122;ve got a good structure there with good people, you can plug on a few more systems or a few more franchises and it just means you need more roles to support it. Iâ&#x20AC;&#x2122;m not daunted by that.â&#x20AC;? F

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Your Choice accident and sickness insurance offers: Ä&#x2018;ĆŤ ĆŤ +2!. #!ĆŤÄ&#x201A;Ä&#x2026;ĆŤ$+1./ĆŤ ĆŤ 5Ä&#x152;ĆŤÄ&#x2C6;ĆŤ 5/ĆŤ ĆŤ3!!'ƍĢƍ 0ĆŤ3+.'Ä&#x152;ĆŤ0+ĆŤ * ĆŤ".+)ĆŤ3+.'Ä&#x152;ĆŤ home or leisure. Ä&#x2018;ĆŤ !Ăź*! ĆŤ !*!Ăź0/ƍĢƍ5+1ĆŤ'*+3ĆŤ!4 0(5ĆŤ$+3ĆŤ)1 $ĆŤ5+1Ä&#x161;.!ĆŤ (!ĆŤ0+ĆŤ ( %)Ä&#x2039; Ä&#x2018;ĆŤ +ĆŤ%* +)!ĆŤ0 4ĆŤ.!01.*/ĆŤ.!-1%.! ĆŤ3%0$ĆŤ ,,(% 0%+*Ä&#x2039; Ä&#x2018;ĆŤ +ĆŤ)! % (ĆŤ!4 )%* 0%+*ĆŤ.!-1%.! Ä&#x2039; Ä&#x2018;ĆŤ ĆŤ $+% !ĆŤ+"ĆŤ6!.+ĆŤ0+ĆŤÄ Ä&#x2030;Ä&#x20AC;ĆŤ 5ĆŤ3 %0%*#ĆŤ,!.%+ /Ä&#x2039; Our aim is to understand your needs and those of your family and to assist you in ďŹ nding the appropriate level of cover you can reasonably afford. +ĆŤ .. *#!ĆŤ ĆŤ/1%0 (!ĆŤ ,,+%*0)!*0ĆŤ3%0$ĆŤ ĆŤ(+ (ĆŤ +) %*! ĆŤ */1. * !ĆŤ !,.!/!*0 0%2!Ä&#x152;ĆŤ * ĆŤ0+ĆŤ.! !%2!ĆŤ ĆŤ +,5ĆŤ+"ĆŤ +) %*! ĆŤ */1. * !Ä&#x161;/ĆŤ ĆŤ * ĆŤ ĆŤ0+ĆŤ ! % !ĆŤ%"ĆŤ0$%/ĆŤ,.+ 1 0ĆŤ%/ĆŤ.%#$0ĆŤ"+.ĆŤ5+1Ä&#x152;ĆŤ ((ĆŤÄ Ä&#x192;Ä&#x20AC;Ä&#x20AC;ĆŤÄ&#x192;Ä&#x20AC;Ä&#x20AC;ĆŤÄ&#x2026;Ä&#x2030;Ä&#x20AC;Ä&#x152;ĆŤ!) %(ĆŤ your.choice@acegroup.com or visit www.combined.com.au today.

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FR.JANFEB13.PG016.pdf

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Inspire|Franchisee

FROM FIELD SUPPORT

TO FRANCHISEE Getting comfortable with a brand and its franchise opportunities is important before you buy into the business. Jake Rose had a bit of an advantage....

Here Jake, who runs the Eagle Boys Whitsundays franchise, takes our Q&A 1. When and why did you decide to buy a franchise?

In August 2011 I bought Eagle Boys Whitsundays. I wanted to have a better work/lifestyle balance and this opportunity allowed me to work for myself and provided a good opportunity for me to become more financially stable.

2. What were you doing before?

Prior to owning Eagle Boys Whitsundays I was a field support officer with the Eagle Boys support office. During my role there I learnt about the brand and the franchise opportunities.

3. Would you do anything differently in the due diligence process?

The due diligence process in Eagle Boys is very thorough and most franchisees agree that it’s necessary. It’s a good cross check to ensure franchisees coming into Eagle Boys are financially stable and have done the research to take on the store.

I was fortunate, for what usually takes between six and eight weeks for new franchisees was cut short because of my experience.

4. What was the major reason for you choosing this brand?

Buying a store within the network is quite affordable compared to other brands. In particular, my store in the Whitsundays; the store had been company owned and required a new owner to give it direction immediately.

16| FRANCHISING jAN/Feb 2013

Since I took over, the store’s sales have increased by more than 200 percent.

5. How did you fund your franchise investment?

I had finance set aside for a business investment such as this, so as soon as the opportunity arose I was able to secure the investment almost immediately.

6. What is the biggest lesson you’ve learned as a franchisee?

I’ve learnt the value of having good staff that take an interest in the business. It makes the day-to-day running of the business much more enjoyable and easier.

7. What has been the biggest challenge as a franchisee?

Working in this industry can be very repetitive through constantly making batches of dough, topping pizzas and handling customer enquiries. A big challenge is keeping staff motivated,

8. What goals have you achieved since being a franchisee?

I’ve become more confident as a business owner, become financially independent and have enjoyed seeing staff gain more confidence in their ability.

9. What advice would you offer someone thinking of investing in a franchise business?

Be confident with the brand’s value, research the franchise and speak with franchisees already within the business. It

Since I took over, the store’s sales have increased by more than 200 percent which I’ve managed through giving staff incentives to reach targets. I’ve found setting benchmarks for staff to achieve has been a huge contributor to maintaining staff.

Another challenge can be lifestyle balance, which I’ve managed, again, by having good staff behind me. www.FRANCHISe.Net.Au

can be as simple as spending a day with a current franchisee to decide whether the business suits you.

10. Would you invest in this brand again?

Yes, I would invest again with Eagle Boys and I will consider it in the future. F

AD_FRFRUJAN_13.pdf

Page 1 30/11/12,

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Franchise Magazine Adv3.indd 1

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Inspire|Franchisees

Caroline and Paul Attard share their franchising journey from mobile van operators to award winning multi-unit franchisees

All gOing

swimmingly C

aroline and Paul Attard are the 2012 National Franchise Partners of the Year for pool and spa care franchise PoolWerx. Their multi-unit operation in Queensland includes two retail stores and seven mobile vans across Mt Gravatt, Balmoral, Rochedale and Carindale.

Paul takes up their story…

“I was operations director for a marketing company and then a marketing consultant and Caroline ran her own child day care business from home, but we wanted a career that allowed us to be our own boss. A business with good brand awareness and proven success was important to us rather than starting from scratch in a new industry, and that’s why franchising appealed to us.

Anyone looking to invest in a franchise needs to understand what it means to run your own business. The franchisor gives you the guidelines, but it’s up to you to make a successful business 18| fRanCHISInG jan/feb 2013

www.fRanCHISe.net.au

Why PoolWerx

“We investigated three franchise systems and PoolWerx was the last one we spoke to. It was far superior in terms of professionalism and the flexibility in the model was the final selling point for us. We weren’t required to dive in the deep end by investing in a retail store from the getgo. Instead, we could buy a mobile van with the support of the large infrastructure behind the PoolWerx franchise and gradually work our way up to the operation we are today.

“We bought our first PoolWerx man-in-a-van model in June 2005. This was a great option for us because we didn’t have to go straight into a large retail investment and instead got the opportunity to learn the ropes and work our way up to a retail store.

“Three months later we bought our second mobile unit in Carindale. The following year we went into a partnership with another franchisee and purchased an existing store at Mt Gravatt where we were able to grow the business significantly.

“In 2009, we opened our second retail store in our newest territory, Balmoral, and in 2010 we took over full ownership of the entire operation.

Now we manage two retail stores and seven mobile service vans.

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Franchisees|Inspire

Training and support “The detail of training and level of ongoing support by the franchisor was a big surprise for us. This support has been invaluable throughout our business journey.

“When you start, you go to Pool School – our induction and training program – where you learn about the business, the products and services, and how to run a successful business.

After that, you buddy up with neighbouring franchise partners and have ongoing field support from regional development managers, most of whom have business backgrounds. They mentor you and train you. levels are correct. This reconfirms “When we first started out, I what you’re doing is right, and met with the regional manager it’s an important stage in learning once a week and went through the PoolWerx system. a tick box process covering the AD_ F ROUT 2 J AN_ 1 3 . p d f Pa ge 2 6 / 1 2 / 1 2 , “I now speak to my regional whole spectrum of the business manager about two or three times like quoting or checking stock

We weren’t required to dive in the deep end by investing in a 3 : 0 2 PM retail store from the get-go

ill? our own bar & gr y g in n ow of d e ream Have you ever d over business? rn tu gh hi a in opportunity perience Do you seek an g an amazing ex

Contact: Head Office 07 5532 7071 franchising@outbackjacks.com.au www.outbackjacks.com.au

ovidin ted the art of pr Talk to us We have perfec dining market. ily m fa g in ow the gr specialising in chisee. ming a new fran co be t ou ab ort y toda & ongoing supp ng ni ai tr ll A s aurant Full turnkey rest provided quired No experience re $ 300,000 er w po ng si ha rc pu nt $ ca ifi Sign to 600,000 approx.

E L ITES AVAILAB

HOT NEW S ALIA! ACROSS AUSTR

www.fRanCHISe.net.au

depending on location

jan/feb 2013 fRanCHISInG | 19

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a week and we meet every fortnight. A lot of support also comes from talking to other franchise partners in the network about their businesses.

Running the business

“In 2005, I was a man-in-a-van operation – the administration, servicing and marketing team all in one. We now manage a multi-site team including two retail stores, seven vans and five marketing territories, so things have changed considerably.

“Anyone looking to invest in a franchise needs to understand what it means to run your own business. The franchisor gives you the guidelines, but it’s up to you to make a successful business.

You need to understand all areas of the business operation – servicing pools, equipment quoting, supporting technicians, retailing – so when it comes time to employ someone into your business, you are confident they can do the job properly and you can manage them accordingly.

“We’ve already renewed our franchise agreement four or five times and will continue to do so in accordance with our expansion plans. We want to make the transition to working on the business rather than in it and there are plenty of opportunities

We’ve already renewed our franchise agreement four or five times. Franchising has let us take control of our destiny 20| fRanCHISInG jan/feb 2013

www.fRanCHISe.net.au

funDInG It aLL

For any business owner, financing the start-up can be a challenge. So how did Caroline and Paul fund their franchise investment?

“When we started out, we got a partial business loan and the rest was self-funded,” explains Paul. “From there, everything has been self-funded or funded by the existing business.” in our existing territories to grow, so this will remain our focus.

“Franchising has let us take control of our destiny. As opposed to going to work and being committed to whatever we do and the owner reaping the benefits, this way the hard yards are going towards us.” F You can read more about multi-unit franchising in our feature Nurturing the network on p80

AD_FRKWIMAY_12.pdf

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1

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Plan your success. Design your lifestyle.

A Kwik Kopy franchise lets you experience the best of both worlds, financial success and quality of life.

Kwik Kopy offers graphic design, printing and marketing services to the business sector. Be part of a creative process that delivers: • Marketing brochure design and production • Branding and logo development • Direct mail campaigns • Email marketing and website development, to name but a few.

Kwik Kopy franchisees handle a broad range of jobs every day, in fact that’s what makes a Kwik Kopy franchise so exciting. But you DON’T require any print or design experience to take on a Kwik Kopy franchise.

With Kwik Kopy you get a tried and tested system that removes the usual start up headaches and helps you establish your business sooner. As part of the Kwik Kopy network, you tap into a highly established and recognised brand, giving you plenty of leverage in the market.

What’s more you’ll have an extensive support network all focused on your success.

For more information about our award winning franchise model call 1800 251 680 or visit kwikkopy.com.au/franchise to view Kwik Kopy franchise videos and download a franchise information kit.

Why choose Kwik Kopy: • Brand strength and ongoing marketing solutions • Area sales support • IT support • B2B model • Sales focus • Regular working hours Mon-Fri • Comprehensive training • Award winning franchise model

kwikkopy.com.au FranchisingAPril_1pg_KwikKopy_FA_Headley.indd 1

3/04/12 12:29 PM

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Franchisees|Inspire

ONE-STOP

Why does a couple who run their own cafe rebadge the business as a franchise?

Jamaica Blue’s Kingaroy franchisees, Donna and Malcolm Ryan, share their story

SOLUTION 1. How long have you been in business?

We have been operating as Jamaica Blue for two months, however we have been in business at this site for three and a half years.

2. Why did you decide to change to franchising for your business model?

We liked the idea of having tried and tested systems in place, as well as the opportunity to have consistency in the meals and drinks we serve. Customers like to know that each time that they order a meal at a cafe it will be the same as the last time they visited. With our previous cafe, we found that each chef had their own interpretation of the meals, which made it difficult for us to maintain consistency.

We also wanted our business to stand out which meant we needed a total new look, uniforms, branding and training. As we are a busy family with two small children, we couldn’t go past the opportunity to open a franchise as it covered everything.

The other major drawcard to opening a Jamaica Blue franchise was the opportunity to have a support team. When you have an independent business it is not always easy to get support or to find a mentor able and willing to help with those questions you just can’t find answers for. A franchise has a network of support and with one phone call you can have your HR or IT question answered immediately.

WWW.FRANCHISE.NET.AU

3. What made you choose this brand?

Jamaica Blue gave us the flexibility to build a menu to suit our area. They understood that products that are popular sellers in the city may not sell as well in a rural town. We were also able to set our own prices, which we really appreciated.

Having previously owned an

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independent business we still want to feel as if we have control over our business and the Jamaica Blue franchise model allows this.

Also, the Jamaica Blue brand celebrated its 20th anniversary last month and we feel it is a business that is really moving forward. They have a great new look and we wanted to be a part of a company with an exciting future.

4. How much research did you do beforehand?

We had been looking at our options since we took over our original business. We spoke to many different franchise companies, including other Jamaica Blue store owners who provided us with extensive feedback. Jamaica Blue was the perfect choice for us as we have the support provided by a franchisor, however we still have control over our business.

5. What changes did you have to make to how you run your business when you became a franchisee?

We wanted our business to stand out, which meant we needed a total new look, uniforms, branding and training. As we are a busy family with two small children, we couldn’t go past the opportunity to open a franchise as it covered everything 6. What difference has the franchise brand made to your business?

The brand has made a huge positive difference to our business, both in the sales and the perception of the business. We have retained a lot of our old customers but have also gained a whole new customer base. We’re operating in a rural area, the brand has been accepted well and our customers like that we are offering the same brand, with the same quality coffee and freshly-prepared food that they can find in the city.

It is a totally different business now. We retained three employees from our previous business and hired new staff for the remaining positions. We were all trained together from experienced Jamaica Blue consultants and once we got through 7. What plans do you have to expand? the initial two weeks after opening, everything fell into place.

AD_ F RGRE S E P _ 1 2 . p d f Pa ge 1 6 / 0 8 / 1 2 , 1 1 : 0 4 AM We’ve only been open two months but it already feels like we None at the moment, but if all continues to go well we would have always done things this way. consider opening a second Jamaica Blue cafe. F

24| FRANCHISING JAN/FEB 2013

WWW.FRANCHISE.NET.AU

AD_FRYBTRU_13.pdf

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Michael BublĂŠ.

Now working for The Coffee Club.

[So is Adele, Sting and Norah Jones]

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Inspire|Franchise story

A healthy takeaway concept with a touch of theatre.

That’s the driving force behind Le Wrap, a Sydney based food court franchise that’s on a roll

IT’S A

WRAP K

aan Celik had been looking into the healthy food market when he became inspired by what he saw in his home town of Brisbane. Celik moved to Sydney and created the Le Wrap brand, a fast food service that matches the increasingly healthy-eating requirements of 21st century Australians with a sense of theatre at the store. Like many fast food

outlets, Le Wrap focuses on fresh food preparation, with all the ingredients laid out in front of the customer. The difference, explains Kaan’s wife and business partner, Peri, is the cooking of the meat on a grill while the customer watches.

“It’s like teppanyaki,” she explains. “The chicken breast is cut very fine and flat, it’s picked up raw with tongs and grilled in front of the customer.”

Of all the takeaway options, we’re the only one made to order and cooked in front of you. We’re high on hygiene and presentation 26| fRanCHISInG jan/feb 2013

www.fRanCHISe.net.au

While this is happening, another member of staff is assembling the salad elements on a wrap, the grilled chicken is added, and the whole sandwich toasted.

This whole process takes just three or four minutes, yet it draws quite a crowd and pleases the customers who can see both the freshness of the ingredients and the healthconscious food handling.

“Of all the takeaway options, we’re the only one made to order and cooked in front of you. We’re high on hygiene and presentation,” says Peri Celik.

“We get praised for it. All our

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Franchise story|Inspire

workers wear gloves, and handle the food with tongs.â&#x20AC;?

Not only do customers love the food, the very first franchisee in the network was a customer who became passionate about the business. The former ambulance officer who became a regular patron of the original Parramatta store was first in the door when the system was franchised, and opened his own outlet in Bankstown three years ago.

expandInG tHe bRand

nothing about it all, reveals Peri.

But as customers clamoured to become involved and the brandâ&#x20AC;&#x2122;s reputation spread through word of mouth, the Celiks looked at franchising as an expansion option.

They had been lucky from the start with their locations, holding out for a major food court slot at Parramattaâ&#x20AC;&#x2122;s Westfield shopping centre after being offered a lesser site on another level to fill a void.

Now the store network is across Sydney in prime shopping centre locations â&#x20AC;&#x201C; 12 sites from Campbelltown to Penrith, Macquarie Park and Chatswood to Hurstville and Eastgardens. â&#x20AC;&#x153;The first five years we didnâ&#x20AC;&#x2122;t franchise. Within two years weâ&#x20AC;&#x2122;ve added eight stores. By December

The Celiks built up their business from one store in 2005 to three outlets and the first franchise in 2010. When it came to opening the first franchise, â&#x20AC;&#x153;everyone was keen and passionate, it all happened so quicklyâ&#x20AC;?, Peri says.

When the couple began the A D _ F R WA T S E P _ 1 2 . p d f food chain, franchising was not on their wish-list, in fact they knew

2013 we hope to have 20 stores,â&#x20AC;? says Peri. The plans include interstate, she adds. Victoria is the next target market; in fact the Celiks have an enthusiastic potential franchisee keen to built a multi-unit business.

As well as Greenfield sites, the couple would like to sell off their corporate stores and run a fully franchised chain of outlets.

They have broadened the offer to include a kiosk model as well so investment costs vary, from $200,000 to $350,000, according to location and size.

Theyâ&#x20AC;&#x2122;ve looked at expanding the menu too. While Le Wrap has a predominantly lunch time

The first five years we didnâ&#x20AC;&#x2122;t franchise. Within two years weâ&#x20AC;&#x2122;ve added eight stores. By Pa ge 1 7 / 0 8 / 1 2 , 3 : 3 7 PM December 2013 we hope to have 20 stores

Picturing a career change?

Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you.

Property photography is an exciting and diverse industry, where no two days are the same.

Each day youâ&#x20AC;&#x2122;ll be out and about photographing different properties and meeting lots of new SHRSOH DORQJ WKH ZD\ 7KLV LV GHĂ&#x20AC;QLWHO\ QRW D GHVN MRE Hereâ&#x20AC;&#x2122;s some other reasons why you might choose Top Snap: No need for an expensive retail presence. All you need is your photography gear, vehicle and computer and youâ&#x20AC;&#x2122;re set to go.

We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry.

Weâ&#x20AC;&#x2122;ll help you succeed. Youâ&#x20AC;&#x2122;ll get the usual intensive training, plus dedicated support with sales and marketing, that youâ&#x20AC;&#x2122;d expect from a high quality, established franchise system. â&#x20AC;&#x153;As a Top Snap franchisee I now have a great work/life balance. I work from home and see more of my family, and going to work and meeting lots of great people is fun and different every day. This has given me the career change and lifestyle I was looking for. I love it!â&#x20AC;?

John Woolley, Mornington Peninsula, Victoria

Territories are available across Australia, please contact +HOHQ &ODUNH on or email KHOHQ FODUNH@topsnap.com today for more details.

www.topsnap.com www.fRanCHISe.net.au

jan/feb 2013 fRanCHISInG | 27

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Inspire|Franchise story

trade, with a rush on between 11.30 am and 3pm, there are plans to extend the offer to bring in business earlier in the day.

fRanCHISe StaRt-up Kaan Celik had a hospitality background when he developed the Le Wrap brand. But he’s not looking for anyone with similar experience as a franchisee. Because the model is simple, says Peri, there’s no need for a franchisee to have prior experience in the food or catering industry. Everything can be learned through training, and on-site in the store in the initial phase of business.

“Franchisees have to learn the register, how to make wraps, grilling, paperwork, wages, how to run the store.”

There is four weeks training for new franchisees, and new staff learn the ropes at existing stores.

The system requires a minimum

The former ambulance officer who became a regular patron of the original Parramatta store was AD_ F RVANJ AN_ 1 3 . p d f Pa ge 1 4 / 1 2 / 1 2 , 3 : 5 5 PM first in the door when the system was franchised

staff count of five at any time.

When the doors open for the first time, franchisees are able to call on the head office staff for help.

“The first week is all about admin, there’s so much to learn,” says Peri.

MaRketInG tHe MeSSaGe It’s rare for the franchisor to engage in a marketing campaign for openings; the business has been built on word of mouth, and this has continued as franchisees join the network.

But 2013 is going to be a year of brand communication for the first time for the company, which has targeted magazines, radio, billboards and bus shelters as the vehicles to carry its message. The marketing campaign will focus on Sydney to help boost customer awareness of the brand now that there is an extensive network of outlets for customers to visit. F

Due to eXtremely high demand, coffee retailing is widely regarded as one of the more attractive franchising options available. With your drive, our system and our collective belief in delivering an eXceptional coffee eXperience, you can eXpect an eXcellent return on investment. Plus you get WR EH \RXU RZQ ERVV DQG ZRUN ÁHXible hours, how eXquisite! We’ll supply you with our eXclusive ‘hit the ground running’ pack including free start up stock, marketing materials and eXpert training.

For more info on a Cappuccino Xpress mobile coffee franchise, contact Carrick Robinson on 0421 048 716 or email carrick@capx.com.au and get on the road to success today.

28| fRanCHISInG jan/feb 2013

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AD_FRXPR2NOV_12.pdf Franchising Corp Ad Right Hand.pdf

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Inspire|Franchisor

A piece of cotton thread and a big idea is what saw the birth of Get Threaded. Liz See told Franchising how she got her business off the ground

THREAD

OF AN IDEA teLL uS AbOut Get tHReADeD Get Threaded specialises in the ancient art of threading and other as-natural-aspossible beauty services with a very unique point of difference.

We are the only beauty company in Australia where clients can be assured that franchisees and staff are completing or hold accredited qualifications for each of our core services, including threading.

Threading is a hair removal technique where an anti-bacterial cotton thread is used in a special method to remove the hair. It is commonly found in countries like India, Egypt and China, is an ideal alternative to waxing and is 100 percent natural.

Before I could even think about opening salons or offering threading as a service to clients, I needed to put 30| FRANCHISING jAN/Feb 2013

together structured training so we could have qualified and professional staff. I spent over 18 months researching, testing, trialling and compiling that knowledge into a certificate of completion course. We launched with training and instantly I knew that people were interested in this amazing technique called threading.

After viewing what was happening overseas we took another back step and applied and wrote the government accredited Certificate II in Hair Removal (Threading) and became approved as a Registered Training Organisation (RTO) as there was no accredited training for the technique in Australia.

The Get Threaded threading method, which is our most popular service, is based on traditional methods but has been perfected in many ways. It will leave your eyebrows with a very precise www.FRANCHISe.Net.Au

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It is an ideal opportunity to become part of a brand that is changing how women remove their facial hair and shape their eyebrows

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Inspire|Franchisor

ading treatment Liz See performing a thre Get Threaded founder,

shape, removes other facial hair, is not painful and you won’t be left with red and damaged skin.

wHeN wAS It eStAbLISHeD? We officially launched our website to offer training in September 2009, after 18 months of worldwide research and writing of the original certificate of completion course.

HOw MANY StOReS ARe tHeRe? HOw MANY ARe FRANCHISeD? There are 18 licensees (licensees work in their own salons/location but provide Get Threaded services), a Get Threaded Brow & Beauty Concept Salon at Maroochydore (company owned) and one franchise at Get Threaded Brow & Beauty Bar at Top Ryde City, Ryde NSW.

wHAt ARe YOuR eXPANSION PLANS FOR 2013?

Our Get Threaded brand development, systems, training, marketing and management have been fine tuned and tested so we are ready in 2013 to slowly but steadily roll out Get Threaded franchises across Australia. Our vision is to see Get Threaded locations available for clients all over Australia and around the world.

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wHO wOuLD MAKe A GOOD Get tHReADeD FRANCHISee? No experience is necessary as we are able to train all our core services at a nationally accredited level. We also train each franchisee in what we call our Business in a Box, which gives them all the knowledge and tools to run their business.

We look for the following five important qualities when assessing potential franchisees – we call it the Get Threaded 5 Signs Of Success: • People who desire success and offer impeccable customer service • People that match our core values • People who want to be part of a bigger team • People who will contribute to finding opportunities to grow their franchise • People that want to be part of the Get Threaded story

wHAt SORt OF tRAINING IS PROVIDeD FOR New FRANCHISeeS? We provide multiple levels of training as education is valued highly at Get Threaded.

• Our initial Get Set To Get Threaded service training program is for franchisees and opening staff and includes access to the Get Threaded online theory portal for completion www.FRANCHISe.Net.Au

of assessments and tasks. Nationally accredited qualifications and statements of attainment are given for each successful completion and training is delivered via a mix of practical and theory methods.

• Business in a Box franchisee training includes face-to-face sessions and Skype sessions, which provide them with the necessary competencies and skills to run their franchise. It also includes final completion of the business and marketing plan that Get Threaded and the potential franchisee formulate prior to their approval.

• Get Set to Go is a comprehensive on and off-site training program delivered by Get Threaded authorised team members to assist franchisees in their opening weeks. Follow-up training also includes 12 weeks of weekly Skype meetings as well as the Contact a Buddy franchisee support system.

DO tHeY NeeD ANY eXPeRIeNCe IN tHe beAutY INDuStRY? No experience is necessary in the beauty industry. A passion and strong belief in what we do is required.

wHAt IS tHe INVeStMeNt COSt AND ARe tHeRe ANY ONGOING eXPeNSeS OR ROYALtIeS? Our franchise options include Get Threaded Brow & Beauty Bars and Salons

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Design your own future with Worldwide.

Imagine owning a Design and Printing business with a clever mix of the latest technical, marketing and training resources, combined with the strength of more than 15 years experience in the business.

As a franchise owner you focus on clever ways of creating new sales, providing top quality service to your clients and building a powerful team - leaving the printing to the experts.

With more than 50 Worldwide Design and Print Centres nationally, we are now undertaking the next phase of our national expansion program.

Set yourself apart from the crowd. To ďŹ nd out more about this exciting business opportunity, simply visit us at www.worldwide.com.au/franchising

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r ard fo w a A n FC ence i l l e c x “E l ationa n r e t n I ” hising c n a r F

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A D _ F R WI S J A N _ 1 2 . p d f

Pa ge

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Wisewould Mahony Lawyers Lawyers in love...... with Franchising Get Threaded offers a mobile and a retail system

as well as mobile options for franchisees. Initial investment cost varies depending on location, the type of franchise chosen, franchisee experience and a variety of conditions.

They start from $10,000 plus GST for mobile options and $70,000 to $150,000 plus GST for Get Threaded Brow & Beauty Bars and Salons. Ongoing franchise fees include a national marketing levy and weekly franchise fees. These are determined by the type of franchise and level of experience of franchisee.

wHY SHOuLD FRANCHISeeS INVeSt IN tHe bRAND? wHY IS It uNIQue? It is an ideal opportunity to become part of a brand that is changing how women remove their facial hair and shape their eyebrows.

Technology and innovation is what separates Get Threaded from other businesses. I realised early on that I wanted to build a company that not only was great for our clients but also our franchisees, staff and students. A great company involves flexibility as well as the ability to see in a second what is happening within your business. We have online systems for delivering the theory of our training, booking our clients in, holding client records and daily takings as well as a system for holding all the information our franchisees need to run a successful business. You can be anywhere in the world and as long as you have access to the internet you can see what is happening within your business.

FRANCHISE SPECIALISTS WITH Industry Knowledge Call for a complimentary guide to Franchising: Dispute Resolution, Mediation/Solutions & Strategies Franchisee reports and assessments Master Franchisee agreements International Franchising Employment Law & Workplace Relations

Fixed fee service to Franchisors and Franchisees based on scope of work

wHAtâ&#x20AC;&#x2122;S YOuR bACKGROuND? DO YOu HAVe eXPeRIeNCe IN FRANCHISING? I have a 21 year background in the hair and beauty industry and I hold qualifications and accredited certificates in training and assessment, hairdressing, beauty, counselling and a diploma of finance. I started my first business when I was 22. We have a dedicated team of accountants and law professionals that work alongside Get Threaded who are highly educated and experienced with franchising, so everything we do is within the bounds of the Franchise Code of Conduct for Australia. I have also completed the certificate of completion course â&#x20AC;&#x201C; The Pre-Entry Franchise Education Program developed by the Asia-Pacific Centre for Franchising Excellence and delivered by Griffith University. F www.FRANCHISe.Net.Au

FCA Member IFLA Member

(International Franchise Lawyers Association)

FANZ Member

(Franchise Association of New Zealand)

Accredited Business Law Specialists Contact: Robert Toth t: +61 3 9612 7297 e: robert.toth@wisemah.com.au jAN/Feb 2013 FRANCHISING | 35

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Inspire|Franchise story

have you ever considered running your own dirt bike business? Brad smith started Braaap nine years ago and the business just keeps growing

wheels of

fortune C

ould this be your childhood dream come true? Spending your days working around dirt bikes? If the braaap sound of the motorcycle is music to your ears, then running a franchise focused on the adrenalin-pumping sport and all its accessories could be just the business opportunity you’re looking for.

Braaap is all about dirt bikes, and that’s where the business began, as founder Brad Smith explains. “Everything really started with the motorcycle; action sports is

the fastest growing sports genre and what we do is make it accessible.

Part of that is through our motorcycle – you can get a dirt bike for $3 a day, and in our retail stores we do BMX and scooters which are extremely popular with the younger guys. We have big jumps in the store and the kids jump and they land in big pits of foam – it’s really cool. On top of that there’s the fashion and the lifestyle.”

Brad Smith has been in business for nine years, starting out just with the motorcycle, then moving into retail five years ago.

Anyone can put a great t-shirt on the shelf, anyone can build a great motorcycle but it’s the systems behind it that make it successful 36| FRANCHISING jAN/Feb 2013

www.FRANCHISe.Net.Au

He embraced the franchising model as a way of growing the brand a year later.

Now the business is a whole retail concept, he says.

“Anyone can put a great t-shirt on the shelf, anyone can build a great motorcycle but it’s the systems behind it that make it successful.”

Smith has been named 2010 Young Australian of the Year for Tasmania, Australian Young Entrepreneur of the year and International Young Entrepreneur of the year runner up. Since launching in 2008 the stores have won three retail business awards.

Business appears to be booming. “In the first quarter of 2012 we grew 300 percent above our industry growth rate,” he reveals.

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Chem-Dry - the world’s largest carpet and upholstery cleaning company.

Chem-Dry is the world’s largest carpet cleaning franchise with more than 4,500 franchises worldwide. Our franchisees have access to the company’s patented products and 35 years of experience to continue making people’s homes and workplaces cleaner and healthier.

No other company cleans more carpets than us – we clean over 1 billion square feet of carpet every year!

Chem-Dry offers its franchisees flexibility when it comes to equipment and cost. Some of our most successful franchisees have built their businesses with our portable extraction units and others choose our higher-capacity truck-mounted packages. Other franchisees are now using our brand new XTS machine which is a combination of both.

Through the power of carbonation, Chem-Dry can increase the longevity of our customer’s carpets and often can help keep their carpet warranty in compliance. But hot water extraction doesn’t work only on carpet. It works just as well on upholstery and tile, and our franchisees excel at pet stain removal, Oriental rug cleaning, and water damage repair and restoration work.

The most common alternative is steam cleaning, which works only to a point. Steam cleaners dump gallons of hot water onto carpet, then suck up the dirty water with a high-pressure vacuum. The suction can damage the carpet, and the excessive water can soak into the backing of the carpet, creating a moist breeding ground for mould and mildew.

There’s a reason why our patented cleaning solution is called The Natural. We’ve used it in homes for more than 20 years, earning the Carpet and Rug Institute’s Seal of Approval.

Chem-Dry Australia has operated since 1986 and since 1977 in the USA.

As a special offer – franchisees can start with Chem-Dry for as little as $5,500 and with this finance deal – all you do is pay off the price of the franchise over 2 years. The beauty of this system is that on top of this – you pay no royalties for the first 2 years. * conditions apply

As a franchisee, you will have access to a proven business plan, which means you do not need to re-invent the wheel. We will provide you with all the tools to be your own boss and begin your pathway to success.

The next step is to contact Brendan Wilson on 1800CHEMDRY or brendan@chemdry.com.au and let’s get you some more information about joining the largest Carpet and Upholstery Business in the World.

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Franchise story|Inspire

So who is the ideal franchisee for this distinct brand?

“We’re after a really specific niche of people, people who want to turn their passion into a profession,” he says. “We’re really looking to build a system of vibrant families and people who want to work on the same goals we do. Part of our mission is to get young people involved in adrenalin sports and action sports, so they have clean platform and we want people who have passion and are enthusiastic about these kind of sports.”

The investment cost varies, according to store size and location – this is a stock heavy business, and Smith says the model is not geared to making revenue from franchisee sign-ups. “We’re only successful once the franchisee is successful and everything is based on the stock level. It starts at $300,000 up to $500,000 – that includes stock such as the bikes and clothing, and working capital.

“We have some really good connections with banks and funding providers and a huge part of franchising is making sure people can borrow the money to get in,” says A DSmith. _ F RCAF NOV _ 1 2 . p d f Pa g Clearly passionate about the sport, and his brand, Smith believes it’s the best mini

motocross company in the world.

And what distinguishes the Braaap brand?

Smith cites a number of technical aspects around the bikes themselves, such as Australian design with experts redesigning elements of the bikes for top performance and longevity, and third party metal testing to prove the quality of the materials used. While the bikes are designed here they are manufactured in China, under expert guidance of the company’s French manufacturing partners, says Smith. “It’s a worldwide business.”

But there’s one more element that is fundamental to the growth of the business.

“The biggest contributor to our success is our service. We’ve got mechanics in our shops, we’ve got all the spare parts you need in stock, everything you need to have fun in the sport. Our job is not only to build a brand but to build a whole industry.” F Check out braaap.com.au

e

Brad Smith

We’re after a really specific niche of people, people who want to turn their passion into 1 2 7 / 0 8 / 1 2 , 2 : 4 9 PM a profession

BRW ises Fast Franch

2011, 2012 ng fastest growi Australia's ise coffee franch

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Opportunities|Coffee

the

caffeine fix australia has a real love affair with coffee, and if you fancy your future in the coffee and cafĂŠ sector, there are plenty of opportunities across a range of systems to inspire you. here we highlight just some of the brands and their franchise offers to whet your appetite

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Coffee|Opportunities

T

here’s more to being a franchisee in the coffee sector than making a great cup of coffee – though with Australians such keen coffee advocates, loving the brew you are serving up is a must as a starting point.

Branding, café culture, training, investment and ongoing costs – all these will add up to an offer that might tempt you to investigate further. Of course not all coffee businesses are based around the café concept. Mobile and business-to-business models can offer alternatives to the higher investment levels and the 24/7 routine of a coffee shop.

As with any business, matching the model that suits your needs is fundamental. So what are some of the options?

eSquIReS Esquires prides itself on its high-tech coffee experience and aims to take a leadership position in every market it enters through a combination of great coffee, fresh food, friendly service and a commitment to world-class processes.

What distinguishes you from your competition at consumer level?

In addition to serving premium fair trade organic coffee, Esquires’ competitive advantage is its high tech offering including free Wi-Fi in-stores, iPads for customer use and charge bars for customers to power-up their gadgets.

How is your franchise offer distinct?

Esquires is part of Retail Food Group, Australia’s largest multi food franchise with more than 1,400 outlets across seven countries. RFG has a proven history of successful franchise systems. We also provide all new franchisees with dedicated training at our world class Training Academy.

How do you benchmark franchisee performance?

Franchisee performance is benchmarked and evaluated through quarterly business excellence reviews, Point of Sale reporting systems, Franchise Enhancement Council meetings conducted with state based franchisees and their peers, and ongoing personal contact with a local business development manager.

ZaRRaffa’S Coffee Zarraffa’s Coffee is an Australian-owned and operated coffee franchisor, with 60 drive thru and traditional store sites located in Queensland, NSW and WA. The company also roasts its own coffee blends from its award-winning roastery located at the company’s headquarters and training academy on the Gold Coast.

What distinguishes you from your competition at consumer level?

Our competitive edge is derived from our high standards in product and service and our consistency throughout the business system. We have created a brand that people can trust and rely on to receive individually perfect cup of coffee every time.

How is your franchise offer distinct?

We are not interested in opening hundreds of stores if they can’t all be sustainable and serve exceptional coffee. We take a measured approach to opening new stores to ensure the viability and financial health of each franchise. Seeking out the right mix of franchisee and the right site every time is also a priority.

How do you benchmark franchisee performance?

We benchmark our franchisees’ performance through key performance indicators, quarterly store evaluations and mystery shoppers.

Details

Established in 1996; 38 franchisees for a total of 60 stores in Queensland, northern NSW and WA. Length of agreement: five years with options Turnkey cost of franchise: stores are $400,000; drive thru sites between $550,000 and $650,000 Are there any hidden extras? Allowances for GST, working capital, opening store stock and legal fees should be made in addition to the turnkey costs.

Ongoing fees: 7% royalty, 3% marketing >> continues on page 42

Details

Established in 1993 in Vancouver; 50 stores (AU and NZ) Length of agreement: five year term plus an additional five years Turnkey cost of franchise: $200,000 to $400,000 (drive thru is extra) Are there any hidden extras? GST, bank guarantee, insurances, working capital Ongoing fees: 7% royalty and 3% marketing levy www.fRanCHISe.net.au

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Opportunities|Coffee

tHe CoFFee Club

welcome and we want them to enjoy the entire The Coffee Club experience.

The Coffee Club core business is based around its customers, both internal and external. Everything The Coffee Club does revolves around ensuring both sets of customers have a positive experience: providing good food, great service, excellent coffee in a welcoming and relaxed meeting place.

The chain recently launched its new look stores.

How is your franchise offer distinct?

The offer is distinct in that it provides strong brand equity and store concepts that meet all occasions, as well as a commitment to strong partnerships. The Coffee Club also offers robust development and training platforms.

What distinguishes you from your competition at consumer level?

The Coffee Club is about inclusiveness; everyone is

How do you benchmark franchisee performance?

To benchmark franchisees’ performance, a number tools and systems are used to help execute strategy effectively and measure the consistency of franchisees’ operations.

Details

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Established in 1989; 253 franchisees in Australia.

Length of agreement: initial term will match your lease term Turnkey cost of franchise: estimated initial investment from $450,000 to $550,000 depending on site and style of store Are there any hidden extras? Costs vary by site/ location and from new to existing stores.

Ongoing fees: franchise fee of 6% of weekly sales

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>> continues on page 44

CHANGE YOUR FUTURE WITH THE WORLD’S NO. 1 COMMERCIAL CLEANING FRANCHISE BECOME YOUR OWN BOSS WITH JANI-KING’S UNRIVALLED FRANCHISE OPPORTUNITIES

YOUR FUTURE STARTS HERE – VISIT WWW.JANIKING.COM.AU Benefit from: D Dedicated sales team securing your customers D Training across every business discipline D Low entry cost & high return on investment

42| FRANCHISING jAN/Feb 2013

D Leverage Jani-King’s reputation across Australia D Underwritten initial client base D 24/7 local office support

www.FRANCHISe.Net.Au

Customisation

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MAKE BUSINESS MORE PERSONAL. Michelle just... tailored her own screen and customised her dashboard.

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Opportunities|Coffee

CAFé2u Cafe2U provides multi award winning espresso coffee to people in non-traditional locations.

What distinguishes Cafe2U from the competition at a consumer level?

Multi-award winning coffee is made fresh to order by baristas at people’s workplace or at events.

How is your franchise offer distinct?

The Acceleration Package training and launch programme means the new business is built by expert franchise mentors while coaching the new franchisee. This means no knocking on doors by the new franchise partner so they can focus on getting to know their customers, rather than acquiring them.

Each new franchisee is supported during the launch phase by a weekly income guarantee of $2500.

Turnkey cost of your franchise: $129,600 + GST (includes van and all fittings, training and support); training for two people is included. There are no hidden extras, opening stock is even included Ongoing fees: set weekly fee of $174 + GST and marketing fee of $27.21 + GST. These figures are CPI adjusted annually

MuFFIN bReAk Muffin Break is a premium bakery-café franchise with a CSR Golden Bean award-winning proprietary coffee blend.

What distinguishes you from your competition at consumer level?

Our freshly-baked on-site daily model continues to meet with consumer acclaim and there’s a strong loyalty program.

Muffin Break was recognised this year with multiple Roy Morgan Customer Satisfaction Awards and a Canstar Blue Award for Most Satisfied Customers – Coffee Shop Chains 2012.

How do you benchmark franchisee performance?

A proprietary process of weekly KPI (key performance indicator) monitoring plus a quarterly review process with the franchisee’s personal franchise mentor is used.

How is your franchise offer distinct?

Brand evolution that better accentuates Muffin Break’s freshly baked-on-site policy and especially caters to the core market of on-the-go, typically adult female consumers.

Easy access to Foodco’s team of retail experts, periodic faceto-face events and franchisees are encouraged to support each Established in 2000; 135 franchisees in Aus and NZ, over AD_ F RS I G1 J AN_ 1 3 . p d f Pa ge 1 2 6 / 1 1 / 1 2 , 8 : 5 1 AM other via intranet portals.

200 worldwide Innovative marketing and advertising campaigns including Length of agreement: five years with a five year option

Details

40 FOR FRANCHISE INFORMATION CALL:

1800 662 663 www.embroidme.com.au

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LOCATIONS NATIONALLY

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Coffee|Opportunities

a Channel Nine ‘Today’ show sponsorship and the Facebook fan base exploding this year to more than 127,000 fans.

How do you benchmark franchisee performance?

Key measure is same store sales growth. We also benchmark profit and loss information to ensure cost KPIs are met consistently. Our operations are tracked through regular operational checks and our stores are graded in all key operational areas.

Details

Established 22 years; 260 franchisees worldwide Length of agreement: 10 years Turnkey cost of franchise: $300,000 to $340,000 dependent on location Are there any hidden extras? No - this covers the cost of training, franchise fee, equipment and shop fit-out Ongoing fees: 7% royalties and 4% marketing levy

>> continues on page 46

donut king and michel’s patisserie Sibling brands at Retail Food Group include Donut King and Michel’s Patisserie: Donut King was established in 1981, has 351 stores, and the turnkey cost of a franchise is $295,000 to $340,000 (drive thru is extra).

Donut King offers specialty donuts, made fresh daily. It also serves its own Royal Bean blend of barista made premium coffee.

Michel’s Patisserie has been franchising since 1990 and now has 327 stores. A turnkey cost of a franchise is between $325,000 and $345,000.

Michel’s Patisserie is a family patisserie offering sweet treats, savouries and award winning coffee. It has won many awards, with the most recent achievement being Gold in the Chain Store/Coffee Franchise (Milk Based) category at the Golden Bean Coffee Roaster Competition 2012.

Its award winning espresso coupled with a selection of small and large celebration cakes plus hot and cold savouries distinguishes it from the competition, says the franchisor.

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HudSoNS CoFFee

XpReSSo delIGHt

At Hudsons Coffee a passion for coffee is at the heart of everything. The franchise model is designed to give franchisees the tools for success – from site selection to training and ongoing support.

This franchise aims to transplant the café experience from the outside into the work place directly, by providing free fully automatic coffee machines using 100% Arabica gourmet coffee beans and only charging a per coffee rate.

What distinguishes you from your competition at consumer level?

We take pride in our unique premium coffee blend. We think the perfect coffee experience is not limited to taste and aromas, it’s also about the overall experience, from efficient and friendly service to the inviting ambience of our stores in strategic locations including business districts, regional areas, airports and hospitals.

What distinguishes you from your competition at consumer level?

That our customers do get a café quality coffee each and every single time using fresh milk and our franchisees come around every week to service the machine so it is always working at its optimum level. We also provide cups, sugar and even the chocolate sprinkle for that perfect cappuccino.

How is your franchise offer distinct?

Our models allows our franchisees flexibility to plan their business around their life and create a better work/life blend.

How do you benchmark franchisee performance?

Performance data is collated on a monthly basis from the franchisees’ profit and loss data, and this is benchmarked against other stores in the network. Our franchise consultants then use this data to coach franchisees; this encourages best practice and a greater return on investment for our franchisees.

We also conduct a comprehensive store audit program called the 3 Bean Assessment which measures operational standards across all areas of a franchisee’s business, with top performers rewarded annually.

Details

How is your franchise offer distinct?

Our business is all about leveraging and not trading time for dollars. The machines do the work rather than having to labour six days a week 10 hours a day as many others have to. Most of our franchisees use Xpresso Delight to supplement other income coming into the family home without having to sacrifice all their time doing it.

How do you benchmark franchisee performance?

We have an online reporting system that accurately shows the top 20 percent and communicates this down through each of the franchisees so they can benchmark themselves on actual references. We have specified goals and milestone mapping individually tailored to each franchisees requirement based on how they want to grow their business within their own pace.

Details

Established 14 years; 41 franchisees Established in 2004; 173 franchisees Length of agreement: 10 years Length of agreement: Five years plus one five year option Turnkey cost of franchise: $250,000 to $400,000 Turnkey cost of franchise: $69,900 + GST, NZ$64,900 + GST Are there any hidden extras? No, all costs are disclosed to the Are there any hidden extras? No AD_ F RE COJ AN_ 1 3 . p d f Pa ge 1 4 / 1 2 / 1 2 , 1 1 : 1 4 AM franchisee during the recruitment process Ongoing fees: Fixed fee $125 per month for the initial five coffee Ongoing fees: 8% royalty and 2% marketing levy systems. And as they grow $25 for each added system. F

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Want to be in the drivers seat? …err easy chair?

Do you want to really take control? The Leather Doctor franchise is Australia’s largest mobile leather care company and part of a larger group that specialise in mobile furniture repair.

Leather Doctors have been the respected name in mobile leather repair for around 20 years. Established throughout Australia and now overseas we have a proven system mostly servicing the furniture market which is a huge, $7Billion p.a. (IBISWorld’s Furniture

t 'SBODIJTFFT JO "VTUSBMJB JO %VCBJ t ZFBS IJTUPSZ t $POUSBDUT XJUI "VTUSBMJB T MFBEJOH GVSOJUVSF SFUBJMFST t 1SPWFO TZTUFN FOTVSF TVDDFTT Give us a call and we can help you take the drivers seat in your future… or in our case the easy y chair.

Retailing market research 2012)

The Leather Doctor offers a proven system that ensures success. We have a national customer base of major furniture retailers and manufacturers as well as a well recognised brand within the private market.

This is backed up by the fact that our growth has continued each year despite economic conditions.

1300 453 284 Email: info@theleatherdoctor.net.au

www.myleatherdoctor.com.au

FP Franchising Mag.indd 1

National Marketing Manager: Dean Reid - 0438 844 238

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When the telecoms sector is so competitive, itâ&#x20AC;&#x2122;s service that marks a winning franchisee, writes Domini stuart

the service

solution

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ompetition in any industry drives innovation and attracts investment to fuel further growth. In the telecommunications sector, where competition has been especially fierce, competition has brought consumers greater

choice, better service and, in particular, lower prices. But, as a strategy for building business, continuous cost-cutting can only be viable for so long.

While they operate in very different areas of the marketplace, both Nader Seifen, head of franchising and leasing

The care factor for our employees and franchisees is also much higher than any other corporate environment; they are a lot more than just a number

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Opportunities|Telecom

at TeleChoice, and Shannon Fisher, sales and marketing director of Telcoinabox, believe that exceptional service is the key to future success.

One reason is the fast pace of technological change.

“Ten years ago consumers just wanted a mobile phone,” says Seifen. “Five years ago they wanted a phone and perhaps some email access. Now, the market is being driven by smart phone technology and content.

Newer and better phones and other devices are being launched every month and there are already hundreds of thousands of applications covering everything from banking to music and live sport.”

As well as trying to navigating their way through a baffling array of technological options consumers must contend with complex offerings from providers; the way the telephone, internet and SMS usage is structured could make the difference between a $79 plan and a $59 monthly mobile phone plan.

50| fRanCHISInG jan/feb 2013

“When I’m recruiting franchisees I use myself as an example,” continues Seifen. “I am university educated and I have considerable experience in business yet, on a personal level, I find learning about the differences in mobile phones and the technology behind them quite onerous. I reckon about 80 percent of the population is like me; while they differ as to what

business or technology skills, TeleChoice training and support can fill the gap.”

Franchisees must also be committed to keeping up to date with changing technology and staying ahead of the competition in terms of product knowledge.

“We conduct regular meetings to help them keep them abreast of what’s new, including all of the changes to the pricing

This is where TeleChoice franchisees are able to differentiate themselves from the competition. They all have the skill to decipher the technical details of the various mobile phone retail service products and the complex nature of the contracts for the benefit the average consumer they want their phone to do they have the same difficulties as I do in choosing the best phone and the best plan for their own particular needs.”

The 80 percent of customers who would benefit from having someone listen to what they want and then help them to find the most appropriate and cost-effective option aren’t likely to be satisfied with an internet purchase.

“This is where TeleChoice franchisees are able to differentiate themselves from the competition,” says Seifen. “They all have the skill to decipher the technical details of the various products and the complex nature of the contracts for the benefit the average consumer.”

Along with personal qualities like drive, enthusiasm and motivation, TeleChoice franchisees must have experience in technology or business management.

“The personal qualities are non-negotiable,” says Seifen.

“Then, as long as they have either

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structures and packages,” says Seifen. “Franchisees and their employees also have access to Learning Management software which keeps them in step with any changes that happen between meetings.”

They also have the stability that comes with 17 years of measured growth. And, while TeleChoice is the largest independent mobile phone retailer in the country, it is still owned and run like a family business.

“This allows us to be more nimble and make decisions more quickly,” says Seifen. “The care factor for our employees and franchisees is also much higher than any other corporate environment; they are a lot more than just a number.”

A chance to compete with the big boys Telcoinabox gives its franchisees, or service providers as they are known, the resources and support they need to offer the full

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Telechoice franchisees help consumers simplify their phone choices

GettinG DoWn to the Detail

TeleChoice

spectrum of telecommunications solutions to residential and business clients. This includes four core services; a wide range of products at extremely competitive wholesale costs; clear and concise billing; tailored payment options and outstanding support in every facet of telecommunication.

Once again, there are high levels of competition. And, once again, it is the promise of personal service and a solution that answers their needs that attracts consumers to the brand.

“Our difference is that it’s not ‘one size fits all’,” says Fisher.

“Unlike the big guys, our service providers can tailor a solution to the customer’s needs. And, because we offer a more ‘one on one’ relationship with our customers, they appreciate the fact that they’re not just an account number.”

Clients trust Telcoinabox to provide a full service.

“Our service providers will go out and find the best and most cost-effective solution even if they don’t supply it themselves,” continues Fisher.

“As a result, most of them can build their business almost entirely on the basis of referrals.

That’s a great way to grow – it doesn’t cost anything and the customers you acquire that way tend to be more loyal.”

Maintaining a good relationship with the customer is crucial.

“We encourage our service providers to spend time talking to their customers and getting to understand their business so

they’re well placed to be treated as a trusted adviser,” says Fisher.

“It’s also important to make regular contact with your clients – but only if your calls are of value or interest to them. They’ll soon lose patience if you try to sell something to them each and every time you call.”

A constant stream of new products and solutions are also fundamental to continuing competitiveness.

“Greater efficiencies and next-generation solutions allow our service providers to deliver higher margins,” says Fisher. “For example, they can offer customers MyPBX, a cloud-based alternative to installing and maintaining a conventional system. As we deliver all of the services the customer needs from the cloud, and only charge per extension, this can save them thousands of dollars.”

Successful service providers are skilled in sales and marketing and have a positive approach to the business – entrepreneurs rather than someone who simply wants to buy a job. They must be

Started franchising: 1995 Number of franchises: over 150 outlets across Australia, predominantly in major shopping centres.

Start-up cost: An entry-level investment of $200,000 plus GST covers the full business setup including working capital and bank guarantees.

Training: A four week pre-entry training course includes two weeks of in-store hands-on product training, a week at head office learning about back office processes and a week with a key home-state franchisee to create a ‘buddy’ for strong ongoing support. Training is then provided on a continuous basis.

Telcoinabox

Started franchising: 2003 Number of franchises: over 150 across Australia and New Zealand Start-up costs: $45,000 plus GST Training: Online training provides basic knowledge of the products, systems and teams. This is followed by group training sessions which teach the service providers everything they need to know to be able to start trading.

Road shows, conferences and ongoing ‘on-the-job’ training are then provided on a continuous basis. focused on building a business and hungry for success, and the support of family and friends is also an important factor.

“As a part of our business model we provide customer support services so that the Telcoinabox service providers can focus on customer acquisition and account management,” says Fisher. “And, as our service providers aren’t limited by geographical boundaries there’s no limit on income.” F

As a part of our business model we provide customer support services so that the Telcoinabox service providers can focus on customer acquisition and account management. And, as our service providers aren’t limited by geographical boundaries there’s no limit on income www.fRanCHISe.net.au

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Love cars? Want to work with them every day for a living? What attributes and skills do you require to invest in your own car-focused franchise? You might be surprised at how easy it can be to indulge your passion and earn a living

gearing up

for business W

hen it comes to running a business that involves cars, most opportunities exist in the automotive services, whether that’s working directly on vehicles or providing a service to mechanics. Here is a taster of franchises in this arena.

SupeRFINISH expReSS

For franchisees new to the sector, the best part about investing in a Superfinish Express franchise is that no experience is required. The franchisor team has trained franchisees from all walks of life, including carpenters, mechanics, electricians, chefs and teachers.

The franchise model is based on dealing with trade customers so franchisees can 54| FRANCHISING jAN/Feb 2013

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establish a relationship and enjoy the benefits of repeat business.

With no technical skills required there is of course extensive training for new franchisees– five weeks in all, three in a classroom environment and a fortnight out in the field.

Tracey Liset, marketing manager at Superfinish Express, explains “Initial hands on training consists of a minimum of three weeks one-onone instruction at the national office training facility in Brisbane. Training is conducted by fully qualified and experienced trainers and covers step by step instruction through the repair process, customer service, e-billing, laptop navigation and sales and marketing.

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“Immediately following the initial training period, a two week hands on support program is provided in the franchisee territory to assist in establishing a customer base and to oversee the early work.”

Franchise support

Admin support is a key feature of the Superfinish Express franchise offer: the head office admin team is regarded as an extension of a franchisee’s business. This means the admin team runs the franchisee accounts, chases up the payments from their customers, makes a regular payment every week on invoices submitted and provides monthly reports which document business

Superfinish Express wants its franchisees to succeed, that’s why it is committed to providing ongoing technical and business support to keep franchisees up to date with the latest repair techniques and products; and to enable franchisees to discuss and share experiences progress, including sales data, customer evaluation, comparison graphs and progress assessments.

Another attraction for franchisees who want to get off to a good start, a guaranteed minimum income of a $1000 per week for the first five weeks following the successful completion of www.FRANCHISe.Net.Au

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We’ve got all sorts of backgrounds, if someone has a trade background that does help. But the majority of our franchisees have been anything from truck drivers to IT professionals. The best franchisees have a passion for cars

Franchisee support is a focus at Superfinish Express

the initial technical training, if the performance targets have been met.

Franchisees also have the opportunity to purchase products at low prices.

Says Liset, “Superfinish Express wants its franchisees to succeed, that’s why it is committed to providing ongoing technical and business support to keep franchisees up to date with the latest repair techniques and products; and to enable franchisees to discuss and share experiences.”

Support takes the shape of a technical help line available seven days a week, an intranet site providing 24/7 access, regular field visits and regional workshops, bi-monthly newsletters and a national conference.

wHAt SCRAtCH?

Dale and Matt Burke, franchisors of What Scratch?, began their business back in 2009.

First up, says Dale, there’s no easy blueprint for a franchisee. “We’ve got all

Car dealerships are the core customers at What Scratch?

sorts of backgrounds, if someone has a trade background that does help. But the majority of our franchisees have been anything from truck drivers to IT professionals. The best franchisees have a passion for cars.”

A fastidious nature is an important attribute too, she says; the pair are on the alert when visiting franchisees for clues on how they care for their homes and cars. “This is a fussy job and we’re marketing ourselves as more than standard detailing, a bit more high end.”

In fact the work is focused on exterior detailing through paintwork, getting the car shiny and glossy. There are multiple steps to the process at What Scratch?, and for the company the focus is on quality.

“Speed comes with experience,” says Dale.

Car dealerships are the core customers but the business is seeing growth in the private client sector fuelled by the website – there are 2,500 customers online.

Franchisee support

What Scratch? introduced an online distribution system that allows franchisees to receive job allocations through an App on the companysupplied smart phones.

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As the franchisor keeps the customer database it’s easy to assist franchisees with marketing strategies to their existing clientele.

“All they have to do is update the job status. We send out a thank you postcard to the customer and we can go back to their customers a year later.”

The plan is to build up a base of customers who are getting their car paintwork serviced annually.

“The private custom is growing very rapidly.

For a franchisee one or two jobs a week can turn it into a great week.”

The franchisor provides MYOB software and a trainer sets this up for the new franchisee and ensures they are confident to use it for accounts from processing receipts to doing BAS statements.

There is four weeks training for new franchisees, Dale explains. “Once the franchisee has paid the deposit for their territory we go in and do demos for the car dealers and service them. Once the customer is on board, franchisees are trained at the dealerships. There’s a bit of overlap in the transition to the franchisee.”

Once franchisees are comfortable with their skills, and have speeded up the service, they are likely to look around for more work.

“We source the business, that’s what we’re good it.

It’s easier and more effective,” she says.

AD_ F ROV E J AN_ 1 3 . p d f Pa ge 1 1 0 / 1 2 / 1 2 , There are 150 dealerships on the books, and 16

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AD_FRPWCJAN_13.pdf

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)UDQFKLVLQJ EUHZV VWURQJ EXVLQHVV JURZWK What do you value?

After operating an award-winning coffee roastery and two successful cafes in regional Queensland, husband and wife team Jasen and Karen Barrie from 6H[LH &RIÃ&#x20AC;H ZHUH ORRNLQJ IRU GLUHFWLRQ WR KHOS WKHP JURZ 7KH FRXSOH ZHUH considering a number of opportunities â&#x20AC;&#x201C; including additional cafes, expanding WKHLU ZKROHVDOH FKDQQHO LQFUHDVLQJ WKHLU ZHE SUHVHQFH DQG UH Ã&#x20AC;WWLQJ FXUUHQW VWRUHV /RRNLQJ IRU WKH EHVW VWUDWHJLHV WR KHOS WKHP UHDOLVH WKHLU EXVLQHVV DQG personal ambitions, they turned to PwCâ&#x20AC;&#x2122;s Private Clients Consulting team to KHOS WKHP Ã&#x20AC;QG WKH ULJKW PL[ -DVHQ DQG .DUHQ GHFLGHG WR JURZ WKHLU EXVLQHVV WKURXJK IUDQFKLVLQJ DQG ZRUNHG ZLWK 3Z&·V 3ULYDWH &OLHQWV WHDP WR VWUHQJWKHQ WKH FXUUHQW 6H[LH &RIÃ&#x20AC;H RIIHULQJ DQG SUHSDUH WKH EXVLQHVV IRU JURZWK 7KH VXFFHVVIXO EXVLQHVV GXR DUH ORRNLQJ IRUZDUG WR ODXQFKLQJ WKH 6H[LH &RIÃ&#x20AC;H IUDQFKLVH RSSRUWXQLW\ LQ

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franchisees in WA and NSW. “We’ve moved from Perth to Sydney to grow the business,” says Dale. “People could see we were committed to the business.”

The Burkes plan to target Victoria next, to establish a base that can start to pick up the stream of enquiries from potential customers keen to get their car paintwork glossed and perfect.

NANOteK

What attributes and skills do you require to invest in the Nanotek mobile car detailing business?

Franchisor Jim Cornish says, “The biggest skill is probably customer service, having good basic people skills. We don’t have a single franchisee who has detailing experience. We teach it all, but customer skills, being a likeable person, is a good start. In our sales training we spend a lot of time on that.”

“It’s the difference between a great franchisee and one who is just ho hum.

“Our best franchisee has just 250 clients on his books but they get their cars washed every month – it’s his people skills.

“Secondly we look for

entrepreneurial spirit, but combined with team spirit.

“Franchisees who are too entrepreneurial sometimes have to be pulled back from trying something because we’ve done it and know it doesn’t work, At the other end of the scale is the franchisee who wants everything done for them.

“We need a proactive, team oriented person.”

Two weeks induction includes one week in the classroom learning the ropes of the business, from business management to understanding the territories to sales skills and product knowledge.

In the second week, Adam Stone, the franchise development manager will go out in the field with the new franchisee and work alongside them, giving support in generating work, building the database, working on the cars.

Then franchisees get regular follow ups. “We’d be out with

Nanotek is expanding overseas and launched in Russia last year

In a mobile service business it’s harder to provide support, there’s no concrete site. Franchisees need lots of initiative to generate work

The Nanotek head office support team

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them one or two days a week, until they tell us to go away,” says Cornish.

“We’re available 24/7 and there’s an online forum, and our Nanotek Support Program of modules. We run six a year, because we know that when you’re in intensive training your mind is in a million places at once, it’s not focused.”

The six modules are follow-up workshops that pick up from themes in the initial week’s training program.

“It gives us a solid foundation for their business, where they need to focus,” he says.

AD_ F RGJ GJ AN_ 1 3 . p d f

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We’ve increased our operations too, and gone from one corporate car on the road to six. This sets a benchmark for franchisees and we’ve learned a lot Even with franchisees established for six or seven years, a field manager will spend time with them every couple of months.

“In a mobile service business it’s harder to provide support, there’s no concrete site. Franchisees need lots of initiative to generate work.”

Nanotek has stepped away from the heavy support package it provided when it started out, as a few franchisees took the business backup for granted, he says. “Now they appreciate what you do.”

But before franchisees even get to sign up to a franchise, before they even sight a disclosure document, Nanotek hands them a questionnaire that sifts out some of those unlikely to make a success of the business. Potential franchisees are questioned on their goals, and actions they 4 : 0 4 PM might take once in business. “It can set off a lot of warning bells,” Cornish says.

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“The hard thing has been visibility of information.

We’ve just introduced Point of Sale so we can see the turnover. We can spot potential problems. With that information we can pick up if franchisees need help with new business or upselling, for instance.”

As the business announces further overseas expansion, this time into the neighbouring countries of Czech Republic and Slovakia, there is confirmation of three master franchisees signed up in the Russian market.

Three years ago Cornish set a target of 2012 to complete the rebranding of Ecowash Mobile to Nanotek. “It’s a sign we’re serious. Ecowash was a happy brand, but Nanotek shows we are taking the business to another level.

“We’ve increased our operations too, and gone from one corporate car on the road to six. This sets a benchmark for franchisees and we’ve learned a lot.

“Australia is the big focus for us. We’ve got a good recruitment strategy and we’re looking to increase our presence in all the metro areas.”

SNAp ON

Snap On Tools Australia has been quietly going about its business of retailing tools for the auto and aviation industries for more than 20 years; now its success as the smallest, and yet most profitable subsidiary of the US based global company is coming to light.

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Nick Hudson, national franchise manager, believes some of the success can be attributed to removing the barrier to finance with an in-house finance offer to help fund franchisees’ entry into the business, and the web-based discovery tool which helps prospective franchisees understand the business.

“The process can be as quick or as slow as people want. If we have territory and a truck available, it can be speedy,” says Hudson.

The most recent franchisee, who will be based in Auckland, had just left for two weeks of training at the US headquarters, and had taken only 35 days from initial inquiry to reach this point.

We’re about relationship building with our customers, going back to the same customers the same time each week. It also suits guys who like to play around with tools, but they don’t need an auto or mechanic background

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Although the franchise revolves around providing high quality tools and diagnostic equipment to mechanics, franchisees don’t need to join the business with technical know-how.

“The technical knowledge is learned in the field with the franchise development manager. Franchisees go to boot camp [at the US head office in Dallas] to understand sales, how to present the products and the software. There’s a focus on developing their business skills,” says Hudson.

This is followed by two days at the Sydney HQ when franchisees spend time in each department, gaining an understanding of how the whole business is run and the process of getting orders out to the trucks.

“Then we send them back to their territory, and the franchise development manager takes over, working with them day in, day out for two to three weeks, showing them how to put the theory into practice.”

Once a franchisee is up and running, the person they will have the longest relationship with is the sales development manager, someone who rides with them in the van, conducts business reviews and presents monthly sales meetings to a group of 10 to 12 franchisees.

The separation of support roles is much clearer now at Snap On, he says, and this is a deliberate

We’ve taken away the financial hurdle and can really make sure we have the right people the business needs

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strategy. For instance, diagnostic product specialists can be called in to meet clients, analyse problems and demonstrate high-tech equipment solutions.

“We’ve spent time on redefining roles, taking responsibility from sales development managers to allow them to develop sales for their franchisees. We were asking too much of too many people.”

So franchisees have on hand assistance with sales, with high level diagnostics, and with business development.

One individual has been appointed asset manager to nurture those franchisees who need extra help with keeping their business on track.

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We’ve spent time on redefining roles, taking responsibility from sales development managers to allow them to develop sales for their franchisees “There’s just one, he’s highly skilled in business development and has been on the trucks. He can work with franchisees one-on-one,” says Hudson.

While some franchisees are quite happy to work for themselves, free of any staff, others do look to expand and take on bigger challenges. Snap On can provide help in business development and financing the growth.

Growth often comes from splitting territories, something that franchisees aren’t always keen to embrace. But experience shows that with good analysis of the opportunities in the territory, working in a smaller area increases efficiencies.

So who makes an ideal franchisee? “A people person, that’s one attribute you can’t teach,” says Hudson. “We’re about relationship building with our customers, going back to the same customers the same time each week. It also suits guys who like to play around with tools, but they don’t need an auto or mechanic background.

“We’ve taken away the financial hurdle and 1 1 : 1 6 AM can really make sure we have the right people the business suits.” F

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build your own

business if you have the vision of running your own building services firm, whether the job is focused on grand scale house building, or the all-important hands-on detail of home maintenance and restoration, check out what these franchises have to offer

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W

hile some franchise opportunities are insistent on building knowledge and experience, it’s also possible to enter the building services sector with no technical skills and soon be running your own business. That’s the beauty of franchising, where a willingness to learn, a good customer services approach, and the ability to follow the system can bring success to a novice in the industry.

bAtHRoomweRx At BathroomWerx franchisees are offered support in technical training,

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admin support and mentoring.

CEO George Yammouni explains “Bathroom Werx offers new franchisees a four week training course at our head office facility in Melbourne. The training course also includes airfares and accommodation.”

There’s technical and hands-on training on the many aspects of bathroom makeovers.

“We find that it takes a technician to have done about 20 bathrooms before he becomes competent and confident at doing the work,” says Yammouni.

“Sales and admin training covers the face to face conversations that

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We are in business with our franchisees â&#x20AC;&#x201C; we have to convert the leads we get into sales or they do not have jobs to do. We are both truly dependent on each other for survival â&#x20AC;&#x201C; we get the jobs for them and they do the work

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our franchisees have with their customers and the knowledge required to be able to provide a solution for a customers bathroom as well as pricing the work.”

Further training on-site occurs two weeks after the business is started.

“This gives them time to settle in and do a

Sales and admin training covers the face to face conversations that our franchisees have with their customers and the knowledge required to be able to provide a solution for a customer’s bathroom few jobs on their own. We have found this to be the most effective time to return which provides them with the most benefits. Sometimes they forgot some of the things that we did during the training and this time is spent reviewing a lot of training.

“After that we visit them again six months later. Telephone support is provided immediately

and they have access to three different people who will provide technical, sales and admin support and backup.”

Bathroom Werx has a call centre team which provides customers with prices, can book jobs and quotes and send out further information.

Says Yammouni, “With over 27 years’ experience, we have learnt the best way to run this business which makes the most amount of money for our franchisees. In the capital cities we even go out and do the quotes for our franchisees. This leaves them free to do the work and concentrate on providing the

Life makeover: franchisee story What makes a man leave his country, family and friends to migrate all the way to Australia? The latest addition to the BathroomWerx Team in Sydney, Ali Hamadi, has done just that.

Ali and his new wife migrated to Australia in 2007 from Lebanon where he worked as a graphic designer and had owned a children’s wear clothing and shoe store.

Shortly after arriving in Australia, Ali got a job with a Bathroom Werx franchisee in Sydney. It didn’t take him long to learn the trade before he was out on his own as a full time technician.

When the opportunity arose to buy his own franchise in Sydney, Ali jumped at the chance. “It is in my blood to own my own business so I was very

68| FRANCHISING jAN/Feb 2013

pleased when I was accepted to become a franchisee!

“BathroomWerx runs a very good system which makes it easy for me as a franchisee to concentrate on the work that I am doing so that my customers end up with a great job. I have been in business before in Beirut and I know all the work that goes into running a business and how overwhelming it can

That’s what attracted me to BathroomWerx – they make being in business so easy be when you are trying to do it all yourself.

“Sometimes you end up doing more admin work that makes you no money instead of being in front of customers serving them and putting money in the till. That’s what

attracted me to BathroomWerx – they make being in business so easy,” says Ali. At just 28 years old Ali is one of the youngest franchisees in the group.

He is passionate about his business with many

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customers commenting on the quality of his work and his excellent customer service skills.

“I enjoy making bathrooms look like new again. And I enjoy it when I see the big smile on my customers faces when I show them their new bathroom after I have finished,” says Ali. “And I love owning my own business!”

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customer with the best possible quality finish.”

It also means that franchisees don’t need an expensive infrastructure to support their business because franchisees simply log onto the network to find out what they are doing next.

The company also implements the marketing plan in each of the franchisee’s territories and keeps track of the results.

“We are in business with our franchisees – we have to convert the leads we get into sales or they do not have jobs to do. We are both truly dependent on each other for survival – we get the jobs for them and they do the work,” says Yammouni.

GJ GARDNER HOMES Ross Morley, G.J. Gardner Homes managing director and master franchisee for Victoria/ Tasmania, says franchisees in the housebuilding franchise have a diverse range of backgrounds.

But there are common traits and skills the business looks for in new blood for the franchise network.

Tanya and Chris Dell, franchisees in Tasmania. Read their story on page 77

For starters, franchisees must either be a registered builder or partner with one, and either have run their own small business or again, be in a partnership with an experienced business owner.

The franchisor is also looking for individuals who have the desire to move from being a builder to a business person who works in building.

When it comes to support for franchisees to get their business up and running, GJ Gardner can help with office selection and lease negotiations if needed;

office layout and signage design; sub contractor advertisements, meetings and pricing; short list staff selection, help with interviews if needed; and initial advertising – corporate and local advertising is paid for and organised for the first three months.

The franchisee undertakes two weeks of training on software and about the franchise system too, and once the business is running, can take advantage of on-site training and support staff visits.

Sourcing customers focuses on internet based marketing, advertising across various media, through display homes and new home design centres, referrals and house and land packages.

The Smith and Sons business

Franchisees must either be a registered builder or partner with one, and either have run their own small business or again, be in a partnership with an experienced business owner. The franchisor is also looking for individuals who have the desire to move from being a builder to a business person who works in building 70| FRANCHISING JAN/FEB 2013

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is considered G.J.’s sister company, as it uses the same software and has some common ownership in the building trade. However Smith and Sons focus solely on additions and alterations.

GRout PRo GroutPro Australia operates in the home services and home renovation markets offering low cost tile and grout restoration, although there business is done in the commercial sector too. The new owners of the Grout Pro Australia business have signed contracts with 10 existing franchisees after taking over the business in June 2012.

Wayne Burns and Geoff Biddle bought the rights to operate the Australian business and brought with them years of experience in business management, retail tile and AD_ F RF CBNOV _ 1 2 . p floor covering, as well as technical services.

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Geoff Biddle explains “We’ve just recently finalised the purchase of the business with former franchisees re-signing in the knowledge they will now have excellent support, stability and the confidence df Pa ge 1 2 / 1 0 / 1 2 , to build their own businesses.

We all anticipate a long and

The system is a multi-award winning franchise in New Zealand for good reason and has systemised a unique set of services combined with the best professional grade 4 : 3 5 PM products on the market

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prosperous future for GroutPro and a period of strong growth.”

A more user-friendly franchise agreement has also been introduced, he says. “My business partner who is now part owner was formerly a franchisee of GroutPro so he has seen the business intimately from inside and out. We both saw the potential of the business due to its significant success in New Zealand, where they recruited around 40 franchisees in three years.

“The system is a multiaward winning franchise in New Zealand for good reason and has systemised a unique set of services combined with the best professional grade products on the market.”

GroutPro was the Westpac New Zealand Franchise

Awards 2011/2012 Franchise Export Winner, and in the same awards, was highly commended in the Home Services Best Franchise System category.

The business has also notched up a host of wins and commendations across marketing, innovation, business growth, professional service, small business, technology and lifestyle categories in a variety of award programs.

GroutPro is all about the products and the systems, says Biddle. Only fully accredited franchisees have access to the proprietary range of professional quality products and no shop bought or DIY products are used.

A great deal of time is spent making sure that franchisees have access to world leading products and systems,

We never rest on our laurels and are continually looking for ways to improve what we do. Our two benchmark sealing systems are the best of their kind in the world

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which are under continual development. Says Biddle, “We never rest on our laurels and are continually looking for ways to improve what we do. Our two benchmark sealing systems are the best of their kind in the world.”

Alongside these sealing services franchisees offer tile and grout cleaning, recolouring, damage repair and regrouting, anti-slip

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treatment, shower glass restoration and exterior cleaning of paths, decks and drives.

Continual up skilling of franchisees is important to the business. “Our operations manager recently returned from Perth where he held a two day training course on new systems and procedures.

For our existing franchisees these additional training days are held several times a year and are designed to keep our franchisees skill set at the highest levels possible.

“We are in the process of fitting out our new training centre in Queensland. All new GroutPro specialists spend a full week onsite at the course.

You don’t need to have a trade base behind you as you are trained in all aspects of the GroutPro specialists system.

“If you have ever picked up a paint brush, can follow systems and procedures and have attention to detail, you will love the course. It’s pretty full on but we have a bit of fun as well,” says Biddle.

There are franchisees in Perth, Melbourne and Brisbane and the company plans to build further awareness of its services and opportunities through expos.

“We attended the Brisbane Home show and had a lot of

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interest in the services offered,” Biddle says. “The tile and grout restoration business is a billion dollar industry in the US and we’re currently experiencing huge growth in the Australian market, and demand for our services has never been greater.”

SmItH & SoNS

were more about the business and how to grow it,” he explains. “I had a good feeling about [state masters] Geoff and Steve.

“I felt there was a lot of honesty there, and it was a good business deal. I liked the blokes. I think the core values are great.”

Working with someone you have little knowledge of was always going to be a challenge, says Gerald. But the pair took a leap of faith that their partnership would work and signed up. “We decided to do it pretty quickly. It was a good offer, it made sense.”

With his partner Vinay Gandhi bringing the building qualifications and Gerald the management skills, the pair has clearly defined roles. Gerald’s

Gerald Cresswell first came across the Smith & Sons business back in 2009 but he wasn’t keen to commit to the brand on his own (he and his family had recently arrived in Australia on a business visa from Zimbabwe).

But if Smith & Sons came up with a young builder keen to share the business he would be interested. It took 18 months for the franchisor to get back to him with a proposed partner, and a lot had changed about the business in that time, he says.

“They were a lot more AD_ F RCORJ AN_ 1 3 . p d f professional and the Queensland management had changed. They

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wife Jane manages the accounts and is involved in quotes, while Gerald forms the link between the admin and the building sites.

“We do renovations and extensions, a bit of commercial work, cosmetic renovations on aged care homes, residential work and mezzanine floors in factories.

“We get customers through advertising; we can track our leads so we know where to spend and Smith and Sons give some training, and we have quarterly meetings.

“It’s a well thought out process. It’s all about the process to get a fixed price

quote. The customer should have no lingering doubts; I insist the customer is confident before we start.”

Juggling the workload, and the labour required, is a constant challenge. A few months ago the Capalaba business had nine projects on the go. At such times there might be 10 carpenters required, in other months only one.

“The construction business is hard,” says Gerald. “But it would be much harder without Smithies. I was in a farming community in Zimbabwe and I feel I’m part of a family business now. They’re a great bunch of guys.” F

Start-up support

The master franchisee for Victoria and Tasmania, Ross Morely, supported Chris and Tanya during the set-up phase.

“Ross assisted us with our business plan, helped us select a suitable site for our office and ensured we kept on track with our timeline,” Tanya says.

“We’re thrilled to be able to put our stamp on the product we produce and consistently deliver a standard of home that we pride ourselves on. Despite joining a franchise network we are still considered local, custom builders.”

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Chris and Tanya Dell are the only GJ Gardner Homes franchisees in Tasmania. The couple started the business in February 2011 in Launceston, and now employ four staff members.

But they weren’t new to the trade. Chris and Tanya had been running their own building business for about 12 years before re-badging to GJ Gardner Homes.

So why did they invest in the franchise model? For starters, the opportunity to become involved in larger volume building projects while remaining local.

Tanya Dell says “We had established trusting relationships with local suppliers and contractors over the years who we wanted to continue using.”

The pair also liked that the model caters to the custom homebuilder. “GJ Gardner Homes offers plans that are priced and ready to go but we also allow customers the flexibility to customise their designs,” she adds.

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Issues|Multi-units

Multi-unit franchising is a completely different ball game to operating a single site or store.

Here, Danielle Bowling gets the inside word from representatives of three very different business models about their own expansion experiences

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any franchisees are content with having one shop front or territory, often being hands-on day in, day out and enjoying the responsibility as key decision-maker at all levels of management. Others, however, are more entrepreneurial and are not satisfied at one site; they are eager to duplicate the systems that worked so well the first time to create a network of successful businesses.

But multi-unit franchising isn’t something you can jump into without serious consideration. While it can bring you significantly more revenue and buying power, it’s not as easy as recruiting more staff and

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replicating a cookie-cutter business model.

Three people with first-hand experience share their thoughts.

Hire a Hubby CEO, Brendan Green

Mobile handyman franchise Hire a Hubby has actually watered down its focus on multi-unit franchising, buying back a number of territories from franchisees because it was clear to Green that they weren’t quite ready for expansion.

He’s now focusing on educating franchisees on what’s required of them before they grow: at least 15 months of experience in the system

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and two employees capable of performing job quotes – something Hire a Hubby refers to as the ‘you and two’ model.

“As a consequence, there are more guys that will be far better equipped to run a multi-unit business than they were previously. So we expect over the next two to three years that multi-unit [franchising] will probably come back as a strong focal point. There is still a handful of guys doing very well

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out of it because they were already well structured, but we’re just a bit more discerning now. We’re not allocating them too quickly and we’re probably doing the guys a favour by not giving them a second one when they first think they want one,” says Green.

Hire a Hubby’s ‘you and two’ model is imperative to expansion as it means jobs can be completed and future ones quoted at the same time.

“That’s the key to keeping

There’s the old saying ‘employ people to do the tasks that you can’t do’ and I understand that, but you need to get the respect from your staff WWW.FRANCHISE.NET.AU

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the business ticking over. Once you’ve got a second territory you’ve got to expect, as a minimum, double the volume coming through, which one person can’t handle,” says Green.

“We consciously bought back a large number of them and on-sold them because we just found the guys didn’t have the depths in their ranks.

We were turning good franchisees into average franchisees as a consequence of their depth not being big enough.

“We support multi-unit franchising, but not without a very robust prior structure being in place for the franchisee,” he says. “As most franchisees will say, it’s easy for an existing franchisee who’s happy to say they can make it, but in the long term are they going to be happy with

what you’ve sold them a second time? My experience is probably 50/50, prior to putting these sort of measures in place.”

PoolWerx multiunit franchisee, Tony Graham One person who’s definitely happy with what he’s been sold is Tony Graham, who with his wife Michelle, was last year named National Winner of the Multi-Unit Franchisee of the Year award at the National Franchise Convention’s Excellence in Franchising awards.

Tony and his wife, who first bought into the poolcare franchise in

They just need to care. The lessons, the academic stuff, the operational stuff, can all be taught. If you give me a person A D _ F R J E MN O V _ 1 2 . p d f Pa ge 1 1 9 / 1 0 / 1 2 , who cares, the rest we can sort out

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2002, have four retail PoolWerx stores and six mobile vans in Samford, the Gap, Heperra, Indooroopilly, Kenmore and Chapel Hill.

Coming from a management background, Tony always planned to grow well beyond a single shopfront, and he says the poolcare industry makes expansion more achievable than in other markets.

“It’s a little unique in this industry as opposed to food, for example, where you can’t just buy out a competitor and change the name, whereas I can. So if a competitor comes up for sale and they’ve got a solid business, I can say ‘Yep, that’s a viable business stand-alone already. I can bring it into the PoolWerx brand.’ So opportunity is first and foremost.

Expansion is something I’ve always wanted to do, but it never comes at the right time so you’ve got to make it happen,” he says.

Graham says one of the best parts of being a multi-unit franchisee in the PoolWerx system is the year round stability it can offer in what is typically a seasonal industry.

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“[PoolWerx] is not totally service, not totally retail. One feeds the other and if one’s down, generally the other’s OK and we’ve got our regular service contracts that keep us going through winter. That’s the other thing – it’s a very seasonal industry so if you don’t have a good, solid, regular client base that you serve on a weekly, monthly or fortnightly basis, you’re going to struggle through winter, particularly if you’ve got retail with high rent,” he says.

Like many multi-unit franchisees, Graham insists that in order to be respected by your team and truly understand the business at all levels, you need to spend a lot of your initial time in the system getting your hands dirty.

“You’ve got to be better than your staff, simple as that. There’s the old saying ‘employ people to do the tasks that you can’t do’ and I understand that, but you need to get the respect from your staff. And in the pool industry there are a lot of experienced guys out there and you can’t pull the wool over their eyes. You need to be better at it, you need to be better salespeople than them and you need to be technically better so you can offer advice and so at least they respect you as an operator.”

But that doesn’t mean you have to put these hands-on skills to work every day; a good multiunit needs to step back at some stage in their

When you get to three and four stores you’ve got to understand that it’s a business and you can’t be face to face with all the people and you can’t understand 2 8 / 0 3 / 1 2 , 1 0 : 1 5 AM everyone’s pools.

It’s a big shift in mindset

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growth and embrace more of a managerial role, Graham advises.

“When you get to three and four stores you’ve got to understand that it’s a business and you can’t be face to face with all the people and you can’t understand everyone’s pools. It’s a big shift in mindset when you go into the third and fourth [franchises] because you think ‘I’m a business operator now, I have to focus on staff, systems and KPIs rather than the warm and fuzzy one-on-ones with the customer’. I still get a bit of that, but it’s a different mindset now.”

As a multi-unit, once you start to get that extra layer of management in there, they need to be part of that decision making process, so you have to be collaborative

Hani Sidaros, McDonald’s multi-unit franchisee Showing your staff that you understand the business at a grass-roots level and can relate to their experiences is also a high priority for

Secrets to success Carolyn McManus, who has five The Coffee Club outlets around Townsville and is also the first franchisee of a Ribs and Rumps outlet, says a good multi-unit franchisee needs to be able to detach themselves emotionally from their businesses.

It’s the hardest part of growing your business, McManus says, but is essential in making sound business decisions.

“Handing over control was the key for me. It happened at about store four, when it became very apparent that I was too emotionally invested in the business. Some of my decisions, when I looked back, I realised that they were skewed based on emotions. That was when we brought a general manager into the business, to run it from a business perspective,” she says.

“If I talk to people that are planning to go to that multi-unit level, they always get caught saying, ‘I don’t know if I’ll be able to let go or if I’ll be able to give up that level of control’. It’s not easy to give up that level of control... it just takes practice. It took me nine

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months before I actually, truly let go.

You definitely need it though, because if you look at any corporate business you need that extra level in there.

You’re absolutely still a franchisee but when you’re that big as a multi-unit, you have to see yourself as a CEO. Your perspective needs to change.”

What makes this very important emotional distance possible is hiring a team of people, who combined, have all the right skills to run a successful business.

“You have to be able to keep tight controls on your KPIs, and you have to include people in the decision making. As a multi-unit, once you start to get that extra layer of management in there, they need to be part of that decision making process, so you have to be collaborative.

“Also, if you’re a numbers person then you need to make sure that the person you employ as your right-hand man or general manager isn’t the same as you, they can’t be a numbers person too. So for me, my strength is the big picture stuff, the visionary stuff. I don’t like detail. So my general manager and

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financial controller are very strong on detail. The key is to recognise what you’re good at and make sure you balance it with someone who has different skills to you.

“You also need to recognise that you’re going to drive each other up the wall sometimes because of that.”

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McDonald’s franchisee Hani Sidaros, who has eight stores in the ACT. Sidaros can safely say he knows the business through-and-through, starting out flipping burgers as a 15 years old, then working through the ranks and eventually become a fully-fledged franchisee in 2003. But it wasn’t until after he’d completed a uni degree and seen what else was around that he decided the Golden Arches were for him.

His story can be a reality for any of his 750 or so staff members, he says.

“I push that among my advisors. I say that I was broke at the age of 25 and didn’t know exactly where I was going or where life was heading, and then I needed to make a decision. I’m just like them. I was a 15 year old cooking hamburgers for pocket money.”

Sidaros’s one tip for setting yourself up as a

It always gets harder as you grow, but I just back my abilities and the team that I have around me. People are the cornerstone of McDonald’s and franchising. If you don’t have AD_ F RS I G2 J AN_ 1 3 . p d f Pa ge 1 2 6 / 1 1 / 1 2 , that part right, you’ll go nowhere

successful multi-unit franchisee is to surround yourself with the best team possible.

“It always gets harder as you grow, but I just back my abilities and the team that I have around me,” he says. “People are the cornerstone of McDonald’s and franchising. If you don’t have that part right, you’ll go nowhere.

8 : 5 2 AM “It’s all about resources. As long as you’re up to the challenges and you can commit – obviously

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I can’t get to every store every day like I used to, I can’t be everywhere at all times, but I’ve got an unbelievable group of individuals around me that just defy belief in terms of the performances that they give me every day.”

Sidaros originally began franchising with McDonald’s in NSW, with St Clair being his first store. After taking over a second Sydney store in 2007, he was keen to continue growing but there were no opportunities available. So Sidaros expanded his horizons, came across an opportunity to take over four McDonald’s outlets in the ACT, sold his two existing businesses

and made the move.

He’s since opened or taken over four more outlets – two this year alone – and further expansion is definitely on the cards.

And again, all he says he needs to make it possible are the right people.

“You need to have the best of the best around you to go anywhere if you want to grow.

And at the speed we’re growing, you need to have only the best.

“For me it comes down to one word – care. They just need to care. The lessons, the academic stuff, the operational stuff, can all be taught. If you give me a person who cares, the rest we can sort out.” F

We support multi-unit franchising, but not without a very robust prior structure being in place for the franchisee

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Just follow the system – perhaps the most common advice any franchisor could give their franchisees. But is franchisee performance down to the system, or the franchisee? Jason Gehrke looks at the issues

LIFTING THE FRANCHISEE

PERFORMANCE CEILING H

igh-performing franchisees are not just those who follow the franchisor’s system, but who also add to the system by highlighting improvements. They must also be highly motivated to regularly review their own performance and set new goals, or else risk limiting their own growth through the three deadly Cs of franchising: a lack of confidence, a lack of capacity, and complacency.

FOLLOW THE SYSTEM Franchisors often feel frustrated when franchisees who they believe could run much better businesses don’t follow the system. “Just follow the system” is perhaps

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the most common advice any franchisor could give their franchisees, but it begs two main questions: firstly, how thorough is the system, and secondly, how thoroughly do franchisees execute the system?

In the main, franchisor founders are entrepreneurial types who see an opportunity to build a business in an underdeveloped niche. A typical characteristic of entrepreneurs is that their long-distance focus on realising potential is often matched by a lack of attention to detail in the short term.

This short term lack of attention, if not addressed by other members of the entrepreneur’s team, can compromise the effectiveness of systems to train and support franchisees.

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In their rush to capitalise on a business opportunity ahead of competitors, new franchisors often fail to invest sufficient resources in the organisational details necessary to create outstanding business performers from the uninitiated.

Not surprisingly, many new franchisors find they have much greater support demands placed on them by new franchisees, than by experienced franchisors who have learned the hard way that extra resources invested into training reduces the reactive consumption of support resources later.

Consequently, advice to “just follow the system” rings hollow in the ears of franchisees who perceive the system to be lacking, and whose growing knowledge of the system increases their concerns that it was underdeveloped from the outset.

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While the system - that special blend of training, know how and marketing nous that creates a successful franchise – is intended to help launch a franchisee to hitherto unobtainable heights, the system could equally create a performance ceiling that limits the very heights to which a franchisee can soar.

Let’s consider the example of a system where a franchisee is required to manually complete complex and time-consuming reports about business activities.

Such work is laborious, and reduces the amount of customer-facing or business development time available to a franchisee. On the other hand, the system could be developed so that such reports are automated by linking to the business’ point of sale technology and require no additional effort on behalf of the franchisee to produce.

Such an innovation will be self-apparent to franchisees often before it is obvious to a franchisor (or at least, before

New franchisors often fail to invest sufficient resources in the organisational details necessary to create outstanding business performers from the uninitiated

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a franchisor acknowledges that it requires a further investment in the development of their system).

Where franchisors can create improvements in their system which save franchisees time and resources, it follows that the time and resources saved can be reinvested by the franchisee to lift the performance of their business.

To raise the overall performance level of franchisees, franchisors need first to examine their system to see if it has inefficiencies or other barriers that create a structurally-embedded performance ceiling.

Of course not every franchisee will be equally affected by a structural performance ceiling due to each franchisee’s individual combination of skills, attributes and experience, but nonetheless, any kind of systemic performance ceiling will limit the overall performance of franchisees across a network.

THE 3Cs THAT PREVENT FRANCHISEE GROWTH Then there is the performance ceiling that franchisees impose on themselves (rather than have imposed on them by an inefficient system).

The self-imposed performance ceiling is the result of the 3Cs: confidence, capacity and complacency.

A lack of confidence in their ability to run a business, or lack of confidence in specific aspects of the business’ operation can limit a franchisee’s potential. This may stem from concerns over their own competency to operate a business which should have been identified by the franchisor during the selection and induction process (and again highlights the importance of a highlyevolved franchise system).

A lack of capacity where the franchisee cannot devote sufficient time to the proper

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conduct of their business, or at the other end of the scale, the franchisee has dedicated every available moment to the business and has worn themselves out in the process.

While a lack of confidence and a lack of capacity are two of the reasons for a self-imposed performance ceiling, the third reason is the most confronting: complacency.

Franchisees and independent small business owners who are comfortable with their current income and lifestyle become complacent and operate in cruise control, and no longer feel compelled to operate the business more aggressively.

Franchisors can instigate strategies and tactics to help franchisees overcome confidence and capacity issues, but are more challenged to overcome franchisee complacency.

THE SIX SIGNS OF COMPLACENCY 1. Complacent franchisees are generally undemanding of their franchisors when things are going well, but if times get tough they are soon shaken from their complacency and often look to blame their franchisor for their declining fortunes.

This indicates that the complacent franchisee is disengaged from their business, and is out of touch with what really makes it tick. They have removed themselves too far from the seat-ofthe-pants existence they may have had when getting the business up and running, but need to be reminded of how important it is to keep their finger on the pulse.

2. Complacent franchisees often don’t appreciate how far off course their business might have drifted until it’s about to crash into an iceberg.

Keeping their finger on the pulse requires franchisees to know the key drivers of their business, and to constantly ensure that those driver targets are being met or exceeded at all times. Navigating a successful business doesn’t involve cruise control.

3. Complacent franchisees are accustomed to a financial or lifestyle outcome from their business, but don’t fully understand the range of variable inputs that are required to produce these outputs.

Smart business owners live within their means. Complacent business owners expect their business to live up to their means, but don’t always know how to make this happen (largely because they don’t fully appreciate all the key drivers that they should be constantly monitoring).

4. Complacent franchisees are quick to blame their franchisor if something goes awry in their

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business, and slow to respond to advice.

Complacent franchisees expect the smooth sailing to last forever, then tend to blame someone else (i.e their franchisor), when the weather changes. High-performing franchisees who are steering their business are constantly on the lookout for potential threats and opportunities.

5. Complacent franchisees donâ&#x20AC;&#x2122;t understand the dangers of complacency, or appreciate its contagiousness.

The greatest danger facing a complacent franchisee is a lack of awareness of their own complacency. Beware of working irregular hours, not following-up on outstanding reports, over-delegation accompanied by a lack of providing meaningful feedback to staff.

6. Complacent franchisees often need a close encounter with an iceberg to shake them from their complacency, and sometimes by then it may be too late.

This can take the form of a call from the bank to inform the franchisee their credit facilities are to be reduced, the loss of a key client, an operational problem that escalates into a disaster, or any other such AD_ F RVI PJ AN_ 1 3 . p d f Pa ge 1 potentially catastrophic event that could sink a complacent business.

There is no silver bullet to raising the franchisee performance ceiling.

But awareness of the dangers of complacency in particular can help franchisees keep on track.

If the franchisor ensures the system is constantly improved, and addresses franchisee confidence and capacity it is easier to identify limits in franchisee performance caused by complacency. And then the real challenge begins. F

Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for 20 years at franchisee, franchisor and advisor level.

While a lack of confidence and a lack of capacity are two of the reasons for a self-imposed performance ceiling, the third reason is the most 1 0 / 1 2 / 1 2 , 6 : 1 3 PM confronting: complacency

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yoU can FUnd

yoUr FranchiSe Griffith University’s 2012 Franchising Survey shows almost half the franchise sector (49.2 per cent) see a lack of franchisee finance as a critical challenge. Tanya Titman, director of Zee, has several suggestions for how to secure finance for your franchise business 96| FRANCHISING jAN/Feb 2013

S

o .. you’ve decided to say good bye to your boss and the eight to six o’clock grind and invest in a franchise business. Along with the really important decision of which franchise system suits your passion, skills and desired lifestyle, you will need to give serious consideration to financing this investment, not only the franchise royalty fees but inventory and working capital as well.

Tanya Titman, director of Zee has several suggestions for how to secure finance for your franchise business.

What are you worth?

Firstly, start by calculating how much you are worth. To determine your net www.FRANCHISe.Net.Au

worth, list what you own (assets) on one side of the page and what you owe (liabilities) on the other. Assets include real estate, savings, cars and investments. Liabilities include mortgages, car loans, any other loans (including credit cards) and current bills. The difference between the total of these two lists is your net worth.

How much do you need?

Before looking into where to find the finance you need for your franchise, first understand exactly how much you need. For the franchise itself, obtain a full breakdown of start up

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costs, including franchise fees, fit out/equipment costs, training and advisor fees. You will also need to factor in money for your working capital. This is often overlooked when considering finance requirements. Working capital is the money you need to fund the day-to-day running of the business and needs to cover your cash flow in the initial months of operation. In addition, consider your personal cash flow requirements and ensure you have factored into your budget an amount to pay yourself a salary.

What structure should I buy the business in?

Spend time with your accountant and legal advisor, prior to signing any documentation, considering what structure you should buy your business in. You will need to know this information before signing any contracts or taking out finance. Whether you choose a company, partnership, trust or sole trader entity, this will impact on the way your finance application is assessed. There may be strict guidelines from the

franchisor regarding the type of structures that they accept. Ensure you have this information before engaging advisors.

FINANCING YOuR FRANCHISe When financing a franchise, it’s important you evaluate all available financing options. This decision can have a significant impact on the success of your business; in fact, inadequate financing is one of the top reasons why businesses fail.

Here is a list of possible options to consider.

Franchisor funding

The first thing you should do is talk about financing with your future franchisor. A successful and established franchisor may be able to assist with financing; whether it’s pointing you in the right direction of a good source of funding or providing their own financing programs. This is an increasingly popular option as banks continue to be strict with their lending policies. You can also ask some of the existing franchisees how they obtained financing.

Joint ownership models

Some franchisors are happy to enter a joint ownership model. In this situation the franchisor takes an equity position in the new outlet along with the franchisee. This could be as high as 70 percent. The franchisee pays out the franchisor ’s equity according to a pre-agreed formula progressively during the term of the franchise. At the end of this term the franchisee then owns 100 percent of the business.

These agreements must be properly constructed so make sure you get appropriate legal advice. Joint ownership models are being successfully used by a number of franchise groups.

Reducing establishment costs

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In a post-GFC world with credit tightening, many franchisors realise the importance of assisting franchisees getting started. Some franchise groups are reducing the overall investment levels by finding more cost-effective options for store fit-outs and equipment. Reducing the size of a store’s footprint is one way of reducing establishment costs.

Others are considering discounting or deferring franchise fees even refunding franchise fees if financing couldn’t be procured.

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Ask your franchisor what they can do for you.

Reducing your upfront costs will leave you with more money to keep your business going and growing.

Bank accreditation system Buying into a franchise is generally considered more stable than starting a business from scratch because the franchise model has been tried and tested. Banks and major lenders have an

accreditation system for existing franchise systems which means they are willing to lend up to 70 percent of the required finance without the requirement of security over property or personal assets. You need to supply the remaining finance.

Many franchise groups are actively seeking to become accredited with major financial institutions.

Accredited franchisors are listed with at least one bank, although many prefer to be accredited with multiple banks where possible. If the

Working capital is the money you need to fund the day-today running of the business and needs to cover your cash flow in A D _ initial F R J U S Smonths E P _ 1 2 . pof d f operation Pa ge 1 1 4 / the

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franchise is not accredited you may need to borrow finance against the security of a property rather than the business.

Franchise brokers

As with home loans, there are numerous financing options from many different lenders available.

A franchise broker can help evaluate which finance offer best suits your situation. They are experienced in the franchise industry and take the legwork out of the financing process for you.

A franchise broker will charge a fee for their service which may be in the form of an ongoing commission over the life of the loan so it pays to investigate what a bank will offer directly.

Personal savings

If you have the ability to finance your franchise with your own savings, you will save a significant amount in interest and fees, however this may not be the best use of your savings overall. Carefully consider what other opportunities you may be overlooking before making a decision.

For example, it may make better financial sense to pay off your mortgage and seek finance for your franchise.

AD_ F RACE 2 NOV _ 1 2 . p d f Pa ge Combining a personal loan (e.g. your home loan) with a business loan also causes much complexity

when it comes to claiming interest as a tax deduction. If you are considering redrawing equity on a home loan to fund your business, be very careful. Instead, ask your bank to set up a separate loan account for the business secured against equity in your home, so there is no confusion around interest deductibility.

Family and friends

Family and friends may offer an alternative avenue for financing your franchise. This option often provides more flexible repayment terms however it can add significant stress and pressure to personal relationships, especially if the franchise performance is not as expected.

These funding options are not definitive. Banks are still lending

1

Some franchise groups are reducing the overall investment levels by finding more cost-effective options for 1 9 / 1 0 / 1 2 , : 2 6 PM store fit-outs2 and equipment

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Many of our highest achievers have no previous sales experience however, with our in-house and in-field training, Combined Insurance offers to unlock your potential regardless of your background.

Established in 1922, Combined Insurance operates in Australia as a division of ACE Insurance Limited which is part of the ACE Group of Companies®, one of the leading global providers of insurance and reinsurance.

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Finance|Issues

to small businesses and franchises but they are now applying more stringent criteria to reduce the risk of bad loans.

Get GOOD ADVICe So it pays to get good advice. Often the person who knows your financial position best is your accountant, if you have one. You’ll certainly need one to undertake the franchise purchase so get them on board early.

Their guidance on GST, capital gains tax, business structure and depreciation of fixed assets can put you in a great financial position before you even begin financing your new franchise business.

No matter what financing method chosen, franchisees stand a good chance of success if the system they invest in is robust, has a credible market position and A D _ F R M R WJ A N _ 1 3 . p d f the franchisor is committed to the group’s overall success.

Likewise the franchisee must be fully-committed to the business, adopt sound financial practices, and remain focused on the businesses profitability which means preparing a detailed business plan before beginning operations and actively managing the business.

Finding the financing option that works best for you will go a long way toward laying a secure foundation for your franchise’s success. F Tanya Titman is the director of Zee, a financial concierge service that allows ‘FranchiZees’ to outsource their accounts department to a team of qualified accountants.

Banks and major lenders have an accreditation system for existing franchise systems which means they are willing to lend up to 70 percent of the required finance without the requirement of Pa ge 1 1 0 / 1 2 / 1 2 , 9 : 4 2 AM security over property or personal assets

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FR.JANFEB13.PG105.pdf

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Due diligence|How to

resist the

Dr Michael schaper, deputy chair of the ACCC, looks at the issue of how long due diligence should take

rush W

e’ve all heard the tales of cashedup franchisees who, swept away by enthusiasm for a brand and a system they feel is just right for them, buy a franchise in just a few weeks.

While these franchisees could be lucky and end up with a great investment, rushing to commit is a risky process.

Buying a franchise is a big decision that requires a good deal of thought and research.

Due diligence—the process of carefully analysing the

practical, financial and legal aspects of a franchise agreement before you commit to it—is a critical part. It’s important to dedicate time to this process

Ask current franchisees about their experience with the franchisor, whether they are happy with their earnings and whether they would buy their franchise again www.fRanCHISe.net.au

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How to|Due diligence

in order to reduce the risk of facing problems down the road.

wHat StepS SHould I take?

While different people will devote different amounts of time to researching an investment opportunity before making a decision, every prospective franchisee should take the following steps before buying a franchise:

1. Do a franchising education program Even if youâ&#x20AC;&#x2122;ve owned a small business before, you might not know

Even if youâ&#x20AC;&#x2122;ve owned a small business before, you might not know all the ins and outs of franchising. Before you start researching any particular franchise system, itâ&#x20AC;&#x2122;s worth finding AD_ F RABRNOV _ 1 2 . p d f Pa ge 1 1 1 / 1 0 / 1 2 , 1 2 : 3 3 out how franchising works

s 4HERE ARE MORE CARS STAYING ON THE ROAD LONGER THAN EVER BEFORE 4HIS RETAIL MARKET IS GROWING AND PROSPERING AND !UTOBARN IS EXPANDING TO MEET THIS GROWING DEMAND s !UTOBARN IS THE PREMIUM RETAIL BRAND OF THE !UTOMOTIVE "RANDS 'ROUP WHICH IN TURN IS A PART OF THE -ETCASH GROUP )'!

-ITRE 4HIS GIVES !UTOBARN HUGE BUYING POWER ADVANTAGES s !UTOBARN S MARKETING AND ADVERTISING IS DIVERSE PROMINENT

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s )N ADDITION TO AN WEEK TRAINING AND INITIAL SUPPORT PROGRAM

!UTOBARN PROVIDES A SOPHISTICATED FRANCHISE SUPPORT SYSTEM TO DIRECTLY HELP ITS FRANCHISEES ACROSS ALL MANAGEMENT AND OPERATIONAL DISCIPLINES 4HIS INCLUDES PRODUCT BUYING BOOK KEEPING MERCHANDISING AND ,OCAL !REA -ARKETING 4HE !UTOBARN

&RANCHISE SYSTEM ACTUALLY DELIVERS OPERATIONAL PROCEDURES FOR ITS FRANCHISEES WHICH THE TYPICAL SMALL BUSINESS PERSON WOULD HIGHLY VALUE 4HIS ALLOWS OUR FRANCHISEES TO CONCENTRATE ON WORKING ON THEIR BUSINESS NOT JUST IN THEIR BUSINESS

s !UTOBARN IS MOVING WITH THE TIMES ROLLING OUT EXCITING TECHNOLOGICAL DEVELOPMENTS IN HOW WE SELL TO AND COMMUNICATE WITH OUR CUSTOMERS

s !N !UTOBARN FRANCHISE IS MORE AFFORDABLE THAN YOU MAY THINK !S AN ACCREDITED FRANCHISE WITH .ATIONAL !USTRALIA "ANK AND "ANK7EST !UTOBARN APPROVED APPLICANTS CAN SECURE A SUBSTANTIAL AMOUNT OF THE TOTAL FUNDING REQUIRED AGAINST THE BUSINESSES ASSETS AND THERE ARE GENEROUS STOCK FUNDING INCENTIVES CURRENTLY AVAILABLE FOR APPROVED APPLICANTS

106| fRanCHISInG jan/feb 2013

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2. Decide whether franchising is for you and, if so, what type of franchise Assess whether you are suited to franchising. If you like doing things your own way, you might feel overly restricted if your franchisor controls your marketing activities or tells you what stock to buy. If you are pretty sure that franchising is for you, consider the type of franchise that would match your PM personal attributes, including your education, skills, experience and

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all the ins and outs of franchising.

Before you start researching any particular franchise system, itâ&#x20AC;&#x2122;s worth finding out how franchising works by enrolling in a franchising education program. Griffith University offers a free online program, funded by the ACCC, which is available at http:// www.franchise.edu.au/pre-entryfranchise-education.html.

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Due diligence|How to

lifestyle. If you don’t like being outside, a mowing franchise might not be the right choice for you! Also consider whether you can devote the necessary hours to the franchise in addition to your family and other life commitments.

3. Read all relevant documents Under the mandatory Franchising Code of Conduct, a franchisor must give you a disclosure document, a final copy of your franchise agreement and a copy of the code at least 14 days before you sign an agreement or hand over any non-refundable cash.

The disclosure document contains important information about the franchise, including the payments you’ll be required to make and what will happen when your agreement ends. It also sets out the contact details of all current franchisees and some past franchisees. The franchise agreement is the binding contract that sets out your rights and obligations and those of the franchisor.

It is critical that you read and understand these documents.

4. Get independent professional advice Under the Franchising Code, you must sign a statement that you have received advice from a lawyer, accountant and business advisor or that you decided not to seek this advice. While you don’t have to get advice, it is a bad idea to skip this step.

Ask your lawyer to have a look at the franchise agreement and highlight any clauses that raise concerns. Talk to your accountant about whether any earnings figures the franchisor has given you are realistic, whether you are likely to recoup your investment (with a reasonable return) within the term of the agreement and whether you can afford the risk of the franchise failing.

5. Talk to other franchisees Contact as many current and past franchisees as possible – and not just those recommended by the franchisor. Ask current franchisees about their experience with the franchisor, whether they are happy with their earnings and whether they would buy their franchise again if they could go back in time.

Ask former franchisees why they left the system.

How lonG SHould tHIS take?

Due diligence is not simply a list of tasks you have to tick off before signing an agreement—it is a

Don’t feel rushed into signing anything or paying any money. If a franchisor is pressuring you to pay money or sign an agreement before you have done your due diligence, treat this as a warning sign process that should continue until you are comfortable that you are making a fully-informed decision.

The amount of time that due diligence takes will be different in each case. While the Franchising Code prevents you from buying a franchise unless you’ve had at least 14 days to read the disclosure document and franchise agreement, this doesn’t mean that 14 days is enough time to undertake adequate due diligence. It will take time to find experienced professional advisors, and for them to provide advice.

Current franchisees may be busy, and you might not get a chance to speak to them for some time. So give yourself at least three or four weeks to cover all the issues.

Don’t feel rushed into signing anything or paying any money. If a franchisor is pressuring you to pay

money or sign an agreement before you have done your due diligence, treat this as a warning sign.

Can’t I juSt Rely on my CoolInG off peRIod?

While the Franchising Code gives franchisees a seven day cooling off period, you can’t rely on this to protect you from a failure to undertake due diligence. If due diligence is not completed, any problems are unlikely to come to light within the first seven days.

It may be months or even years before the issues are discovered.

Remember, there is no protection for simply entering into a bad agreement, so make the time to undertake thorough due diligence. F

The ACCC has several franchising publications containing useful information for prospective franchisees, including a Franchisee Manual and a DVD about the Franchising Code. These are available at www.accc.gov.au/franchising or by calling the ACCC’s Small Business Helpline on 1300 302 021. www.fRanCHISe.net.au

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How to|Crisis management

BE PREPARED: HOW TO HANDLE A CRISIS It is not uncommon for a business to find itself in a crisis situation. But how the crisis is handled can make or break a business. So what should a franchise network do about crisis management? Charmaine Tanti of Beyond The Square Communication looks at the issue

C

risis? What crisis?

No-one likes a drama at work, but accepting that a crisis can occur is the first step in handling it well and limiting any damage to the brand. Depending on the nature of the crisis the business may require a communications strategy to 108| FRANCHISING JAN/FEB 2013

protect the businessâ&#x20AC;&#x2122; reputation.

An example of where this is the case is when the media publishes information about the brand portraying it in a negative light.

For a franchise, a crisis becomes problematic because something that confronts one franchisee could impede the

WWW.FRANCHISE.NET.AU

image of the entire franchise.

Similarly, a crisis that results due to actions of the franchisor affects the brandâ&#x20AC;&#x2122;s reputation for individual franchisees.

BE PREPARED

Regardless of how the crisis develops the most effective

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UNFORTUNATELY, AS WE GO ABOUT SAVING FRANCHISED BUSINESSES MONEY ON THEIR INSURANCE, WE SEEM TO BE UPSETTING SOME PEOPLE ALONG THE WAY. To find out how we can insure a franchised business in just four clicks, speak to Darryl Morris today on 1800 776 747 or email info@mynfib.com.au

MYNFIB.COM.AU National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374)

FR.JANFEB13.PG110.pdf

How to|Crisis management

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way to deal with it is for franchisors to be prepared. This involves thinking of what issues or events could have a negative impact on the business and developing a plan for how the business would respond to each occurrence. Does the franchise you are considering have a communications strategy for crisis management?

The plan will include determining the key messages to be communicated for the particular crisis, establishing a spokesperson who is trained in responding to questions relating to the crisis and ensuring that staff are aware not to comment to the media but to refer all media enquiries to one nominated spokesperson.

Note: the once golden rule for crisis communications – ‘no comment,’ is no longer the way to deal with a crisis and will often cause more negative press with damaging speculations.

GETTING ACROSS THE RIGHT MESSAGE An example of a potential crisis for a gym franchisee may be the serious injury of one of its members while using gym facilities. It is likely that the most effective key messages Simple Business Model

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for this situation would involve communicating that the gym holds the safety of its members as paramount and is investigating the incident to ensure it maintains its high level of safe practice.

The spokesperson assigned may be the franchisee’s safety officer or manager who will need to be media trained on their responses and key messages. Ultimately the media will want to know the truth of the newsworthy matter constituting the who, what, where, when, why and how of the situation as well as the company’s response i.e. what are you going to do to fix the problem?

The franchise should address this immediately in any statements, news conferences or interviews.

Creating exceptional results through people.

Each crisis and the subsequent communication plan will be different, pending severity. Having approved plans in place will allow the business to address the situation in a quick, efficient way.

Should the business need time to prepare a statement, it is suitable to tell the media a comment will be made at a particular time the next day. The key with issues management is to act in a timely manner and address all concerns in the public eye.

Finally, a communication crisis doesn’t mean the end for a brand. If handled correctly, it can be turned around to be a positive for the organisation. The key is to be as prepared as possible. F

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How to|Publicity

spread the

Local media publicity for franchisees can get people talking about the business. here pr manager sophie Meere shares her tips on how to approach local press

word P

R establishes and maintains communication between a business and its target audiences. All franchises â&#x20AC;&#x201C; including franchisors and franchisees â&#x20AC;&#x201C; can benefit by integrating PR into their marketing mix to publicise the brand to all relevant markets, whether looking to increase brand recognition or secure more sales.

112| FRANCHISING jAN/Feb 2013

Franchisees can drive the PR for their individual franchise at a local level in a number of ways, including generating local media coverage for their business.

This involves liaising with and supplying the media with information via a media release about a newsworthy development at the business.

It is worth noting here that localised activity needs to be in

www.FRANCHISe.Net.Au

line with branding guidelines and objectives from head office to ensure message synergy.

Many people feel intimidated when it comes to talking to the media. The key is to be prepared and know the facts of your story.

To approach the local media it is important to call the best contact first. This may be the editor, a journalist, a specific section writer or even a features editor. The

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How to|Publicity

appropriate contact then must be briefed on the story â&#x20AC;&#x201C; keep to the point and send through the media release with an image. It is best to follow-up with a phone call a few days later to gauge interest.

tOP 10 tIPS FOR A GOOD PReSS ReLeASe A media release takes the form of a news article.

Below are some useful tips to assist in developing a media release:

1

Before taking the time to develop a media release it is important that the angle is one that the media will find newsworthy: the more people an event affects in a media outletâ&#x20AC;&#x2122;s catchment, the greater the newsworthiness.

With franchise operations it is important to maintain consistent key messages for all information being distributed to the public and the media AD_ F RT EL J AN_ 1 3 . p d f Pa ge 1 4 / 1 2 / 1 2 , locally and nationally

114| FRANCHISING jAN/Feb 2013

With franchise operations it is important 2 to maintain consistent key messages for all 4 : 0 9 PM

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information being distributed to the public and the media locally and nationally. Though each

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Publicity|How to

franchise is individually owned, the reputation is based on that of the brand’s overall image and it is important that everything communicated follows the brand’s guidelines, brand values and key messages.

3

Make the headline simple. Avoid trying to make it something catchy as the message may become lost. Leave it to the journalist to do this.

4

When developing the release it is important to outline the most newsworthy elements in the lead as the journalist will usually decide after the first paragraph or two if the news is important to their audience.

5

In the first paragraph, address the 5 Ws and How of your news – Who, What, Where, When, Why and How, placing them in order of importance for that particular story.

6

Keep the media release simple. Avoid using long sentences, jargon and overly formal language as these will clutter the writing and key messages can become lost.

7

Be as specific as possible. The more specific the information is, the easier it is to understand.

8

Keep sentences short and put forward only one idea in each sentence. This will assist in clarifying the message. Sentences of less than 25 words are best. A media release is ideally no more than one A4 printed page.

9

Before sending the release to the media, ensure there are no spelling or grammatical errors.

10

Date the media release and clearly state at the end who to contact for more information, photography and to coordinate an interview.

Include a phone number, mobile number and email address. F Sophie Meere is general manager at Beyond The Square Communication and has over eight years’ public relations experience working with brands such as Inghams, Contours Fitness, Luna Park Sydney, Pepsi, Levi’s, Puma, R.M.Williams and Bonds.

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How to|Customer loyalty

When you invest in a franchise, engaging with your customers will be core to the business

KEEPING CUSTOMERS LOYAL AND

ENGAGED C

hris Lowther, general manager of customer analytics and interaction at Pitney Bowes Software, says for any business, “current customers are not only your best chance to build long-term loyalty, but are also your greatest marketing asset. Building relationships and rewarding loyalty will give you a competitive edge and keep your customers positive about spending with you.”

Long before the introduction of points cards or buyers’ clubs, small retail businesses learned that

Current customers are not only your best chance to build long term loyalty, but are also your greatest marketing asset 116| FRANCHISING JAN/FEB 2013

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there was no better way to ensure continued business than to reward regular customers with an offer or a little something extra from time to time.

The thing that made this kind of loyalty marketing possible was the face-to-face buying experience. Seeing and speaking with customers on a regular basis made it easy to learn their preferences, gauge their interest in other products and know when the time was right for an offer or an upsell.

Today, competition has increased and direct personal customer interaction has decreased. This also means that finding a replacement for direct feedback is one of the biggest challenges we face.

It’s a reality that businesses have lost that direct opportunity to truly know their customers and what their preferences are.

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INTERESTED IN JOINING AN AWARD WINNING CONVENIENCE RETAILER? You may not be aware that Caltex Australia operates the largest convenience retail network across the country, with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand.

Earlier this year Caltex Star Mart dominated the prestigious awards at the annual Australasian Association of Convenience Stores (AACS) awards held in Melbourne on 22 August 2012 winning : Franchise Store of the Year : Caltex Star Mart Annerley, QLD Company Operated Store of the Year : Caltex Star Mart Surfers Paradise, QLD We congratulate Jim and Ann Dovell and their team at Caltex Star Mart Annerley, and our company operated team at Caltex Star Mart Surfers Paradise, on their outstanding achievement in being judged the “best of the best” in Australian convenience retailing.

Caltex Star Mart has now won Franchise Store of the Year for the past five years.

To find out more about our award winning Franchise, visit www.caltex.com.au and click on ‘Franchising at Caltex’.

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Customer loyalty|How to

Businesses need to rethink customer loyalty strategies and provide opportunities for customer to provide direct feedback.

Of course, franchisees operating on the front line of their business are at an advantage here, particularly if they are backed up by franchisor support for customer engagement.

It is also important to note that customer complaints open up opportunities to improve customer service. So what is the system for handling customer complaints in the franchise you are considering?

There is no easy answer to the challenge of a customer focused business but there are steps we can take to know our customers better in the modern marketplace.

much-needed insights. The internet and email make it faster and cheaper to develop survey panels. It costs significantly less to send email surveys than to make phone calls or send postal mail surveys.

Email also has a higher response rate.

People are more likely to respond to digital surveys because they can finish them in their own time.

3. Communicate regularly Keep your customers informed about new products, services and offers.

Simply saying ‘thank you’ is a smart way to build a loyal, highly valuable customer base. That’s up to you, as the franchisee to manage.

Your customer relationships will be fundamental to your business. F

THREE KEY STEPS 1. Measure and analyse the results of loyalty program communications Whether this is done via QR codes to track direct mail responses, or by reviewing email marketing data, marketing metrics offer more opportunities to understand customer behaviour. How does your proposed franchise handle this?

2. Implement a digital survey AD_ F RGE L J AN_ 1 3 . p d f

Pa ge

These are quite easy to set up and can be run in conjunction with a QR code campaign to gather

It’s a reality that businesses have lost that direct opportunity to truly know their customers and what their 4 / 1 2 / 1 2 , 4 6 PM preferences3 :are

1

Multi-award winning Gelatissimo, Australia’s largest gelato franchise, is seeking franchisees with energy and enthusiasm, to deliver great products and excellent customer service.

Gelatissimo’s point of difference is that it makes fresh full flavoured gelato in-store daily, using a simple system that is supported by a brand that embodies style and sophistication. Gelatissimo’s commitment to its franchisees includes full training and ongoing support from the operations and marketing team, brand building and local store marketing.

Is it time for a change?

DO YOU DREAM OF OWNING YOUR OWN BUSINESS?

Franchise opportunities are available in selected areas across Australia.

Gelatissimo is proudly Australian owned and operated and now has gelaterias in Australia, Asia, the Middle East and Europe.

Gelatissimo is the winner of the 2012 Franchise Council of Australia International Franchising Award and the 2012 Italian Chamber of Commerce & Industry Business Excellence Award for Retail, Wholesale and Manufacturing.

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If you want to change your lifestyle through investing in a business that is fun, easy to operate and financially rewarding, call Karen on (02) 8845 0100 or email karen@gelatissimo.com.au and visit our website:

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BECOMING A GELATISSIMO FRANCHISEE COULD BE THE ANSWER!

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Advice legit | leGaleSe made eaSy

Franchising and restraints of trade

F

esther gutnick Senior associate, mason Sier turnbull lawyers

ranchise agreements, much like employment contracts, often contain restraint of trade clauses. These seek to prohibit the franchisee from engaging in certain conduct, commonly including being involved in a competing business, attempting to poach customers or staff of the franchise system, and using or disclosing any confidential information relating to the franchise.

Such restraints usually apply for the whole term of the agreement and for a certain time after the franchise ends and/or within a particular geographical area.

Contractual clauses which constitute unreasonable restraints of trade are generally unenforceable because they are considered anti-competitive and unfairly restrict someone’s right to derive income. However, restraints are often enforceable in a franchising context if they are properly drafted and appropriate.

Courts have held that restraints will be enforceable if, and only to the extent that, they are reasonably required to protect the franchisor’s legitimate business interests that existed when the franchise agreement was entered into.

Where a restraint is adequately limited in scope and its enforcement is genuinely required to protect legitimate interests such as preserving the goodwill and custom of a business, the restraint is likely to be considered reasonable and enforceable.

Protecting business

This principle was reinforced in the recent case of Sidameneo, in which a medical centre successfully enforced a restraint preventing three former employee doctors from practising medicine in a nearby competing centre for 12 months following their departure. The restraint was considered reasonable because it was as basic as could be imposed, and because the owner of the medical centre had legitimate interests in protecting the goodwill and customer attraction to the business it had purchased.

Restraint provisions in franchise agreements often purport to be necessary to protect the franchisor’s confidential information and intellectual property.

Court decisions in the EzyDVD and Blockbuster cases confirmed that, if sufficient other measures for protection of those interests have been employed, the restraints may not in fact be required for that purpose and may therefore be invalid.

In both cases, the franchise agreements contained various other clauses, contractually requiring the franchisees to do certain things on expiry or termination of the franchise agreement for the purposes of protecting the franchisor’s confidential information and intellectual property. Because the www.fRanCHISe.net.au

franchisees had complied with these obligations, the court in each case determined that the franchisor’s legitimate interests had been sufficiently protected and that it was unreasonable for the franchisor to enforce the restraints.

Legal recourse

If the franchisee breaches an enforceable restraint, the franchisor may take legal action to enforce it and/ or seek compensation for any loss or damage it has suffered due to the breach. If such a claim is successful, the franchisee may also be liable for both sets of legal costs.

If a franchisee believes the restraint clause is unreasonable, they can seek a legal determination that the restraint is unenforceable.

There are lessons to be learned by all parties from the above decisions. Franchisors must give due consideration to the precise interests they are seeking to protect and must carefully draft any restraint provisions to ensure they are reasonable and appropriate, when balancing the competing interests of the franchisor, the franchisee and the general public.

Franchisees should always seek legal advice, both before signing a franchise agreement and also before the agreement ends, to ensure they are fully aware of their obligations, including any restraints of trade that may apply on their exit from the franchise system.

Franchisees should understand the effect of any restraints, including exactly what they are restricted from doing, where and for how long. If necessary, franchisees should be prepared to explore alternate business or job opportunities after their franchise ends. F jan/feb 2013 fRanCHISInG | 121

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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

Why franchising is harder than it looks

F ANDREW TERRY Professor of Business Regulation at the University of Sydney and consultant to DC Strategy

ranchising is a deceptively simple concept.

An enterprise with a proven model and system licenses other enterprises to use this model and system in operating their own businesses. Anyone who has been to a McDonald’s – and there must be only a very few Australians who have not – and who thinks beyond the menu to the underlying business arrangement will have some idea of the basic concept. The apparent simplicity nevertheless disguises a much more sophisticated and intricate business relationship – arguably the most complex in the business world.

The complexity of franchising derives from the unique franchisor/franchisee relationship – recently described by the Privy Council in the Dymocks Case as “not an ordinary commercial relationship”. The careful reader will have noticed that the term “relationship” has been used several times already in this column. It is indeed the “relationship” aspect of franchising which is the source of its complexity. A franchise is of course a contract but, unlike most contracts which involve an exchange, a franchise contract establishes a relationship – a complex legal, commercial and personal relationship.

The franchise contract records a complex legal relationship and documents the parties’ rights and obligations during the term and beyond. It is nevertheless the commercial relationship which the contract enshrines which poses the greatest challenge in both structuring, recording and managing the relationship.

A franchising relationship is a long term relationship and must be able to accommodate system change to adapt to changing consumer preferences and competitive pressures over its term. Unlike a ‘normal’ contract in which every ‘i’ is dotted and every ‘t’ crossed at the time the contract is signed a franchise contract cannot settle in advance the changes that may have to be made to maintain or progress the system’s market position.

Addressing such contingencies is, from both legal and commercial perspectives, challenging.

It is nevertheless the personal dimension of the relationship that makes franchising particularly difficult. Greg Nathan has written that “If we ignore the human face of franchising – people’s feelings, motivation and behaviour – we ignore the franchise relationship”. At least from the perspective of the franchisee – whether he or she is the first or the 100th or the 1000th to join a franchise system – the

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relationship transcends the legal and the commercial. Because of the long-term nature of the relationship, the inter-dependencies, the shared vision, the evolving dynamics and the need for effective communication, franchising is frequently referred to as a commercial marriage. A marriage is much more than the legal agreement which underlies it and the legal status accorded to it – and so too with franchising. The depressing divorce statistics testify to the difficult nature of the marriage relationship and franchising raises challenges for both parties which are not entirely dissimilar. Franchisors and franchisees who do not understand, appreciate, develop and nurture the unique franchising relationship will, at best, not achieve their full potential and, at worst, will be unlikely to succeed.

Franchising is a proven and effective business strategy for both franchisor and franchisee but it is not an easy journey for either side. For the franchisee the loss of independence which must be accepted as the trade-off for participating in the franchisor’s system does not always come easily and can be a source of ongoing tension if not addressed – in the first instance by due diligence which includes an honest assessment of the prospective franchisee’s preparedness to work intrapreneurially within someone else’s system. For the franchisor the challenge of developing the business while at the same time controlling, inspiring and leading a network of franchisees operating their own businesses using the franchisor’s brand, system and IP requires special management skills.

Yet if Sophocles is correct that there is no success without hardship there must be much hardship in franchising as there is undoubtedly so much success. F

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Opinion PEOPLE | LEADERSHIP

Why business is a balancing act

I

GREG NATHAN Psychologist, managing director of the Franchise Relationships Institute, public speaker and author of Profitable Partnerships

t takes all types to make a balanced, successful team. This applies to sport, business and families too. It also applies to franchising. For instance, while the franchisor’s role is to be strategic, and to think broadly about the good of the whole group, the franchisee needs to be tactical in their focus and look after their own business.

Here’s a story about balance, involving two long time business partners, Mr What and Mr How. Mr What was obsessed with results. He liked to make quick decisions and implement them. Because of his blunt, pushy nature Mr What wasn’t very popular with staff, although he was respected because he got things done. While Mr What would stomp around the business, often with a flushed face and furrowed brow, checking on what was happening, Mr How seemed to have all the time in the world. He would spend his days thinking about how things could be done better and how people were working together.

His opening question would always be “How are you?” and he really meant it. After an encounter with Mr How you tended to feel lighter and be thinking more clearly.

Valued contributions

One day in a management meeting, Mr What demanded to know what the strategy was for a new IT project and when it would be finished. A nervous manager reeled off some targets and facts.

Mr What looked up from his papers and grunted “good”. As he lowered his eyes back to his agenda

With his direction on achievement, and my consideration of how we can best engage people, together we have built this successful business ready to move onto the next item, Mr How cleared his throat. “Mr What, I’d like to explore this a little further please”. He looked over to the manager and thanked him for his thoughts. “Before we launch this system, have we considered how this decision will impact on our customers and the people that have to implement it?”

At this point Mr What started to tense up, he had things to get on with and the meeting was being delayed. But he had learned through experience to value the contribution of his colleague so he said, “Please go on Mr How”. A half an hour later the whiteboard was filled with a plan on how the project would be implemented. The energy in the room was 124| FRANCHISING JAN/FEB 2013

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now upbeat as they all realised they had been missing a piece in the implementation that would have alienated staff and caused havoc with customers.

One day Mr What had a mild heart attack and was taken to hospital. A group of employees were huddled together and Mr How overheard a young woman say “Let’s hope Mr How now takes over running the business, he’s so much nicer than Mr What”. Mr How’s initial urge was to reprimand the employee. But he’d learned that “how” you go about doing or saying something is often more important than “what” you say. He also reminded himself of how hard these people worked and how grateful he was for their loyalty to the business.

“How are you all this morning?” he asked. A look of embarrassment came over the group. “You have probably heard that Mr What is unwell. I feel bad because it has been Mr What’s hard work, drive and commitment to our results that has largely caused his ill health.

“People must wonder at times how two people so different, like Mr What and I, can work so well together. My father used to criticise me for being too soft and thoughtful. He said I would never achieve anything. He was right until I teamed up with Mr What. With his direction on achievement, and my consideration of how we can best engage people, together we have built this successful business.”

Then the woman who had made the previous comment said “Mr How, I’d like to organise a card from everyone in the office wishing Mr What a speedy recovery and telling him how much we miss having him around.” F

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Opinion YOUR VOICE | FRANCHISING REFLECTIONS

What franchisors want, and why franchisees don’t care

I DEB SHUGG Founder of franchise business Award Bookkeeping Company

n the year 2000 I began building a franchise network, writes Deb Shugg. And, until I sold it in 2011, invested my heart, mind, soul and money into developing every facet of that business in order to make me and my franchisees successful.

Franchisors will get what I’m saying. Franchisors know that franchisees cannot be easily maneuvered and the impact of every decision they make has the potential to be “suicide by franchisee”.

If you’re a franchisee you may not be keen on the decisions made by the franchisor. But with a legally binding agreement and operations manuals swinging like the sword of Damocles over your head, your only available recourse in the event of an unpalatable franchisor initiative is an emotional disconnect from the franchisor and the group. “Suicide by emotion.”

In a franchise network filled with support personnel franchisees can often forget that there are hearts of real people beating to make them successful.

But, like the game Chinese Whispers messages conveyed through layers of staff can be heard quite differently when they reach their destination!

When franchisors release support staff into the field there’s a real risk the message will be unintentionally misrepresented creating a negative shift in the commitment of franchisees. A franchisor’s desire for franchisee engagement can be (albeit unintentionally) sabotaged.

Because of the legal nature of the franchisor franchisee relationship a franchisee’s only power can be to withdraw emotionally from the franchisor.

They complete the franchise term making the lives

Franchisees don’t need to agree with everything the franchisor asks them to do but they should be able to trust the franchisor to have considered all the options of support staff a living nightmare, looking for ways to get out, inadvertently damaging the brand and failing to provide constructive feedback and input into the network.

Support staff who have no commitment to the vision of the “franchisor heart” will create damage in the network. Turning up once a month with a compliance checklist for your free coffee does not create network advocates!

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Franchisee commitment

Franchisees need to understand that good franchisors need more than money to help them succeed. They need commitment. Not just to the success of their own business but to every business in the network including the franchisor.

This doesn’t mean franchisees need to spend hours helping everyone else. But it does mean being committed to making the brand a success in their own business.

Good franchisors want network advocates. They create these by putting in place a support program that helps meet the franchisees’ financial and emotional business needs.

Trust

Franchisees don’t need to agree with everything the franchisor asks them to do but they should be able to trust the franchisor to have considered all the options. In order to generate trust the franchisor should always be able to articulate their rationale for making any decision or rejecting a suggestion.

Trying to create advocates without building a support network that helps franchisees understand the franchisor may just kill the franchisor.

Franchisees who don’t have support that helps integrate them into the franchisor heart, just won’t care! But franchisees need to be careful; emotional withdrawal from the group may kill the franchise business creating financial and emotional losses that can’t be recovered.

“You have brains in your head. You have feet in your shoes. You can steer yourself any direction you choose.” (Dr Seuss). F

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Checklist How to|Ending the agreement

TO DO LIST | HeLP GuIDe

Get help Franchise failure Before you go any further, seek advice Like any business, your franchise (or the from an accountant, lawyer and business franchisor) could fail. If the franchisor adviser who specialise in franchising. The fails, this could seriously affect your network of Business Enterprise Centres business. For example: Are you confident the franchisor?

11. What are the Australia franchisee(www.beca.org.au) and throughout • You could loseinyour right to franchisor obligations? can also give you some useful advice. trade under the franchisor’s We also suggest that you enrol in a brand name Have you seen a disclosure franchise education course.

• You may be unable to obtain stock, document?

12. What training is available andThe Australian Competition and Consumer Commission if the franchisor provides this who pays for it?

(ACCC) has funded a free, online course • The no longer be able Have youfranchisor evaluated may the financial for prospective franchisees which can to provide training or marketing returns?

13. Who owns the intellectual property be accessed via www.franchise.edu.au/ support and what is licensed to the franchisee? following: pre-entry-franchise-education.html.

The • Customers may not want to deal with 4. Do you know all the expenses fi ve-module course is administered by you because of uncertainty franchisees are required to pay?

14. What marketing will the Griffith University and gives you a good • If the franchisor holds the lease on your franchisor implement? overview of every aspect of franchising, premises and has sublet to you, you 5. Have you worked out your including termination and end-of-term could lose your right to occupy the operating costs?

15. Who pays for the marketing? arrangements. premises if the franchisor loses its rights The ACCC promotes compliance • Although the franchisor might 6. Do you know the term of the 16. What theFranchising dispute resolution process? withisthe Code and the have failed, you might have to reasonable written notice of the proposed agreement?

Competition and Consumer Act by meet continuing obligations to its termination, and the reasons for it.

17. Do you know what it is like to be informing franchisees, franchisors and administrators or the like and to The Code also specifies special 7. Is the business operating from aprospective franchisee? franchisees of their rights other suppliers and landlords – and circumstances in which the franchisor can fixed or mobile premises? and obligations under the Code and to your employees. terminate the agreement immediately. the you Act,assign and enforcing them where These include where the franchisee 18. Can the franchised you working within a territory? business? necessary. The ACCC has a number disclosure document needs to becomes bankrupt, voluntarily abandons 8. Are The Ifinclude so, is the area exclusive? of free publications designed to assist a signed director’s statement the franchise or operates the franchise in a prospective franchisees, including a that the franchisor is able to meet its way that endangers public health or safety.

19. How can the franchisor or franchisee terminate theManual Franchise Agreement?

9. Are youThis restricted in your product Franchisee and a Franchisee debts. statement either needs Many franchise agreements don’t purchase?

Start-up Checklist. Both are available to be supported by an audit by a provide for the termination of the online at www.accc.gov.au/franchising registered auditor or accompanied by 20. What agreement by the franchisee. If this is the restrictions are there on the or by calling ACCC operating small business theyou franchisor’s financial case, the franchisee may only be able to 10. Are franchisee andthe guarantor required to reach a reports for the on 1300 302 021. F last two fiperformance nancial years.

If the franchisor exit the agreement early by transferring ahelpline similar business? minimum level? gives you its financial reports, look at the agreement to another party. them closely with an accountant and try So remember: before you jump on the Dr Michael Schaper is deputy chairman of to assess the franchisor’s train, make sure you’ve got a good idea the Australian Competition and Consumer [with thanks to Mason Sier Turnbull] financial health. of how to get off.

Commission must also give the franchisee a reasonable opportunity to remedy the alleged breach (not more than 30 days). If the breach is remedied in that time, the franchisor is not allowed to terminate the agreement 1. as a resultbefore of that breach. you Some franchise agreements allow the purchase your franchisor to terminate the agreement 2. franchise you even in the absence of a breach by the need tick offbefore franchisee.

In these to circumstances, terminating franchise agreement, allthethe must-do 3. the franchisor must give the franchisee items.

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20 things to check before you invest

Before you jump on the train, make sure you’ve got a good idea of how to get off

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Glossary A guide to the key terms used in franchising Disclosure Document: this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee, in accordance with the Franchising Code of Conduct.

Due diligence: a thorough examination of the franchise business before purchase.

Franchise: a business model with four criteria: a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.

Franchise agreement: the business contract between the franchisor and franchisee.

Franchisee: an individual who runs the franchised business using the intellectual property of the franchisor.

Franchise fee: this is an up-front cost paid to the franchisor and covers the use of the brand name and operating system required to operate the business.

Franchisor: grants permission to the franchisee to conduct business using its intellectual property; brand name, methods of operation and marketing.

Franchise term: this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity.

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Greenfield site: a brand new site.

License: the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.

Local area marketing: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area.

Marketing and advertising levy: a regular flat or percentage based fee paid into a centralised advertising or marketing fund.

Master franchisee: a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisorâ&#x20AC;&#x2122;s systems and methods are applied.

Multi-unit franchisee: a franchisee granted the rights to operate more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.

Operations manual: the franchiseeâ&#x20AC;&#x2122;s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.

Regional franchisee: similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area.

Renewal: once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further

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term. This process is bound by the Franchising Code of Conduct and there is no automatic right of renewal.

Royalty: fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support.

It may be a flat fee or a percentage of sales or profit.

Termination: the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.

The Franchising Code of Conduct: a mandatory Code that governs franchising in Australia and is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC).

Total investment: the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.

Turnkey franchise: a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

Working capital: the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

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Searching for a particular franchise?

Use this showcase of franchise systems to find out some key details about the business opportunities available, all in alphabetical order for easy referencing

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

Phone: 1300 550 155 Fax: 03 8878 2222 Contact: Gary Powell or Paul Deylen Email: franchising@autobarn.com.au Website: www.franchise.autobarn.com.au

Start up costs from: $43,500 + GST

Start up costs from: $350,000-$425,000 + stock

ProFilE: FCA EmErGinG FrAnChiSor oF ThE YEAr 2011 Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide 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 36 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 and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

ProFilE: Autobarn is an award winning national franchise system established in 1985.

With 104 stores, Autobarn is Australia’s largest franchised automotive parts and accessories retailer. Autobarn is the premium retail brand of the Automotive Brands Group, which in turn is a part of the Metcash group (IGA, Mitre10).

The Automotive Parts and Accessories market continues to enjoy strong and sustained growth and Autobarn continues to grow its share of this dynamic, fun, and broad market.

• Extensive marketing and advertising • Huge group buying power • Sophisticated franchisee

Phone: 07 5532 7518 Fax: 07 5532 7517 Contact: Christian Coenen / Johannes Schoch Email: christian@bakersclub.com.au / johannes@bakersclub.com.au Website: www.bakersclub.com.au

management support systems • An accredited franchise with NAB and Bankwest

Phone: 1300 309 759 Fax: 03 9811 6100 Contact: Franchise Recruitment Team Email: franchiserecruitment@bakersdelight.com.au Website: www.bakersdelight.com.au Start up costs from: $300,000+

Start up costs from: $250,000 - $350,000

ProFilE: Baker’s Club is the new generation of bakeries, eliminating the need for night work completely. We have combined a Bakery, Sandwich bar, Pie shop and Café all into one, and therefore we are enjoying the benefit of all of them.

ProFilE: Bakers Delight, Australia’s most successful bakery franchise was established in 1980.

An Australian owned company, Bakers Delight boasts over 700 bakeries employing more than 15,000 people, serving 2 million regular customers per week throughout Australia, New Zealand and Canada.

We have positioned ourselves into the health food market as well as the timeless baking business with the additional security of our multiple income streams of retail, dine-in and take-away.

The network is seeking passionate people who are ready to embark on business ownership immediately or to begin training for future opportunities through our structured training program.

Using a unique innovative super food concept and more than 160 years of tradition, experience and quality, we give exceptional know-how and support to our franchisees.

Bakers Delight has a 13.8 per cent share (Roy Morgan single source data May 2012) of the $2.8 billion Australian bread market.

Phone: +61 418 500 721 Contact: Andrew on 1800 634 227 Email: andrew@briantracyanz.com Website: www.briantracyanz.com Start up costs: Investment is $44950 or $89950 PROFILE: As a Licencee, you are welcomed to an exclusive team of business advisors based around the world. You will be well trained in the area of business development, corporate training and coaching. You are then able to grow a substantial and profitable business through purchasing programs from the Brian Tracy International suite on a wholesale basis .

The key areas of focus are professional development, sales and leadership development, and these programs are provided on a fee for service or government funded basis. They are delivered primarily in fast-moving interactive workshops or in coaching sessions.

Brian Tracy International is recognised as one of the world’s premier training and development companies.

A-Z Listings For A-Z listings enquiries contact: National Sales and Marketing Manager David Strong on 02 9422 2905 david.strong@reedbusiness.com.au

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A-Z listings Phone: 02 9451 3260 OR 1300 CAFE2U Fax: 02 9451 2105 Contact: John Stanton Email: jstanton@au.cafe2u.com Website: www.cafe2u.com

Phone: Melbourne Office - 03 9229 3899 Sales Direct - 0420 909 025 Contact: Naomi Stroud/Peter Hahne Email: naomi@walnutgroupinc.com/peter@ walnutgroupinc.com Website: www.walnutgroupinc.com

Start up costs from: $129,600 + GST Start up costs from: $20,000 ProFilE: Australian owned Cafe2U is the world’s largest mobile coffee company, with over 135 franchises in Australia and 200 worldwide. The business is rapidly expanding due to a simple and proven business model based on weekday success.

Cafe2U now includes the unique “Acceleration Package”, which fast tracks the new business forward three months. The “Acceleration Package” includes a four week training programme, a personal franchisee coach, revenue guarantee and an ongoing support package.

Offering free events co-ordination and strong marketing and digital support, Cafe2U provides a perfect system for all looking to change their lifestyle and be their own boss, without the hassles of staff or rent. Contact Cafe2U now should you wish to make a lifestyle change.

ProfilE: The Walnut Group began operations at its headquarters in Toronto, Canada in 1995. With a special focus on designing and manufacturing unique, peerles bulk ending equipment, including lifetime vandalism and theft insurance, lifetime parts warranties and 100% hygienic product delivery; we lead the way in innovation.

The vending industry is a multi- billion dollar business, bulk vending is the most profitable. Our patented candy cups machines do not require electricity or refrigeration and are completely mechanical offering a simple “low tech” solution in today’s hi-tech world.

The walnut group opened it’s Australian office in 2003.

Phone: 0421 048 716 Fax: 08 6162 8820 Contact: Carrick Robinson – Managing Director Email: carrick@capx.com.au Website: www.cappuccinoxpress.com.au

Phone: 1800 CHEMDRY Fax: 02 4587 8733 Contact: Brendan Wilson Email: brendan@chemdry.com.au Website: www.chemdry.com.au

Start up costs from: $100,0000 + GST

Start up costs from: $5,500

ProFilE: Take advantage of the booming coffee market! Founded in 2004, Cappuccino Xpress is now a 43 Franchisee operation with mobile cafes in Western Australia, Queensland and Victoria, all supported by exceptional State Franchisors providing extensive business, product and marketing support.

ProFilE: Chem-Dry is the world’s largest carpet cleaning and upholstery cleaning franchise with more than 4,500 franchises. Our franchisees have access to 35 years of experience to continue making people’s homes and workplaces cleaner and healthier. No other company cleans more carpets, we clean over 1 billion square feet of carpet every year!

We are passionate about bringing our unique, freshly made coffee experience to workplaces, functions and the events market. Our proven system is delivering impressive business benefits to our Franchisees and our brand profile continues to attract interest.

We have a fully qualified chemist who makes our unique products.

We have ambitious plans to expand our Australian footprint and to take our expertise overseas. Call us today.

You do not need to re-invent the wheel. We will provide you with all the tools to be your own boss and begin your pathway to success.

As a special offer – franchisees can start with Chem-Dry for as little as $5,500 – all you do is pay off the price of the franchise over 2 years. The beauty of this deal is that you pay no royalties for the first 2 years.

Phone: 1300 300 480 fax: 02 9956 7789 Contact: Richard Stewart email: richard.stewart@acegroup.com Website: www.combined.com.au

Phone: 1300 139 557 Fax: 03 9876 6612 Contact: Jane Lombard Email: jane@thefranchiseshop.com.au Website: www.corporatecarsaustralia.com.au

Start up costs from: $150

Start up costs from: $25,000 + car

Profile: Combined Insurance is a leader in accident and sickness insurance.

Our Authorised Representatives focus on working with our customers to gain an understanding of their requirements and assist in identifying their specific needs, then offering them a number of coverage options at a good value.

ProFilE: Corporate Cars Australia provide over 25,000 limousine transfers per year, to the top end of the corporate market. For the first time they are offering franchise opportunities in Sydney to the right people.

We take pride in providing insurance plans that are clearly written and easy to understand.

Corporate Cars Australia provide all the back end support, logistics, dispatch, bookings and billings so the franchisee can focus on providing the best possible service to our customers.

Established in 1922, Combined Insurance is part of the ACE Group of Companies®, one of the leading global providers of insurance and reinsurance.

With low entry costs and start up, you can be up and running and enjoying the pleasures of driving your own luxury limousine.

We are a signatory to the General Insurance Code of Practice.

No prior experience necessary but a good knowledge of Sydney roads and living close to the CBD, northern suburbs or airport are a plus.

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A-Z listings Phone: 03 8645 5500 Fax: 03 8645 5555 Contact: Andrew Murdoch Email: info@cosmos21.com.au Website: www.cosmos21.com.au

Phone: 1300 PLEASE (1300 753 273) Fax: 1300 361 1000 Email: enquiries@couriersplease.com.au Website: www.couriersplease.com.au Start up costs from: $25,000

ProFilE: The COSMOS 21+ Group is a provider of innovative leading-edge information technology products and associated services, with particular emphasis to the hospitality and retail food sector.

Products and services offered by the COSMOS 21+ Group are ‘best-in-field’ and include BrandM8 (a Food Safety and Checklist Management System for mobile devices), Mobo2go (a POS independent mobile and web-based ordering platform for hospitality and retail food outlets), and Book-keeping Services (a comprehensive book-keeping/administrative and financial reporting service).

With a client base including many of Australia’s leading retail brands the COSMOS 21+ Group is truly a market leader in providing end to end information technology services.

ProFilE: CouriersPlease is Australia’s leading express parcel delivery business offering nationwide service.

With over 550 CouriersPlease franchises nationally using our industry leading EzyTechnology™, allowing the CouriersPlease Team to provide unmatched quality service for small parcel distribution requirements, to our 40,000 customers sending over 10 million parcels per annum.

Business continues to grow due to CouriersPlease’ customer valued operations service combined with our successful business model of “working for yourself, but not by yourself”.

CouriersPlease franchise opportunities are available nationwide, so if you have the DRIVE attitude contact your local CouriersPlease branch today!

Phone: 07 3633 3318 Fax: 07 3633 3399 Contact: Anna Davis Email: anna.davis@dominos.com.au Website: www.dominos.com.au/franchising

Phone: 0400 605 757 Contact: Brendan Whipps Email: brendan.whipps@elders.com.au Website: www.eldersrealestate.com.au

Start up costs from: $380,000+ ProFilE: At Domino’s we see ourselves as the Pizza Experts, and focus all our energy and passion into making and delivering the hottest, freshest and tastiest pizzas.

As a New Franchisee, you are about to embark on a journey to become a Pizza Professional.

We are the market leaders in most neighbourhoods and we need to continue to rise to the occasion of exceeding our customers expectations.

If you think you’ve got what it takes, contact us today for more details about becoming part our family.

ProfilE: Established in 1839, Elders has built an unmatched record and reputation as a trusted brand for Australians for more than 170 years. Elders Real Estate has now expanded to over 320 offices operating in all capital cities, major regional and rural centres across the country.

With ongoing professional development and mentoring programs for our people, improved efficiency and profitability throughout the network by going ‘Google’ with our technology platform and the backing of a brand that is built on trust and integrity, Elders has become one of Australia’s largest real estate groups.

Our foundation stones for growth are people, profitability and wealth. It is these foundation stones that create a pathway for success in owning a real estate business with Elders.

Phone: 1800 662 663 Fax: 02 9807 2033 Contact: Evan Foster Email: efoster@ufgcorp.com.au Website: www.embroidme.com.au

Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: www.fastway.com.au Start up costs from: $25,000

Start up costs from: $200,000 ProFilE: EmbroidMe is part of the world’s largest embroidery, screen printing and promotional products with more than 300 locations around the world in 12 countries. With more than 40 locations across the country we are also Australia’s largest embroidery franchise.

As part of a $50bn a year industry, we are a B2B franchise that offers Monday to Friday trading, low staff and inventory, great margins and a clean working environment.

We’re at the forefront of the corporate uniform and branding revolution, helping companies all across Australia look professional and promote their business.

Franchising opportunities available Australia-wide.

ProFile: 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 packages* Low start up costs No weekend work 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. *Condiitions apply

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A-Z listings Phone: 1300 798 501 Fax: 1300 798 502 Website: www.franchiselegal.com.au Contacts: Ilya Furman Email: ilya.furman@franchiselegal.com.au

Phone: 03 9533 0028 Fax: 03 8640 0413 Contact: Andrew Kelly Email: andrew@fcbusinesssolutions.com.au Website: www.fcbusinesssolutions.com.au

ProFilE: Franchise Legal is a commercial law firm which practices exclusively in franchising.

ProFilE: FC Business Solutions is the only integrated franchise consultancy focussing on executive recruitment, franchise health checks, public relations & marketing, franchise system development, franchise training, advisory & mentoring, franchise expansion & growth and conference & event management, exclusively for the franchise community and other industry sectors.

Our lawyers offer extensive legal and commercial experience in the industry, having worked with many leading franchise systems in Australia and internationally.

We act for both franchisors and franchisees in all matters affecting their business.

FC Business Solutions and its team of professionals have been providing professional services to the franchise sector for more than 75 years (combined).

FC Business Solutions has built a reputation based on relationships and results, assisting franchise businesses to reach their full potential.

Phone: 0405 443 254 Contact: Matt Beesley Email: mbeesley@fruizberry.com.au Website: www.fruizberry.com.au

Level 5, 530 Collins Street, Melbourne, Victoria 3000, Australia.

Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: kevin@franchiseselection.com.au Website: www.franchiseselection.com.au

PROFILE: Franchise Selection is the leading franchisee recruitment company in Australia that assists potential franchisees through the interview and selection process.

We offer potential franchisees a wide selection of franchises covering all industries including retail, food, automotive, telecommunications, construction and even service franchises. We pride ourselves in being leaders in our industry and our approach is not to sell franchises but to educate and assist buyers in finding the right business opportunity for them and to assist franchisors in selecting the very best franchisees.

Start up costs from: $300,000 - $400,000 ProfilE: Fruizberry, through its retail outlets, provides its customers with Australia’s most comprehensive range of frozen yoghurt, fresh and dry toppings and other mix-ins, fudges and condiments. We can create over 100 different yoghurt flavours ensuring that our customers have an abundance of choice that will keep them coming back for more.

Only the freshest ingredients and fruits are sourced with seasonal fruits being rotated throughout the range. With over 45 toppings to select from, our customers at Fruizberry really are ‘spoilt for choice’.

With up to 8 frozen yoghurt machines in our stores, Fruizberry can offer up to 16 different flavours to our customers at any one time, Along with the huge range of toppings, the combinations are endless. As well as the core business offering, we also retail a range of low fat smoothies and other healthy snacks.

Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Karen Pollard Email: franchise@gelatissimo.com.au Website: www.gelatissimo.com.au

QLD/NT: Murray Kahler - 07 5440 5440 NSW/ACT: Jarrod Blamey - 02 9453 3844 SA/WA: Dean Lindstrom - 08 8266 6506 VIC/TAS: Ross Morley - 03 9338 5588 Website: www.gjgardner.com.au

Start up costs from: $350,000

Start up costs from: $200,000 - $250,000

ProFilE: Australia’s largest gelato franchise presents a unique concept; with over 20 years of product development, customer satisfaction and a brand that embodies style and sophistication. Our retailing point of difference is making full flavoured gelato fresh in-store daily using a system that is simple to run. Gelatissimo has an enviable performance record, with an average store turnover of $779,000* and comparative store sales growth has averaged a positive 8.29%* over the last two years.

ProfILe: GJ Gardner Homes the leading franchised home builder in both Australia and New Zealand, is also experiencing strong growth in the USA.

As part of its commitment to franchisees, Gelatissimo charges a flat royalty fee instead of a percentage of sales, provides full training, ongoing support from its operations and marketing team, brand building and local store marketing.

The success is built around the combining of the business person/builders ‘local’ contacts, knowledge with the proven GJ Gardner Homes training, support and marketing to take their business to a new level.

Specialising in taking the smaller builder or a partnership of builder and business person then giving them the tools, software and support to compete in the volume market this successful formula sees thousands of new homes built each year under the GJ banner.

*Sales figures based on the last 12 months turnover as at April 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.

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A-Z listings Phone: 03 59734044 Contact: Andrew Roberts Email: andrewroberts@greyarmy.com.au Website: www.greyarmy.com.au

Phone: 02 9846 0374 Contact: Jenny Colla Website: www.gloriajeanscoffees.com.au

Start up costs from: $32,500 Profile: Gloria Jean’s Coffees is a leading coffee specialist that has powered the growth of Australia’s retail coffee market.

Australian owned and loved, Gloria Jean’s Coffees is a global brand that delivers the ultimate coffee experience with heart.

We are a multi-award winning franchise system that is dedicated to the success of our Franchise Partners.

By joining the Gloria Jean’s Coffees family, you will benefit from our effective business tools developed on a solid foundation, a culture of collaboration, and the training and support to help you with your business.

ProfilE: The Grey Army is one of the most trusted brands in the home service and property maintenance industries. Consisting of Franchisees and individual service providers, the Grey Army services hundreds of domestic and commercial customers every day right across Australia. Our philosophy is to put real customer service back into a field which seems to have forgotten it exists and to share in the Grey Army motto of ‘Old Fashioned Values and Integrity.’

If you are looking to build your own business but would like the experience, training, ongoing support and services of one of Australia’s most trusted brands behind you, the Grey Army could be for you.

• Great lifestyle • Large exclusive territories • Trusted brand • Full training and ongoing local support • Low entry cost and low fees

Phone: 07 5515 0119 Fax: 07 5500 3716 Contact: Geoff Biddle Email: mail@groutpro.com.au Website: www.groutpro.com.au

Phone: 0407 646 179 Contact: Nicholas Bernhardt Email: info@greenbizcheck.com Website: www.greenbizcheck.com Start up costs from: $38,500 inclusive

Start up costs from: $29,950 + GST & vehicle

ProfilE: GreenBizCheck provides fast, affordable, world-leading annual green business sustainability programs scrutinized by universities, environmental agencies, governments and major corporations that maximize an organization’s green credentials with a 100% money back guarantee.

GreenBizCheck now needs you and your expertise to become Australia and New Zealand’s most recognised environmental standard. You will be supported by a dedicated and passionate management team in building this exciting low cost franchise.

ProFilE: Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition.

GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and re-colours old grout saving customers time and money without having to re-tile.

Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.

Phone: 02 9542 2000 Fax: 02 9542 2100 Contact: Drew Arthur Email: drew@micronet.com.au Website: www.harmoniq.biz

Phone: 02 9224 0428 Contact: Zoran Radisavljevic Email: franchising@healthyhabits.com.au Website: www.healthyhabits.com.au Start up costs from: $250,000 - $350,000

ProFilE: Harmoniq is revolutionary sales, accounting and business management software for Franchises, brought to you by leading software provider Micronet Systems. It’s simple, powerful, and extremely flexible and is the first product of its type that can be truly personalised to suit the way you want your business and your people to work, every time.

ProfilE: Healthy Habits is an Australian sandwich franchise with a difference. With over six out of ten Australians currently overweight or obese, we want to show Australians that healthy food can be delicious too.

Incorporating Financials, Commercials, Marketing, BI Dashboards and CRM within a single system, Harmoniq will scale with your Franchise – never needing to be replaced – while delivering a professional IT and supply chain platform.

Our menu provides a twist on traditional favourites, using flavours like lemon myrtle, pepperberry and macadamias to bring excitement to the standard wrap, sandwich or salad.

Harmoniq is not only a revolutionary way for you to gain and maintain control over your more difficult business processes, but is also a new way for you to tune your franchise like never before.

At Healthy Habits we’re undertaking an ambitious market expansion and are looking for franchise owners seeking to turn their passion for a healthy lifestyle into a living. Call today for an initial conversation about opportunities available across Australia and New Zealand.

‘Tune Your Franchise’ with Harmoniq to strengthen your brand and Franchise values.

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A-Z listings Phone: 02 9452 8888 Fax: 02 9452 8899 Contact: QLD - Elvio DiZane 0411 868 202 NSW/VIC/TAS - Chad Braithwaite 02 9452 8888 Email: chad@hsw.com.au Website: www.hsw.com.au Start up costs from: $500,000+ ProFilE: Howards Storage World is a specialist retailer of innovative storage solutions for the home, office and garage. The range of stylish and functional storage systems include racks, shelving and wardrobes. There are now over 50 Howards Storage World stores around Australia.

The Howards Storage World franchise operation is tightly structured and provides franchisees with a high level of support including: initial five-week training program, on-going training and support with our team of regional managers, merchandisers, marketing team and buyers. This is coupled with our scheduled franchisee meetings, high-profile site selection, national group buying power as well as access to a strategic monthly marketing campaign which includes our annual catalogue.

Phone: 07 3878 5677 Fax: 07 3878 5066 Website: www.janiking.com.au Start up costs from: $19,000 ex GST

ProFile: Jani-King is Australia’s largest commercial cleaning franchise.

All Jani-King Franchisees receive extensive, ongoing training and are supported by a Regional Manager, Operations Team, Administration Team and Sales Team.

If you are serious about changing your future be sure to visit our website to get in contact with your local Regional Manager to discuss the unrivalled opportunities of owning a Jani-King franchise.

Phone: 02 8205 1334 Fax: 02 8205 1335 Contact: John Cabral Email: enquiries@jempp.com.au Website: www.jempp.com.au

Phone: 1300 227 853 Contact: John Newton Email: franchisesales@partycastles.com Website: www.partycastles.com Start up costs from: $45,000

Start up costs from: $99 per month ProFilE: JEM Promotional Products can handle all aspects of your Uniforms and Merchandise range from the supply of products to the management of a customised Online Store that your franchise locations can log on to and order your range online.

We can even handle the warehousing and distribution of your products.

Other benefits of an online store include ensuring your branding remains consistent across all locations, gaining group buying power and economies of scale and most importantly making your range accessible and easy to order online.

ProfilE: Jumping J-Jays are offering more than ever to their customers with the introduction of a bunch of new themes. This means that Jumping J-Jays are presenting more opportunities to their franchisees for rentals.

Existing Franchises now available from $45,000 including 20 themes.

Add to this our turnover Guarantee of at least $100,000 in your first year. At this level you have a breakeven point of 4 deliveries a week. 80% of our current franchisees deliver 8 or more every week.

We can even integrate an online payment system so that payments are collected automatically.

Phone: 1300 737 978 Fax: 03 9005 2991 Contact: Mr. Brijesh Purohit Email: franchise@keentoclean.com.au Website: www.keentoclean.com.au

Phone: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com

Start up costs from: $25,700 + GST

Start up costs from: $160,000 to $240,000 ProFilE: Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores.

Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you. At Just Cuts™ Franchise Owners have been free to grow to own multiple sites.

Just Cuts™ do over 66,000 Style Cuts™ cuts a week! Just Cuts™ operate on a no appointment, no request system, quality Styles Cuts™ cut at an affordable price.

Contact us today to find out how.

Join the largest Hairdressing Franchise in the Southern Hemisphere.

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ProFilE: Keen to Clean is an innovative, professional and committed market leader in all forms of cleaning, both residential and commercial. We offer a truly unique path for a franchise owner to grow with the system and the opportunity to expand their franchise operations.

Keen to Clean has enjoyed strong growth in Melbourne through franchise sales over the past few years, in the coming years Keen to Clean wish to expand the franchise operation throughout Australia. With many franchise offers there is a franchise to suit anyone, whether you are the type of person who could take on a master franchise or simply buy and operate a general franchise we have something to suit you.

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A-Z listings Phone: 1800 251 680 Fax: 02 9967 5511 Contact: Hedley Partis Email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise

Phone: 02 9687 7700 Fax: 02 9687 7706 Contact: Peri Celik Email: peri@lewrap.com Website: www.lewrap.com

Start up costs from: $210,000

Start up costs from: $200,000

ProFilE: A Kwik Kopy franchise is your path to a successful new business. And what’s more, you don’t require any print experience to take on a Centre.

Kwik Kopy is a B2B print and design provider, focusing on the small to medium business market.

A highly established and recognised brand, Kwik Kopy has been operating in Australia for over 25 years and has an extensive network of Centres in regional and metropolitan locations Australia wide.

The benefits of becoming a Kwik Kopy franchisee include: • Award winning franchise model • Strong brand and ongoing marketing solutions • Regular working hours Mon-Fri • Extensive training and on-site assistance

ProFilE: LeWrap is Australia’s new and upcoming healthy fast food alternative. LeWrap was established in 2005 and has undergone great success by promoting healthy, fresh, grilled and tasty foods. LeWrap has grown to 12 stores around Sydney. The franchise is currently expanding its operations interstate to Melbourne and Brisbane and also has projections to move the brand internationally.

LeWrap is a unique food offering, capturing the shift toward healthy eating and a healthy lifestyle for all customers. We are looking for passionate, motivated and energetic personnel that share our vision and want to become part of a proven and successful franchise system leading the move toward healthy fast food. If you believe it is time for Australia to embrace healthy, tasty and fresh food, we’d love to hear from you.

Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 Contact: James Archer Email: jarcher@lma.biz Website: www.lma.biz

Phone: 1300 2 MR WOW / 07 5464 1130 Contact: Julie Email: franchise@mrwow.com.au Website: www.mrwow.com.au Start up costs from: $25,000 - $41,500 includes van

Start up costs from: $73,940 ProFilE: LMA has been creating exceptional results through people for over 40 years.

Founded by our Executive Chairman Grant Sexton in 1972, and now led by our CEO Andrew Henderson, LMA is an Australian-owned business that works with organisations throughout Australia and New Zealand to improve their bottom line by: • Developing the leadership and management skills of their key people • Improving the performance and productivity of their people.

As a Licensee in the LMA network, you will have access to market-leading products, world-class resources and support, superior quality facilitators, course coaches and venues and everything needed to kick-start your learning and development business.

Limited opportunities are available across Australia and New Zealand.

PROFILE: Mr WOW franchisees own their own exclusive territory business within the domestic and commercial cleaning sector.

They can generate their own income using the tried and proven formula gained from Mr WOW’s 28 years’ experience. Extensive initial training and ongoing support is provided.

Trading as a mobile cleaning operation, with a minimum amount of administration it is easily managed from a mobile van or home office. The full range of services available makes Mr WOW the complete one stop cleaning service provider.

“Our cleaning work services set the complete home clean excellence standard and creates the WOW factor every time!”

Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au

Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au

Start up costs from: $45,000 + Car Lease

ProFilE: Mason Sier Turnbull is widely recognised as one of Australia’s leading franchising law firms having more than 30 years of experience in advising franchisors, franchisees and suppliers to the franchising sector on all aspects of franchising, including advising on Franchising Code compliance and Competition and Consumer Act compliance, drafting Franchise Agreements, Disclosure Documents and ancillary documentation, sales and purchases of franchises and franchise networks, restructuring of franchise networks and multi-tiered franchising options.

We act for a number of well-known national franchisors, international franchisors and for new and emerging franchise systems. Our dedicated franchise team prides itself on providing commercial and practical advice to its franchise clients.

Profile: Imagine the freedom and lifestyle of having your own mobile business and working from home – being able to clean a car anywhere and offer your clients the highest quality service at their home or office… This is the business reality of a Nanotek franchisee.

Nanotek is the global leader in mobile car cleaning and detailing. Using exclusive polymer nanotechnology the Nanotek process encapsulates, lifts and removes dirt without scratching - it also leaves a protective coating which lasts up to 6 weeks.

Because the process doesn’t require water, the Nanotek service can be performed anywhere – home, office, on the street, even on the showroom floor!.

So whether you are after the independence and lifestyle of operating your own business, or the passive income that a fleet of nano-mobiles can provide, with Nanotek you can tailor your business to suit your goals.

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A-Z listings Phone: 07 3387 8787 Fax: 07 3387 8788 Contact: Dean Atkins Email: franchises@nightowl.com.au Website: www.nightowl.com.au

Phone: 1800 776 747 Fax: 1800 194 525 Contact: Darryl Morris Email: info@mynfib.com.au Website: mynfib.com.au

Start up costs from: $400,000 + GST ProFilE: NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses.

ProFilE: NightOwl is Australia’s largest stand-alone convenience brand offering fantastic franchising opportunities across QLD, NSW and VIC.

Our service is fully automated, compliant and provides you with full documentation.

Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.

Our brand strength, State of the art IT platform, Online training and support, site selection process, construction planning, merchandising knowledge and marketing expertise dictates that our franchisees are set-up for success and start their business lives on the right foot.

The NightOwl brand consists of two store models, the traditional convenience stores sized from 80m2 to 200m2 offering impulse and convenience at its best.

NightOwl Super stores sized from 250m2 to 500m2 offer “More Choice, More Value” with a more in-depth shopping experience.

Phone: 03 9681 7435 Fax: 03 9681 7484 Contact: Joe Rossi Email: jrossi@orangeleafyogurt.com Website: www.orangeleafyogurt.com.au

Phone: 1300 667 067 Fax: 1300 667 101 Contact: Clinton Capuzzi Email: sales@ordermate.com.au Website: www.ordermate.com.au

Start up costs from: $200,000-$350,000 STYLE GUIDE

ProFilE: 200+ successful stores worldwide and quickly growing, Orange Leaf Frozen Yogurt is a brand not to be ignored when choosing your next business venture.

Our franchisees love us because of our intense commitment to being the most pro-franchisee company in the industry. We provide outstanding support that our franchisees need to succeed at a fraction of the cost of our competition.

Orange Leaf Frozen Yogurt is one of the most demanded brands in our industry because of the superior taste and texture of our product and our family oriented, visually uplifting environment.

Locations available Australia-wide, secure yours before someone else does!

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OrderMate Style Guide

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ProFilE: OrderMate is the complete multisite franchise POS solution.

OrderMate was established in 2001 to service the food and beverage POS market.

Its success relies upon its uniqueness from the competition which is often generic and off the shelf.

Easy to use front of house interface, whilst still giving you the powerful backend reporting to drive your business. OrderMate gives you the tools to track and manage the KPIs of your franchisees in real time.

We have a proven track record of delivering a return on investment within 12 months. Our nationwide network enables us to rollout, service and support large scale projects.

Phone: 07 5532 7071 Fax: 07 5532 5351 Contact: Graeme Diamond Email: franchising@outbackjacks.com.au Website: www.outbackjacks.com.au

Phone: 1300 OVENU 2 (1300 683 682) Email: enquiries@ovenu.com.au Website: www.ovenufranchise.com.au Start up costs from: $39,000 + GST

Start up costs from: $300,000 ProFilE: Outback Jacks Bar & Grill is an exciting fully licensed, family style steakhouse which has been franchising since 2006.

We have perfected the art of providing an amazing experience specialising in the growing family dining market and have now grown to 28 strong franchise restaurants around the country.

We can provide full turnkey restaurants along with comprehensive training and support so no experience is required just a passion for great food and customer service.

We have new sites available in all states and territories so if you have ever dreamed of owning your own bar & grill give us a call today.

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ProfilE: Ovenu the professional oven cleaning and detailing service.

Established in 1994, Ovenu is the largest oven cleaning and detailing franchise in the world. Using biodegradable, non-caustic odour free products, developed exclusively for Ovenu, our system will return any oven back to showroom condition.

Franchisees receive full training, back up and support. Generous territories are available in prime locations across Australia.

• Full training and ongoing support. • Great Cash flow & Low overheads • Additional Income streams as a Certified Enduroshield Applicator.

If you are looking for a highly profitable, low entry cost business that delivers great rewards and job satisfaction with the flexibility of being your own boss call us now.

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A-Z listings Phone: 1300 OZETEL (1300 693 835) Fax: 1800 OZETEL (1800 693 835) Contact: Anthony Matejcich Email: anthony@ozetel.com.au Website: www.ozetel.com.au

Phone: 02 9930 3023 Contact: Brett Jeffrey Email: au-pizzahut.franchising@yum.com Website: www.pizzahut.com.au/franchise Start up costs from: $250,000-$300,000

ProFilE: Ozetel are experts in providing telecommunication services to franchisors in Australia.

13, 1300 or 1800 numbers - Activate a new number, purchase a phoneword or bring an existing number to Ozetel and receive very competitive rates, secure calls and unmatched customer service.

Postcode Prompter Technology - Postcode Prompters allow the caller to enter a 4 digit postcode to be connected to their nearest franchise.

Ozetel was one of the original developers of this technology 8 years ago. The advantages of this technology include efficient call routing, increased brand recognition, enhanced reporting and measurement of call flow statistics and differentiation from your competition. Other features include, custom design, call announcement, real time changes and individual billing for franchisors.

ProfilE: Pizza Hut is the leading global pizza franchise, with over 12,000 restaurants throughout the world and is part of the quick service restaurant giant, Yum! Restaurants International.

Franchising with Pizza Hut gives you the financial control of owning your own business combined with the support of a historically successful global company.

With exciting new store opportunities available throughout Melbourne/Regional Victoria, Perth/Western Australia, Regional New South Wales, and South East/ Regional Queensland there has never been a better time to join.

Call now and Ozetel will set up a demonstration service for your franchise.

Phone: 02 4648 2099 Fax: 02 8569 1899 Contact: Nigel Miller Email: nigelm@plusfitness.com.au Website: www.plusfitness247.com.au

Phone: 03 8603 6014 Contact: Greg Hodson Email: greg.hodson@au.pwc.com Website: www.pwc.com.au/industry/franchising

Start up costs from: $269,000 inc equipment ProFilE: With 75 Franchises sold in the past 18 months alone, Plus Fitness has a clear goal of establishing over 150 gyms by end 2013.

Plus Fitness provides the most competitively priced 24Hour Gym Franchise with an initial investment from $269k including all gym equipment, aesthetic fitout, signage, access control and marketing.

With proven operating systems, unrivalled franchisee training and support you are assured that your franchise will be success. A franchise model that provides fast breakevens, low staffing and impressive returns, Plus Fitness 24/7 is a ‘lifestyle’ business second to none.

Exercise Your Freedom and contact us to find out more today!

ProfilE: PwC is the market leading professional services firm in Australia. We have a dedicated team of franchise and business growth specialists able to help you set up and implement a comprehensive growth strategy to unlock and optimise the benefits of your business - no matter what your industry or the size of your business is.

The PwC Private Clients Advisory team includes some of Australia’s most experienced advisors, with our team members having up to 30 years hands-on experience advising on growth, franchising, licensing and other distribution channels. Our team has built some of Australia’s most successful Franchise systems across the majority of industries and markets.

Contact: Greta Gilroy Email: ggilroy@resicert.com Website: http://resicert.com/lifestyle

Phone: 1300 4 REDCAT (1300 4 733228) Email: info@redcat.com.au

Start up costs from: $68,500 + GST ProfilE: RedCat is an Australian company, with an Australian development team, and have a history of leveraging our flexibility and integration capabilities to partner with clients to implement and develop unique solutions.

We have been a leader in hospitality point of sale and accounting software since 1992, and can supply integrated software and hardware solutions for Point of Sale and Accounting that can manage sales, staff, stock and payroll through to accounts, GST, customer loyalty, and Web Based multi-Site reporting solutions to provide the complete business management system.

In particular, for the needs of franchised groups, we have developed an extremely flexible centralised management capability that permits multiple levels of control and reporting capabilities, from total head office management, through to localised management and web based consolidated reporting tools and a web based, (and mobile phone based), ordering system which is totally integrated into the Point of sale system.

ProfilE: Resicert is a Property Inspection Business that provides franchisees with an amazing opportunity to have a balanced lifestyle and a steady stream of solid income. We pride ourselves on having robust business systems and well structured training that brings new Licensed Property Inspectors up to speed quickly, regardless of the professional background they have. We welcome motivated individuals to join us in WA, VIC, ACT, NSW, SA & TAS (metro and regional areas. Automation of sections of our business processes allows you to focus on the actions necessary to make money. Additionally, our strong emphasis on marketing helps generate leads for you.

Other key benefits include: • No quoting • Very little overheads – phone, car, • No staff required internet – that’s it • No collecting money – we do it for you • Exclusive territories available

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A-Z listings Phone: 03 9428 1088 Fax: 03 9428 7055 Contact: Tony Maddock – services Adam Kernahan - lawyer Email: info@solutionsfranchising.com.au Website: www.solutionsfranchising.com.au

Phone: 03 9508 4417 Contact: Gavan Meadows Email: gavan.meadows@retailzoo.com.au Website: www.salsas.com.au Start up costs from: $400,000 to $450,000+GST

ProfilE: Joining Salsa’s Fresh Mex Grill makes you part of the largest fresh Mexican food franchise in Australia. With 36 locations in just 4 years, it’s the brand that’s cooking up fast, delicious Mexican food people can’t get enough of.

All our salads, guacamole and vegetables are prepared from scratch every morning. Our marinated meats and fresh vegetables are cooked to order on our sizzling Mexican grill. Combine chunks of fresh broccoli and zucchini with the added burst of marinated flavours from our premium meats; it’s not hard to see why Salsa’s served over 3 Million customers last year!

With the same proven growth platform, systems and structures that saw Boost Juices’ meteoritic rise to over 200 locations across Australia and now in 16 countries around the world, you can invest in a Salsa’s Fresh Mex Grill franchise with confidence.

ProFilE: Solutions Franchising is providing the industry with the best value professional services available.

We will help you with; • Franchisee recruitment • Training programs • System development and maintenance • Strategic planning • Full legal services • Australia’s easiest CRM coming soon We operate all over Australia and have associates in India, Indonesia and Pakistan.

Phone: 1800 662 663 Fax: 02 9807 2033 Contact: Evan Foster Email: efoster@ufgcorp.com.au Website: www.signarama.com.au

Phone: 1800 049 743 Fax: 1800 884 431 Contact: James Scurr Email: jscurr@silverchef.com.au Website: www.silverchef.com.au

Start up costs from: $200,000 ProFilE: SIGNARAMA is the world’s leading sign and graphics franchise, with 850 locations worldwide in over 50 countries. With 90 locations nationally, we are the dominant sign franchise in Australia.

ProFilE:

We sell a product that every business needs and uses every day, and our franchisees will continue to see outstanding growth. We have pioneered the ‘bricks and clicks’ strategy in the sign industry, and no sign company can match our E-Commerce and physical presence.

• Purchase the equipment and enjoy a 75% rental rebate • Return equipment if you don’t need it anymore • Keep renting and we will continue to reduce the purchase price • Upgrade if you decide your franchise has outgrown the original equipment

As a B2B franchise, we offer Mon-Fri trading, low staff, low inventory and quality of life. Every product is custom-made so margins are high! No previous experience is required – join SIGNARAMA, your local sign experts.

And if you are part of an accredited franchise, you will enjoy even greater benefits such as reduced rental bonds, rental discounts and pre-approval for all franchisees.

Silver Chef has been helping businesses to fund their equipment needs for over two decades. Silver Chef’s Rent. Try. Buy.® Solution offers a simple 12 month term so that you have the flexibility to:

Silver Chef Limited is a public company listed on the Australian Stock Exchange.

Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: nicholas.hudson@snapon.com Website: www.snapontools.com.au

Phone: 07 5478 4014 Fax: 07 5477 7133 Contact: Leigh Wallis Email: leigh.wallis@smith-sons.com Website: www.smith-sons.com.au

ProFilE: Smith and Sons are professional renovation builders who provide high quality renovations from concept to completion.

2008 saw the conception of Smith & Sons Renovations & Extensions, with directors Corey Passey, Darren Wallis and Greg Gardner at the helm. The first Smith & Sons office opened in Maroochydore, Queensland in March of that year, and within 36 months, there were 40 offices open across Australia and New Zealand.

The Smith & Sons teams quickly became known for their professional, holistic approach to renovating, and with a company culture of excellence, team spirit, hard work and enjoying life, Smith & Sons has raced to the front of the renovation industry, forging successful and long lasting business and client relationships.

The next few years look to be a great ride for all involved with the Smith & Sons team.

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Start up costs from: $37,000 with financing packages available ProFilE: Snap-on Tools Australia is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools who has established a network of solid franchise operations across the globe.

Now after more than 20 years in the Australian market it continues to solidly perform and provide robust financial results for its network of 166 franchisees. Extensive training and ongoing support is provided – no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

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A-Z listings Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne Email: alistairb@snooze.com.au Website: www.snooze.com.au

Phone: 07 5577 8166 Fax: 07 5577 8266 Contact: Max Collins, Talent Recruitment Email: info@socialmediabusinessboosters.com Website: www.socialmediabusinessboosters.co

Start up costs from: $450,000

Start up costs from: $30,000 - $40,000

ProFilE: As one of Australia’s longest-running franchised business and with more than 70 stores operating across the country, Snooze has proven itself a consistent franchise performer. It has been voted amongst the Top 10 Australian Franchise Businesses 2011 by topfranchise.com.au.

Snooze provides ongoing support to franchise partners across marketing, product and sales training, visual merchandising and IT. By consistently striving for innovation and quality, Snooze remains an industry leader, sharing benefits with franchisees and customers alike. With an aggressive growth strategy firmly in place, further success for Snooze is assured as it continues to attract enthusiastic franchisees and seek strategic store locations.

ProFilE: Social Media Business Boosters is a world first franchise offering low market entry, rapid return on investment, minimal overheads and the ability to grow your business from home.

A unique opportunity and a market leader, SMBB is expanding rapidly in local and overseas markets. There is huge need for professional digital marketing expertise and businesses are waiting for your expertise to guide them.

Social Media Business Boosters is your pathway success offering thorough training, robust support and start-up clients. Take advantage of biggest shift in business the world is seeing Social Media Marketing!

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Phone: 1800 788 335 Contact: John Newton Email: franchisesales@stufflers.com Website: www.stufflers.com

Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 03 9287 9555 WA/SA - 08 9430 2877 QLD/NT - 07 3877 7333 email: franchdev@caltex.com.au Website: www.caltex.com.au

Start up costs from: $45,000

Profile: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country.

• The Star Mart convenience network consists of over 630 stores nationally.

• Franchisees operate approximately 85% of Caltex’s retail network.

ProfilE: This exciting new franchise has been franchising in Australia for just over a year.

Building on the successful growth of shopping centre bear making stores, Stufflers is all about making stuffed animals at kids’ parties and events using the Stufflers unique mobile machine system.

Our world class business model, merchandising and field support has set the benchmark for convenience retailing, making Caltex the number one convenience retailer throughout Australia.

With clothes, hearts and special carry carts - Stufflers is the next party phenomenon. The franchise is best suited to a stay at home mum that has 2 days available midweek to work on our unique local marketing programs.

A select amount of Caltex Star Mart opportunities now exist for high calibre franchisees with a passion for retail and a burning desire to be successful.

As part of your $45,000 franchise fee, you will receive 8 mobile Fluffenstuff machines that are custom built by Stufflers.

To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.

Our opening launch price of $45,000 is substantially lower than the $500,000 needed to open a retail store.

Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator Email: ssa@subway.com Website: www.subway.com

Phone: 02 9569 7866 Fax: 02 9569 7811 Contact: Graham Streeter Email: graham@sumosalad.com Website: www.sumosalad.com Start up costs from: $300,000 + GST

Start up costs from: Varies by site ProFilE: For an unprecedented 17 times in 23 years, the SUBWAY® Restaurant chain has been ranked the No.1 Franchise Opportunity for 2010 by Entrepreneur Magazine in its annual “Franchise 500” rankings*. The SUBWAY Restaurant chain is the world’s largest submarine sandwich franchise**, offering business owners simple operations, ongoing field support and defined marketing structure, along with providing customers with a variety of freshly made menu options. For over 40 years, the SUBWAY® brand has been helping individuals build their own, independently operated business – run by people just like you! From step one, throughout the entire franchise process, the SUBWAY® system provides training and guidance that aids in the operation of each restaurant. *The SUBWAY® franchise was ranked the number-one global franchise among franchises with worldwide operations in the 2010 Franchise 500® issue of Entrepreneur® magazine, based on research and analysis of those franchises having worldwide operations. ** Numbers are subject to change.

ProFilE: SumoSalad is Australia’s most commercially successful healthy fast food franchise; serving over 145,000 customers each week. We’re on a mission to recruit likeminded franchisees who want to provide healthy, nutritious food and be part of the solution to Australia’s obesity crisis.

SumoSalad started a health food revolution nine years ago when founders Luke Baylis and James Miller came to the conclusion that ‘fast food’ didn’t have to mean ‘snatch and grab, lardy laden food’. SumoSalad’s unique concept of a fast food outlet that sold made-to-order salads that were nutritious, delicious and convenient is as popular now as it was in 2003.

If you’re enthusiastic, health conscious and want to make a difference, join us now!

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A-Z listings Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: franchise@telechoice.com.au Website: www.telechoice.com.au

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos Email: franchise@cheesecake.com.au Website: www.cheesecake.com.au

Start up costs from: $200,000

Start up costs from: $150,000 - $700,000

ProFilE: There has never been a better time to become your own boss.

ProFilE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia.

TeleChoice is a great choice for you if you are looking for a business in a dynamic industry.

Our award winning system makes for one of the simplest businesses to operate.

With over 150 stores nationally and a massive support base, you’ll always feel part of a great team.

Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order.

To start your own business and take control of your life, call TeleChoice today.

Our cakes are baked from easy to follow recipes. You don’t need to be a chef or a baker, its so easy!

If you love to bake cakes for the kids then here is your chance to turn your passion into profit.

Phone: 1300 453 284 Fax: 07 5563 3477 Contact: Dean Reid - Marketing Manager Email: info@theleatherdoctor.net.au Website: www.myleatherdoctor.com.au

Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Richard Email: richard@thefranchiseshop.com.au Website: thefranchiseshop.com.au

Start up costs from: $55,000 ProFilE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand.

Principals, Grant and Richard Garraway have more than 30 year’s experience between them in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site finding.

At The Franchise Shop our aim is to grow your business. Are you thinking of developing your business? A free initial consultation will provide you with an honest, comprehensive and accurate assessment.

Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.

PROFILE: The Leather Doctor is a well established franchise providing a mobile repair, cleaning and restoration service for all leather items. It is the market leader in Australia with 50 franchisees covering all capital cities and many regional centres, as well as franchisees in Dubai, Abu Dabi and the USA. Franchisees operate from highly visibale vans and mostly service the $7bn furniture industries.

Franchisees enjoy the benifits of custom online systems that secures commercial work from leading furniture retailers and manufacturers.

Income is also generated from the domestic market and through the sale of care products to these customers.

Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au

Phone: 1300 TOP SNAP (1300 867 762) Contact: Helen Clarke Email: helen.clarke@topsnap.com Website: www.topsnap.com Start up costs from: $39,950 + GST ProfilE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you!

We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them.

As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for professional property photography and marketing tools.

In recognition of this outstanding growth, Top Snap was recognised as one of Australia’s top 50 fastest growing SMEs in both the 2012 and 2011 SmartCompany awards.

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Start up costs from: $85,250 + approved vehicle ProFilE: With over 130 van operations across Australia and New Zealand and over 20 years experience, the Touch Up Guys are the market leader in the mobile automotive paint and bumper repair industry. This Aussie-made mobile automotive franchise carries out repairs to bumpers, plastics, paintwork, vinyl upholstery, alloy wheels and much more.

Servicing commercial, corporate and consumer markets, our franchisees are equipped with a state of the art mobile workshop, providing a convenient and cost effective alternative to traditional bodyshops.

If you are looking for proven business model with low entry cost and low overheads and would enjoy working outdoors with your hands, then Touch Up Guys may well be the perfect career move for you. No prior experience is necessary as full technical and business skills training are provided.

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A-Z listings Phone: 0400 655 489 Fax: 03 5243 1476 Contact: Frank Rossi / Wes Smith Email: franchise@townandcountrypizza.com.au Website: www.townandcountrypizza.com.au Start up costs from: $200,000-$350,000 ProFilE: For over 25 years Town & Country Pizza and Pasta has provided its local community with quality food and professional service that has seen its expansion into a franchise system with seven outlets currently operating.

Town & Country provides franchisees with the flexibility to “localize” their store by having a choice of three systems to suit the territory; a takeaway store with delivery service, a restaurant or a model that is a combination of both! All orders are made fresh and our reputation of the fastest production system and delivery times is outperforming our competitors.

With a very affordable entry price, experienced support and proven solid consistent returns it is hard to not at least enquire about a territory available near you!

Phone: 1300 139 913 Fax: 1300 133 338 Contact: Troy Cooper Email: tcooper@trusonic.com.au Website: www.trusonic.com.au ProFilE: Trusonic is a full service music provider and audio marketing specialist.

Trusonic’s digital music library contains more than 3 million tracks in all styles including Top 40, modern jazz, instrumentals and more. Their proprietary media player (the MBOX) receives music updates daily via the internet.

With Trusonic you can: • Generate extra revenue and create branding with custom ads and IDs • Eliminate PPCA fees with their directly licensed music library • Play music and messages through your phone system • Control the music (and ads) at all sites from the one online interface To get Trusonic music working for you, contact us now.

Phone: 03 9612 7297 fax: 03 9629 4035 Contact: Robert Toth email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au

Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000

ProFilE: V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand.

V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work.

In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.

Profile: Wisewould Mahony is a leading commercial law firm with a 150 year history in Victoria with clients in Australia and worldwide.

25 Years of Industry Knowledge Member Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Franchise Association of New Zealand (FANZ) Accredited Business Law Employment Specialists Fixed Fee Services to Franchisors & Franchisees based on scope of services Services provided: • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – Solutions & Strategies • Sale/Purchase of Franchise Systems • Master Franchising • Employment Law & Workplace Relations Specialist Call or email for a complimentary brochure for Franchisors & Franchisees

Phone: 02 8394 7800 Fax: 02 83947801 Contact: Athol Ritchie Email: franchising@worldwide.com.au Website: www.worldwide.com.au

Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au

Start up costs from: $150,000 ex GST does not include working capital

Start up costs from: $69,900 + GST

ProFilE: Imagine owning a Design and Printing business with a clever mix of the latest technical, marketing and training resources, combined with the strength of more than 15 years experience in the business.

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded!

Worldwide are known for our innovative approach to business and we are always on the lookout for new and innovative products and services to expand our reach.

This pent up demand for gourmet coffee in the workplace is very poorly met.

As a franchise owner you focus on clever ways of creating new sales, providing top quality service to your clients and building a powerful team - leaving the printing and production to the experts. With more than 50 Worldwide Design and Print Centres nationally, we are now undertaking the next phase of our national expansion program. Set yourself apart from the crowd.

Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

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Companies in this issue 7-Eleven 77* 1800 on hold 25 10 Thousand Feet 167* Ace Insurance 14, 101 Amazing Clean 34* Anytime Fitness 15* ATS 100* Applied Marketing Science 68 Autobarn 106* Appliance Tagging Services 159* Bakers ClubSkin Clinics 120 Australian 136 Bakers Delight 144* Austvending 38* Autobarn 155* Brian Tracy 77* Baker’s Club 157* Café2U 39* Bakers Delight 188* Caltex 117* Baskin-Robbins 154* Bebrite 106 Cappuccino Express 28 Bedshed 114* Chemdry 38 Brian Tracy 45* Corporate 75 Burrito Bar Cars 57* Cafe2U 21 Cosmos 73, 39* 91 Caltex 160* CouriersPlease 2 Chicken Treat 53* Diversified Exhibitions 104* Coco Cubano 13* Domino’s 47 Contours Pizza 29* Croc’s Playcentre & Care 83 Elders 102 DC Strategy 140-141* Fastway Couriers 143* Diversified Exhibitions 54* FC Business Solutions 71 Domino’s Pizza 27 Fastway Couriers 187* Franchise International 81 FC Business Solutions 97 Franchise Legal 6 Financial Planning Association 148 Franchise 78-79* FranchiseSelection Council of Australia 142 Franchise Legal Fruizberry 176 Franchise Selection 128-129* Gelatissimo 119 Gloria Jean’s Coffees 23* GJ Gardner Homes 60 Greenbizcheck 55* Gloria Jean’s Coffees 111*

Grey Army 137 Greenbizcheck 63* GroutPro 109 Grey Army Warehouse 24 Hairhouse 21* Healthy Habits 63 Grout Pro 61 Howards Storage World 11* Healthy Habits 37 Hudsons Coffee 35* Howards Storage 11* Ink on the Run World 24 Jani King 44, 89* Jani King 42* Jem Promotional Products 146 Jem 82 Jim’sPromotions Pergolas 17 Jumping J-Jays 4* Jumping J-Jays 4* Just Cuts 62* Just Cuts 99* Keen to Clean 145* Keen Kleen 34* KoalatoKrane 37* Kwik Kopy 143* Kwik Kopy 22* Leadership Management Le Wrap 64 Australasia 2* Light my Fire Australia 59 Leadership Management Lollypotz 41* Australasia 110* Management Institute Mr Cleaning 103 of Wow Australia 67* Mason Sier Turnbull 21* Messagecom 118 Mason Sier 25* Nanotek

by Turnbull Ecowash 46* Metropolitan Shredding 132 National Insurance Micronet 14* Franchise Brokers 109 Nanotek by Ecowash 80-81* NightOwl 74* National Franchise Insurance Brokers 135 Orange Leaf 97 Oporto 79* Outback Jacks Bar & Grill 19* Orange Leaf 115 Ovenu 57* OrderMate 153 Outback Jacks Bar & Grill 19* Ozetel 125 Ovenu 51* Pizza Hut 13 Ozetel 121 Plus Fitness 24/7 15*

Franchising Advertising enquiries

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INCORPORATINGFCA FCANEWS NEWS INCORPORATING

FRANCHISECOUNCIL COUNCILOF OFAUSTRALIA AUSTRALIA FRANCHISE

indicates FCA FCA member member ** indicates

Plus Fitness 24/7 33* Pricewaterhouse Coopers Pricewaterhouse Australia 58* Coopers Australia 85* Redcat 76 RBI 150, 164, 168* Redcat 147 Resicert 94 Right at Home 61 Salsa’s Fresh Mex Grill 69* Salsa’s Fresh Mex Grill 69* Signarama 44-45,126-127* 88-89* Signarama 74-75, SilverChef Chef 96, 139* Silver 93* Smith & Sons 134 Smith and Sons 84 Snap-on Tools 9, 91* Snap On Tools Business Boosters 65* 9* Social Media Snooze 85* Solutions Franchising 12 Snap Fitness 120 Solutions Franchising 12 Snooze 105* Subway 65* Subway 71* Sumo 123* SumoSalad Salad 107* Supergeek 112* Telechoice 114-115* Telechoice 116-117* The Franchise Shop 52-53* The Cheesecake Shop 99, 123* The Shop 83* TheCheesecake Franchise Shop 48-49* TheLeather Leatherand & Vinyl The VinylDoctor Doctor 133* 48 The Touch up Guys 111* The Touch Up Guys 87* Top Snap 66* The Walnut Group 118 Total Tools 101* Top Snap 27* United Petroleum 70* Vanity Bar 73 Town and Country 97 VIP Australia 40* VC Solutions 113 Weekly Media 125 VIP AustraliaMahoney 95* Wisewould 47* Worldwide Online Printing 31* Wisewould Mahoney 35* Xpresso Delight 131* Worldwide Online Printing 33* Yogabugs 28 Xpresso Delight 29*

David Strong

National Sales & Marketing Manager

Magazine A-Z listings The Profiler The Yearbook Online inventory E-blasts E-newsletter Ph: 02 9422 2905 Mob: 0411 366 656 E: david.strong@reedbusiness.com.au 186| FRANCHISING FRANCHISING JAN/FEB SEP/OCT2013 2012 142|

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Fastway Couriers has a number of exciting franchise opportunities available • • • • • • • • • •

Guaranteed income package* Low start up costs Perpetual Franchise Agreement Recognised brand Award winning system for over 25 years Exclusive territories No weekend work Ongoing business support & training Easy to operate - no experience required Enjoy the freedom of working for yourself

To find out more contact us: p. w.

1300 FASTWAY fastway.com.au

*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769.

Fastway Couriers is a franchised courier network and its businesses are independently owned.

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Weâ&#x20AC;&#x2122;ve spent more than 30 years building your new business.

An Australian icon, our bakeries are family operated and are proud members of local communities across Australia.

Freshly baking bread from scratch everyday, all franchisees are provided full baking and business training and receive ongoing operational support.

Contact us on 1300 309 759 or apply at bakersdelight.com.au

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