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PROS & CONS
BUDGET-PRICED FRANCHISES
Franchising OF SUB-LEASING
www.franchise.net.au
Mar/Apr 2013 VOL.26/No.2
FRANCHISING
Your essential guide to buying a franchise
PROFIT VS TURNOVER MAR/APR 2013 WWW.FRANCHISE.NET.AU
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AD_PROCOUJAN_13.pdf
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Franchise Opportunities Available Do you have the
DRIVE attitude...
to be a CouriersPlease Franchisee? Low Start up costs Ezy Tech system to operate business Guaranteed income package* Exclusive territories Extensive training & support
Contact us today!
Phone:1300 PLEASE Email: enquiries@couriers please.com.au www.couriersplease.com.au *Conditions apply.
Service is our Success
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Contents mar – apr 2013 |YOur eSSeNtIaL GuIDe tO BuYING a FraNCHISe 62 Vending a sweet deal Simple ideas, simple systems 72 Franchising on a budget 101 Cost conscious business opportunities 80 exploring the marketplace what does a franchising expo offer?
40
Issues 86 profit from your franchise Know how to do the numbers
Inspire 8
26
Franchising awards You can vote in these new awards!
16 Independence days Franchisor trish Noakes tells her story 23 Doing it for herself taking control at rams 26 Why albert and Kent love Ben & Jerry’s a love of ice cream becomes a business
86 regulars 5
editorial
6
News
10
Interview
122
Legal
124
Sketch
126
people
128
Glossary
131
Checklist
146
Company listings
31 Building a lifestyle rebadging a business 32 a family friendly approach award winning La porchetta franchisees 36 Cruise control Is it a cross trainer or a bike? It’s both!
92 Weighing it up the pros and cons of having a sub-lease
How to... 98 10 questions to ask a franchisee How to get helpful information 105 a matter of engagement Check these tips for using social media 108 How social media savvy is your franchisor? Questions to ask 112 In the neighbourhood advice on site selection for service franchisees 118 What’s in a marketing package? How Bakers Delight supports franchisees
Opportunities 40 a healthy appetite Good food can be a good business 49 shopping around retailing books and gifts 54 exercising your options Fitness franchises following the trends www.FraNCHISe.Net.au
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AD_FRJUSMAR_13.pdf
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You don’t have to be a hairdresser to own a Just Cuts™ salon. Just the desire to have more control over your life and finances. Just Cuts™ is the largest hairdressing group in the Southern Hemisphere, looking after 66,000 Clients every week. Right now, we’re looking for new, energetic Franchisees to join the Team. Interested? Contact 02 9527 5444 or bdm@justcuts.com
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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 Brea Carter brea.carter@reedbusiness.com.au Direct: 02 9422 2461 National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905
Profit from your franchise
L
Contributing Journalists Domini Stuart Donna Bennett Columnists Karli Furmage Andrew Terry Marianne Marchesi 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
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All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2011. Opinions expressed in Franchising are not necessarily those of Franchising or Reed Business Information.
SARAH STOWE Editor
uke Baylis started his SumoSalad business with a partner 10 years ago. Now the business that has My Kitchen Rules host and chef Pete Evans as ambassador for the brand has a new majority shareholder, a family-owned private equity firm. What will this mean for the salad serving franchise chain? In our interview on p10 Baylis reflects on the highlights of a decade in business and the challenges ahead. A common theme among franchisors is the passion they have for their business. It’s really a requirement for franchisees too, after all, building a business of your own takes endless energy, commitment, time and enthusiasm – so you would want to be passionate about your franchise. A love for the brand and all it stands for and the desire to make the most of its business potential just isn’t enough however to ensure you will succeed as a franchisee. Take into account the support structures, the training, the marketing back-up – on page 118 you can read how Bakers Delight works with franchisees – and there are still two key elements to consider: location and profit. Our feature on location looks at how service franchisees can check the franchisor has properly evaluated the territory on offer. The finance article in this issue considers profit versus turnover as a means of judging a business, and has some advice on how to best go about the number crunching. Because as Tanya Titman says in this feature, “if the franchise business does not make a profit it isn’t going to be viable in the long run”. Speak to franchisees. That’s the other constant recommendation in due diligence, because these are the people who will be in your network, sharing ideas, and who already know what the business is like and how the franchisor behaves. On page 98 we have 10 questions as starting points for you to quiz franchisees! Franchise success - that’s what we’re all after. So the Franchising team is immensely excited to announce the launch of the Franchising Awards, a program of eight awards that will celebrate first class franchise systems and franchisees. And we’re thrilled to be asking you to participate! Our search for Australia’s Favourite Franchise will give consumers the chance to vote online for their franchise choice. Right now we’re calling for entries to the awards but watch out for details on how to add your vote. You’ll be able to keep up to date with everything awardsfocused at www.franchiseawards.net.au
The Franchising team is immensely excited to announce the launch of the Franchising Awards
Sarah Stowe Editor
WWW.FRANCHISE.NET.AU
MAR/APR 2013 FRANCHISING | 5
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News ONLINE NEWS | www.FRANCHISe.Net.Au
New franchise grocery concept Metcash has launched Harvest Market, a new concept in fruit, vegetable and fresh retailing. The first three stores in the franchise chain have been opened in New South Wales. Harvest Market aims to provide shoppers keenly priced, high quality fresh fruit and vegetables, delicatessen, floral, bulk foods and continental grocery. The Harvest Market network of independently owned, franchised outlets is expected to be rolled out across Australia, with a strong site specific trading culture with daily and weekly special deals. Nick Pagett, general manager fresh fruit of Metcash Food & Grocery, said “We are achieving strong results with our first pilot outlets and expect to provide a strong challenge to the national chains and specialised fresh food outlets. “The independent, franchised outlets provide good value, pitched at the middle of the market and are extending their ranges from fruit and vegetables to include other fresh delicatessen and continental grocery products�, he added. Pagett said the new chain could provide an exit strategy or prices, as well as well funded merchandising and marketing the benefits of a franchise network for existing greengrocers. campaigns, using the successful formula we have used for IGA He added, “We are providing fruit shop owners a fixed price owners over the last decade.� AD_ F RACE 1 NOV _ 1 2 . p d f Pa ge 1 1 1 / 1 0 / 1 2 , 1 2 : 4 8 PM service for the sourcing and delivery of product to the outlets. The first Harvest Market franchised store launched late last Through our fresh buyers at the markets we are delivering great year in Wollongong under its existing local owners.
Are You Insured? Can you afford to be off work due to accident or sickness? Personal Insurance: Your choice provides accident and sickness insurance beneďŹ ts which can be put towards lost wages, out-of-pocket medical costs, or other unexpected expenses due to sickness or injury. Your Choice accident and sickness insurance offers: Ä‘ĆŤ ĆŤ +2!. #!ĆŤÄ‚Ä…ĆŤ$+1./ĆŤ ĆŤ 5ÄŒĆŤÄˆĆŤ 5/ĆŤ ĆŤ3!!'ƍĢƍ 0ĆŤ3+.'ÄŒĆŤ0+ĆŤ * ĆŤ".+)ĆŤ3+.'ÄŒĆŤ home or leisure. Ä‘ĆŤ !Ăź*! ĆŤ !*!Ăź0/ƍĢƍ5+1ĆŤ'*+3ĆŤ!4 0(5ĆŤ$+3ĆŤ)1 $ĆŤ5+1Äš.!ĆŤ (!ĆŤ0+ĆŤ ( %)Ä‹ Ä‘ĆŤ +ĆŤ%* +)!ĆŤ0 4ĆŤ.!01.*/ĆŤ.!-1%.! ĆŤ3%0$ĆŤ ,,(% 0%+*Ä‹ Ä‘ĆŤ +ĆŤ)! % (ĆŤ!4 )%* 0%+*ĆŤ.!-1%.! Ä‹ Ä‘ĆŤ ĆŤ $+% !ĆŤ+"ĆŤ6!.+ĆŤ0+ĆŤÄ Ä‰Ä€ĆŤ 5ĆŤ3 %0%*#ĆŤ,!.%+ /Ä‹ Our aim is to understand your needs and those of your family and to assist you in ďŹ nding the appropriate level of cover you can reasonably afford. +ĆŤ .. *#!ĆŤ ĆŤ/1%0 (!ĆŤ ,,+%*0)!*0ĆŤ3%0$ĆŤ ĆŤ(+ (ĆŤ +) %*! ĆŤ */1. * !ĆŤ !,.!/!*0 0%2!ÄŒĆŤ * ĆŤ0+ĆŤ.! !%2!ĆŤ ĆŤ +,5ĆŤ+"ĆŤ +) %*! ĆŤ */1. * !Äš/ĆŤ ĆŤ * ĆŤ ĆŤ0+ĆŤ ! % !ĆŤ%"ĆŤ0$%/ĆŤ,.+ 1 0ĆŤ%/ĆŤ.%#$0ĆŤ"+.ĆŤ5+1ÄŒĆŤ ((ĆŤÄ ÄƒÄ€Ä€ĆŤÄƒÄ€Ä€ĆŤÄ…Ä‰Ä€ÄŒĆŤ!) %(ĆŤ your.choice@acegroup.com or visit www.combined.com.au today.
6| FRANCHISING mAR/ApR 2013
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NEWS BRIEFS
Mr Rental: ASIC orders $300,000 customers’ refund
Electronic security franchise group OzSpy has recorded back to back record monthly sales through its stores in November and December.
The Australian Securities & Investments
San Churro has plans for new store openings in the first half of the year underway in four states.
Commission (ASIC) has entered into an enforceable undertaking (EU) with Mr Rental, ordering the company to refund approximately 1,560 of its customers. According to a press release on the ASIC website, the company, which specialises in renting household goods, will be refunding what is expected to be more than $300,000 to customers. It will also be required to amend the standard form rental contract that the company’s 52 franchisees use. The issue arose when ASIC found that customers who chose to end their rental agreements early incurred what has been labelled a ‘calculation period adjustment’ fee. According to ASIC, under the Australian Securities and Investments Commission Act 2001 (ASIC Act) and the Australian Consumer Law this is an unfair contract term.
Secret Recipe, the Malaysian café franchise with 240 stores in eight countries including Singapore, Thailand, China and Australia, has gone into administration.
Mr Rental will be required to: • Write to all those customers who paid the calculation period adjustment fee and refund them the full fee amount. • Inform all of its existing customers that the company will not charge them a period adjustment fee should they wish to end their agreement early. • Refrain from including a calculation period adjustment fee in any rental agreements in the future.
BeAumONt tILeS BuYS mAJeR tILeS BuSINeSS Family owned Beaumont Tiles has acquired another family-run firm, the Queensland based Majer Tiles. Beaumont has purchased six stores and two warehouses in Brisbane, Cairns, the Gold Coast, the Sunshine Coast and Townsville. This is the third acquisition for the South Australia-headquartered tiles business which is a mix of franchised and corporate outlets. There have also been three small single store buy-outs in recent years. Beaumont Tiles managing director Bob Beaumont said “While the commitment to service will stay the same, home and commercial
January proved to be a tough month for McDonald’s, with the fast food chain reporting a global comparable sales decline of 1.9 percent. Ten new franchise opportunities across NSW have been announced by serviced apartment accommodation chain Quest. Neil Scanlan, the general manager of franchise hotels at Accor, has left the company after an 18 year long stint. Retail Food Group has found that over the last six months; more than 50 percent of its successful franchisee applicants spoke English as a second language. The Coffee Club New Zealand has just celebrated its 40th store opening. Mortgage franchise group Rams will waive application and settlement fees for first home buyers, a move designed to encourage renters to enter the home ownership market.
customers will notice an expanded product range and lower prices that the expanded group’s buying power will bring.” Tony Majer, who was previously the managing director of Majer Tiles, has been appointed Queensland State manager with Beaumont Tiles.
“We are working towards retaining all current Majer Tiles employees and this will be a catalyst for the opening of a new warehouse in Brisbane,” Majer said. “Beaumont Tiles will make a $2 million-plus investment in integrating IT systems.”
www.FRANCHISe.Net.Au
Ita Buttrose signs up as a ‘Health Sister’ for the Priceline franchise chain of pharmacies. Two of Adelaide’s locksmith businesses have launched Jim’s Locksmiths, the latest franchise in the group founded by Jim Penman. The private equity firm that owns and operates the Eagle Boys franchise, NBC Capital, has taken a stake in the Degani Bakery Café chain.
mAR/ApR 2013 FRANCHISING | 7
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Inspire|Awards
Which franchise is the best in Australia? Now’s the time to find out. Australians love franchising. Not only are we one of the most franchised nations in relation to our population but the $131 billion sector is brim full of fabulous brands across almost every industry - and it keeps on growing. Everyone loves to celebrate success and so Franchising magazine is launching a new and exciting awards program that recognises the best of these businesses. And we’re giving the public the chance to vote on Australia’s Favourite Franchise!
Australia’s Favourite Franchise
In tune with a social media savvy world, the Franchising Awards provides a unique opportunity for franchise brands to be celebrated for both their business strengths and their customer loyalty. Consumers will be able to vote for their favourite franchises online. This brings the awards to the public, giving every Australian the chance to influence the final result. All our Best Franchise entries will have the chance to be voted Australia’s Favourite Franchise!
Gala event
To announce the winners, Franchising magazine will be hosting a glamorous gala event at the Crystal Palace, Luna Park in Sydney on Friday 9 August. The evening event will be a wonderful opportunity to mix and mingle with award-winning franchisors and franchisees in a stylish venue set on Sydney Harbour’s foreshore. Tickets for the event will on sale in July.
8| FRANCHISING mar/apr 2013
The Franchising Awards
We’re on the search too for the best performing franchises around the country who will be judged by an expert panel. The judges will be evaluating the entries to find the top franchises that show strength not just in their business acumen, but in the way they market and innovate the brand and in how they train franchisees. There are four categories for established franchised brands: Best Food Franchise Best Mobile Franchise Best Service Franchise Best Retail [Non-Food] Franchise Best Franchise Newcomer will celebrate the remarkable achievements of a newbie business in the franchise space. Best Online Strategy will reward a franchisor for its first class performance in the increasingly significant online/social media marketplace. Best Franchisee will toast the accomplishments and contribution to the franchise brand of one exceptional individual. To find out more about entering the inaugural Franchising Awards visit www.franchiseawards.net.au
www.franchise.net.au
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Inspire|Interview
From left: Mark Maloney of the Tulla Group with chef Pete Evans and SumoSalad’s Luke Baylis
THE SALAD
In 2003 SumoSalad launched its healthy eating concept. The quest continues
SERVERS “
Ten years is a huge
milestone. I remember making winter soup by hand in our first store. When we started we said “Imagine if we get to 100 stores” as a bit of a joke, we never really thought it would transpire. It’s well and truly exceeded our expectations.” Luke Baylis is reflecting on the growth of the Sumo Salad business he began a decade ago with friend James Miller. The pair had returned to Australia after time spent in the US, spotted a gap in the marketplace for healthy eating and set up an alternative
10| FRANCHISING mAR/ApR 2013
fast food option to the traditional burger and fries menu. So when did the growth become a serious proposition? “It was at about 20 stores and we thought, this could easily get to a few hundred stores. We were lucky, there were so many good retail locations then,” he says. Sumo Salad had embraced franchising about the time of the seventh store opening, Baylis says. “We had aspirations just to run several stores in Sydney and own that market.” But the enthusiasm of customers for the product, and for the store concept itself, persuaded
www.FRANCHISe.Net.Au
them to look at franchising as a business model. “We did due diligence on franchising and thought we’d give it a try. We had some really good franchisees to start with, people willing to take a risk on us.” What have been the high points in the decade’s trading? “Some of the relationships and some of the stuff we’ve developed, in the domestic and international markets,” he says. And Baylis admits that “being recognised as the leading healthy fast food option by so many people” has been one of the biggest highlights.
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In contrast, Baylis says “There’s not been a single day since we opened the business that we haven’t been challenged.” Building a vision and taking it to market, getting people on board, each with his or her own ideas - all of this can prove a testing experience. Baylis has faced issues from compliance to consistency to product development, he says. “Getting people to work with you to follow areas to follow components is a challenge.” Now the business can look back at its achievements: more than 5,000 jobs have been created after starting out with just five key members of staff.
mILeStONeS
up 15 percent, and cites innovation and marketing as key drivers for this growth. While public relations activity has generated interest in new markets where the brand is relatively unknown, perhaps surprisingly little growth is achieved through social media. “It hasn’t been huge for us; customers engage with the brand but we don’t use it to attract new customers.” In contrast, loyalty programs have been very successful in sourcing new customers. The healthy market is growing so exponentially, even in blue-collar neighbourhoods. Baylis observes the less affluent suburbs are now “phenomenally successful”. The next major step is to play with the big international brands. Baylis has Subway and McDonald’s in his sights. “We’d like to be biting at their heels in five to 10 years.” To get there the company needs to step up, and has recently sold 60 percent of
“I think we’re at a point of about 98 stores, we have several being built, and that’s a massive milestone for us. But so was going international, and expanding out of New South Wales – that was huge for us at the time, four years in. Milestones are relative to where you’re at. It’s been a series of milestones.” A D _ F R H O WS E P _ 1 2 . p d f Baylis reports the sales growth has beenP a g e three to four times the market average,
The Tulla Group has no mandate to drive equity group and exit. They bring a lot in terms of strategy for the brand, they understand the importance of 1 2 0 / 0 8 / 1 2 , 6 : 0 9 PM brand, and they have financial acumen
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FR.MARAPR13.PG012.pdf
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Inspire|Interview
rate stores and proven very successful, the business to the family owned Baylis says. “We will be offering these as Tulla Group, known for its longterm franchise opportunities.” approach to private equity. “The Tulla The plan is to open at least 15 new Group has no mandate to drive equity stores each year in high street and CBD group and exit. They bring a lot in locations. “SumoSalad will become terms of strategy for the brand, they more convenient than ever before and understand the importance of brand, we’re really excited about what that and they have financial acumen.” means for people looking to make Baylis retains 40 percent, and the healthier lunchtime choices.” managing director position (co-founder Aussie chef Pete Evans will continue James Miller - who died earlier this year as an ambassador for the brand, – left the company and sold his shares helping to propel a healthy lunchtime last year) and will report to a board. movement. “I am constantly looking While Baylis is looking forward for new ways to create healthy dishes to the analytical nous the group will that are fresh and tasty, so teaming up bring to the business, he is confident in with SumoSalad made a lot of sense,” the systems already in existence at the says Evans. “Beyond the menu, the healthy eating chain. partnership has also meant that I can Tulla’s investment is around funding, encourage people to make healthier store openings and improving the lunchtime choices, something I am brand. Further corporate stores will be added to the portfolio. “They contribute to earnings, keep us more connected , and we use them for trialling [products and systems] and to understand the market,” Baylis explains. A D _ F R MA D MA R _ 1 3 . p d f Pa ge 1 1 / 0 2 / 1 3 , 2 : 4 5 Broader adaptations of the main SFG_mag_add_Jan_Feb_trim marks.pdf 1 1/26/2013 11:46:27 AM model have been piloted at some corpo-
Business can’t be about money alone, it’s about making a contribution, having a purpose, and with the issues of diabetes, obesity PM and cancer, there’s an opportunity for Sumo Salad
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AD_FRYUMJUL_12.pdf
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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
As a franchisee, Pizza Hut offers you the advantages of investment in a proven brand; flexible hours for individuals and families; and fun, exciting revenue potential within a great system.
We are looking for owner operators who have a hands on approach and a head for business. Sites have been selected, you just need to start training. Minimum equity requirement is $100,000.
To find out more please visit www.pizzahut.com.au/franchise
FR.MARAPR13.PG014.pdf
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Inspire|Interview
excited to continue throughout 2013.” Looking ahead, Baylis predicts there will be more engagement from the fast food brands in the healthy eating space.
tHe mARKet
“More people will diversify, the market will dictate that. McDonalds, KFC are brands known for their traditional fast food appeal, but their predicts are increasing diversity in the offer.” On the other hand, he is predicting smaller boutique entries into the market, particularly focused on niche demands such as vegan or organic. The potential of the market is one of the attractions for the Tulla Group. It might seem a long trek from the Group’s investment in a mining related industry to food retail, but chief executive Mark Maloney insists there is a parallel. “We were involved in mining accommodation and if you take the room numbers into account, we were the largest hotel provider in Australia. And that involved providing 18,000 meals a day Australia wide, so we understand the food service side. We have a core competency. “When we sold our last business we had a lot of cash and were looking to invest the money. We spent a year looking
The original store
MILESTONES
2003 First store opens on Liverpool St, Sydney CBD 2004 Franchising begins 2006 Dubai is the first international venue; there are 25 stores in Australia 2008 New Zealand’s first store opens 2009 Mildura is first site of country town concept 2010 First outlet in UK and store count totals 83 2011 Four stores unveiled in Singapore 2012 A year of firsts: sub-franchised store, railway store, hole-in-the-wall store 2013 Australian stores total 86, with nine international outlets
for three or four industries we wanted to be involved in and one of these was health and wellbeing. The growth over the next 20 years we believe will be quite phenomenal. “In the US, we were talking to better performing private equity and hedge funds and health and well being groups were a large part of their portfolios.” Maloney sings the praises of the company as well. “We looked around Australia and offshore and SumoSalad was the biggest
We did due diligence on franchising and thought we’d give it a try. We had some really good franchisees to start with, people willing to take 1 0 : A D _ F R S MI MA Y _ 1 2 . p d f Pa ge 1 2 8 / 0 3 / 1 2 , a risk on us
14| FRANCHISING mAR/ApR 2013
Founders James Mi and Luke Baylis ller
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1 5
business and the most substantial, it has a great network as a base from which to build. The people and management team have done a great job building the brand and they are very passionate. “It’s about backing the management team we want to support.” There are no plans for a hands-on role for Maloney. “Luke’s the CEO and he’s doing a great job. We’re just here to help with the bigger picture. We wanted to invest in a business that is kicking with the wind, not a declining industry. “For me, health and well being has always been a passion. Business can’t be about money alone, it’s about making a contribution, having a purpose, and with AM the issues of diabetes, obesity and cancer, there’s an opportunity for SumoSalad.” F
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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.MARAPR13.PG016.pdf
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Inspire|Franchisor
independence
days carving a career out of caring for others takes a special skill and for Just Better care founder Trish noakes it all began in her childhood 16| FRANCHISING mAR/ApR 2013
“
I probably got in to nursing because my mother was a nurse. I used to spend weekends at the nursing home where she worked, it was part of my growing up. I was very comfortable in this kind of environment. When I left school I chose nursing but I wasn’t keen on hospitals, there was no time for people. I did general nursing then psychology, and worked in the community. “I learned a lot, it was the time of the Richmond report [on mental health] and people were very disempowered. There were discussions on whether people have got the capacity to make their own decisions.” www.FRANCHISe.Net.Au
As a result of this experience Trish spent 20 years – with five years off as a new mother – in community nursing. But then a new idea was brewing – setting up her own business.
eNtRepReNeuRSHIp “I wanted to make things happen. I could see opportunities to provide a good quality staffing to residential facilities, who usually have a lot of casual staff.” She set up her business in 1995 and the agency proved successful. And Trish was often approached by families wanting her to supply hospital-to-home nursing care. “But after seven years I was burnt out so
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Franchise Magazine Adv3.indd 1
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I sold my first venture to the Wesley Mission.” However, Trish found business ownership had got into her heart and soul, and she couldn’t go back to being anything other than a business owner. So she learned some new skills, studied neurolinguistic programming, which looks at ways to alter thoughts to effect a change in reality, and then set up a childcare agency in 2000. Again, providing good quality care was the foundation of the business, which sourced staff as nannies, for centres, or at home nursing sick kids. “The five to seven years of age are pivotal of how children progress into adulthood. I felt a real gap in the market, and we did really well, but parents who are prepared to pay for private school won’t spend a couple of thousand dollars recruiting a nanny. You need to have the volume of business for the costs.” After three years Trish felt too much pain and not enough gain in her business, and let it fold. So what next? The focus became at-home care for the aged and those with disabilities. “I wanted to do something different, I believed very strongly that a good personal service has to be local. Neighbourhoods vary in culture and character, and you need someone local. “In 1992 my father had died, and he was not able to die at home, there was no palliative care. His wish wasn’t granted. Today we can provide this support in the home.” Key to this support are the sophisticated systems and quality management systems fundamental to ensure funding. Trish realised a stand alone business can’t exist in the market
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anymore, it has to meet national and state legislation. Her challenge was to match the personal touch and get the systems required. Franchising seemed ideal, she says. “The owners pay for the systems, and the franchisor concentrates on providing top quality management systems. I really liked the idea. The franchisee retains, upskills and trains a quality workforce who will stay for years. They know the individual services needed.”
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Not for profit organisations which have been servicing the market are not flexible enough, she says. “This is a really powerful way to deliver.” But it was a strong learning curve, she admits. “I always thought I was a community support provider but someone told me, no you’re in franchising. It was a wake up call. I had to understand the franchisor/franchisee relationship. I’ve
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employed my own staff, but this is different. It’s different too to family, there are expectations to manage, people of different levels of maturity within the business. It’s fantastic.” The intricacies of franchising initially proved testing for Trish, and forced her to think differently. “It was quite a challenge the first couple of years,” she admits. It hasn’t been an easy ride. There was plenty of disparagement of the concept of a commercial enterprise in the care sector. “People saw aged care and disability care as something that should not be in the private sector. It’s a bit of a sacred cow, profit-seeking is a dirty word. We’ve had to show we provide quality, cost effective solutions and we’re good to work with.” For every franchisee signed up there are probably 200 enquiries, and some are easily dismissed. “Some people just look at the dollars. Once they start talking about return on investment, we weed them out very quickly. Usually successful franchisees AD_ F ROUT 2 J AN_ 1 3 . p d f enquire because they’ve had an experience with someone elderly or with
Trish Noakes today
Trish Noakes back in 1975
I wanted to do something different, I believed very strongly that a good personal service has to be local. Neighbourhoods vary in culture Pa ge 2 6 / 1 2 / 1 2 , 3 : 0 2 PM and character, and you need someone local
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a disability. They’ve discovered that good community support is fantastic, and when it doesn’t exist it’s a disaster.” There are 30 franchisees now, but there’s still room to grow across the country says Trish, who plans to add 10 each year. And reform processes for both the disability and aged care sectors are good news for the business. When the National Disability Insurance Scheme is fully implemented in 2018 it will mean an estimated annual spend of $18 billion. This will allow an indiviual, or family, to choose services and providers. Aged care is going through a five year reform which will see more consumer choice but not full deregulation; after 2017 the market is expected to open up to individual’s or families managing their funding. What it means is empowerment for families and
individuals. “It’s music to our ears,” says Trish. “We’re customer focused and they can determine where the money goes.” Although down the track she might review the care market in New Zealand, her focus remains very much on Australia, and the business won’t be going further afield. “China has no age care service and we’ve been approached to do work there. But we have a clear agenda and don’t want to spread too wide.” Franchisees themselves are rarely experts in aged or disability care, most come from outside the industry, and that suits Trish. “Most people in the industry are very conservative.” But the franchisees employ pindustry-experienced eople as trainers and co-ordinators. “The business has changed totally from when I started out. For instance, the top quality management systems. Each time
The owners pay for the systems, and the franchisor concentrates on providing top quality management systems. The franchisee retains, upskills and trains a quality workforce who will stay for years. This is a really powerful way to deliver 20| FRANCHISING mAR/ApR 2013
www.FRANCHISe.Net.Au
a person comes in, we’ve learned consistency and how to provide franchisee support. We want to find better ways to communicate with community staff, they are the eyes and ears, and we want to really involve them, so their information is shared at every level.”
AGeING AuStRAlIANS With an ageing population (people of 60 now have an average life expectancy of 92, someone born last year can expect to live 125 years) there is plenty of potential in this business. And Trish has spread her wings beyond straightforward care provision. “We are really getting into wellness; 3.6m people will be receiving aged care service in 2050. How will we manage these costs?” Last year the business launched Recipes for Life, this year’s campaign is Recipes for a Better Life. The concept is for people to share recipes for highly nutritious meals, and it’s a competition designed to engage consumers who have to think what four ingredients can make a meal. The most voted for recipe wins $500 worth of shopping a month for 12 months. “We’ve all got ageing parents and we want families to start thinking about this earlier,” says Trish who has secured foodie favourite Maggie Beer to headline the project. “Maggie is passionate about older people having good outcomes. She really gets it and she’s agreed to come on board. “I’ve learned to be incredibly innovative, not to be afraid to put ideas out there,” says Trish. “It feels quite limitless. We’re interested too in technology, and how it can help people live a more independent life. We get a lot of joy out of this. It’s a very positive industry, even though you can come across some very hard stories. You can’t change people’s circumstances, but you can make them easier. It’s very satisfying.” F
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DOING IT FOR
When Robyn Cheal decided to buy a franchise, being in charge of her own destiny was a big part of the attraction.
HERSELF “
I wanted the opportunity of working with clients on the coalface after being in management roles at ANZ and Westpac for a long time,” says Robyn, who is the Penrith franchisee in the Rams network. “I also wanted to try being selfemployed as I knew that the harder I worked, the more successful I could be; this is very hard in a corporate role working behind the scenes. It’s a bit of a cliché, but I wanted to take control of my own destiny.” Robyn signed up to the Rams franchise with her husband eight years ago, and for the last two years has been running the business solo after he moved on to start up another unrelated franchise. “I am the sole franchisee and director; in saying that my husband is my greatest mentor and a great inspiration.” What made the couple choose the Rams brand? It was all thanks to an advertisement for RAMS franchisees. “We both knew that RAMS had a great name as a non-bank lender and at the time
d from right, with her Rams franchisee Robyn Cheal, secon
it was a family owned business which appealed. So, we made a phone call and the rest is history,” she says.
tHe BuCK StopS HeRe
Business ownership has thrown up one surprise after another with many day to day challenges that didn’t even occur to Robyn
team
when she worked in the corporate world. “For example; cash flow, knowing exactly what income and outgo is required on a daily basis as well as mid and long term. How real goal setting is when you have a team of people working for you and the buck stops with you! “I am everything from the janitor, counsellor, bookkeeper, problem solver to loan writer…
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you name it. My day is incredibly diverse and no two days are the same.” The level of support provided by the franchisor in the early days proved very important for the business. Now it is established, supporting other franchisees has become a role for Robyn herself. “These days, we are very self-reliant and in fact we help the younger franchisees with systems and procedures. We have a quality approach to our potential clients and existing clients that we developed very early on. It has proven very successful over the years. We even won the AMA “New office on the
block” industry award in 2006 and attribute that early success to our dedication to consistently applying procedures that ensure a great customer experience with each and every contact.” Like many franchisees Robyn plays an active role in the community, building the Rams brand awareness along the way. “We are very active in the community as all of the team are locals and we truly believe in social responsibility, getting involved in local charities and sporting teams, etc. RAMS is committed to supporting us with any local area marketing and also advertises nationally to support us here in Penrith.”
I am everything from the janitor, counsellor, bookkeeper, problem solver to loan writer… you name it. My day is incredibly diverse and no two AD_ F RVI PJ AN_ 1 3 . p d f Pa ge 1 1 0 / 1 2 / 1 2 , 6 : 1 3 PM days are the same
StIll GoING StRoNG Eight years down the track, and Robyn hasn’t taken a step back. Goal setting continues to be an important part of the business. And she’s keen that her role helps make a difference in people’s lives. “We continually raise the bar as a team, as we have very specific procedures and systems to help our clients achieve their goals in a no-fuss way. We try to take the stress out of borrowing money.” There’s no doubt for Robyn that investing in a franchise has proved a successful move. “Being self-employed and having a franchise has changed my life for the better. I love what I do, and, what we do as a team. Having other franchisees to talk to and discuss issues with only makes the journey more enjoyable.” F
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why albert and kent love
ben & jerry’s team an iconic beach location with an iconic ice cream brand and a pair of enthusiastic franchisees...
A
lbert Thai and Kent Hildred are Australia’s newest Ben and Jerry’s franchisees, having launched their first store at Sydney’s iconic Bondi Beach late November last year. Here, Franchising chats to the duo about their experiences so far... 1. Why did you decide to buy a franchise? “Buying into a franchise ensured we didn’t have to start a business from scratch and could start a business with a brand that had a long track record. “We had observed the long term success of the Ben & Jerry’s brand overseas and attended the grand opening of the Chatswood store. “From thereon in, we felt the brand was a good fit from both a product and social mission perspective. “The location at Bondi Beach, one of the most iconic locations in Australia, was an obvious choice and with only a select number of Ben &
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Jerry’s franchises open in Sydney, none of which are in the Eastern Suburbs, we saw a gap in the market for the signature chunks and swirls. We also decided to buy a franchise because we knew we would have lots of upfront and continued support from the Australian Ben & Jerry’s team.” 2. How long have you been in the system? “We opened our Bondi Beach Scoop-Shop on 26 November 2012.” 3. How did you come to decide on this brand? “We have been big fans of Ben & Jerry’s after seeing the brand whilst travelling overseas. When it launched in Australia, we realised there were many factors that set it apart from competitors, both in terms of product and the business. “The Ben and Jerry’s mission is to make the best possible ice cream in the nicest possible way. We believe in, and support, this mission.
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“In addition to this, the ice cream is denser than other competitors making it a super-premium ice cream and it has chunks and swirls which differentiates itself from competitors. “Another great thing about the brand is that the raw materials are sourced from suppliers in a social and environmentally responsible way. For example, cage free eggs are used and the company works closely with dairy farmers to continue improving farming practices to help protect the environment and animal welfare.� 4. What surprised you about the business? “We didn’t realise just how popular the brand was among Australian consumers and how many loyal fans we have who already knew tonnes about the brand. “Ben & Jerry’s launched in 2009 and is still growing within NSW and across Australia. Ours is the third Scoop Shop to open in Sydney, but the first to land on the Eastern Suburbs, and the fan base is already very large.�
6. Are you a sole franchisee or in a partnership, and if so, who with and how do you manage the roles? “We are a partnership, however one of us works in the store on a day to day basis. The other manages the financials and payroll. We have a couple of shift leads that help us manage the store when we are not there.�
5. How do you spend an average working day? “As we are in the early days of the store, we would 7. How has the franchisor training helped you in spend a typical day training staff, ordering ice A D _ F R WA T S E P _ 1 2 . p d f Pa ge 1 7 / 0 8 / 1 2 , 3 : 3 7 PM business? cream, ensuring the store looks great and scooping “The franchisor training we received was great for ice cream to customers.�
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 you’ll be out and about photographing different properties and meeting lots of new SHRSOH DORQJ WKH ZD\ 7KLV LV GHĂ€QLWHO\ QRW D GHVN MRE Here’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 you’re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. We’ll help you succeed. You’ll get the usual intensive training, plus dedicated support with sales and marketing, that you’d expect from a high quality, established franchise system. “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€? 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
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our business – having others to learn from ensured we got to start up quickly and with ease. The good thing is, the system is developing in Australia, so we can always go to the franchisor with ideas for improvement to the model, and they are open to that.” 8. How do you raise your brand’s profile in the community? “What is great about being a Ben & Jerry’s franchisee is that we can put our own unique touches to the Scoop Shop such as community noticeboards and supporting local charities and community initiatives. “We are also guaranteed continued support from the
company. This means that we are not only in a position to drive business using our own insights into the local community, but also can use the support and assets available from the wider team to drive business in our local community. “When we opened we celebrated with a Scoop-a-Thon, essentially free ice cream for all, which was hugely popular. We also have Free Cone Day coming up in April, an annual celebration worldwide whereby the company gives back to the local community to thank them for the support by giving away free ice cream all day. We never underestimate the power of free ice cream!”
The franchisor training we received was great for our business – having others to learn from ensured we got to start up F R 2 8 0 4 _ Mo b i l e _ H P H . p d f quickly and with ease P a g e 1 1 9 / 0 2 / 1 3 ,
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9. What are your goals for the business? “The store opening was a huge success and we have already developed a strong presence in the community. We want to go from strength-to-strength and continue to deliver quality service and delicious ice cream to our customers. We’re keen to develop even further our social mission within the local community as we’re here to stay.” 10. How has franchising changed your life? “Being a franchisee and part of a much-loved international brand has been an amazing experience. It’s meant that we’ve become part of a bigger herd and have connections all over the world. We’re looking forward to developing our local presence and building on our fan base even more by spreading the PM signature Ben & Jerry’s peace, love and ice cream!” F
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building a
More time with the family, that’s what bill arnold has now, thanks to Hotondo Homes
lifestyle L
iving and working in regional New South Wales has given Bill Arnold what he describes as a great lifestyle. Bill is a multi unit franchisee with Hotondo Homes. Before buying the franchise Bill had run his own building company and had to put in very long hours to keep it on track. Now he’s no longer wielding the hammer and nails as well as doing the paperwork, and he’s happy. “Moving into the franchise has changed my lifestyle completely,” he reveals. “I’m healthier and feel better within myself. Being off the tools has helped with health and fitness and I can spend more time up the river with the kids fishing and in the boat. “The best thing about the franchise is that when I close the office door at the end of the day I can leave work there and head home for family time. Business hours are business hours when it comes to dealing with the public, because that is when we are open.” He explains that his two franchise territories don’t compete. “I say this because everyone knows everyone in small towns. “Not competing makes it easier to attract new business beWe get about 50 percent of our building work through referrals.” cause the brand is so strong now. A lot of new business has come Last year Bill won the Hotondo Homes Volume Builder of through head office’s national marketing fund efforts but you the Year award for the 42 homes built across both franchise obviously still have to do your own local area marketing.” A D _ F R A L S 2 MA R _ 1 3 . p d f Pa ge 1 7 / 0 2 / 1 3 , 1 1 : 0 8 AM territories, Griffith and Leeton, and he has twice been named the One of Bill’s tips for a fellow builder looking to invest in a franchise chain’s National Builder of the Year. F regional franchise is to be diligent.
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Tony and caroline parker are la porchetta’s franchise of the year for 2012
a family friendly
approach T
ony Parker purchased his first La Porchetta restaurant in Townsville with borrowed funds in 2006. Six years on, he is still with the brand and would invest in it again. While there were no La Porchetta restaurants in Queensland before he opened his venue, Tony discovered the franchise during visits to Melbourne and Wagga Wagga. Fond of the fact that the business model offers value for money (he has a large family of five children), and armed with previous experience running a
small business, Tony began to do a little research. “I used the internet to research as much as possible and approached head office to take the next step,” he says. “I spoke to several stores during my investigations to find out as much as possible. Given La Porchetta is a fixed fee franchise system it was a little difficult to source financial information as this was not monitored from head office.” Tony uncovered a wealth of information about the business
The appeal of the brand, the family friendly market and to be honest the fixed franchise fee structure was appealing. It is disheartening when the more successful you are, the more the system takes 32| FRANCHISING mAR/ApR 2013
Caroline and Tony Parker
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via this research, and he was impressed. “The appeal of the brand, the family friendly market and to be honest the fixed franchise fee structure was appealing. It is disheartening when the more successful you are, the more the system takes.“ “I believe systems should reward the better franchisees by having a sliding franchise fee scale. Lets face it, the more successful franchisees cause the system less grief than those who are not doing so well,” explains Tony. If Tony could offer a few pieces of advice to people interested in becoming a La Porchetta franchisee, the
that this alone will not lead to success. “You have to treat the business as your own and use the system in the background to support all that you do. Just because it is a franchise doesn’t mean you don’t still have the same issues as every other business in Australia.” “Staff, cashflow, red tape, government agencies, customers, marketing, paperwork etcetera. However in a franchise, you are part of a proven system and you have the backing of support office to deal with those issues.” Tony cites opening his restaurant as a “great achievement”, but the people he has met and the
I think the important thing to remember before entering into a system is to try and envisage how this will impact of your personal life. I think this is forgotten most of the time first would be to maintain a healthy work/life balance. “I think the important thing to remember before entering into a system is to try and envisage how this will impact of your personal life. I think this is forgotten most of the time,” he says.
It’s a business
He also advises that they have a business plan in place and look to the future. “Look ahead five years. What do you want from this? Crunch the numbers. Consider worst case scenario and consider personal circumstances.” While many people choose to invest in a franchise because it means they will have the support of a well known brand, Tony stresses www.FRANCHISe.Net.Au
friendships he has made along the way are also highlights. “Along the way you achieve many little goals that go un-noticed except for you personally. Having made some great friendships along the way is important to me but is not necessarily a business goal.” He and his wife Caroline also won the La Porchetta franchisee of the year award in 2012. Tony says if he had his time again, he would invest in La Porchetta. “Being a franchisee with La Porchetta is very rewarding. It has a great team from the top down. There are many great franchisees in the system and our annual conferences are looked forward to every year.” F
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It’s the perfect time,
to join the fastest growing in-home care franchise. We are offering limited exclusive territories nationwide for motivated people interested in starting their own in-home aged care business in this rapidly growing industry. At Senior Helpers our specialty is professional, warm and compassionate in-home care that enables our clients to continue living independently and in the comfort of their own home.
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Inspire|New system
CRUISE CONTROL
From the US to Australia, the StreetStrider system
I
t’s not often that a painful injury can lead to something positive; however this was the case for Shane Martin when he discovered the StreetStrider while on holiday in California. High-impact exercise was out of the question for an injured Shane Martin, who was in need of a knee reconstruction in March last year and subsequently forced to resort to cycling and swimming. When Shane came across the StreetStrider machine, he saw it as the perfect alternative because it operates in the same way as a cross trainer yet it has wheels that place minimal stress on joints. Even better, it is said to combine the benefits of jogging, skiing and cycling. “When I first saw the machine cruising down the sidewalks in the US I knew it would be a hit here, and the results so far have been overwhelming,” he says. Intrigued by the machine, Shane teamed up with business partner Adam Fletcher
36| FRANCHISING MAR/APR 2013
and acquired the exclusive distribution rights to the Australian market. They started to distribute the StreetStrider product in Australia via their online store. Soon after the pair began to play with the idea of rolling out a distribution model for the StreetStrider. “Originally we had a few test cases out there on different structures, commission plans etcetera, we pretty much nutted it out through that,” says Shane. He says that these test cases provided them with feedback about what would and wouldn’t work. They also sought the assistance of management consultants, who undertook “significant market research into industry trends to identify key markets for the StreetStrider product range.” Armed with both feedback from the test cases and the information extracted via market research, the pair worked with the management consultants to reWWW.FRANCHISE.NET.AU
structure the StreetStrider sub-distributor package. Included in the package is a brand awareness campaign. “We will continue to work with management consultants to redevelop our e-commerce technology and launch marketing campaigns currently under construction,” Shane adds. The business is designed to keep distributors’ overheads down, so machines are stored in a Brisbane warehouse. “We also give them a good incentive and good opportunity to grow and expand their business,” says Shane. “Each distributor has a unique coupon code that is recognized in our online store, which activates a discount or free gift.” This gives the customer an incentive to use the coupon code when they buy direct online, and it ensures the distributor does not miss any sales. The system also affords distributors quite a lot of freedom to run their business as they see fit. “The majority are people that are just out in the community doing the demonstrations, and they can process the sales themselves, through their own means or as I said, they do have the option to go online; it is purely up to them,” says Shane. Distributors can also ease themselves into the business, thanks to the company’s three-tiered model. “Tier three is the freelance option, so basically it is the beginner option,”
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Those who are after something a explains Shane. This agreement requires little more can opt for the two tier that they sell one machine per month model, which costs $19, 495 plus GST, in the first year and two machines each or the tier one, which costs $29, 495 month every year after that. plus GST. Shane says that “tier two incorporates Regardless of the model they certain exclusive regions of up to a 15km choose to invest in, all distributors radius or depending on the population.” receive a StreetStrider product Distributors under the tier two model package that includes two machines are required to sell an average of three Shane Martin, left, and Adam Fletc her and a stand for indoor use, car rack, StreetStriders each month for the first year, and an average of four a month after that. “The first is just a step up again in their territory again, basically,” he says. Here distributors’ exclusive territory dispensable income there and they are wireless console, t-shirts, business cards covers a radius of 30km, however they are looking for that low impact alternative,” and brochures. required to sell an average of four machines people of all ages, particularly those with So does the company offer support monthly for the first year, and an average of injuries are embracing it. and/or training? five a month after that. “Our distributors have access to all Shane says that in terms of marketing, “With the one and two they are of the company’s marketing templates, the company’s current campaign basically getting exclusive rights to a television advertisements and bulk media “revolves around a national TV campaign certain area, and with the basic it is the buying too,” Shane adds. F on Foxtel, free to air regional TV, entry level and allows them to test the exhibitions, magazines and social media,” market and see how they go,” adds The company helps distributors get their He says these marketing efforts do Shane. sales over the line with Certegy Ezi-Pay, an generate some leads from people wanting Interested parties can take on a interest free retail payment plan that lets demonstrations before purchasing. StreetStrider franchise for as little as $11, AD_ F RCAF NOV _ 1 2 . p d f Pa ge 1 2 7 / 0 8 / 1 2 , 2 : 4 9 PM customers pay off the machine much like they While the StreetStrider is aimed at the 495 plus GST if they opt for the tier three would a lay-by. 40 to 50 age bracket, as “they’ve got the model.
When I first saw the machine cruising down the sidewalks in the US I knew it would be a hit here
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FR.MARAPR13.PG040.pdf
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Opportunities|Health food
a healthy
appetite Flavour your life with a fresh food franchise
A
ustralian customers want great tasting food to be part of their lifestyle. Phil Colburn, managing director at Queensland based Red Rock Noodle Bar says customers today are definitely concerned with nutritional value. “The consumer demand is going from strength to strength. The education level has improved. Customers used to ask us questions, now when we speak to them they have a lot more understanding about the issues,” he says. For this Asian inspired franchise chain, signing on footballer Corey Parker has been a big part of highlighting healthier living choices. Parker
40| FRANCHISING mAR/ApR 2013
www.FRANCHISe.Net.Au
has a social media contract that focuses on him blending the brand and healthy eating in to his lifestyle.
bRANd AmbASSAdoR “It’s the first time we’ve had an ambassador. He’s well known up here, he puts in the extra hours before and after training,” says Colburn. Corey’s Favourites is a new promotion that started early this year, showcasing on the menu the dishes he uses and eats regularly. A promotion in March and April picks up on the taste for satay – with Corey Parker’s dish included.
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When it comes to the noodles, Red Rock will continue to add more flavours, but finds customers like the traditional dishes, with teriyaki and satay becoming stronger on the menu. Serving up salads for summer and soup for winter seems a sensible approach adopted by the business. There’s a new lunch time focus too and a fresh model for the predominantly dinner-based business, with new outlets to set up in service centres and food courts to target the high volume lunch trade. “People are changing. We’re very strong in dinner in strip malls, about 75 percent, but we’re not in the middle of malls in city centres. We’re working with centres like Centro,” explains Colburn. “Expansion has been pretty good over the last two years, we’ve done double digits.” The business development remains focused on Queensland for the next 12 months, areas such as the south east of the state, Gold Coast and Toowoomba. It’s Parker’s home territory, and makes greatest use of him as a brand ambassador. Existing customers have proved fertile ground for growing the business through upselling, particularly through online and Facebook ordering. Colburn reports customers have increased the value of their order by up to 30 percent. “We’re getting more sides and extras, people are not feeling pressured, they are more relaxed and can take their time [online]. Customers are grabbing larger box sizes.” And an affiliation with Ben & Jerry’s is also paying off with every third order including an ice cream treat, even in the lower demographic regions.
CoNSCIouS CoNSumeRS Kate McMahon, responsible for marketing at Pacific Retail, an umbrella group that includes Go Sushi and Wasabi Warriors, agrees that the healthy lunch market in particular is growing. “People are really caring and we’re talking about healthy eating.” The Go Sushi business is catering for nutritionally aware consumers with low fat and
People are changing. We’re very strong in dinner in strip malls, about 75 percent, but we’re not in the middle of malls in city centres. We’re working with centres like Centro gluten free options, and all the meals are freshly made in store. Sibling brand Wasabi Warriors has an organic food profile. Customers are quite consistent with their menu choices, particularly Go Sushi customers, says McMahon. Nevertheless, refreshing the menu is important, as is serving up innovation. “We update our menu yearly. We’ve introduced a lunch pack and are trying to invent options.” For instance, two summer packs have been launched, one salmon (with omega 3 the nutritional pull), and a power protein pack. The lunch packs allow for upselling, a major focus for the franchises, and one way that is being
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achieved is by adding a drink to a lunch pack for thirsty diners. Go Sushi had a huge growth plan for 2012, says McMahon, with more than 14 stores opened. Another 20 will be unveiled in 2013 across both brands, though Wasabi Warriors’ CBD focus proves a challenge when it comes to finding sites. The right location is essential for the success of a franchise, says McMahon.
FReSHly mAde
Le Wrap is a new kid on the block when it comes to franchised food
AD_ F RGRE S E P _ 1 2 . p d f
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Pa ge
1
outlets and as its name suggests, it has a clear niche market. Peri Celik, franchise co-ordinator, says the business is focused on preparation conducted in front of the customer. “Of all the takeaway options, we’re the only made to order and cooked in front of you. We’re high on hygiene and presentation,” says Peri. Chicken breast is finely sliced and grilled while the customer watches. At the same time salad is added to the wrap. The final touch is to bring all the elements together and toast the wrap. “I think Le Wrap’s gone so
6 / 0 8 / 1 2 ,
1 1 : 0 4
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AM
We update our menu yearly. We’ve introduced a lunch pack and are trying to invent options well because everything is lean, the chicken and the beef, there’s not much oil used, even in the marination,” explains Peri. While Le Wrap unsurprisingly gains much of its custom through
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managing director, Merrill Pereyra. “We have converted the menu 100 percent in Victoria and are now converting the Queensland market and will have this done by the beginning of March. The Christmas period put a hold on implementing the menu.” Research conducted by Healthy Habits showed 70 percent of customers want healthy but tasty food. This was the spur for Pereyra to hire a nutritionist to review the menu and edit the selection, cutting down choices high in sodium and limiting the kilojoules. There has been a quiet revolution At the sandwich chain Healthy Habits in the kitchen with healthier cooking a relaunch of the brand instigated methods adopted to ensure maximum last year is still underway, reports nutritional value in the food and reduce the fat levels; Australian spices have been added – lemon myrtle and pepperberry for instance. The initial response from the customers has been that they like the idea of a healthier menu, they like the Australian spices used in the new-look Pa ge 1 2 6 / 1 1 / 1 2 , 8 : 5 1 AM menu, and they like the nutritional information shown on the menu he lunch time trade, the options for earlier morning menus are being explored. What started out in the Westfield centre in Sydney’s Parramatta has spread to 12 locations across the New South Wales capital and there are plans for 20 more outlets this year – including expansion into Victoria. Although there are both stores and kiosks in the franchise offer, the location profile remains a prime shopping centre position.
New meNu
My key goals for 2013 are to focus on getting the new menu into stores and making sure execution is effective. Analysis of the menu and then look at what we can have in the pipeline AD_ F RS I G1 J AN_ 1 3 . p d f with regards to new healthy products
40 FOR FRANCHISE INFORMATION CALL:
1800 662 663 www.embroidme.com.au
44| FRANCHISING mAR/ApR 2013
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LOCATIONS NATIONALLY
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explains. “We will conduct more detailed research later in the year once we have all of the new menu in stores. At this stage the plan and focus of the team has to be on operations execution and improving the profitability of the stores,” says Pereyra. So what can Healthy Habits offer new franchisees given that the business is being overhauled and outside Victoria has very little brand awareness? The plan is to offer new franchisees a business that has growth opportunities, says Pereyra. “Brand awareness is something that we plan to work on. Key strategic alliances with companies in the same health space can have an impact on brand awareness. Last year we were locked in to be the major sponsor for the Kids Sandwich Championship and last minute the event was cancelled. So we will keep looking for opportunities. As always marketing dollars are low and
you need to be smart as to how you get the best bang for your buck. “My key goals for 2013 are to focus on getting the new menu into stores and making sure execution is effective. Analysis of the menu and then look at what we can have in the pipeline with regards to new healthy products.”
INNovatIoNS
Luke Baylis believes there are now so many people with diabetes or who have specialist health conditions, some of which are influenced by dietary factors, that awareness of good ingredients is widespread among Australian consumers. The CEO of Sumo Salad says “It’s really heavily exposed too in the media, and with constant exposure people start to change their habits. It’s not a fad, it’s here to stay.” It’s been 10 years since Sumo Salad launched its healthy
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We’re trying to improve people’s health and will continue to evolve and take a leadership position in the health and wellbeing space
mar/apr 2013 FraNCHISING | 45
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eating concept in Sydney [read the interview on p10], and the brand is now supported by My Kitchen Rules host Pete Evans. His impact has not just been brand awareness; the chef has influenced the menu, for instance introducing superfood salads. Baylis highlights that today’s
focus in the menu is on sodium and fat counts and gluten friendly products – all these are innovations to suit a changing market. “We’re trying to improve people’s health and will continue to evolve and take a leadership position in the health and wellbeing space,” he says. While Baylis says non-food projects are not on the menu, educating the customer through the information about the product is a way to inform the audience. Right now that is a predominantly female customer, as it has always been. What about the next generation? Baylis says “We hope this will transcend down the family. We don’t have a voice to children
directly and there are no short term plans.” Healthy eating might not be a fad, but there are food fashions and ethnic cuisine is becoming more mainstream. “Mexican has been increasingly popular, the Middle Eastern trends are emerging,” says Baylis. “They make it more competitive, and that’s more challenging. We have to stay tuned to our times. We’re not specific to any ethnicity and can embrace trends through our healthier options.” F
I think Le Wrap’s gone so well because everything is lean, the chicken and the beef, there’s not much A D _ F R L E WJ A N _ 1 3 . p d f Pa ge 1 1 2 / 1 2 / 1 2 , 1 1 : 1 6 AM oil used, even in the marination
HEALTHY. FRESH. TASTY. GRILLED.
Established in 2005, LeWrap is Australia’s healthy fast food alternative. LeWrap is a unique food offering, capturing the shift toward healthy eating and a healthy lifestyle for all customers.
If you believe it is time for Australia to embrace healthy, tasty and fresh food, we would love to hear from you!
T 02 9687 7700 F 02 9687 7706 E peri@lewrap.com W www.lewrap.com
46| FRANCHISING mAR/ApR 2013
www.FRANCHISe.Net.Au
AD_FRWORJAN_13.pdf
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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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Retail|Opportunities
shopping
around
What’s in store in the books and gift marketplace?
W
e live in interesting times. On the one hand, it’s impossible to ignore the impact of online trading on the retail scene, so savvy franchisors are harnessing e-retail to benefit their business. On the other, some franchise systems are turning to kiosks and stores to broaden their business opportunities. Here we look at how Dymocks and Collins Booksellers, established bricks and mortar based retailers, and the relatively new Lollypotz gift franchise, are trading.
DYmOCKS When Dymocks began selling books life was very different to today’s multimedia world. In 1879 the bookseller started up as a family business, and despite its growth and expansion into other categories as a group, remains family-owned. The chain embraced the franchising model in 1986 and now operates a multi-channel strategy for franchisees. This includes monthly promotion packs and a dedicated marketing
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department which manages the brand’s media presence across catalogues, e-mails, radio, press and TV advertising. Although franchisees have the opportunity to cater for their local customers when it comes to book purchasing, a group buying team is the starting point. The team’s goal is to leverage its buying power to ensure profitable sales for franchisee businesses in all categories. So what’s selling? Sophie Higgins, senior category manager for Dymocks, says the power of cinema is reaching the book world with movie link-ins proving successful right now, especially the two for $30 promotions. “We have three tie-ins in the top 10,” she explains. Fantasy is another growing category, with sales up 10 percent year on year, and cooking another hot seller. In some cases unit prices are down, but volume sales are positive, says Higgins. Readers are still keen to buy books, whether that’s in-store or online. “We’re undergoing a lot of changes. We opened five stores mar/apr 2013 FraNCHISING | 49
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last year and have plans for new store layouts that will integrate e-reading and a total website relaunch.” The George Street, Sydney outlet is the site of the pilot Lonely Planet Hub, the first such shop-in-shop for the travel guide brand. While the focus remains on the printed word, in time additional branded merchandise will be on the shelves – DVDs for instance. This Lonely Planet shop is a partnership with BBC Worldwide, and may be taken up by other stores around the country. While the footprint of the stores can vary considerably, if franchisees are keen on highlighting a particular book category, Dymocks will work with them to make the most of the area. “We’ll take certain genres that we do well in and make them more fun and interactive. It can be as simple as rainbow signage in the kids area – it’s not new, but it’s effective – or highlighting Dr Seuss or Spot books,” explains Higgins. New look layouts will also embrace e-reading as part of the business. Dymocks was first to get e-reading pods into book stores but may have been ahead of itself. “We sell e-books but it’s not integrated. We need to represent e-retailing in store,” says Higgins.
Franchise details
Investment: $400,000 Retail outlets: 74 + Term of agreement: five years, with a five year option to renew Training: two weeks at head office in Sydney, ongoing in-store support At retail, there is an integrated Point of Sale system that interacts with the company website which helps drive customers into bricks and mortar stores with its “know before you go” function. This polls the store stock levels to inform customers of book availability at an individual store. The chain offers customers a loyalty system, and to date this has attracted more than 811,000 members around the world. Targeted email campaigns and a
monthly catalogue keep these reading consumers up to date with Dymocks’ latest offers. Social media is used to keep the customers engaged, and the brand awareness at a high level. Higgins believes the loyalty program is a distinct benefit for Dymocks franchisees. “The booklover program probably separates us from the pack. The level of offers, how we can talk to them [members]; people give us great feedback,” she says. Half of the customers visiting a store know exactly what they want to purchase, the other half come in and talk to the staff members before choosing a book. “A lot of people choose a book by its covers,” Higgins reveals. “A book is quite an aesthetic purchase. It speaks to people. It’s about getting more people reading.” When it comes to running the business, there is support from a regional business manager who is responsible for the development and implementation of strategies, processes, procedures and business plans that improve the profitability of each store. The manager will work with the franchisee to focus on customer service, manage sales and profit, and develop local area marketing programs.
COLLINS BOOKSeLLeRS Collins Booksellers began operations in 1922 as a newsagency in Collins Street Melbourne and launched into franchising in the 1970s with a particular emphasis on expanding into viable regional and metro high street locations. Today, the company is wholly owned by the franchisees. In 2005 the franchisees bought the company from the administrator of the previous business. Company owned stores and smaller, unprofitable outlets were closed. Other stores and outlets have since been added to the network across the country. Since then the business has been in acquisition mode, snapping up Book City Franchise Systems, online book retailer Seek Media, and two sites from the former Angus & Robertson business, along with 18 franchisees. In 2011 Collins Booksellers reached agreement to partner with Kobo, a global leader in eReading with more than 4.3 million users in over 100 countries worldwide, to deliver eReading to their customers. Collins Booksellers’ partnership with Kobo enables its franchisees to grow their business and meet the growing e-book needs of their customers says Daniel Jordon, CEO, Collins Booksellers. In a first for franchise book retailing, Collins franchisees receive a percentage revenue share of online sales from assigned store territories and a
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revenue share of eBooks purchased online. The company has signaled its intentions to enter new channels, recently opening its first hospital bookstore within the redeveloped Royal North Shore Hospital in Sydney. This is the first of a number of new Collins stores set to open in other major hospitals nationwide. Expansion of the franchise network continues and a number of new retail projects to be launched in 2013 will be announced in coming months.
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Retail|Opportunities
LOLLYpOtZ Lollypotz is a company with a distinct offer: chocolate bouquets for all manner of occasions. The business began in 2002 by Louise Curtis, a former Telstra Woman of the Year businesswoman. Her experience in the online hamper market convinced her of the opportunities for the new business, and there are now franchisees across the country. As the company has grown, it has broadened its offer to include retail outlets. Investment: between $70,000 gift such as champagne or a Franchisees now can work and $100,000 soft toy, for both individual from a kiosk, a shop or from Franchisees: 27 in Australia and corporate customers. home, and the investment running 40 units, four in Some even make their way to varies accordingly. New Zealand events as table centrepieces. The business centres on Term of agreement: five Traditionally the Lollypotz branded chocolates from years, with three further business is more focused on companies such as Ferrero options to renew the corporate client, although Rocher and Cadbury which A D _ F R B T A M A R _ 1 3 . Training: pdf Ptwo a gweeks e 1 includes 2 5 / 0 1 / 1 3 , 1 1 : 1 4 AM it is driven by a central call are wrapped in cellophane local area1 marketing Franchise Mag Half Page (H).pdf 15/01/13 9:57 AM centre and website. Corporate bouquets, sometimes with a
Franchise details
C
M
Y
clients account for about 45 percent of business, 30 percent is sourced online, and the remaining 25 percent comes from sales in retail or pop up shops. Curtis says “This year Lollypotz has made a significant investment in SEO and social media marketing and focused its growth on the back of this strategy. Although the business doesn’t rely on social media marketing to drive sales, we believe that communication with our customers through social media is vital, and keeps our product front of mind with the consumer.” The investment has brought a boost to business already – Valentine’s Day sales were up 43 percent on 2012 figures – and Curtis suggests the ratio of sales from corporate/internet clients may well change. F
Delivered
Potential
CM
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To achieve your corporate, professional and personal goals, contact Brian Tracy Training now.
Call Toll Free 1800 634 227 | www.briantracytraining.com.au | Franchises Available www.FraNCHISe.Net.au
mar/apr 2013 FraNCHISING | 51
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Opportunities|Fitness
shape up to a fitter future when you invest in a franchise that follows the trends. Domini stuart reports
exercising your options
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Fitness|Opportunities
T
he fitness industry is notorious for fads.“People are always looking for different ways to make money so we’re constantly hearing about new exercise equipment, new supplements and new diets,” says Andrew Simmons, founder of Vision Personal Training. “Most of them aren’t worth considering.” At the same time, recognising and understanding emerging trends can help franchisors to make important investment decisions for future growth and development. Membership of global organisations such as the International Health, Racquet & Sportsclub Association (IHRSA) and national bodies such as Fitness Australia help both franchisors and their franchisees to monitor movements in the industry. There is also the American College of Sports Medicine’s Worldwide Survey of Fitness Trends (WSFT), which is published annually and is now in its 13th year. This has a very clear intention to separate the two, providing information about trends, which are described as ‘general developments or changes in a situation or in the way that people are behaving’, rather than fads, defined as ‘fashions that are taken up with great enthusiasm for a brief period’.
Putting trends to the test
However popular or well-publicised a trend, any new idea or concept needs to be assessed within the context of an individual franchise. “We ask ourselves first whether it is evidencedbased and sustainable or more likely to prove a passing fad,” says Ray Younis, founder of Rush Hour Australia Boot Camps. “We consider the benefits to our clients, whether it will improve our service, and whether we could physically modify our business model to include it. Only when we have covered off all of these points do we make the decision either to allocate resources to developing it or to create strategies to protect ourselves from it.” Managing director of Step into Life, Larry Cohen, says the company has a history of setting trends in the outdoor training space. “We are also very aware of the bigger industry picture in Australia and overseas,” he says. “Whether an idea was developed internally or identified elsewhere, we test every new concept thoroughly to make sure it adds value to the franchise before rolling it out to the group as a whole.” Rory Sercombe, founder of Fit Family, believes
that the most important trends fall within two broad areas. “The first is marketing – what market is in need of a better fitness solution and how can we tap into this?” he says. “The second is a question of delivery – how can we deliver the best results to our members?”
Education, experience and qualifications Some of the trends identified in the WSFT apply to every business within the industry – for example, for the sixth consecutive year, the 2013 list was topped by a move towards ‘educated, certified, and experienced fitness professionals’. Simmons is concerned that, in Australia, certification and training is less rigorous than it should be.
Affordability, convenience, customer service and flexibility are important in getting people started but results keep them going “One of my biggest gripes with the industry in Australia is that it’s actually easier now to gain qualifications than it used to be,” he says. “When I did my exercise science degree it took me one year of full time study to get a Certificate Three qualification. Then, after two more years of full time study, I still didn’t have my Certificate Four. Now you can get your Certificate Four in Fitness in as little as eight weeks.” However, he does believe that the industry is doing a good job of encouraging people to ask the question ‘is your trainer qualified?’ “At the very least, every trainer should be registered and insured,” he says.
Accountability
Ranked #17 by the WSFT, the trend towards Accountability and Outcome Measurement is surprising low on the list – though perhaps because Exercise and Weight Loss, generally the most soughtafter outcome, appears separately at #5. “Affordability, convenience, customer service and flexibility are important in getting people started but www.FraNCHISe.Net.au
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results keep them going,” says Younis. “If people were self-motivated they wouldn’t need a trainer to monitor important indicators such as attendance and intensity at training. And the accountability of the trainer and the client go hand in hand; a good trainer keeps clients motivated and disciplined.” Vision provides an outcomes-based guarantee for each client’s investment. “If they follow the program 100 percent for the first nine weeks, in the unlikely that event they don’t achieve the agreed results we will not only give them their money back, we will train them for free until they do,” says Simmons.
Breaking into new markets
We all know that exercise is good for us. Yet, despite extensive media coverage of the benefits and regular government initiatives, most Australians don’t exercise regularly. Trend #19, Reaching New Markets, highlights this potential for growth within the industry. “First you need to consider the obstacles that prevent people from exercising,” says Sercombe. “For instance, many parents can’t train because they have no-one to look after the kids. We solved that problem by having adults and children exercise at the same time and in the same place but in separate sessions and, at some sessions, having someone to look after babies and toddlers. “You also need to explore any niche areas that fit in to your broader market. We identified a need for one-on-one programs to help children with special needs to develop skills and strategies that will eventually give them the confidence to attend our mainstream children’s groups. Our franchise owners can also establish other revenue streams such as birthday parties and school excursions.”
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Whether an idea was developed internally or identified elsewhere, we test every new concept thoroughly to make sure it adds value to the franchise before rolling it out to the group as a whole Once the physical obstacles have been removed there’s the issue of mindset. “I think the trend we need most is a greater understanding human psychology,” says Simmons. “We all know that staying in shape is as simple as eating better and moving more, yet most people have a sedentary lifestyle and continue to make poor dietary choices. Why is this? As professionals, we need to understand what’s stopping them from changing their behaviour and then coach them on that basis. That’s why, in the ‘four e’s’ that make up our core values – emotion, education, eating and exercise – emotion comes first.”
Fitness franchises that are leading the way FIt FAmILY
Trend #4: Children and Obesity “Strength and resistance training (Trend #2) is also very important to us because it delivers great outcomes for our members. We ensure that we are constantly learning and adapting, not stuck in a belief that the way we do something now is the way that we should always do it.” Rory Sercombe, founder. Concept: Fit Family enables families to get fit together. History: The company was launched in mid-2011,
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opened the first franchise in 2012 and now operates from eight locations. It plans to continue expanding across Australia. Training/qualifications: All franchisees must have Certificates 3 and 4 in Fitness. Ongoing training includes techniques to ensure that clients obtain the best results from each session. Accountability: Monthly fitness testing demonstrates improvements in adult clients’ fitness level as well as other outcomes such as weight loss and increased strength. Children are not formally tested but anecdotal evidence from parents is taken into account. Marketing: While the primary focus is family fitness, franchisees are encouraged to explore appropriate niche markets. Cost: $29,990 plus GST includes an exclusive territory, training, fitness equipment, ongoing support and help with business development.
training in a non-intimidating, friendly and supportive environment. History: Australia’s first outdoor group training program, Step into Life was launched in 1995. Now the market leader with more than 160 national locations it recently expanded into New Zealand. Training/qualifications: An initial nine-day training course covers all aspects of the business. Franchisees then receive comprehensive training and
Step INto LIFe
Trend #13: outdoor activities “Step into Life attracts members aged from 18 to 65 (Trend #6) and our training includes two programs that focus on strength and body weight training A D _ F R A MP MA R _ 1 3 . p d f Pa ge 1 (Trends #2 & 3).” Larry Cohen, managing director. Concept: Step into Life offers outdoor fitness
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ongoing development to help them run a successful business as well as help with supporting and developing their members. Accountability: Franchisees must be dedicated to providing the support clients need to stay with the program. There are systems in place to track members’ attendance levels and, when these fall below a certain level, trainers make contact to encourage them to continue. Marketing: Step into Life provides franchisees with a range of marketing activities. An internal marketing team provides the resources of an advertising agency for continuing support. Cost: It costs approximately $40,000 to establish a Step into Life franchise. The company’s relationship with various financial institutions means that approved franchisees may be able to borrow up to 50 percent of this.
RuSH HouR AuStRALIA
Trend #16: Boot Camp “Over the past two years we have noticed an increasing demand for fitness for older adults, strength training and body weight training (Trends #6, 2 & 3) and we have implemented strategies and programs to meet these changing needs.” Ray Younis, founder. Concept: Intense, boot camp-style training in a safe, welcoming and friendly outdoor environment. Rush Hour also offers a combined boot camp, 24hr gym and cross-fit facility. History: The business started in 2006 and now operates from 10 locations. The First Boot Camp, 24hr Gym and CrossFit Facility Franchise opened in July 2012 and the first Boot Camp franchise is due to open by mid-2013.
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The top 20 trends identified by the Worldwide Survey of Fitness Trends for 2013 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 13. 14. 15. 16. 17. 18. 19. 20.
Educated, Certified, and Experienced Fitness Professionals Strength Training Body Weight Training Children and Obesity Exercise and Weight Loss Fitness Programs for Older Adults Personal Training Functional Fitness Core Training Group Personal Training Worksite Health Promotion Outdoor Activities Yoga Worker Incentive Programs Boot Camp Outcome Measurements Circuit Training General Reaching New Markets Wellness Coaching
http://journals.lww.com/acsm-healthfitness/Fulltext/2012/11000/ Worldwide_Survey_of_Fitness_Trends_for_2013.5.aspx
Training/qualifications: Franchisees receive extensive support in sales, marketing and business operations while a ‘Train the Trainer’ program develops each trainer’s technique and confidence. Accountability: Rush Hour Australia utilises state-of-the-art equipment to provide standardised measurements of body weight, body fat, blood pressure, heart rate, strength, flexibility and cardiovascular fitness. This information is presented as a comprehensive four-page report along with advice
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and recommendations for improvement. Attendance is checked on a daily basis and the trainer calls when a client misses a training session. Marketing: Training and support in sales and marketing helps franchisees to attract new clients and retain current members. Regular incentive programs include ‘Refer a mate for a better rate’. Cost: The Rush Hour franchise includes two models, one Boot Camp only and one which combines Boot Camp/24hr Gym/CrossFit. The Boot Camp model costs $78,750 +GST; this includes training and equipment.
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Trend #7: Personal Training “Strength Training and Exercise and Weight Loss (Trends #2 & 5) are our key areas of focus, though we also incorporate Group Personal Training and Outdoor Activities (Trends #10 and 13) where appropriate.” Andrew Simmons, founder. Concept: Vision offers personal training based around individual and group sessions. These take place in a studio with weight training and cardio equipment – a small gym – or, sometimes, outdoors. The program also includes nutrition sessions, eating plans, shopping tours, online resources and phone apps to track food and exercise. Size: The first studio opened in 2001 and the first franchise in 2004. There are now 47 studios across Australia. Training/qualifications: Most franchisees are trainers who have been through the ‘Go and Grow’ program. Vision provides a structured career path for trainers within a supportive team environment with the opportunity to become managers or franchisees. Franchisees must have the skills and commitment to develop their trainers. Accountability: Results is the prime focus, supported by a money-back guarantee. Marketing: As the majority of clients need to train before or after work, marketing activity tends to focus on attracting clients during the working day, particularly non-working parents. Each month, Vision distributes over half a million flyers on behalf of franchisees. Cost: $200-$300,000 is for a ‘turnkey’ business – all equipment and everything else a franchisees needs to start operating. F
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VENDING A SWEET DEAL Four franchisees from different backgrounds and franchise systems discuss the simplicity of their vending business and how they make it work for them. By Donna Bennett 62| FRANCHISING mAR/ApR 2013
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ending: is there a more flexible business industry? You don’t necessarily have to work long hours; you can still keep your ‘day job’; it’s a great part-time income for students, casual workers and stay-at-home parents; and can be a profitable addition to an existing business. Whatever your circumstances, vending can equal business freedom. www.FRANCHISe.Net.Au
The general public constantly stumbles upon vending machines in their every day lives, such as public transport stations and airports, hospitals, schools and universities, sporting grounds, shopping centres, entertainment complexes, pubs and hotels, car and dog washing outlets, service stations, factories, office buildings and other workplaces. A range of vending machines in Australia means the types of products
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For most of the year, an ice vending franchise is very simple to operate, involving one or two visits to each machine per week to refill the bags and bag ties, available also vary: snacks and and to empty confectionery; cold the takings drinks; hot beverages; juices; bags of ice; magazines, newspapers; chewing gum; toys; cigarettes; and personal care and hygiene products. Some are purely coinoperated, while others offer a payment function for EFTPOS. Many vending offerings are company owned and a handful offer franchising or licensed opportunities. When your vending business is part of a well-branded system, you have control of your own business destiny including choosing your www.FRANCHISe.Net.Au GBC 0006 230mm x 85mm w-FINAL_ol.indd 1
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hours of work, while gaining all the assistance you need from the franchisor’s team of experts. With franchising, you’re in your own business but you are never alone.
eASy to opeRAte
Franchisee: Andrew Brose Franchise system: Kooler Ice Business type: Part-time Geographic area: Bendigo, Victoria Franchisee since: 2011 Owns: Three Kooler Ice franchises Co-occupation: Car wash owner and operator
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The vending attraction: The franchise agreement was very simple and we were attracted to it because there were no huge upfront fees (we purchased our first ice vending machine in much the same way we purchased our car wash machines), there were no annual renewal fees but instead a small fee per bag of ice sold. To us, this type of franchise arrangement was very fair because it was in our franchisor’s interest for us to sell as many bags of ice as possible. Also, this meant we weren’t paying out large ongoing annual fees whether our franchise was successful or not. Simple to operate? For most of the year, an
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ice vending franchise is very simple to operate, involving one or two visits to each machine per week to refill the bags and bag ties, and to empty the takings. From time to time, the odd maintenance issue has occurred, and with the communications from each machine to the iPhone, it is very easy to manage these issues as they occur. During the summer time peak days for ice sales, we do work harder at building up stock so that we can supply every customer who chooses us to supply their ice. Average hours: Around four hours per week across the whole year, with up to 30 hours per week during the summer time peak. Who helps? We run our franchise ourselves, and have our car wash staff trained to do all work required if we are away. Costs: Each ice vending machine costs over $90,000 plus GST to purchase (two tonne per day of ice production). Work/life balance: We have found that when you establish any new venture or add a new machine or service, an enormous amount of time and energy goes into setting it up and getting it to work properly. Doing half a job is not an option to us, due to the amount invested. With all coin-operated businesses, once set up properly and a customer base established, they are fantastic businesses to operate. We are looking forward to being able to spend less time this year working as we have been through the establishment phase of our franchise.
oveRSeAS HolIdAyS Franchisee: Mark Sandgren Franchise system: Austvending Geographic area: Adelaide, SA Franchisee since: 2001 Owns: 300+ machines
Previous occupation: I lost my job as a company director in the UK and came to Australia (with my family of four children) to obtain an MBA. I bought a small vending round and have never looked back. Full-time/parttime? Now it is a fulltime income, but first I just wanted enough money to pay the rent while I studied. Once I finished my MBA I thought, do I really want to work for someone else again? No! So I expanded the vending round. Vending attraction: Profit – 300 to 1500 percent mark-up
I have at least 12 weeks of holiday a year. In 2012, we had two weeks skiing in Japan and three weeks on safari in South Africa, plus the normal local time off in Adelaide and down at the shack on the Murray 66| FRANCHISING mAR/ApR 2013
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Austvending
on goods. Simple system to find locations, world branded products and low time commitment. Simple to operate? Very simple to operate, I can leave my machines for four to 12 weeks between services. Average hours: 15-20 hours per week. Who helps? My son is now interested in helping me grow the business. Costs: I spent around $40,000 to start but have invested more over the years. Ongoing costs are very low, with cost of stock below 20 percent and only two fixed costs, insurance and charity licensing fees. Work/life balance: I am so happy with my current life and work balance. We are able to take all the school holidays together as a family. I have at least 12 weeks of holiday a year. In 2012, we had two weeks skiing in Japan and three weeks on safari in South Africa, plus the normal local time off in Adelaide and down at the shack on the Murray. Vending has enabled us to have a wonderful lifestyle with a profitable, simple business that can be started small and grown over time.
GReAt INCome
Franchisee: Karen Vekul Franchise system: SVA Vending Geographic area: Lilydale, VIC Franchisee since: 2010 Owns: 15 machines Co-occupations: Part-time café worker and home parent (three children). Full-time/part-time? Part-time. I spend one day per week on the machines (usually Mondays, my day off from the café). Vending attraction: Flexible hours and a great income for little effort. Simple to operate? It’s an extremely simple system and SVA has a proven model that has worked well for me. I have received magnificent support
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“I CHOSE A 20% RETURN ON MY INVESTMENT.” When Phillip V. chose to invest in Speed Queen laundry, it was to bank on the proven performance of an industry leader. Sure, he likes the average 20%* ROI in a nearly recession-proof industry and the fact that he will likely break even in less than a year. But, what does he like most? Being backed by the world’s largest distributor network and the freedom to do business his way. Visit speedqueen.com.au/invest or call 1300WASHER (927 437) to get started. *According to the Coin Laundry Association.
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Checklist
How to|Ending the agreement Opportunities|Vending
TO DO LIST | HeLP GuIDe
Get help Franchise must also give the franchisee a reasonable from the SVA team in building myfailure business. They Before you go any further, seek advice Like business, (or the opportunity to remedygave the alleged breach me comprehensive twoany days training,your fromfranchise the from an accountant, lawyer and business franchisor) could fail.They If the franchisor (not more than 30 days). If the breach is technical to marketing sides of the business. adviser who specialise in franchising. The this which could seriously remedied in that time, thealso franchisor give meisongoingfails, support is the bestaffect the your network of Business Enterprise Centres business. For example: not allowed to terminate the agreement industry can offer. • 11.Independent Machine 1. Are you confident the franchisor? What are theVending franchisee and Operators throughout Australia (www.beca.org.au) • hours: You could loseinyour right to as a resultbefore of that breach. you Average Approximately Association of Australia (IVMOA) www. franchisor obligations? can also give you some useful advice. trade thethe franchisor’s Some franchise agreements allow the eight hours per under week on purchase your ivmoa.asn.au We also suggest that you enrol in a brand name franchisor to terminate the agreement machines. 2. Have you seen an a disclosure I spend extra franchise you • Vendline www.vendline.com (overseas site franchise education course. The Australian • You may be unable to obtain stock, even in the absence of a breach by the couple of hours a week on document? 12. What training is available and but its warnings about buyer beware scams need to tick off Competition and Consumer Commission if the franchisor provides franchisee. In these circumstances, before administration, paperwork and this who pays for it? are(ACCC) universal) has funded a free, online course • The franchisor may no longer be able terminating franchise agreement, allthethe must-do ordering. Since I set up my 3. Have you evaluated the financial Franchise Council franchisees of Australiawhich (FCA)can www. for prospective to provide trainingnational or marketing • 13. the franchisor must give the franchisee with a leading returns? Who owns the intellectual property items. Check the accounts franchise.org.au be accessed via www.franchise.edu.au/ support wholesaler, all my stock gets and what is licensed to the franchisee? following: • Seek independent financial & legal advice pre-entry-franchise-education.html. The • you Customers want to deal with delivered to my door. 4. Do know allmay the not expenses • Ask to speak/meet other franchisees by fi ve-module course is administered you because of uncertainty Who helps? There is no need franchisees are required to pay? 14. What marketing will the Griffith University and gives you a good • any If the franchisor holdsthe the lease on your to have help as I manage franchisor implement? overview every aspect of franchising, premises andper hasweek sublet to you, you small amount of hours by Work/life balance:of Vending has really helped me 5. Have you worked out your end-of-term could costs? lose your right to occupy have the a greatincluding myself. operating work/lifetermination balance andand I have to thank 15. Who pays for the marketing? if theand franchisor rights Costs: I initiallypremises paid $90,000 then loses its SVA for theirarrangements. assistance. I now earn more in one day Thein ACCC promotes compliance • Although the franchisor might than I do working bought more machines as you time wentthe on.term the café full time! F 6. Do know 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 a franchisee? prospective franchisees of rights other suppliers and landlords – and circumstances in which the franchisor can Looking for a coin operated laundry business? Checktheir out Speed fixed or mobile premises? and obligations under the Code and to your employees. terminate the agreement immediately. Queen, which has been making commercial laundry equipment theselling Act,assign and enforcing where These include where the franchisee 18.and Can you the franchised for more than a century equipment inthem Australia for you working within a territory? business? necessary. The ACCC has a number disclosure document needs to becomes bankrupt, voluntarily abandons 8. Are The almost 60 years. Ifinclude so, is the area exclusive? offifree publications designed to assist a signed director’s statement the franchise or operates the franchise in a Investors get assistance in nding the best locations using prospective franchisees, including that the franchisordemographic is able to meet its way that endangers public health or safety. 19. How can the franchisor or franchisee research, and with the development of a business aplan. terminate theManual Franchise Agreement? 9. Are youThis restricted in your product Franchisee and a factory Franchisee debts. statement either Many franchise agreements don’t As wellneeds as equipment, Speed Queen also provides backed purchase? Checklist. Bothequipment are available to be supported byleasing, an audit by a design andStart-up provide for the termination of the laundry floor planning services, online at www.accc.gov.au/franchising registered auditor mix or accompanied by 20. agreement by the franchisee. If this is the What restrictions areoperations there on the recommendations, implementation, store support, or by calling the ACCCfrom small business theyou franchisor’s fi nancial reports for the case, the franchisee may only be able to 10. Are guarantor operating required to reach a aftersales supportfranchisee training, and parts and – everything concept to on 1300 302 021. F last two fiperformance nancial years. If the franchisor exit the agreement early by transferring completion. ahelpline similar business? minimum level? gives you its financialThis reports, look at the agreement to another party. can be a part-time business or a multi-location operation. The them closely with an accountant and trycapabilities, So remember: before you jump on the Dr Michael Schaper deputy chairman of advanced networking available oniscommercial washers to assess the franchisor’s train, make sure you’ve got a good idea the Australian Competition and Consumer and dryers, make it easy to remotely [with program and audit machines. thanks to Mason Sier Turnbull] financial health. of how to get off. Commission
Useful links and tips
20 things to check before you invest
Since I set up my accounts with a leading national wholesaler, all my stock gets Before you jump on the delivered train, make sure to you’ve got a good myidea doorof how to get off
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“McDonald’s has taken on 30 new Licensees in the last 3 years – 17 of them came from outside the business”
Corporate Employee to Business Owner Will’s Macca’s Journey In just over 41 years McDonald’s has grown from one outlet to over 890 restaurants across Australia. With almost 80% of restaurants owned and operated by franchisees, this success has been built on their drive and ambition. With this level of growth, the last two to three years have witnessed McDonald’s search for suitable external talent to join the team and continue to expand the business. If the organisation is to continue a similar level of growth and success over the next 40 years, its important to have a pipeline of new franchisees to support the company’s strategy. It’s also an opportunity for those not currently working for the organisation to bring fresh ideas and approaches into the system. Bert Cotte, McDonald’s National Franchising Manager, comments: “We are always on the lookout for driven and successful business people who can help us to grow our business now and in the future. Regardless of where someone’s career has taken them, we need someone to have strong business acumen, and a passion to immerse themselves and contribute to the local community.”
“We’ve had franchisees from all walks of life - gym owners, engineers, property developers, even an environmental scientist, join our franchisee community”, says Cotte. One of these franchisees is Will Luders, who joined the McDonald’s team just over a year ago. Originally from Clayfield, on the north of Brisbane, Will was a Sales Manager with Fosters Group for 10 years. When his position was made redundant, he was faced with the difficult task of deciding what direction his career should take. Upon investigating a number of franchise systems with different businesses, Will wasn’t initially sure if he would be the right fit for a McDonald’s franchisee. However he spent some time speaking to a friend who had previously made the transition into the McDonald’s franchise system and made the decision to submit an application.
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Will liked the way that the McDonald’s system delivers on its customers’ expectations and was attracted to the strong support and training systems on offer. He was also attracted to the opportunity to leverage the McDonald’s brand, including Ronald McDonald House Charities, and be involved in the local community. During Will’s career, he has built and coached successful teams; was heavily involved in business planning; remained highly focused on customers; and achieved years. He has a Bachelor of Business with an Accounting major, which arms him with the horsepower to stay on top of the
Speaking about the training offered to franchisees in the McDonald’s system, Will comments: “Preparing myself for the change from a corporate employee to McDonalds franchisee was the greatest personal need to invest in the training of our staff and it has been fantastic to have the training programs facilitated by McDonalds to enhance the training and skills of our employees. This has allowed me to work with our restaurant manager to provide more of a coaching role for our staff and younger managers in turn, which gives them a more rounded training
strength of the McDonald’s training programs has given me the scope
acquired to enhance the performance of our business.� Upon completing the franchisee training program, Will was given the opportunity to purchase the Bridgewater restaurant in Tasmania, far from the warm Brisbane climate. Will and his wife, Andrea, sold the family home, which provided the equity system’s focus on multi-unit franchising, the opportunity had a second restaurant
purchase on offer in the future, but this would be underpinned by Will’s operational performance and
months later, Will has purchased his second restaurant, ! " " said,
previous corporate roles to complement what the McDonald’s system has to offer. This has allowed me to put my ‘stamp’ on the business. Whilst there are certain areas that are strictly controlled to ensure an effective system, there are areas such as managing and and motivating staff that
! “The pace of the business was also a bit of shock as
had previously been able to leave work and ‘switch off’ to some extent but the nature of this business has required a shift in my thinking�, Will added. Will’s success story is one of many in the McDonald’s system. McDonald’s is looking for astute business people to drive the success of local restaurants, particularly in regional areas and, whilst the organisation requires its franchisees to be highly involved in the business’ day to day operations, the " # have been 30 new McDonald’s franchisees, 17 of those came from outside of the business.
McDonald’s would like to partner with you to create the next success story. this sounds like the next chapter in your life, check out all the information at www.mcdonalds.com.au or email us at franchising@au.mcd.com
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FRANCHISING ON A
BUDGET 101 Budget franchises offer a world of benefits to franchisees. Brea Carter gets the lowdown on six budget franchise opportunities.
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here are franchising opportunities out there for everyone, regardless of their budget. And while they may be more affordable, these franchises nevertheless provide franchisees with high quality training and continued support, and many are well established brands. From well known cleaning and animal care brands through to companies that focus on fitness and health and property, there are a number of franchises with a model that requires an investment of $30,000 or less.
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READY STEADY GO KIDS Ready Steady Go Kids is a sports and exercise franchise aimed at children between the ages of two and a half and six years. The company requires that franchisees educate children about the importance of exercise and teach them the basic skills required for ten different sports. Company directors Stuart and Toni Derbyshire stress how important it is that franchisees take on an active role in the business, and they say their best
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franchisees operate in such a way. “The franchise has been structured to allow our franchisees to focus on two key things: delivering great classes for pre-schoolers and their parents and local area marketing,” they explain. A franchise costs between $20,000 and $30,000 for a greenfields territory, which means the franchisee starts the business up from scratch in a particular area, rather than take over an existing franchise. Each month, franchisees pay two percent of gross earnings towards marketing, $150 goes to call centre fees and the franchisors take six percent in royalties. The company has been in operation since 2004, and it began franchising in July 2011. At the time of print it had 27 domestic franchises and two international master franchises in operation in A D _ F R A P P MA R _ 1 3 . p Singapore and the UK. The company requires that
franchisees initially devote five years to the business, and they can opt for two more five year renewals after that. To be a successful franchisee, the Derbyshires say “you will need passion, energy and motivation.”
AUSSIE POOCH MOBILE
A complete package costs $33,256 including GST however it entitles franchisees to a franchise in a new area, full training, advertising, insurance, starter kit, insurances, guaranteed income, a trailer and equipment. The franchisor takes 10 percent in royalties, and franchisees will also be required to fork out
Aussie Pooch Mobile was established in 1991 and it has around 150 franchises operating throughout Australia. The company specialises in providing top-to-toe dog washing services that encompass brushing, bathing, nail clipping, eye and ear cleaning and even doggy facials and blow dry treatments. A new franchise costs $21,000 including GST, plus the additional cost of a trailer rental agreement; meanwhile an established df Pa ge 1 1 8 / 0 2 / 1 3 , franchise starts at $25,000 including GST.
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“What does your brand sound like?”
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training, marketing and exclusive territory rights. When it comes to ongoing costs, Rohit Chand, operations manager, Keen to Clean, says “we calculate franchise services and advertising contributions based on the level of investment and potential to earn.” For example, an entry level franchisee may be required to pay $100 per week in franchise services, and a $90 advertising contribution each week. Franchisees are required to sign an initial five year agreement, and another four five year options are available. Chand says that the franchisee can choose to As the name suggests, Keen “focus almost entirely on to Clean is perfect for those cleaning” or “they can take with a penchant for cleaning. a purely administrative role, Franchisees can expect to overlooking and managing pay $25,700 plus GST for a several contractors.” franchise, and the cost covers AD_ F RF CBNOV _ 1 2 . p d f Pa ge 1 2 / 1 0 / 1 2 , He says they will also be legal fees and document responsible for “maintaining preparation, equipment, a three and a half percent advertising levy. Mark Welham, operations manager, Aussie Pooch Mobile says the franchisee would be responsible for the day to day operation of the business, with duties such as “responding to and explaining our services and pricing to customers” and “travelling to the customers house to provide a caring and professional service to their dogs”. Franchisees must sign a five year agreement, and a five year renewal option is available after that.
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Keen to Clean managing director Brijesh Purohit, right, receiving an FCA award
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tax records, appropriate scheduling, business and development plans and marketing.” The company started franchising in 2008. It has one master franchise and 27 franchises in Australia, and three franchises in India.
V.I.P HOME SERVICES
V.I.P was established in 1972, and it was the first company in Australia to franchise home services when it began franchising in 1979. Today, the company has more than 1,000 franchisees in Australia and New Zealand. The company offers three different franchise options, and prices vary accordingly. The Home Cleaning franchise costs $22,000 meanwhile franchisees interested in the company’s Lawns & Garden and Commercial Cleaning divisions will need to invest at least $32,000. Paul Robinson, CEO, V.I.P says “we work with prospective franchisees to work out an option that will best suit their needs.” Regardless of the option they choose to go with, all franchise agreements are for a term of seven years. The company wants its franchisees to run successful and profitable businesses, and as such they are not required to pay the franchisor a commission or per lead fee. “Franchisees don’t take a percentage of their income to V.I.P [and] there is a monthly flat fee that covers marketing
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and communication,” says Robinson. He says franchisees are expected to engage in local area marketing strategies, take part in training sessions and communicate with their support manager. V.I.P has national, state and local support teams on hand to assist franchisees when required.
WORKFORCE EXTENSIONS Workforce Extensions is suitable for people who are looking to invest only a small sum of money. The initial cost of the franchise is
it is very much a business that works around your family and lifestyle providing flexible hours, low costs and high rewards $5,000 plus GST and additional software and stationary costs also apply. Jean Norris, CEO, Workforce Extensions says franchisees will also need to consider “legal and accounting fees, the cost of incorporating a company to own the franchise, any prepaid expenses such as insurance and some working capital.”
Franchisees are required to pay monthly franchise service fees and marketing contributions, which are outlined to applicants. The initial franchise agreement lasts five years, and there is an option to extend it for a further three five year terms. Norris says the company is seeking “people with leadership, sales or management experience in the recruitment sector or allied industry.” If you do not have the required experience “there is no need to apply,” she says. Franchisees will be required to manage their client database, find suitable candidates for their clients’ businesses and build their client database up by implementing the appropriate sales and marketing strategies. The company was founded in 1997, and at the time of print it had 14 franchises, all of which are located on the east coast of Australia.
CHANGING PLACES If you have a passion for real estate and customer service, have a family or are looking for flexible working hours, Changing Places could be the ideal franchise for you.
Badger, left, Workforce Extensions company directors Keith and Michael McTiernan
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Cameron Fischer is the company’s founder and managing director, and he says “it is very much a business that works around your family and lifestyle providing flexible hours, low costs and high rewards.” A franchise costs $18,000 plus GST, and franchisees are required to enter into a four year agreement with a further four year option available. Fischer explains there are no marketing fees, and “leads are provided on an ongoing basis free of charge. “We do suggest if area specialists want to do some local promotion they make an allowance from commissions earned,” he adds. Franchisees are responsible for conducting home inspections, liaising and forming relationships with buyers and sellers, and they are involved in local marketing decisions, “as they know what their clients are looking for.” The company performs most administrative duties, such as account sales work and trust accounting, so the franchisee can focus on generating sales for their business. Changing Places was established in 2001, and it has 28 franchises. F
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Enjoy the best of
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A PACK & SEND franchisee earns income operating a Retail Service Centre at business trading hours, providing freight and packaging services to businesses and consumers Plus earns income from online freight solutions 24 hours a day, 7 days a week. It’s a business system that provides you with the best of both worlds – giving you access to sophisticated systems and technology to exploit the high market growth in the movement of packed and unpacked goods as a result of growing trade via the internet. There is no other franchise system like it in the world and best of all, PACK & SEND Franchisees receive assistance and support along the way.
For more information, please call Kate Bird on 0423 052 456
High growth market, with No Limits to sales growth Innovative, progressive company, established 20 years Award winning business systems and support Retail Service Centre at business trading hours – plus earn online income 24 hours, 7 days a week Low investment entry price
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Opportunities|Expos
exploring the
2
portunities expos in 201
hising & Business Op
A snapshot of Franc
Why visit a franchising expo? if you’re looking to invest in a franchise, it’s a smart move
marketplace T
he search for information on the opportunities and options available in franchising are myriad. The question is how to find and evaluate these opportunities and find the one that’s right for you. So what tools are at hand? You’ve already discovered Franchising magazine and have probably done some online research too. One other proven way to access this information
wHeN ANd wHeRe Keen to get started? Here are the dates for the Franchising & Business Opportunities Expos in 2013: Sydney: 14 - 16 June Brisbane: 20 - 21 July Melbourne: 30 August -1 September Find out more at www.franchisingexpo.com.au
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simply and quickly is to visit an exhibition showcasing business ventures. Staged annually since 1987, the Franchising & Business Opportunities Expos are the perfect events for anyone with a focus on running their own business. As the pre-eminent forum showcasing franchised, licensed and distribution opportunities any one of these expos provides interested visitors with dozens of individual businesses, as well as the chance to talk face-to-face and learn from experts - franchisors and franchisees, lawyers, accountants and government agencies - all in the one place. Whether you are just exploring the fantastic opportunities across the franchising and licensing sector – ranging from home-
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based to mobile, retail to business services, from food to financial – or want to dig deeper and get specific advice on a particular business venture, there is scope at the expos for all-comers. Visitors are able to talk directly to someone actively involved in the business they are interested in.
Free seminars
But while the exhibition is a great match-making opportunity, visitors exploring which franchise will suit them best, it is also an exceptional learning facility with government and industry bodies on hand to answer questions and provide advice on taking the next step. Advice can be sought from individual booths, or through the lively seminar program. In a specially constructed
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The Franchising & Business Opportunities exhibitions have proven to be an important learning centre for people considering their own business
information booth at the entrance to every show where prospective franchisees and franchisors can ask for advice ranging from basic subjects such as, ‘What is franchising’ through to questions regarding regulation, membership and education. You can sign up for free legal and financial advice at the Franchise Advice Centre, and find out about the range of seminars available each day. Becoming a franchisee can be one of the most empowering and exciting times in your life. But it’s a big change in many people’s lives so the Eyes Wide Open seminar, presented by an FCA committee member, is designed to cover an introduction to franchising, along with some of the more in depth aspects you might not have considered, including important things to ask your franchisor, financing options and business planning.
theatre in the centre of the show there will be a series of free seminars covering essential information you will need to make an informed decision about whether or not to invest in a franchise. The Franchising & Business Opportunities Expo also has the backing of the industry Following their introduction association for this sector. It’s the in 2012, the Franchisee Success only trade show endorsed by the Panels are back by popular Franchise Council of Australia, demand in 2013. Each day, there which has a major presence at will be an interactive panel AD_ F RE COJ AN_ 1 3 . p d f Pa ge 1 4 / 1 2 / 1 2 , 1 1 : 1 4 AM each expo. session featuring franchisees from The FCA operates an various systems and industry
Franchisee success panels
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types. They will answer questions both from the audience and an experienced facilitator about their journeys into franchising. The panels provide an extensive cross section of franchised businesses in Australia, along with a variety of small business people, all at different stages of the franchisee lifecycle “The Franchising & Business Opportunities exhibitions have proven to be an important learning centre for people considering their own business,” says exhibition manager, Fiona Stacey. “Visitors are able to ask questions and meet dozens of companies in the one place. Information that would normally represent days of research, appointments, meetings and discussions can be researched in a matter of hours,” she explains. “With so many businesses and sources of information available visitors will have an unparalleled opportunity to talk face to face with experts, learn from professionals and review a diverse range of business options in one place at the one time,” says Stacey. F * Look out in upcoming issues of Franchising magazine for preview features on each event
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PROFIT
FROM YOUR FRANCHISE When you’re buying a franchise it is wise to remember that profit, not turnover, will make the business a success.
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here is little doubt that the right franchising business can be a profitable and satisfying career for the right entrepreneur and the franchise industry is eager to welcome and guide new owners. There are numerous factors to consider before purchasing a franchise. Some are common sense – do your homework on the franchise group, understand its expansion plans, look at the closure rates, assess the level of franchisor support. Other factors may be less obvious but are worth their weight in gold. According to franchise accounting www.FRANCHISe.Net.Au
specialist Tanya Titman, director of Zee, aspiring franchises should look closely at a business’s profit rather than its turnover.
pRoFIt VS tuRNoVeR
When buying a franchise business most people focus on turnover. A franchise’s turnover can look impressive – “this business consistently makes $40,000 a month”. The figures presented to prospective franchisees are often the business turnover (or sales), not its profit. For example, a business making $40,000 a month might have expenses of $35,000 a month, leaving a profit of only $5,000 a month. When looking for a franchise to invest in, it
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pays to drill down into the figures to find the business’s profit (sales less expenses).
ImpoRtANCe oF pRoFIt The desire to generate an income and build wealth underlies every decision to join a franchise network. Aspiring franchisees should expect their new business to make a profit. This will enable them to draw an income, pay back their initial investment plus fund other investments (such as purchasing a vehicle) as well as personal financial goals like additional superannuation contributions or a family holiday. A business’s profitability is also crucial to your exit plan. If you decide to sell the franchise, its sale value will depend significantly on how much profit the business has achieved and AD_ F RJ ANNOV _ 1 2 . p what it can produce in the future. “A supportive franchisor,
creative marketing campaigns, unique or saleable product/ service are all important considerations but if the franchise business does not make a profit it isn’t going to be viable in the long run,” says Titman.
Assessing profitability of a franchise group Before assessing profitability of an individual business, Titman suggests looking at the overall success of a franchise group. While it is difficult to compare
one franchise group with another, you can ask questions like: • How long has the franchise group been operating? • How big is the group? Does it operate in multiple locations? • Does the group have strong brand recognition? Does it have a good marketing or advertising profile? • What percentage of revenue is paid to the franchisor? • Most importantly, speak to franchises from within the group. Ask about the pattern of sales and expenses; does this vary due to seasons, what are the long term business
I’m often very blunt with clients who are considering buying a franchise. If they’re buying a franchise to achieve a better lifestyle – to be their own boss, spend more time with the family, work d f three P a g edays 1 1 a 1 / week 1 0 / 1 2– , my 1 2 :advice 5 1 P M is to think again
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trends? What are the average results for key performance indicators (KPIs) like sales, wages, rent, overheads and gross profit?
Assessing individual business
Once you’ve decided on a franchise group, assessing the profitability of an individual business or site is the next crucial step.
How much profit is enough?
This is a very personal decision but an important consideration for every aspiring franchisee. Before embarking on buying a franchise take the time to clarify your personal and financial goals. This will create a framework for your investment decisions.
CASe Study
“We recently had a client, let’s call him John, with $300,000 to invest in a franchise. John felt a business that could deliver a 20 percent return-on-investment (ROI) was an excellent investment. However John, like many aspiring franchisees, hasn’t factored in the risk as well as personal investment of time and resources required to run a franchise business. We recommend John work to an ROI of 25-30 percent, plus factor into the business projections a salary to compensate for the time he will invest in running the business. “I’m often very blunt with clients who are considering buying a franchise. If they’re buying a franchise to achieve a better lifestyle – to be their own boss, spend more time with the family, work three days a week – my advice is to think again,” says Titman. Running your own business always consumes more time than you expect. A franchisee who fails to factor into their
A business’s profitability is also crucial to your exit plan. If you decide to sell the franchise, it’s sale value will depend significantly on how much profit the business has achieved and what it can produce in the future 88| FRANCHISING mAR/ApR 2013
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A franchise might make $100,000 profit but have no cash flow because this profit is consumed by purchasing inventory, paying back loans, creditors and tax business plan financial compensation for the hours spent working in the business is more likely to fail in the long term. “I can’t stress enough how essential it is that an aspiring franchisee places a value on their time and pays themselves a wage,” argues Titman. You might achieve the desired lifestyle in the long run, particularly if the franchise is operationally sound but in the short term, it’s imperative you look at profit after paying the owner a salary. “So when assessing a possible franchise business John should work towards an ROI of 25 percent plus a wage for himself as business owner. Look closely at the figures, is this achievable? If the figures don’t stack up you have to consider – would John be better to invest his $300,000 in property, the stock market or a term deposit and stay as a salaried employee?” asks Titman.
Profitability doesn’t equate to cash flow
The other question Titman gets asked repeatedly is where did my profit go? A franchise might make $100,000 profit but have no cash flow because this profit is consumed by purchasing inventory, paying back loans, creditors and tax. Before purchasing a franchise, Titman recommends conducting a three way forecast. This should be a 12 and 24 month profit and loss, cash flow and balance sheet forecast. It’s actually the balance sheet that demonstrates where a business’ profit has gone. Working from this information it’s easier to determine how much working capital is needed to run the business. John might need an extra $50,000 to ensure he rides out the highs and lows of the first 12 months. How do you work this out? Follow our step by step approach to get you started.
Three way forecasting
The starting point here is the profit and loss forecast. Identify the income and expenses by month for a 12 month period. Remember that your profit and loss should not include GST therefore you will need to use the GST exclusive sales and www.FRANCHISe.Net.Au
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expenses. Once finalised this can also become the monthly budget for your business. A spreadsheet is a good tool to use to start your forecast. There are many templates available on the internet that will provide you with a great starting point. Below is an example:
pRoFIt & loSS FoReCASt Sales revenue Less cost of sales GROSS PROFIT LESS EXPENSES Wages Superannuation Rent/lease Ongoing franchise fee Marketing/advertising Insurance Accounting Interest expense Utilities Telephone Freight Misc TOTAL EXPENSES Profit/(loss)
Jan $36,000 ($16,330) $19,670
Feb $27,000 ($15,620) $11,380
Mar $31,000 ($14,909) $16,091
Apr $24,000 ($14,199) $9,801
May $37,500 ($14,199) $23,301
Jun $25,000 ($15,620) $9,380
Total $180,500 ($90,877) $89,623
$5,000 $450 $1,950 $1,750 $1,440 $1,500 $1,000 $1,500 $106 $250 $150 $106 $15,202 $4,468
$5,000 $450 $1,950 $1,750 $1,080
$7,500 $675 $1,950 $1,750 $1,240
$5,000 $450 $1,950 $1,750 $960
$6,500 $585 $1,950 $1,750 $1,500
$5,000 $450 $1,950 $1,750 $1,000
$1,500 $106 $200 $200 $106 $12,342 ($962)
$500 $1,500 $106 $250 $150 $106 $15,727 $364
$1,500 $106 $200 $100 $106 $12,122 ($2,321)
$1,500 $106 $250 $200 $106 $14,447 $8,854
$500 $1,500 $106 $200 $150 $106 $12,712 ($3,332)
$34,000 $3,060 $11,700 $10,500 $7,220 $1,500 $2,000 $9,000 $636 $1,350 $950 $636 $82,552 $7,071
Once you have your profit and loss forecast, you will need to look at your balance sheet. Identify capital expenses such as franchise fees, fit out costs, equipment costs and motor vehicles. These are classified as the business assets. List these out in a similar month by month format to identify the timing of the costs. The next step is to identify how you will be funding the business. If you are taking out a business loan, you will need to factor this as a liability (money that you owe). Your starting balance sheet may look something like this:
BAlANCe SHeet FoReCASt Assets Cash Inventory Equipment Furniture/fittings Franchise fees TOTAL ASSETS
Starting balances $ $ $ $ $ $ -
Jan
Feb
Mar
Apr
May
Jun
$25,000 $5,000 $50,000 $250,000 $75,000 $405,000
$5,000 $4,200 $51,000 $250,000 $75,000 $385,200
$1,500 $5,000 $51,000 $250,000 $75,000 $382,500
$5,000 $3,500 $51,000 $250,000 $75,000 $384,500
$2,000 $5,000 $52,500 $250,000 $75,000 $384,500
$5,000 $5,000 $52,500 $250,000 $75,000 $387,500
Liabilities
Jan
Feb
Mar
Apr
May
Jun
Accounts payable Other current liabilities Bank loans TOTAL LIABILITIES
$ $ $ $
-
$5,000 $500 $350,000 $ $355,500
$7,500 $750 $350,000 $358,250
$2,000 $500 $350,000 $352,500
$5,000 $800 $350,000 $355,800
$7,500 $500 $350,000 $358,000
$1,500 $500 $350,000 $352,000
Owners equity Earnings TOTAL EQUITY
$ $ $
-
$45,032 $4,468 $49,500
$23,444 $3,506 $26,950
$26,130 $3,870 $30,000
$27,151 $1,549 $28,700
$16,097 $10,403 $26,500
$28,429 $7,071 $35,500
The final part of the three way forecast is the cashflow forecast. This combines the timing of all income, expenses, asset acquisitions, bank balances and loans to give an overall cash surplus or deficit on a monthly basis. The other important factor is the timing of your tax payments including GST, PAYG Withholding, income tax and superannuation. A cashflow forecast will enable you to predict future cash balances with a degree of certainty. It will also highlight those months that will potentially have a negative cash position. 90| FRANCHISING mAR/ApR 2013
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CaSHFlow ForeCaSt CASH INFLOWS Sales Working capital Bank loan Total cash inflows LESS CASH OUTFLOWS Cost of sales Total expenses GST PAYG Withholding Superannuation Fixed assets Franchise fees Total cash outflows
Jan
Feb
Mar
Apr
May
Jun
$36,000 $50,000 $350,000 $436,000
$27,000
$31,000
$24,000
$37,500
$25,000
$27,000
$31,000
$24,000
$37,500
$25,000
$16,330 $15,202
$15,620 $12,342
$14,909 $15,727
$14,199 $14,447
$15,620 $12,712
$1,500
$1,650
$14,199 $12,122 $2,750 $1,840 $1,575
$1,650
$1,650
$300,000 $75,000 $406,532
$1,000
$1,500
$30,462
$32,286
$32,486
$31,796
$29,982
Net cashflow
$29,468
($3,462)
($1,286)
($8,486)
$5,704
($4,982)
Opening bank balance Net cashflow Closing bank balance
$0 $29,468 $29,468
$29,468 ($3,462) $26,006
$26,006 ($1,286) $24,720
$24,720 ($8,486) $16,234
$16,234 $5,704 $21,938
$21,938 ($4,982) $16,956
If you are not too keen on the manual When factoring in the amount that is spreadsheets there are a number of required for the business working capital different software and web based packages you will need to ensure that you cover available,” says Titman. the negative cash balances with a built-in Hopefully, it is now obvious all this safety margin. profit focus requires a fair bit of number“It is great for business owners to crunching. Even if you have strong understand the process of three way financial skills, it will pay to seek help forecasting and to have a go at constructing A D _ F R M R WJ A N _ 1 3 . p d f Pa ge 1 1 0 / 1 2 / 1 2 , 9 : 4 2 from an accountant who is familiar with one themselves, however we highly franchising. recommend you get the results verified.
Franchising provides a great opportunity to build wealth and your own successful business. However, no matter how much a business turns over, the key measure for its success should be its profitability. F Zee is a financial concierge service that allows franchises to outsource their accounts department: www.zeehq.com
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Issues|Leasing
weighing it up
Ange Kondos looks at the pros and cons of being a sub-lessee
What is a sub-lease? A retail lease is a contract between the retailer and the landlord that specifies premises, their size, the amount of rent payable and a host of other items such as term (length of
time), annual increases and many other clauses that relate to the day to day obligations and responsibilities for the premises. It is a contract. When a franchisee signs up to a lease, there are two options:
Subleases are generally simpler, and more straightforward than other complicated types of retail leases. However, subleases are still binding legal documents and are also contingent on the original lease 92| FRANCHISING mAR/ApR 2013
www.FRANCHISe.Net.Au
signing on as the leaseholder, or becoming a sub-lessee. A sub-lease is a contract between the lessee, (the retailer that has the lease with the landlord) and a third party. Within franchising this arrangement means the franchisor holds the lease (often referred to as the head lease), while the franchisee then becomes the sub-lessee beholden to the franchisor as its landlord. The terms and conditions of the head lease are usually the same, so it follows that the rent for the
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FR.MARAPR13.PG095.pdf
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Leasing|Issues
franchisor and franchisee should be the same. In technical terms a sub-lease is as follows: A sublease is the lease of all or a portion of premises by a tenant who has leased the premises from the owner. In legal terms, the landlord is the lessor, the tenant is the lessee, and the sublessee is renting from the lessee. A sub lessee has no contractual obligations to the (head) lessor as its agreement is with the lessee (franchisor). A franchisee should have a written lease agreement, to protect themselves from any problems or legal actions. An oral agreement is not enough and is always subject to misunderstanding and challenges in court. In a sublease, the franchisee will still be responsible for paying rent. Subleases are generally simpler, and more straightforward AD_ F RGJ GJ AN_ 1 3 . p than other complicated types of retail leases. However, subleases
are still binding legal documents and are also contingent on the original lease. You should give strong consideration to having a solicitor or retail tenancy expert view the sub lessor’s lease, as well as the sublease before signing anything.
Pros of being a sub-lessee as a franchisee Most franchisors will have established leases at company level prior to franchising (and other units depending on their level of development) therefore the most crucial areas of the lease - the rent and incentives - will already
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mAR/ApR 2013 FRANCHISING | 95 30/11/12 5:51 PM
FR.MARAPR13.PG096.pdf
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be in the lease and should be passed down within the sub-lease. In essence a franchisor should be providing the benefit of their experience and resources through the sub-lease. When it comes to negotiating with landlords, the franchisor’s collective bargaining power is one of the attractions to franchisees; it should be an advantage to the sub-lessee not only with the initial lease agreement but when it’s time to renew the lease as well. The burden of negotiating a renewal on equitable terms falls upon the franchisor. In theory if the sub lease is not favourable the sub lessee can walk away from liability. I say in theory because often there is a great deal of investment and good will tied up in retail franchise sites which makes it very hard to walk away from a lease that may become a burden. Hidden traps such as Category 1 costs, for instance modifications to air-conditioning systems, fire sprinkler modifications, and power upgrades, are items that the sub lessee should not be burdened with because they
would have been dealt with at lessee or franchisor level. These costs – and the savings to franchisees - can often amount to tens of thousands of dollars. Guarantee provisions in terms of a security deposit will be required by the sub-lessee to an amount the franchisor has negotiated in their lease and this is often reduced when it is a multi-site operator. As a sub lessee, a franchisee’s personal guarantees (which can be an enormous liability) are usually given to the franchisor, not the landlord or shopping centre directly. This is an advantage because the franchisee is transacting directly with the franchisor who will be personally liable for anything that goes wrong with the lease.
Cons of being a sub lessee Of course there are disadvantages to this leasing option. The value of any retail business is directly linked to the lease, and as a sublessee you technically have two
If there are day to day disputes to do with a building issue or shopping centre issue as a sub lessee you have no legal right to communicate directly with the landlord 96| FRANCHISING mAR/ApR 2013
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landlords, your franchisor and the landlord above them. This can be burdensome at times and when selling a business both must approve the party wishing to purchase. As a sub Lessee ALL control of the site rests with the lessee or franchisor. If anything unfavourable happens to the Lessee (such as bankruptcy), this has an automatic effect on the sub lessee without any legal comeback. There have been cases over the last few years in which administrators have been appointed to a franchised business and the level of input and direct control a sub lessee has is lost – it’s a frustrating situation for the sub lessees. If there are day to day disputes to do with a building issue or shopping centre issue as a sub lessee you have no legal right to communicate directly with the landlord. This can often frustrate an operator on the ground as landlords are happy to collect rent direct from a sub lessee but distance themselves from communication when push comes to shove. The sub lessee is required to communicate through the lessee/franchisor which can be time consuming and frustrating. However many of the larger franchises have developed systems and good communication to alleviate these problems. While a leasing incentive or cash contribution to establish a business may exist between the landlord and lessee (franchisor), this doesn’t always get passed onto the sub lessee. In summary there are pros and cons to choosing a sub lessee rental agreement. However in my opinion the pros outweigh the cons when dealing with reputable established franchisors that employ best practices. Getting advice from your lawyers or leasing advisor is always recommended before signing any lease agreement. F Ange Kondos is managing director of The Leasewise Group
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Franchise available get more information at our website www.townandcountrypizza.com.au or email franchise@townandcountrypizza.com.au AD_ F RORAJ UL _ 1 2 . p d f
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How to|Due diligence
10 questions to ask a franchisee
98| FRANCHISING mAR/ApR 2013
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What are the best questions to ask a franchisee as part of your due diligence? The ACCC’s Dr Michael Schaper has some suggestions
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efore you buy a franchise, it’s important to gather enough information to make an informed decision, and this takes time. Arguably the best (and quickest) way to gauge what being a franchisee will be like is to talk to franchisees who are already in the system. Under the mandatory Franchising Code of Conduct, the franchisor is required to provide you with a disclosure document, which gives you a preview of your likely expenses, whether you’ll have an exclusive territory and what will happen at the end of your agreement. You will also receive a copy of the code itself and a copy of the franchise agreement. In the disclosure document you’ll find the contact details of all current franchisees and some past franchisees. Speak to as many of these franchisees as you can and ask them the following questions.
www.FraNCHISe.Net.au
1. How would you describe your relationship with the franchisor? As most franchise agreements run for a long term (usually five or 10 years), it’s important to maintain a good working relationship with the franchisor. You should ask franchisees about their relationship with the franchisor, and whether the relationship has changed over time. Also find out if they have experienced any conflict with the franchisor, and whether this was resolved.
2. Are you making money? You need to assess the viability of the franchise, and estimating potential earnings is an important part of this. Ask franchisees if they are happy with the
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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
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Due diligence|How to AD_ F RCOS 3 NOV _ 1 2 . p d f
income level they have achieved, and ask them to confirm any earnings figures the franchisor gives you.
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3. Have you recovered your investment?
and
Ask current and former franchisees whether they have recovered (or are on track to recovering) their investment in the franchise. If most franchisees are struggling to make their initial outlay back, how likely is it that you will recoup your investment (with a reasonable return) within the term of the agreement?
concentrate instead on building your business!
4. Are there any hidden or unexpected costs? An accurate picture of a franchise’s viability requires not only information about earnings, but also costs. Most franchisees understand that they will be required to make a significant upfront payment and then pay some ongoing fees to the franchisor. However, you may also be required to make outlays that you didn’t expect. For example, you could be asked to update your equipment, participate in training or undertake a major store refurbishment. As you speak to current and past franchisees, gather as much information as you can about any additional costs they may have encountered.
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5. Have there been any other unexpected surprises?
Professionally prepared by qualified accountants.
Ask the franchisees if they have experienced any other unexpected surprises since joining the franchise. This question may prompt them to discuss issues you might not have considered.
Prepared in a timely manner to meet the franchisor/franchisee’s requirements.
6. What training and support is provided?
Fully compliant with statutory requirements eg Fair Work Australia, BAS, PAYG, etc.
Some people choose to buy a franchise instead of setting up their own small business because of the training and ongoing support they expect to receive from the franchisor. Talk to other franchisees to see how much support the franchisor has given them.
‘The Cloud’ based – reports are readily accessible at all times.
7. How much marketing does the franchisor do? A good franchisor will provide ongoing marketing programs to attract customers to its franchisees. While the Franchising Code requires franchisors to provide franchisees with audited financial statements setting out how marketing fund money is
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Due diligence|How to
used, the code doesn’t specify what the money can be spent on. Ask franchisees about the specific strategies the franchisor has in place to market the system. Do they know how the marketing fund is being spent?
online one day (e.g. by selling some products through a website), you should ask existing franchisees whether the franchisor is open to this. Also check your franchise agreement for any restrictions on your ability to operate online.
8. Does the franchisor operate online? Can you?
9. Why are you no longer a franchisee?
In this digital age, franchisees face competition not only from other ‘bricks and mortar’ stores, but also online businesses that are able to supply goods and services without having to worry about the overheads associated with operating a shopfront. If the franchisor has an online store, ask existing franchisees if this has had an impact on their sales. If you think you might want to operate part of your franchise
Ask former franchisees why they left the system. There are a range of reasons why a franchisee might exit – the franchisor may have decided not to renew their agreement, or the franchisee may have chosen not to renew the agreement because it was time to retire. If a franchisee was terminated, try to get both sides of the story.
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The answer to this question will give you a clear indication of the franchisee’s overall satisfaction with the franchise. If they say no, ask them to explain why. Asking these questions is critical if you want to make a truly informed decision about buying a franchise. Don’t stop with the franchisees – talking to a lawyer, accountant and business adviser will help you get your head across all the information you’ve received and give you a clear idea of the potential risks. F
Dr Michael Schaper is a deputy chair of the Australian Competition & Consumer Commission. The ACCC has several franchising publications containing useful information for prospective franchisees, including a Franchisee Manual and a DVD about the Code. These are available at www. accc.gov.au/franchising or by calling the ACCC’s Small Business Helpline on 1300 302 021. The ACCC has also funded a free online course for prospective franchisees, Be sure to ask franchisees which is administered by Griffith University. whether they would invest 1 3 / 0 8 / 1 2 , 3 : 5 5 PM To enrol, visit www.franchise.edu.au/prein the franchise today if they entry-franchise-education. could do it all over again.
10. If you could go back in time, would you buy the franchise again? Pa ge
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Imagine working your own hours in your own successful business? Swimart has… for over 25 years! “Swimming Pools have given me a lot in life… and they could give you a lot too!” Susie O’Neill – Mother and former Olympic and World Champion
If you’re tired of working long hours on the tools or in an office for someone else why not build your own successful retail & service business working on pools...with a Swimart Pool & Spa Services franchise. Swimart Pool & Spa Services are the premium operators in the pool & spa industry with more than 25 years industry experience & over 67 stores across Australia & New Zealand. We provide all the needs of pool & spa owners from spare parts & accessories to new filtration equipment & total pool & spa maintenance. As a Swimart franchisee you’ll benefit from our comprehensive training programs, exclusive range of quality products, high consumer brand awareness & successful marketing strategies as well as professional business & technical support from the best in the business. Our franchise system provides the tools for you to build a high turnover & highly profitable lifestyle business in which boredom doesn’t exist! So, if you love the outdoors & have a passion for customer service why not speak to Swimart now & find out how a Swimart Pool & Spa Services franchise could help secure your family’s future.
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FR.MARAPR13.PG105.pdf
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a maTTer of
enGaGemenT how does a franchise business boost its social media engagement? in an increasingly competitive market, australian businesses need to evolve their marketing efforts to get a better return on investment.
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usinesses need to understand what consumers want from a brand and when they want to hear it. Consumer digital habits continue to evolve so it’s vital that businesses keep up with the latest research and trends. Here are four tips to improving engagement across email, Facebook and Twitter:
1. Consumers want email... but not just email In today’s digital and real-time marketing world, an interactive program should include multiple channels including www.FRANCHISe.Net.Au
email, Facebook, and Twitter. To maximise engagement and consumer satisfaction: • have an email option for all marketing messages. When customers are opting into a mailing list or requesting services, make sure email is listed as the first option. • promote your social presence through email – and vice versa. Add social information to email opt-in pages, and include links to your Facebook and Twitter pages in the welcome email. Likewise include an email opt-in form on the Facebook or Twitter. • include social sharing links in emails. By building ‘share this’ functionality mAR/ApR 2013 FRANCHISING | 105
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into emails, you create an instant connection between the brand and the social channel in the mind of the consumer.
2. Consumers want to buy from the brands they interact with Online interaction has a direct impact on purchasing behaviour. Email and direct mail have the strongest impact on purchase decisions. According to the ExactTarget Digital Down Under Report, more than 50 percent of online Australian consumers who subscribe to brands’ email programs have made a purchase after receiving a marketing message on Facebook. However, other channels including Facebook, SMS, mobile apps, and Twitter also influence buyers even if these may not be the preferred channel for marketing communications (source: ExactTarget’s 2012 Channel Preference Survey).
Understanding your customers’ online habits is the key to delivering successful marketing messages, at the right time, AD_ F RACE 2 NOV _ 1 2 . p d f through the right channelP a g e 1 1 9 / 1 0 / 1 2 ,
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106| FRANCHISING mAR/ApR 2013
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Social media|How to
Lee Hawksley, managing director of ExactTarget, a global provider of cross-channel marketing software solutions, says “While consumers may have a preferred channel for marketing communications, they tend to use more than one channel. Brands who receive permission to message consumers through multiple channels can dramatically increase their sales potential.”
3. Marketers should identify their brand’s advocates and reward them
• expand your testing across all channels. Testing is one of the easiest ways to improve the effectiveness of your interactive campaigns. Try testing email open rates for various days of the weeks, and various times of day. Test Facebook and Twitter engagement at varying times as well. • review campaign activity at different times. Analyse activity trends to see when campaigns get the best response then use that information when planning future campaigns.
Industry experts are quick to try and put a value on Facebook fans. But not every Facebook fan is worth the same. Think of each customer as an individual, seek out those who truly love the brand, and reward their loyalty. To best serve brand advocates and drive incremental sales you can: • move beyond measuring total revenue by channel. Instead, take a look at revenue per subscriber/fan/follower. You may find that Twitter followers are small in number, but convert at a much higher rate than other channels. Also take into account repeat customers and average order value. • implement a customer reward program that crosses channels. It’s important to reward those who support your brand online, however they choose to do it. Rather than offering email exclusives or making deals “only available to our Twitter followers,” consider offering promotions based on online brand interaction, regardless of the channel.
4. Marketers should find the right time to interact with customers on each channel Understanding your customers’ online habits is the key to delivering successful marketing messages, at the right time, through the right channel. Lee Hawksley says “71 percent of Australian consumers still check email first thing in the morning with Facebook (17 percent) and news sites (six percent) in a distant second and third place (source: ExactTarget Digital Down Under Report). Email is simply the first priority as consumers start their digital day. So, despite the ‘social revolution’ email is still going strong. This insight should influence how marketing messages are sent to Australian consumers in the morning.” Here are some suggestions for gathering this information. • ask your customers when they want to hear from you. By adding a single question to your opt-in forms, you can ensure your communications line up with your customers’ schedules.
While consumers may have a preferred channel for marketing communications, they tend to use more than one channel. Brands who receive permission to message consumers through multiple channels can dramatically increase their sales potential • treat each channel individually. Careful analysis of your data may reveal important insights about customers using each channel. Understanding your customer is the first step in designing a marketing campaign. Examining the online behaviour of Australian’s is crucial for marketers as it provides insights to deliver the right message, to the right audience, through the right channel, at the right time. F www.FRANCHISe.Net.Au
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Three key questions to gauge a franchisorâ&#x20AC;&#x2122;s approach to social media. By Diane Leonard
how sociaL meDia savvy is
your franchisor?
S
ocial media is an important tool for businesses allowing immediate dialogue with customers to get real time feedback on their products and services. The 2012 Yellow Social Media Survey found that: â&#x20AC;˘ 62 percent of Australian internet users are on social networking sites such as Facebook, Twitter or Linkedin. â&#x20AC;˘ In comparison, only 27 percent of small businesses and 34 percent of medium-sized businesses have a social presence. Gone are the days when a website was all a business needed to access the digital consumer. These days, customers expect brands to be accessible
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with a robust and responsive social presence. Of course, there is more to being socially savvy than simply setting up an account on Facebook and Twitter. It is a new way of doing business and organisations that understand they need to adapt are reaping the rewards. Is your franchisor adapting to the social media revolution? Here are three questions all potential franchisees should ask:
1. Do you actively encourage franchisees and employees to participate in social networks? The answer to this question will demonstrate whether the franchisor understands that franchisees and employees are their biggest advocates and should be encouraged to participate and get involved in social networks or risk falling behind. The franchisor should have numerous examples on how social media is being incorporated into their traditional marketing activities, across their website
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How to|Social media
and at franchise events such as the national and state conferences.
2. Can I see your social media policy?
The social media policy will reveal a lot about the franchise’s attitude to social media and whether they understand that openness, sharing and participation is the norm these days. You want a social media policy that: • Has positive language and actively encourages participation on social networks with clear best practice guidelines on behaviour. • Demonstrates that the franchisor trusts their employees and franchisees. • Doesn’t prevent franchisees and employees from using social networks or insist that every interaction be vetted and approved first.
3. How do the marketing team and franchise network keep up-to-date on social and digital trends and technologies? The digital world and social networks are changing rapidly. Despite marketing teams in franchise organisations being small and extremely busy with a lot of responsibility, franchisors must prioritise staying relevant by keeping up to date with digital and social media opportunities. The answer to this question should demonstrate that: • The franchisor invests in the professional development of their marketing team to ensure they
The speed at which social media is growing and evolving means it is now mandatory for every AD_ F RVANJ AN_ 1 3 . p d f Pa ge 1 4 / 1 2 / 1 2 , 3 : 5 5 franchise that wants to stay relevant
keep their digital and social media knowledge up to date. • Their people are proactive in improving their digital education regularly reading blogs, attending conferences, listening to podcasts and webinars on social media. • The senior executives are able to explain the social media and digital strategy. • They are working smarter by using digital technologies such as forums or online discussion groups to share useful content making it easy for busy franchisees to digest and access. Social media is no longer a choice for the franchisors and franchisees in this age of socially connected and tech-savvy customers. The speed at which social media is growing and evolving means it is now mandatory for every franchise that wants to stay relevant. F Diane Leonard is a digital marketer and organiser of the Social Franchising Summit, Australia’s first social media conference for PM the franchise industry. You’ll find her on Twitter at @FranchOut.
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.
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How to|Territories
in the right
neighbourhood I getting the territory right for service franchises is essential. So where should you go, and how do you know your territory is sufficient to support a business? Peter buckingham looks at the issues
112| FRANCHISING mAR/ApR 2013
f youâ&#x20AC;&#x2122;re investigating whether or not to invest in a business in the growing services sector it is inevitable that you will have questions about franchise territories. A service franchise can focus on house maintenance, cleaning, ironing, oven cleaning, even providing a care service. Or if you like the outdoors - working in the sun, rain and wind - maybe one of these is for you: pool cleaning, dog walking and washing, building and renovating, antenna installation, roofing, paving, gardening and landscaping. Perhaps the master of service franchises has been the Jimâ&#x20AC;&#x2122;s Group, which now has about 3,200 individual franchisees operating in areas from mowing (the start-up business for founder Jim Penman), www.FRANCHISe.Net.Au
through to cleaning, test and tag, fencing, tree lopping and into services such as the latest venture, locksmiths.
tHe demANd CuRve
So how do you choose your territory? The demand for these types of services correlates very closely to high economic
Smart franchise systems try and adapt the size of the territory so that each gives a similar opportunity for a franchisee
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Mapping and demographic consultancies use a variety of sources to map territories
areas. As a Melbourne based mapping, demographic and statistical consultancy we look at this in terms of SEIFA (Socio Economic Index For Areas), which is an Australian Bureau of Statistics product, and tells us a score for every area in Australia, centering around an average score of 1,000. High SEIFA areas are typically
those with top end housing prices; where most people are in employment - in most cases in professional or other well paid jobs. Examples of such areas would be the northern suburbs of Sydney, Melbourneâ&#x20AC;&#x2122;s inner east and Perth around the Swan River. Lower SEIFA areas would be both Melbourne and Sydneyâ&#x20AC;&#x2122;s western suburbs in general.
How do we know the demand for household services is definitely stronger in higher socio economic areas? We can turn to the 2009 /10 Household Expenditure Survey (HES) which was conducted with about 9,000 individuals questioned on how they spent their money. The HES allows you to break down what people spent their money on, and when we look at the map of Melbourne for example, we would see a correlation to the higher and lower economic areas. These maps confirm the relationship the HES shows us to spending on household services, as compared to higher/lower economic areas.
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Smart franchise systems try and adapt the size of the territory so that each gives a similar opportunity for a franchisee. As
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you would imagine, if we simply split up a market into territories each of 40,000 households, you would much prefer to have the service franchise for pool cleaning, gardening, or dog washing around Camberwell, Toorak, Double Bay, Hunters Hill or Claremont than around St Marys, Cabramatta, Sunshine or Broadmeadows. Some franchise systems wonder why some of their franchises are keenly sought after, whilst others seem to have no interest at all. Inevitably they have split their territories very poorly. Good franchisors move away from what we call the ‘beer and pizza’ map to a proper, statistical based system so they can give each franchisee similar opportunity within their territory The ‘beer and pizza’ map has traditionally been done with a black text on a large map, strongly influenced by some early entry franchisees enjoying a beer
Rather than trying to adjust the franchise fee for a higher potential area, compared to a lower potential area, we believe it is better to keep the franchise fee constant, and adjust the area’s size, so each franchise area is considered to offer similar opportunity and a pizza while carving up the territories. The down side is that no data has been used, just a keen eye, and it is perhaps self-serving. The first step in setting out appropriate territories is to understand who is going to be
the franchisee’s customer. This can be done by creating a picture of who the ideal customer is, or if the business already exists, plot the customers, and look for areas (postcodes ideally) with a high concentration of customers (we
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consider how many customers in 1000 will be our target market). By then comparing areas with higher penetration to the Census 2011 graphics, we can see where our service franchise works best: in high or low income areas, areas of older or younger people, family-strong neighbourhoods, or whether ethnicity may have some effect on the business. Once we know which drivers are good for the business, we can calculate a score for each postcode. For example if one household was likely to spend $20 on your service on average, then a household in a high demographic area may be considered to spend $30 per household, and a household in a lower demographic area may spend $10 per household If each postcode was equivalent in the number of households, say 10,000, then the higher area would offer you $300,000 of potential sales, while the lower socio economic area would only offer you $100,000 of potential sales. So if we decide to do this across the whole area, say Melbourne, we may conclude the total market offers us 1,200,000 households at an average of $20 per household = $24,000,000. A good franchise system may have concluded it wants 40 franchises across Melbourne, and wants each franchise to have $600,000 of potential. To balance the potential so each territory is similar, in a high socio economic area, when
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we add the post codes together to come up with $600,000 of potential, it may take 29,000 households, and in a lower socio economic area, we may need 50,000 households to give the same amount of opportunity for the franchisee. This type of calculation can be done for any market, and rather than trying to adjust the franchise fee for a higher potential area, compared to a lower potential area, we believe it is better to keep the franchise fee constant, and adjust the areaâ&#x20AC;&#x2122;s size, so each franchise area is considered to offer similar opportunity.
IN SummARy
Our experience is that outdoor service businesses definitely have
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more opportunity in higher socio economic areas than lower ones; however a good franchisor will balance the territories they create so that each area gives a similar amount of opportunity for the franchisee. If your potential future franchisor cannot properly explain how they have cut the territories, I suggest you look for another franchise system. The wet finger in the air approach is NOT what you want to hear, or be part of. F Peter Buckingham is the managing director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping, demographic and statistical consultancy: peterb@spectrumanalysis.com.au
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How to|Marketing
Whatâ&#x20AC;&#x2122;s in a marketing
how does one major franchise support new franchisees with local area marketing? kendra teasdale, group marketing manager at Bakers Delight, explains
package? I
n the competitive world of franchise recruitment, companies are increasingly targeting the same, select audience with more creative strategies to distinguish their offering from other franchisors. With over 1100 active franchise systems vying for the attention of prospective franchisees, they are spending more time and resources on developing and promoting their franchisee support systems to highlight how they are different. But in the internet age where everything about your business is available on the nearest search engine and can easily be
compared to others, how do you differentiate your offering from that of competitors? The answer is fairly simple. Show them how they can grow their business in a proven, successful way. One of the most important elements of running a bricks-and-mortar business like a Bakers Delight franchise is marketing, and local area marketing in particular. It puts your business on the map in your community, highlights your achievements and sponsorships and plays a vital role in promoting campaigns and busy periods like Easter and Christmas. Bakers Delight has more than
When we take on a new franchisee, our team sits down with them to create a local marketing plan
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30 yearsâ&#x20AC;&#x2122; worth of experience developing high quality marketing strategies to help franchisees promote all aspects of their business. We have a dedicated team who take this important element of running a business off franchiseesâ&#x20AC;&#x2122; plates so they can focus on building a successful business and keeping their customers happy. Our local area marketing efforts are divided into two areas: local marketing support which directly helps them market their business, and our Online Local Marketing initiative which allows franchisees to customise and localise marketing materials. When we take on a new franchisee, our LM team sits down with them to create a local marketing plan that details opportunities and ideas in achieving objectives for their bakery such as driving traffic, increasing customer spend and engaging the community. The Bakers Delight LM team will also include demographic information to help them better understand their local areas and tailor their marketing initiatives accordingly. In 2012, our local marketing team completed over 1000 local marketing projects and produced over $100,000 worth of printed materials for local initiatives. This did not include the campaign materials which are updated in bakeries every three weeks and
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Marketing|How to
delivery within seven the group media spend for working days. This service above and below the line gives franchisees control over advertising, a significant their own POS materials and investment in itself from makes it easier for them to Bakers Delight to grow both place an order and get what the brand and franchisees’ they need. businesses. Over the years we’ve Our Online Local learned that franchising Marketing initiative is a special is not a one-size-fits-all service we’ve developed for model. Franchisees often franchisees to order commonly want to initiate their own used POS and merchandising local activities, so it’s material directly. It’s a userimportant to support them friendly site that allows by providing the tools to franchisees to simply choose an item, such as a counter card, and personalise it with the contact details of their bakery before the printed item is delivered to their door. Franchisees can currently choose from over 80 templates turn support each and every achieve their objectives. for everything from posters Bakers Delight franchisee. F Local area marketing has a and counter cards, to bouncedirect impact on the success back offers and stationery. Kendra Teasdale, group marketing of their business because Once they’ve placed an A D _ F R A T H MA R _ 1 3 . p d f Pa ge 1 4 / 0 2 / 1 3 , 3 : 0 2 PM manager at Bakers Delight, which it raises awareness among order and personalised now has more than 700 bakeries. local communities who in the materials, we organise
Franchisees often want to initiate their own local activities, so it’s important to support them
THE RIGHT FIT FOR SUCCESS
OVER 130 STORES
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Advice legit | legalese made easy
Consumer rights and franchisee obligations
R marianne marchesi lawyer in mason sier Turnbull’s Corporate advisory & Franchising team
ecent action by the Australian Competition and Consumer Commission (ACCC) is a stark reminder that franchisees, particularly those operating in a retail context, cannot afford to be complacent about their obligations under consumer law. The ACCC has instituted proceedings in the Federal Court against 11 Harvey Norman franchisees for misleading and deceptive conduct. It claims that the franchisees misled consumers about their rights under the consumer guarantee provisions of the Australian Consumer Law (ACL). The ACCC alleges that the franchisees made certain representations to customers, including that: • the franchisee was under no obligation to provide remedies for damaged goods unless notified within a specific period of time; • the franchisee was not obliged to provide remedies for goods still covered by the manufacturer’s warranty; • the franchisee had no obligation to provide refunds or replacements for particular items such as large appliances or items priced below a certain amount; and • the consumer must pay a fee for the repair and return of faulty products.
Guarantees
The ACL sets out nine consumer guarantees which apply to goods. They are, in summary: 1. that goods are of acceptable quality; 2. that goods will be reasonably fit for any purpose the consumer or supplier specified;
Franchisees must educate their employees, who often enjoy face-to-face contact with consumers, on the rights of consumers and consumer guarantees 3. that the description of goods (for example, in a catalogue or television commercial) is accurate; 4. that goods will match any sample or demonstration model and any description provided; 5. that the goods will satisfy any extra promises made about them (express warranties); 6. that the supplier has the right to sell the goods (clear title), unless the supplier alerted the consumer before the sale that they had ‘limited title’; 7. that the supplier has undisturbed possession of the goods; 122| FRaNCHIsINg maR/apR 2013
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8. that goods are free of any hidden securities or charges; and 9. manufacturers or importers guarantee they will take reasonable steps to provide spare parts and repair facilities for a reasonable time after purchase.
Customer rights
Where a product develops a minor fault, the supplier can choose between repairing the goods, offering the consumer a replacement, or providing a refund. In cases of a product developing a major fault, the consumer has a right to choose whether to recieve a refund or a replacement item, or may ask for compensation for any drop in value of the goods. In early 2012, the ACCC embarked on a national consumer guarantee awareness raising campaign - “If it’s not right, use your rights. Repair, replace, refund.” Rod Sims, chairman of the ACCC, stated then that “Consumer Guarantees [have] been identified as a national priority by ACL Regulators and is a matter of particular concern for the ACCC with more than 16,000 contacts from members of the public to the ACCC’s Infocentre so far this year.” The ACCC has stated that it is conducting a number of investigations into other large manufacturers and retailers regarding breach of consumer guarantees. Franchisees should ensure they are aware of their obligations under consumer law and seek advice if necessary. The ACCC and other consumer groups make information readily available to the public in relation to consumer law.
Spread the word
In turn, franchisees must educate their employees, who often enjoy face-to-face contact with consumers, on the rights of consumers and consumer guarantees. It is essential for all staff members to understand these issues. Training manuals, brochures and posters can disseminate this information easily and effectively. The ACCC has developed a training video, as well as other material, for this purpose. Franchisees should also check their receipts and refunds policies to ensure they are compliant with the Australian Consumer Law, even if these have been prepared by the franchisor. F
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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.
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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS
Why franchisors and franchisees diversify
D
ANDREW TERRY Professor of Business Regulation at the University of Sydney and consultant to DC Strategy
iversification is a business strategy which involves an enterprise expanding into a new industry segment: it could be a brand extension with a new product or service added to the existing suite of offerings or it may be establishing or acquiring a business outside the scope of the firm’s existing business. At the franchisor level diversification is becoming increasingly common as franchise systems seek to harness synergies and increase profitability through exploiting new products and new markets. At the franchisee level there is increasing interest in spreading risk in an uncertain economic environment by acquiring further franchises for different concepts and in different systems. Adding new products and services is the most common diversification strategy in franchising, as for business generally. Although business format franchising usually exploits niche markets there are invariably opportunities for brand extension. McDonald’s is an example. It took several decades for Macca’s to expand its product range beyond burgers and fries. Although a suggestion that a healthy-food range be added to the menu would no doubt have been met with derision until relatively recently the diversification of its menu offerings is today a significant factor in the retention of its market leadership. There is little rocket science in this strategy — it is simply a necessary commercial response to changing consumer tastes and preferences. It is nevertheless McDonald’s rollout of its McCafes — an Australian initiative which has
McDonald’s rollout of its McCafes, an Australian initiative which has been adopted internationally, offers the best example of this sort of diversification. been adopted internationally, which offers the best example of this sort of diversification. Extending business beyond the scope of the franchisor’s current activity is a more complicated strategy. McDonald’s McCafe concept is at one end of the spectrum; at the other end are a variety of arrangements involving multi-concept franchising or multi-system franchising.
Textbook diversification
The Jim’s Group offers a textbook example of diversification. From its origins as Jim’s Mowing founder Jim Penman has established about 30 other Jim’s service 124| FRANCHISING MAR/APR 2013
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concepts compatible with, but not competitive with, the original lawn mowing business. The franchisor can exploit back-of-house synergies and franchisees can acquire complementary service franchises to spread their risk and build bigger businesses. While the various franchise opportunities in the Jim’s Group are all identified as Jim’s the more common form of franchisor diversification does not embrace such umbrella branding. Most Australians do not realise that Michel’s Patisserie, Donut King, Pizza Capers, Crust Gourmet Pizza Bar, The Coffee Guy, Brumby’s Bakeries, bb’s cafe and Esquires have common ownership. These systems, most of which are franchised, are owned by the Retail Food Group – a publicly listed company on the Australian Stock Exchange. RFG is Australia’s largest multi food system franchisor which has grown through the acquisition of existing successful retail food brands. Its expertise in franchise management and its ability to harness back-of-house synergies and economies of scale has driven its acquisitions. At its recent AGM its CEO told shareholders that 2013 will be a year of transformation, transition, consolidation and remodelling of the brand systems.
Franchisee diversification
From the franchisee perspective diversification is of increasing interest with multi-unit franchising – under which the franchisor grants to the franchisee the right to operate multiple business units – ever more common. The diversification is of course not in the concept or system or product or service but in location. The franchisee can nevertheless build a bigger business and the geographic spread of the outlets may spread risk arising from changing demographics. Concept or system diversification presents a range of options for franchisees, from the acquisition of complementary concepts under the system name as in the case of the Jim’s Group to investing in a different system albeit under the same franchisor ownership as in RFG, through to the acquisition of different systems under different ownership. The legal and commercial issues arising in the latter case will be addressed in a later column. F
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Opinion PEOPLE | LEADERSHIP
Making yourself at home - not as easy as it sounds
W
hen I talk to prospective franchisees, most want work that fits in with their life, rather than a life that fits in with their work. If you are looking for flexibility and autonomy, owning a home based or mobile business is an attractive option. What can be more appealing than owning a business where you set the schedule and have the flexibility to prioritize family commitments? While this may sound like living the dream, there is a shadow to the dream. The reality is, yes, you can pick the kids up from school or have lunch with your friends. You can work CEO of The Franchise Relationships Institute, late at night or early in the morning and around other activities. That kind of flexibility is enticing many a research and people into working from home or investing in a training organisation that has been helping mobile business. But buyer be warned. Making it work requires careful organisation, disciplined focus franchisors and and motivation. It doesn’t suit everyone. franchisees create Last year our team at the Franchise Relationships profitable partnerships Institute conducted a large study to find out what for 24 years excellent franchisees do. We investigated the backgrounds, attitudes and habits of over 2,000 franchisees and then looked at their levels of success and satisfaction. With the mobile services sector, personal organisation emerged as the second highest predictor of success. (Pro-activity was number one). To make it as a home based or mobile operator you need to be able to work independently with limited direction and follow up. Great organisational skills are critical. Making lists, being disciplined with your time, completing tasks and staying focused are basic
KARLI FURMAGE
If you thrive when working autonomously, are comfortable with stretches of isolation, you are supremely organized and focused, then it may well be your utopia but essential skills that will help you to succeed. Setting goals and celebrating your successes will help keep you on track and motivated. Family and social support also emerged as essential for success. Having trusted people you can talk to, and who will support you as you work through the ups and downs of getting your business established, is extremely useful. Remember, if you mainly work alone, access to your social network changes and getting despondent is a real possibility. As humans we all have a fundamental need to connect. It’s hardwired into us. Social contact can 126| FRANCHISING MAR/APR 2013
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come from many different places, for instance the barista making your morning coffee, other drivers gathered in the depot, the lovely lady you just made a delivery to. Finding new ways to connect will ensure you have a support network around you of people interested in your success and ready to help you. Your family or the people you live with must support your decision to move to home based working. Distractions at home are endless. I know from personal experience: the first month I worked from home I had the cleanest cupboards and my washing was up to date for the first time in a decade! Having a dedicated office space where the rules are known will help limit distractions. Rules like, if the office door is closed you are not to be disturbed, will help set clear boundaries with your nearest and dearest. Having a dedicated space where there is a clear line between home and work life also means you can close the door at the end of your work day and not let work creep into your personal time. Ultimately if you are thinking about a home based or mobile business, consider the type of person you are. Do you do your best work when surrounded by people? Do you need face to face supervision? If so, working from home may not be for you. However, If you thrive when working autonomously, are comfortable with stretches of isolation, you are supremely organized and focused, then it may well be your utopia. So if you want to work from home, just remember you’ll need self-discipline, self-motivation and a level of organisation that not everyone has. F
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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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A-Z listings
Checklist TO DO LIST | HeLp GuIDe
20 things to check before you invest Phone: 1300 737 978 Fax: 03 9005 2991 Contact: Mr. Brijesh Purohit Email: franchise@keentoclean.com.au 1. Are you confident Website: www.keentoclean.com.au
Phone: 1800 251 680 Fax: 02 9967 5511 Contact: Hedley Partis Email: franchise@kwikkopy.com.au are the franchisee and Website: www.kwikkopy.com.au/franchise
in the franchisor? 11. What Before you franchisor obligations? purchase your Start up costs from: $25,700 + GST Start up costs from: $210,000 2. Have you seen a disclosure franchise you document? 12. What training is available and ProFilE: need to tick off ProFilE: who pays for it? Keen to Clean is an innovative, professional and committed market leader in all A Kwik Kopy franchise is your path to a successful new business. And what’s all the must-do 3. Have you evaluated the financial forms of cleaning, both residential and commercial. We offer a truly unique path more, you don’t require any print experience to take on a Centre. returns? for a franchise owner to grow with the system and the opportunity to expand their thefocussing intellectual items. Check the Kwik Kopy is a B2B print13. andWho designowns provider, on the property small to medium franchise operations. and what is licensed to the franchisee? business market. following:
4. Do you know all the expenses A highly established and recognised brand, Kwik Kopy has been operating in Keen to Clean has enjoyed strong growth in Melbourne through franchise sales Australia has an extensive network of Centres in regional and pay? for over 25 years 14.and What marketing will the over the past few years, in the coming years Keen to Clean franchisees wish to expandare the required to metropolitan locations Australia wide. franchisor implement? franchise operation throughout Australia. With many franchise offers there is a The benefits of becoming a Kwik Kopy franchisee include: franchise to suit anyone, whether you are the type of person who could on a out your 5. Have youtake worked master franchise or simply buy and operate a general franchise we have something • Award winning franchise model • Strong brand and on-going marketing solutions operating costs? 15. Who pays for the marketing? to suit you. • Regular working hours Mon-Fri • Extensive training and on-site assistance 6. Do you know the term of the agreement?
16. What is the dispute resolution process?
Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 7. Is the business operating from Contact: James Archer Email: jarcher@lma.bizfixed or mobile premises? Website: www.lma.biz
17. Do you know what it is like to be Contact: Julie aEmail: franchisee? franchise@mrwow.com.au
8.$73,940 Are you Start up costs from:
18. Can you assign the franchised Start up costs from: $25,000 - $41,500 includes van business?
working within a territory? If so, is the area exclusive?
PROFILE: 19. How can the franchisor or franchisee WOW franchisees own their own exclusive territory business within the terminate the Franchise Agreement? in yourMrproduct domestic and commercial cleaning sector.
They can generate their own income using the tried and proven formula gained 20. What restrictions are there on the from Mr WOW’s 28 years’ experience. Extensive initial training and ongoing franchisee and guarantor operating reachsupport a is provided.
10. Are you required to • Developing the leadership and management skills of their key people • Improving the performance and productivity of their people. minimum performance 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 kick-start learning F R 1and6 everything 8 8 _ Fneeded a c eto b o o kyour _ A - Z and . pdevelopment df P abusiness. ge
Website: www.mrwow.com.au
similar business? level? Trading as a mobile cleaningaoperation, 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.
1
2 “Our 4 / cleaning 1 0 / work 1 2 services , 1 set 1 :the2complete 2 AM home clean excellence standard and creates the WOW factor every time!”
Limited opportunities are available across Australia and New Zealand.
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ProFilE: LMA has been creating exceptional results through people over 40 years. 9. for Are you restricted Founded by our Executive Chairman Grant Sexton in 1972, and now led by our purchase? CEO Andrew Henderson, LMA is an Australian-owned business that works with organisations throughout Australia and New Zealand to improve their bottom line by:
Phone: 1300 2 MR WOW / 07 5464 1130
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A-Z listings 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
To be part of the A-Z listings, please contact David Strong: email - david.strong@reedbusiness.com.au phone - 02 9422 2905; mobile - 0411 366 656
Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
Phone: 1300 AMP BUS (1300 267 287) Contact: Kate Bird Email: info@amplifybusiness.com.au Website: www.amplifybusiness.com.au
Start up costs from: $47,000 + GST ProfilE: Amplify Business Strategy provide Franchise Recruitment and Franchise Consultancy Services. Our team has a track record of building successful franchise networks and over 40 years’ experience building businesses at every level. We help franchisors develop a plan to amplify your success, and we’ll help you action it. Our services include: • Franchise Recruitment & Selection • Marketing Planning & Implementation • Advice & Mentoring • Franchise Manuals & Systems Development
• Best Practice • Franchise Training • Franchise Feasibility Studies • Strategy Development • Customised Solutions
ProFilE: 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.
Phone: 1300 309 759 Fax: 03 9811 6100 Contact: Franchise Recruitment Team Email: franchiserecruitment@bakersdelight.com.au Website: www.bakersdelight.com.au
Phone: 0417 077 633 Contact: Michael Payne Email: michael.payne@dunkinbrands.com Website: www.baskinrobbins.com.au Start up costs from: $190,000
Start up costs from: $300,000+ 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. 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. Bakers Delight has a 13.8 per cent share (Roy Morgan single source data May 2012) of the $2.8 billion Australian bread market.
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ProfilE: Baskin-Robbins® is the world’s largest chain of ice cream specialty stores, renowned for high quality, premium ice cream, specialty frozen desserts and beverages with nearly 7,000 restaurants around the globe. Baskin-Robbins® is an exciting “Family” brand featuring the most unique, innovative and indulgent products available. Baskin-Robbins® is looking for outstanding, motivated individuals seeking a fun and rewarding business; as we believe that people are the most important ingredient in making an enterprise successful. We have flexible fit-out concepts – to suit Iconic Locations through to existing businesses wanting to create a second income stream with a truly international brand name.
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Phone: 1800 634 227 / 0418 500 721 Contact: Andrew Email: andrew@briantracytraining.com.au Website: www.briantracytraining.com.au
Phone: 0405 323 096 Contact: Zoran Markovic Email: zoranm@book-now.com.au Website: book-now.co
Start up costs from: $39,950-$79,950 + GST ProfilE: book-now is a leading cloud-based Operations Support System designed specifically for franchises: • Save many frustrating hours of administration and paperwork by automating repetitive tasks • Improve sales with customer relationship management (CRM) and marketing features • Spot-on business reports with graphical charts to keep track of performance • Easy to use because it works the way you do • Includes state of the art office-side system • Uses tablet computers (Apple/Windows) and smart phones in the field • It is the most flexible and the most affordable system on the market • Loved by both the franchisor and the franchisees
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.
Phone: 02 9451 3260 OR 1300 CAFE2U Fax: 02 9451 2105 Contact: John Stanton Email: jstanton@au.cafe2u.com Website: www.cafe2u.com
Phone: 0421 048 716 Fax: 08 6162 8820 Contact: Carrick Robinson – Managing Director Email: carrick@capx.com.au Website: www.cappuccinoxpress.com.au
Start up costs from: $129,600 + GST
Start up costs from: $100,0000 + GST
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: 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. 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 ambitious plans to expand our Australian footprint and to take our expertise overseas. Call us today.
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A-Z listings 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.
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) 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: $100,000 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.
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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.
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A-Z listings 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
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
Phone: 03 9533 0028 Fax: 03 8640 0413 Contact: Andrew Kelly Email: andrew@fcbusinesssolutions.com.au Website: www.fcbusinesssolutions.com.au
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. 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.
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.
Phone: 0405 443 254 Contact: Matt Beesley Email: mbeesley@fruizberry.com.au Website: www.fruizberry.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: $300,000 - $400,000 Start up costs from: $200,000 - $250,000 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.
ProfILe: GJ Gardner Homes the leading franchised home builder in both Australia and New Zealand, is also experiencing strong growth in the USA.
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’.
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.
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.
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.
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A-Z listings Phone: 03 59734044 Contact: Andrew Roberts Email: andrewroberts@greyarmy.com.au Website: www.greyarmy.com.au
Phone: 0407 646 179 Contact: Nicholas Bernhardt Email: info@greenbizcheck.com Website: www.greenbizcheck.com
Start up costs from: $32,500
Start up costs from: $38,500 inclusive
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.’
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.
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.
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.
• 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: 1300 424 746 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au
Start up costs from: $29,950 + GST & vehicle
Start up costs from: $500,000 (inc stock)
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.
ProFilE: 2011 FCA Winner – Established Franchisor of the Year. The Hairhouse Warehouse concept was first developed in 1992 at Knox City Shopping Centre, Melbourne. Over the past 21 years Hairhouse Warehouse has grown to over 140 stores Australia wide and has been listed for the last 7 years in BRW as one of the fastest growing hair & beauty franchises in Australia. The combination of the largest range of hair & beauty products along with professional salons and beauty services has proven highly successful. Hairhouse Warehouse is embarking on an aggressive expansion plan to lead the industry in product, store locations and services.
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: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com
Start up costs from: $99 per month
Start up costs from: $160,000 to $240,000
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.
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.
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.
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.
We can even integrate an online payment system so that payments are collected automatically.
Join the largest Hairdressing Franchise in the Southern Hemisphere.
Contact us today to find out how.
Phone: 1300 737 978 Fax: 03 9005 2991 Contact: Mr. Brijesh Purohit Email: franchise@keentoclean.com.au Website: www.keentoclean.com.au
Phone: 1800 251 680 Fax: 02 9967 5511 Contact: Hedley Partis Email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise
Start up costs from: $25,700 + GST
Start up costs from: $210,000
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.
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.
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.
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.
Kwik Kopy is a B2B print and design provider, focusing on the small to medium business market.
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
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A-Z listings Phone: 02 9687 7700 Fax: 02 9687 7706 Contact: Peri Celik Email: peri@lewrap.com Website: www.lewrap.com
Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 Contact: James Archer Email: jarcher@lma.biz Website: www.lma.biz
Start up costs from: $200,000
Start up costs from: $73,940
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.
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.
Phone: 02 9875 7100 Contact: Franchising Manager Email: franchising@au.mcd.com Website: www.mcdonalds.com.au
Phone: 1300 2 MR WOW / 07 5464 1130 Contact: Julie Email: franchise@mrwow.com.au Website: www.mrwow.com.au
Start up costs from: $2,000,000 with equity of $800,000+
Start up costs from: $25,000 - $41,500 includes van
ProfilE: In the last 40 years, McDonald’s has grown from one restaurant to over 890 restaurants across the country.
PROFILE: Mr WOW franchisees own their own exclusive territory business within the domestic and commercial cleaning sector.
From its first restaurant in 1971 through to today, the ‘golden arches’ has managed to maintain its position as one of the most popular fast food restaurants in Australia.
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.
As a McDonald’s franchisee you’re stepping into one of the world’s most successful brands and all that comes with it. Think world-class systems and training, the globally acclaimed franchise model, and the kind of stability and returns that will deliver the success you’ve worked hard to enjoy.
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.
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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: 02 9822 5622 / 0423 052 456 Fax: 02 9822 5677 Contact: Kate Bird Email: franchise@packsend.com.au Website: www.packsend.com.au
Start up costs from: $300,000
Start up costs from: $154,450 - $166,900 + working capital (ex GST)
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.
ProFilE: PACK & SEND is an award winning Retail Service Centre operation providing convenient freight and packaging services to businesses and consumers wanting to send anything, anywhere - plus, we offer online freight solutions for pre-packed parcels! Utilising our proprietary freight management technology (GlobalMaster™) to perform the delivery solution, together with our expertise in packaging services, means you can offer a solution for any person or business. Established for 20 years with a network of over 100 Australian stores – along with international stores in New Zealand and the United Kingdom – there is no other franchise system like PACK & SEND in the world and, best of all, our franchisees receive assistance and support along the way.
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A-Z listings Phone: 02 4648 2099 Fax: 02 8569 1899 Contact: Nigel Miller Email: nigelm@plusfitness.com.au Website: www.plusfitness247.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
Start up costs from: $269,000 inc equipment
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.
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!
Phone: 03 9508 4417 Contact: Gavan Meadows Email: gavan.meadows@retailzoo.com.au Website: www.salsas.com.au
Phone: 1300 4 REDCAT (1300 4 733228) Email: info@redcat.com.au
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.
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 38 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.
Phone: 08 83337750 Fax: 08 84316177 Contact: Mike Fuller Email: franchise@g7franchising.com.au Website: www.seniorhelpers.com.au Start up costs from: $65,000 ProFilE: At Senior Helpers, our specialty is professional, warm and compassionate in-home care that enables our clients to live independently in the comfort of their own home. Whether they need us for a few hours or around the clock, we will always provide the kind of quality and responsive in-home care that lets them truly enjoy living independently at home. We are offering exclusive territories nationwide and would love to talk to you about starting a Senior Helpers in Home Care business. We are looking for motivated individuals who wish to run their own company, be a part of a reputable brand and work in this exciting and growing industry!
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Phone: 03 9533 7210 Contact: Tony Maddock Email: info@solutionsfranchising.com.au Website: www.solutionsfranchising.com.au
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.
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A-Z listings 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.
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.
Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne Email: alistairb@snooze.com.au Website: www.snooze.com.au
Phone: 1300 298 898 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: $40,000
ProFilE: As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none. Boasting more than 70 stores across Australia and a goal to reach 90 stores by 2014, Snooze is looking for ambitious and passionate people to join the business’ exciting future. Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: • Vendor finance assistance • NAB & ANZ accreditation • Sales and product training
Start up costs from: $37,000 with financing packages available
• Business management support • A national marketing program • IT services
ProFilE: Social Media Business Boosters is a world first social media marketing franchise offering low market entry, rapid return on investment, minimal overheads and the ability to grow your franchise from home. There is huge demand for professional social media marketing expertise. This unique franchise is expanding rapidly in local and overseas markets in 2013. Social Media Business Boosters fulfills a huge gap by employing a unique and innovative training formula to deliver your certification. Once trained you can step out and do business. As part of our support we help with leads and set you on your way to fast-track your business growth. Take advantage of the biggest shift in business since the industrial revolution.
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Phone: 1300 WASHER / 1300 927 437 Contact: Sales Manager Website: www.speedqueen.com.au/invest
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
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Start up costs from: $10,000 - $100,000 Profile: Speed Queen offers vended laundry investment opportunities to entrepreneurs all across Australia. With a profound understanding of the laundry industry, we guide investors through every step of the process to help them achieve maximum returns. Through the industry’s largest network of knowledgeable laundry experts, we offer assistance for every aspect of your laundry business, including location selection, pro-forma analysis, store design, market support and factory backed leasing. As part of Alliance Laundry Systems, the world’s largest commercial laundry manufacturer, Speed Queen has the experience, customized capabilities and resources to help you reach your investment goals.
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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. 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. 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. To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.
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.
Phone: 1800 455 005 Fax: 07 3284 8955 Contact: David Bruckshaw Email: reception@superfinishexpress.com.au Website: www.superfinishexpress.com.au
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!
POOL & SPA SE RVICES
Australia’s pool & spa specialists
Start up costs from: $68,000 inc vehicle ProFilE: If you’ve always dreamed of owning your own business, Superfinish Express offers an incredibly affordable opportunity to be part of a successful and proven franchise system. With more than 42 franchises operating across Australia, Superfinish Express has long been recognised as the leader in providing onsite repairs to non-collision damage like dents, dings, and scratches to auto dealers and fleet operations. We provide unparalleled training, certification, and support to our franchisees along with a regular payment every week on invoices submitted.
Start up costs from: $150,000 - $220,000 ProFilE: First established in 1983, Swimart has grown to be the largest chain of specialty Pool and Spa shops in both Australia and New Zealand. With over 65 retail stores across both countries we specialise in providing owners with everything they need to maintain and enjoy their pool or spa. Swimart is a fully owned subsidiary of Waterco Ltd, a publicly listed Australian company with operations in over eight countries around the globe! Waterco is Australia’s largest manufacturer and distributor of water filtration products with an enviable reputation for innovation and quality.
Find out why we have consistently been ranked as one of the “Top Value Franchises” by Australian Financial Review magazine.
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Phone: 02 9898 8666 Fax: 02 98983089 Contact: Chris Fitzmaurice Email: chris.fitzmaurice@swimart.com.au Website: www.swimart.com.au
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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: 1800 677 621 Fax: 02 8310 0066 Contact: Peter Rich Email: franchising@taf.com.au Website: www.theathletesfoot.com.au/franchising
Start up costs from: $200,000
Start up costs from: $400,000+ PROFILE: The Athlete’s Foot has over 30 years of franchising experience in the sport and leisure industry. With over 130 stores nationally, they are the largest single retailer of athletic footwear in Australia.
ProFilE: There has never been a better time to become your own boss. TeleChoice is a great choice for you if you are looking for a business in a dynamic industry. With over 150 stores nationally and a massive support base, you’ll always feel part of a great team. To start your own business and take control of your life, call TeleChoice today.
The Athlete’s Foot has become a renowned brand with a distinct market proposition - Fit. Through a commitment to customer service, dedication to training, exclusive fitting technology and partnership with a range of footwear brands, The Athlete’s Foot provide the best fit for each customer’s needs. New and established market opportunities are available now, with full training and ongoing support provided. Work for yourself, but not by yourself with The Athlete’s Foot.
Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos Email: franchise@cheesecake.com.au Website: www.cheesecake.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: $150,000 - $700,000 ProFilE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia. Our award winning system makes for one of the simplest businesses to operate. Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order. 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.
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.
Phone: 1300 453 284 Fax: 07 5563 3477 Contact: Dean Reid - Marketing Manager Email: info@theleatherdoctor.net.au Website: www.myleatherdoctor.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
Start up costs from: $55,000 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.
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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A-Z listings Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au
Phone: 03 9394 4300 or 0438 214 314 Contact: Neville Bruns Email: newstores@totaltools.com.au Website: www.totaltools.com.au
ProfilE: Total Tools specialises in trade and industrial tools carrying an extensive range of the worlds leading brands. Total Tools also has its own private brands including TTI, Mastercraft Value, Detroit, Guardall, Iron Air, Hornet & HRD. The Total Tools brand promise is to have the broadest range of tools available on the market. This, backed by the unrivalled retailing standards in the tool industry and experienced staff offering professional advice and service, has firmly established Total Tools as the market leader in professional tools for the people who use tools for a living. There are currently 35 stores forming the Total Tools group with representation in Victoria, New South Wales, South Australia & Queensland, with more stores planned nationally.
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.
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: Sales Support Email: info@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 them today.
Phone: 03 9413 1400 or 0429 811 811 Fax: 03 9413 1401 Contact: Adrian Gallace Email: adrian.gallace@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome
Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000
Start up costs from: $400,000 upwards ProFilE: Australian-owned company and has become one of the largest independent fuel companies with over 270 convenience retail sites throughout Australia. United continues to invest heavily in its stores and systems which has earned the trust of the people and respect of major competitors. United franchisees enjoy ongoing support, guaranteed minimum income on Fuel Commissions, merchandising support, a national promotional program, five week induction program, on-going training, an exclusive affiliated partnership with the MYER one program. United is a proud member of the Franchise Council of Australia (FCA) and was awarded 2011 Canstar – Most Satisfied Customers (Service Stations).
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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.
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Phone: 03 9612 7297 fax: 03 9629 4035 Contact: Robert Toth email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au 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
AT THE FOREFRONT OF THE FRANCHISING MARKET.
Phone: 02 8394 7800 Fax: 02 83947801 Contact: Athol Ritchie Email: franchising@worldwide.com.au Website: www.worldwide.com.au Start up costs from: $150,000 ex GST does not include working capital 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. 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. 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.
Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au
This leading consumer publication is for anyone looking to buy into the $131 million franchising industry. Each issue you’ll receive: ◗ Inspirational success stories ◗ Pertinent issues in franchising ◗ Practical knowledge and advice ◗ Management tips and much more…
Start up costs from: $69,900 + GST 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! This pent up demand for gourmet coffee in the workplace is very poorly met. 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.
Subscribe for just $45 and take the first step in becoming your own boss.
Call us on 1300 360 126 or visit www.franchise.net.au
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INCORPORATING FCA NEWS
Companies in this issue 1800 on hold
74
Healthy Habits
FRANCHISE COUNCIL OF AUSTRALIA
* indicates FCA member
Silver Chef
29
127*
Ace Insurance
6, 106
Howards Storage World
11*
Smith & Sons Renovations
14
Alliance Laundry Systems
31,67
Jani King
87*
Snap On Tools
9*
Amplify Business
57
Jem Promotions
64
Snooze
Applied Marketing Science
73
Just Cuts
4*
Social Media Business Boost
Appliance Tagging Services
30*
Keen to Clean
Baskin-Robbins
37
Kwik Kopy
Brian Tracy
51
Le Wrap
38* 123* 46*
Cafe2U
39*
Leadership Management
Caltex
129
Leasewise
111
Mason Sier Turnbull
25*
Cappuccino Express Corporate Cars Cosmos
110* 69 101, 109
McDonald’s
60
Couriers Please
2
Mr Wow Cleaning
91
Domino’s Pizza
59
Elders Real Estate
93
National Insurance Franchise Brokers
15*
FC Business Solutions
75
Franchising & Business Opportunities Expo
76*
NightOwl
12*
Subway
43*
SumoSalad
94*
Superfinish Express
120*
Swimart
104*
The Athletes Foot
33*
The Cheesecake Shop The Franchise Shop
113*
77
Solutions Franchising
Telechoice
70-71*
Micronet
119*
88-89* 121* 22* 52-53*
The Leather & Vinyl Doctor
100
The Touch Up Guys
48* 27*
Orange Leaf
97
Top Snap
Outback Jacks
19
Town & Country
13
United Petroleum
97 103*
Fruizberry
17
Pizza Hut
GJ Gardner Homes
95
Plus Fitness 24/7
21*
VC Solutions
102
Redcat
125
VIP Australia
24*
Wisewould Mahoney
34*
Worldwide Online
47*
Xpresso Delight
61*
Greenbizcheck
63*
Grey Army
42
Grout Pro
65*
Hairhouse Warehouse
117*
RBI
18, 28, 130, 131*
Senior Helpers Signarama
35* 44-45,114-115*
Franchising Advertising enquiries • • • •
Magazine A-Z listings The Profiler The Yearbook
• E-newsletter • Online inventory • E-blasts
David Strong
National Sales & Marketing Manager Ph: 02 9422 2905 Mob: 0411 366 656 E: david.strong@reedbusiness.com.au Facebook.com/franchisingau Twitter.com/franchisingau
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Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package*
• Exclusive territories
• Low start up costs
• No weekend work
• Perpetual Franchise Agreement
• Ongoing business support & training
• Recognised brand
• Easy to operate - no experience required
• Award winning system for over 25 years
• Enjoy the freedom of working for yourself
To find out more contact us: p.
1300 FASTWAY
w.
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
PR72 Franchise Mag Back Page 205x275mm.indd 1
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