Franchising March/April 2015 by Cirrus Media

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FRANCHISING

Franchising YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU MAR/APR 2015 VOL.28/NO.2

SOUL TRADER

Investing with passion MAR/APR 2015 AUS $6.95|NZ $7.95

PR I N T P O S T A PPR OV E D 10 0 0 0 8121

WWW.FRANCHISEBUSINESS.COM.AU

TREND REPORTS, MARKETING TIPS, LEGAL INSIGHTS

6 TIPS FOR FINANCIAL CONFIDENCE:

DON’T PLAY THE BLAME GAME:

STEP INTO A NEW LIFE:

p.48

p.26

p.90

Get your money into shape early

Working with your partner

Gyms get fit for the future

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CONTENTS

12 SHOPPING FOR THE FUTURE COV E R STORY

How is the retail business shaping up?

16 WHAT ARE FRANCHISE BUYERS

70 STEPPING UP TO A NEW LIFE

Check out our preview of the Sydney Franchising & Business Opportunities Expo

LOOKING FOR?

The most popular brands and sectors in the industry

20 THE BEST WAY TO BUY A FRANCHISE

Key factors you should consider before you invest in a business

26 HAND IN HAND

Working with your partner: successful franchisees share their tips

32 GET MOVING WITH A

MOBILE FRANCHISE

Key issues you need to consider including finance and territory

111

SOUL TRADER

36 HOW TO BE THE BEST

Nine ways to set yourself up to succeed

SIX STEPS TO GET YOUR FINANCES IN SHAPE Make sure you are franchise-ready

10 TIPS FOR PROTECTING YOUR INTERESTS Before you sign the franchise agreement, do your due diligence

REGULARS

5 6 136 140 142 144 146 148 162

70 80 CHOOK FEST

Trends in the takeaway chicken market

90 FITNESS GETS PERSONAL

A review of the gym sector and its growth

105 HOME A-LOAN

What the future looks like in the mortgage industry

108 WHAT IT TAKES TO BE A FRANCHISEE

Ten attributes every franchisee will need

114 PROFIT FROM INNOVATION Supercheap convenience

Storage

offers

extra

116 COFFEE ON THE GO WELCOME INSIGHTS LEGALESE THE SKETCH LEADERSHIP RESOURCES GLOSSARY CHECKLIST ADVERTISERS INDEX

62 HOW TO WORK WITH YOUR LAWYER

Taking legal advice is vital in a franchise purchase

64 WHAT TURNOVER WILL YOUR BUSINESS ACHIEVE?

Peter Buckingham looks at how to estimate revenue MAR/APR 2015 | 3 | WWW.FRANCHISEBUSINESS.COM.AU

How technology is driving Sunriser Espresso

122 KEEPING IT FRESH

How Top Juice has built its brand

126 THE BEAUTY OF A FRANCHISE BUSINESS

Ella Bache franchisee takes our Q&A

128 NO TYPICAL DAY

Mr Rental franchisee shares her story

132 THE FRANCHISE JOURNEY

Check out our digital education program

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Are YOU Looking For... •

Opportunity to create a successful business.

•

Competitive compensation package, including equity.

•

Insurance policies tailored to meet customers’ needs.

•

Innovative and rewarding incentives.

•

Technology and Process support.

•

On-going support opportunities for your business.

•

Access to marketing collateral.

If the answer is YES... Now you can become part of our future. While not a franchise, you have an opportunity of becoming a Corporate Authorised Representative (Principal Agent) of ACE Insurance Limited (ACE). Combined Insurance, a division of ACE Insurance Limited (ACE), has been providing Australians with peace of mind through our insurance products since 1960. As a Principal Agent you will be able to run and build your own operation and, while being authorised under the ACE’s Australian Financial Services Licence, advise on, distribute and sell Combined Insurance products underwritten by ACE. So, if you want to run your own business and build equity with strong support and minimal start-up up costs, then look no further. Contact Adam Brazda on: Phone: (07) 3839 4733 Mobile: 0418 487 412 Email: opportunity@combined.com.au Web: www.combined.com.au/partnerwithus

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( WELCOME )

re you ambitious? Do you have plans for a new life in franchising? You’re in the perfect place to find out more about this dynamic business sector; Franchising magazine is dedicated to bringing you the hottest trends, the best advice, expert opinion and guidance, market reviews, new opportunities and personal tales of challenges overcome and success achieved.

In these pages you will uncover just what it takes to be the best franchisee in the business; find out the steps you need to take to invest in a franchise; learn what other franchise buyers are looking for (and believe me, you’re not alone); and gain insights into some market sectors – this month we review the gym arena, look at what’s happening in chicken takeaways, provide a snapshot of the mortgage lending business, and open the doors to the Sydney Franchising & Business Opportunities Expo will be held at the end of March. Legal and financial issues are paramount in any business, and we share some expert advice on protecting your investment and understanding the term 'good faith' in the franchise relationship while also sharing some tips on how to work with a lawyer. We find out how to evaluate store turnover before you buy, and how to sort your finances pre-purchase so you are franchise-ready. We love a good real-life story and in this issue franchisees and franchisors reveal what drives them in their businesses. On the cover this issue is Dr Sam Prince, the

PUBLISHER Raffael Fernandes P: 02 8484 0754 raffael.fernandes@cirrusmedia.com.au EDITOR Sarah Stowe P: 02 8484 0900 sarah.stowe@cirrusmedia.com.au ART DIRECTOR Justine Dunn P: 02 8484 0757 designer2@cirrusmedia.com.au NATIONAL SALES AND MARKETING MANAGER David Strong P: 02 8484 0905 david.strong@cirrusmedia.com.au

SARAH STOWE EDITOR

heart and brains behind the Mexican chain, Zambrero, and a well-known philanthropist. You can read about his success on page 111. There's a new tech-driven coffee business on the scene, a super-convenient storage system expanding here and overseas and a fresh fruit and juice retailer making its mark. What are the benefits of being a franchisee? Hear from two franchisees who take our Q&A. And if you are ready for more pertinent information and inspiring case studies, our website www.franchisebusiness.com.au offers constant updates to your knowledge bank – check in for the latest news, stay on top of the trends, and use the comprehensive directory to cut through the myriad business opportunities to find the one franchise that matches your needs.

Signing up to a franchise education journey online provides in-depth information that helps the decision making process and takes you closer to your goals

Digital visitors can also take a more intense step-by-step approach to finding a franchise – as you can read on page 132 signing up to a franchise education journey online provides in-depth information that helps the decision making process and takes you closer to your goals.

ACCOUNT MANAGERS Andrew Dalton P: (02) 8484 0958 andrew.dalton@cirrusmedia.com.au Anthony Butler P: (02) 8484 0870 anthony.butler@cirrusmedia.com.au

PRODUCTION CO-ORDINATOR Tracy Engle P: 02 8484 0707 tracy.engle@cirrusmedia.com.au For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X

Kate Robinson P: 0422 225 283 kate.robinson@cirrusmedia.com.au BUSINESS DEVELOPMENT MANAGER Jesse Hopwood P: (02) 8484 0740 jesse.hopwood@cirrusmedia.com.au CLIENT SUCCESS MANAGER Kim Church P: (02) 8484 0963 kim.church@cirrusmedia.com.au

CIRRUS MEDIA Tower 2, Level 3, 475 Victoria Ave, Chatswood, NSW 2067, Australia Locked Bag 4700 Chatswood Delivery Centre, NSW 2067, Australia P: 02 8484 0888 F: 02 8484 0633 ABN 80 132 719 861 www.cirrusmedia.com.au

MAR/APR 2015 | 5 | WWW.FRANCHISEBUSINESS.COM.AU

Average Net Distribution Period ending Sep ‘14 - 6,581 PRINTED BY: BLUESTAR PRINT 83 DERBY STREET, SILVERWATER NSW 2128 P: 02 9748 3411

ALL FRANCHISING MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN FRANCHISING ARE NOT NECESSARILY THOSE OF FRANCHISING OR CIRRUS MEDIA. © COPYRIGHT CIRRUS MEDIA, 2014

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INSIGHTS

FRANCHISOR ONLINE SALES: PERCENTAGE OF BRAND SALES ONLINE:

6.1%

less than 1% sales are online

between 1-20% sales are online

21 to 60% of sales are online

14.3% 16.4%

63.3%

more than 60% sales are online

PERCENTAGE OF ONLINE SALES DISTRIBUTED TO FRANCHISEES:

more than 50% goes to franchisees

50%

6. 8%

up to 25% goes to franchisees 25 to 50% of sales to franchisees

13.6%

29.6% no distribution to franchisees

FRANCHISING AUSTRALIA 2014, ASIA PACIFIC CENTRE FOR FRANCHISING EXCELLENCE, GRIFFITH UNIVERSITY

Pie Face gets new future

WHAT’S THE WORD ON FRANCHISING? What will be the next great idea in the franchising sector? The American-based International Franchise Association just held its 2015 convention and made a point of looking to the future with its NextGen Franchising Program. There were 450 applications from young entrepreneurs in franchising in this global competition - and the 50 winners represent 22 count-ries, including Australia and New Zealand. Winning concepts include water salinisation systems, eyesight clinics, mobile made-to-order gelato, indoor tennis facilities, custom dog breeding and emergency baby clean up! The summit gave participants the opportunity to pitch their ideas to investors, industry consultants and experts.

Troubled fast food business Pie Face has been given a fresh start and aims to focus on franchise profitability in a deal recently approved by creditors after going into voluntary administration late last year. The company aims to raise $10 million from investors. Wayne Homschek, the co-founder of the fast food franchise, is no longer on the company’s board. Although the creditors of the company which went into voluntary administration late last year voted to support a Deed of Company Arrangement with Homschek remaining on the board, the co-founder resigned as a non-executive director at an extraordinary general meeting early February. The pie store network was given a new start at the beginning of this year with

MAR/APR 2015 | 6 | WWW.FRANCHISEBUSINESS.COM.AU

Andrew Thompson appointed as chairman, and the announcement it would seek investment of $10m. While the capital injection is expected to be enough to bring the business back into a leaner shape Thomson has indicated achieving profitability will take several months. Changes to the management team and a broadening of the menu are expected to boost the fortunes of the pie chain which closed 20 stores at the height of its troubles in 2014. CEO Kevin Waite in a statement highlighted that “a heightened focus on franchisee profitability, seeking significant increases in wholesale production, and growing the brand’s international representation” would be the way forward for the pie business.

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GET MOVING WITH A SNAP-ON TOOLS FRANCHISE A proven, established and profitable business model

Global leader in tools and franchising

Great office views Mobile showroom

Extensive training and support Give customers personal service, premium products and finance solutions A market leader for mechanics

Be your own boss

Snap-on Tools is one of the largest and most successful franchises in the world and has been operating in Australia since 1988. Snap-on Tools invites you to join our online Discovery Tour to find out if weâ&#x20AC;&#x2122;re the right business for you. Check it out at snapontools.com.au/franchise

Call 1800 762 766 (AUS) Franchise Advert_275x205_0215.indd 1

0800 762 766 (NZ) 10/02/2015 1:53:44 PM

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INSIGHTS

DID YOU KNOW?

Definitely fall in love with the product or brand - just don’t let it cloud your judgement Linda Steele, ThinkDone management consultancy

You can search for the right franchise for your needs among the thousands of opportunities on our website www.franchisebusiness.com.au, with an easy filter that allows you to define the minimum investment, the brand category, location or Franchise Council of Australia membership. And our website is mobile compatible too, making it easy to enquire about a franchise wherever you are.

FRANCHISE BUSINESS

WHAT ARE FRANCHISE BUYERS LOOKING FOR? Finding exactly the right business opportunity is an individual journey but there are some common elements that any buyer will be looking for when considering a major business investment.

WHO BOUGHT WHAT? PIRTEK The US Pirtek business has been bought back by the Australian family behind the global franchise. This acquisition by the Duncan family creates further synergies across the Pacific, while strengthening Pirtek’s existing partnerships in Africa, Canada, China Mongolia, New Zealand and Singapore. The franchise model was established in Australia in 1980 by the Duncan family, servicing the earthmoving, construction, manufacturing and production industries.

WW W WW W..Y YO OUTUB UTTUB U UBE UBE. E..CO COM/ M/FR FRAN ANCH CHIIS SE EA AU AU Warren Wilmot, the CEO of retail superbrand 7-Eleven, and the newly appointed chairman of the Franchise Council of Australia, points out what he believes are the key concerns that franchise buyers need franchisors to address in their business model. You can view this snapshot video, along with many others, at www.youtube.com/ user/franchisingonline

There are now more than 400 Pirtek service and supply centres and mobile units around the world, with 97 of those in Australia. The US Pirtek business opened its 50th centre in Milwaukee earlier in February. QUEST SERVICED APARTMENTS The accommodation business has sold two major properties to domestic investors for $26.5m. Crowe Howarth, one of Australia’s largest accounting and financial advisory firms, has paid $14.7m on behalf of a syndicate of local investors for the regional New South Wales Quest Dubbo property. The regional Victorian MAR/APR 2015 | 8 | WWW.FRANCHISEBUSINESS.COM.AU

property Quest Shepparton was sold to a local private investor for $11.8m. Crowe Horwath Property senior manager, Julie Perry, said a similar sale 18 months ago has proved a success.

WHO GOT IT WRONG SUSHI IZU FRANCHISEE A sushi franchisee in Sydney has had to backpay an employee more than $5000 after paying wages below the Fast Food Industry Award entitlement. Joo Young Ju, who operates two Sushi Izu franchise outlets, paid staff a flat hourly rate of less than $16.50 after checking her competitors’ pay rates. GLORIA JEAN’S FRANCHISEE Franchisees of a Melbourne Gloria Jean’s outlet have been fined $110,500 after paying foreign students as little as $8 an hour. The fines follow a federal court case which also resulted in an $80,000 penalty against the franchisee’s trading company Primeage Pty Ltd. Fair Work inspectors had found that 22 casual employees had pay packets based on hourly flat rates of $8 to $10, and had been underpaid a total of $83,566.

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Domino's is not just Australia and New Zealand's leading pizza brand â&#x20AC;&#x201C; it's also one of the world's most advanced digital retailers. So if you're looking for a franchise that delivers on your goals you can't go past Domino's.

Undisputed leaders in online ordering. Australia and NZ's first and most advanced mobile ordering apps.

Australia and NZ's only pizza creation app and only real-time pizza tracker.

Innovative digital marketing with millions of customers assessable via email and social media.

SUCCESS? State of the art digital store management tools in the hands of every franchisee.

Ongoing training and support for franchisees and their teams.

A proven and trusted brand that's passionate about pizza and people.

Call 1300 131 888 or visit: dominos.com.au/franchising

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INSIGHTS of Parramatta’s dining hub. Further urban locations will follow if the trial is successful. KFC Australia has submitted an application for a liquor license to provide a small selection of beer and cider to customers who dine-in at the new concept store. The application is currently under review with the Office of Liquor, Gaming and Racing.

US ADVISORY BRAND COMES TO AUSTRALIA KFC UNVEILS NEW CONCEPT STORE Quinoa, jalapeno sauce, corn salsa... not the average KFC serving, but a fresh take on the menu to appeal to the changing tastes of urban, working

professionals has launched at a brand new concept store in Sydney. The new dining experience offering a custom menu including burgers, wraps and bowls is being tested in the heart

An American based franchise system providing business owner advisory boards, business coaching and strategic services for business leaders, has launched in Australia. Entry

into

the

Australian

When you let go of your fear of falling behind, you will be able to stop focusing on short term productivity and spend some time on strategic initiatives Joakim Ählstom, author and continuous improvement expert

market follows The Alternative Board’s expansion in the UK, Canada, Germany, New Zealand, Scotland, Ireland, the Czech Republic, Slovakia and Venezuela. The Alternative Board model brings together owners of noncompeting businesses in halfday monthly board groups of up to 10 members. Each meeting, under the guidance of a certified facilitator, is conducted as a confidential “think-tank”. Australian Doug Downer is heading up the business in Sydney as master franchisee. Downer has previously been involved in the franchising sector with McDonalds, the FoodCo Group, Jesters, Frontline and Healthy Habits.

HYDRAULINK OPENS FLAGSHIP CENTRE Hydraulink has opened a purpose built hydraulic hose service centre that will act as the company’s flagship. The new centre within its Queensland distribution complex at Rocklea showcases the franchise model now on offer in each state of Australia. The service centre features a professionally designed modular fit-out that reflects the evolution of the Hydraulink brand, whilst retaining the company’s distinctive yellow and black livery. Internally the new centre is sleek and modern, with clean lines and minimal clutter. The new brand look will be replicated in all future franchise offerings, while the ‘man in van’ offer will feature the redesigned livery and internal workshop fit-out of the fully equipped mobile units.

MAR/APR 2015 | 10 | WWW.FRANCHISEBUSINESS.COM.AU

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GLOBAL

TREAT

YOURSELF

TO SUCCESS!

BRAND LOCAL OPPORTUNITIES FOR OVER 69 YEARS BASKIN-ROBBINS™ HAS BEEN CREATING IRRESISTIBLE TREATS TO MAKE YOU SMILE AND FEEL GOOD INSIDE AND OUT. WE’VE PERFECTED THE COMBINATION OF DELICIOUS TREATS AND A FUN ATMOSPHERE.

Baskin-Robbins™ is looking for people with drive, creativity and passion. We believe that people are the most important ingredient in a successful business. Ideal key qualities for prospective Franchisees include: • The ability to make people smile • Excited to be a part of a team and the Baskin-Robbins™ system • Ambition to succeed and grow your business • Outstanding guest service focus • Passion for the Baskin-Robbins™ brand We’re confident that once you get to know our product you’ll be in love with Baskin-Robbins™, just like we are.

For further information, please contact Michael Payne on 0417 077 633 or michael@palmoasisventures.com or visit www.baskinrobbins.com.au

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SHOPPING FOR THE FUTURE MAR/APR 2015 | 12 | WWW.FRANCHISEBUSINESS.COM.AU

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ow is the retail business shaping up in Australia? And how can we connect with the baby boomers? Top demographer Bernard Salt shared his predictions with Franchising magazine. And it’s good news…

Retail is a diverse sector offering plenty of opportunities for business development, particularly if the sub-sector is chosen carefully. “My view is that the Australian people are connected into lifestyle. Anything associated with lifestyle so café, bars, restaurants,” says Bernard Salt of KPMG. He also highlights technology and anything associated with health and wellbeing. “So yoga, for example or Rhine river travel, reward travel for instance. Succession planning, financial planning would also be another business to be in. “There are all sorts of opportunities regardless of what the economic environment might seem to be, there are always opportunities in retail somewhere in Australia.”

A POSITIVE FUTURE It’s interesting that the Franchising Australia 2014 report indicated that retail has revealed hidden strengths, with greater growth than any other sub-sector of the franchise industry. The latest bi-annual report from the Asia-Pacific Centre for Franchising Excellence showed retail models increased the media number of units from 45 to 49 in 2013. And the newest entrants into the franchising arena have in the majority emerged from the retail scene. Almost one third of franchisors are involved in the non-food retail sector, while another 18 percent are engaged in hospitality service. Just five percent of total sales are conducted through online channels – most of these in retail franchises. Retail franchises reported median sales turnover of $33m in 2014, according to the Franchising Australia report. And it is not just here that we are seeing growth. In the US franchise businesses are set to grow and create more jobs at a faster pace than the rest of the economy this year, according to The Franchise Business Economic Outlook: 2015, released in January by the International Franchise Association Education Foundation and HIS Economics. The report indicates that quick service restaurants and retail businesses will be the top two franchise sectors in America for increased employment. MAR/APR 2015 | 13 | WWW.FRANCHISEBUSINESS.COM.AU

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The baby boomer market will create an extra ordinary market for pharmacy, for health for wellness or well being, for the concepts of reward travel

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We are seeing what Salt believes to be quite positive economic trends. “Low interest rates, record levels of population growth, it’s eight years since the GFC – it’s time to move on. The Great Depression did not last eight years,” he reminds us. Australians are ready to leave behind the austerity of the past, he suggests. Certainly the Westpac Melbourne Institute Index of Consumer Sentiment showed a rise of eight percent from 93.2 points in January to 100.7 points in February. Anna McPhee, CEO of the Australian National Retailers Association said in early February, “It’s clear the highest consumer confidence reading in more than 12 months has been boosted by the RBA’s decision to cut rates earlier this month, the decision by the banks to pass on, coupled with lower petrol prices and positive sharemarket performances.”

SENIORITY RULES But perhaps the growth in retail will come from new and emerging areas of business? We have an ageing demographic and our seniors will become a significant segment of the population, demanding goods and services that answer their needs.

MAKING A DIFFERENCE What will be important for retailers engaging with the mature market will be differentiation, suggests the Baby Boomer Report, an executive summary from Information Resources Inc. It points out that there can be massive discrepancies in the way baby boomers spend – in some categories ageing shoppers are more than doubling the category growth rate; in some categories seniors have a preference for branded product.

Russell highlights that what is important is to understand how our senior citizens think and feel as the first stage to predicting what they will be buying. This is a generation that wants to feel young again, the article suggests. Salt’s view is that health concerns and products or services that ease ailing bodies have great potential.

As is pointed out by the US based Early to Rise website, the baby boomer trend is a wealth opportunity.

“The baby boomer market now moving into their 60s, and by the end of the decade into their early 70s, will create an extraordinary market for pharmacy, for health for wellness or wellbeing, for the concepts of reward travel; grey nomadism, if you like. But they will call it eco travellers or adventure travelling," he says.

In an article in February, the website referred to the self-absorption of baby boomers: a view held by Cheryl Russell, the author of The Master Trend: How the Baby Boom Generation is Remaking America.

“This concept of baby boomers moving into this fun or reward, re-partnering stage of the lifecycle; so senior fashion might be important, or senior sociability, anything to do with that I think will do well over the next decade.”

MAR/APR 2015 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

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Once in a lifetime opportunity

Franchises offered for the first time • 4,000 property millionaires and counting “Property Club is wholly dedicated to providing Australians with the opportunity of a better life through property investment. To celebrate 20 years in property, we are offering a limited number of Property Club franchises. This is a unique, first-time offer to be part of an organisation that has over 80,000 members, plus we have made more property millionaires than all the rest combined, with 4,000 millionaires and counting! Take advantage of this exclusive opportunity by contacting us today.” Kevin Young Founder and CEO of Property Club

Visit propertyclub.com.au Call 1300

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heck out the most popular businesses and industry sectors that are fuelling interest in franchising right around the country.

Have you just started your franchise journey? Then welcome to the world of franchising, and the host of opportunities that exist across Australia. Franchising magazine’s online resource, www.franchisebusiness.com.au is tracking the latest in buying trends.

Which franchise brands are leading the enquiries right now?

THE TOP 10 BRANDS: 1. Caltex 2. Freedom Fuels 3. Nandos 4. Pizza Hut 5. Boost Juice 6. Sumo Salad 7. Top Juice 8. Muffin Break 9. Jamaica Blue 10. Dominos Yes, petrol stations are at the top of the list, MAR/APR 2015 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

but after that it’s food all the way. Some of the country’s traditional takeaway favourites are among the top 10 but there’s a notable prominence of brands promoting healthy eating that indicates franchise buyers are on trend with the Australian consumer. Casual dining, coffee and pizza make up the list. A glance further down the order of enquiries reveals potential franchisees are also eyeing up businesses such as Dodo Connect, a telecoms, energy and insurance retail chain; education model, Kumon – which again, is on trend with the burgeoning demand for out-ofschool tutoring; and the work-from-

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home wedding stationery and invitation business, Something Fabulous. Bodiez Fitness is leading the way for the fitness arena with Jetts Fitness and Plus Fitness snapping at its heels.

WHICH SECTOR IS MOST POPULAR? Our franchise buyers want to be hands-on; our top performing categories indicate a love of hospitality, cars, and maintenance - customer service and practical skills are appealing to potential franchisees. There’s no doubt that coffee franchises are powering ahead when it comes to category selection, way ahead of the second sector, automotive franchises. Unsurprisingly fast food is a great favourite among our online audience but so too is building, construction and maintenance. Other choices that are being investigated for the potential to meet the ambitions of the franchise buyer and serve up a profitable business include advisory, business and professional services and health, beauty and wellbeing.

THE FRANCHISE JOURNEY You are not alone. Almost half of the visitors (48 percent) on www.franchisebusiness.com.au have committed to the

idea of buying a franchise business and are actively searching for the right system to invest in. Twenty percent of the audience is still deciding if franchising is the right option for them; while 10 percent of visitors to the site have moved closer to signing up to an investment – they’ve decided a franchise business will suit their requirements and skills, and are now investigating exactly which sector and/or brand is going to be the best match. Just over half of our audience, 51 percent, needs to get finance before they can invest. And they expect to have money to spend.

INVESTMENT LEVELS Among the audience members who indicated a budget, the greatest number of enquiries are for business opportunities in the $300,000 to $500,000 bracket, commensurate with the prevalence of food and retail franchises in the top 10 list.

However there isn’t a huge appetite for the luxury spend end of the market, investments at more than $500,000.

WHERE ARE YOU? The majority of franchise buyers online at www.franchisebusiness.com.au haven’t yet indicated which area they are looking in for a business. From those who have highlighted a location, Sydney is far and away the most popular destination, but New South Wales, in comparison with other states, also has the highest level of interest in places other than its capital city. Sunny Queensland is drawing attention with Brisbane the second most popular city, and the Gold Coast attracting almost as many enquiries as Perth. Melbourne completes destinations.

the

top

three

GO ONLINE

The next most popular price range is $100,000 to $200,000 and then budget franchise buyers come to the fore, looking at under $50,000.

Have you checked out the website? Apart from the knowledge centre, housing articles on legal, financial and business advice, case studies and the latest news, there are almost 4000 franchise opportunities listed on the site.

There are an equal number of potential buyers searching the $50,000 to $100,000 bracket and buyers who are unsure of the budget they will have.

Visit the one-stop-shop for expert opinion and guidance, and a huge list of both existing and greenfield businesses for sale.

MAR/APR 2015 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

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THE BEST WAY TO BUY A

FRANCHISE

franchise is an excellent way to get into business. But before you get to open the doors to your store, or van, there are steps to take to ensure your best chance of success, writes Domini Stuart.

“There are many examples of owners who have been in the sector for some time and built up a considerable business, going from one location to two, three or more,” says Ian Watt, Westpac’s senior business development manager - franchising for NSW & ACT. But success is not guaranteed. And, once you’ve signed a contract with a franchising system, it can be difficult to walk away without losing money.

MAR/APR 2015 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

“You could be in danger of losing your home if it doesn’t work out,” says Robert Toth, a partner and accredited business law specialist at Marsh & Maher. “There’s a lot you need to consider before you make that commitment.”

IS A FRANCHISE RIGHT FOR YOU? Not everyone is cut out to run a business; you need to be sure that a franchise is right for you.

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ificial flavour s art

FR0514_000_GEL

a rtif

l icia l c o

taste the

SWEET REWARDS of becoming a Gelatissimo franchisee To change your lifestyle through investing in a business that is fun, flexible and rewarding contact Karen at Gelatissimo on (02) 8845 0100 or email franchise@gelatissimo.com.au.

gelatissimo.com.au

FR0315_022

A franchisee vendor will have a trading history and financials that need to be assessed, so you’ll have to do due diligence on the franchisee as well as the franchisor

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“Think seriously about your strengths and weakness,” says Tim Kilham, a director of Lanyon Partners and a chartered accountant who has specialised in franchising for more than 15 years. “You should also discuss your plans with someone you trust to give an honest opinion and who knows you well.” Many prospective franchisees have little idea what running a business actually entails. They’re often shocked to discover just how hard they have to work, especially in the first couple of years. “Any time you can spend working in a relevant business is invaluable, even if you don’t get paid,” says Watt. “You need to be very clear about what will be expected of you.” A franchise also has implications for your family. They need to know how it will affect them and be willing to give you their full support.

CAN YOU AFFORD A FRANCHISE? Many people assume that a bank will lend money against the franchise.

“This is unlikely unless the franchise is accredited – that is, it has a special arrangement with a bank,” says Kilham. “Even then, the bank will typically lend just 50 percent of the total cost. And the vast majority of Australian franchises – close to 95 percent – are not accredited.” Banks generally ask for bricks and mortar security. If you don’t have substantial equity in your home or another property, your only option may be to borrow from a friend or family member. “You must remember that the cost of the franchise is just the beginning,” says Toth. “You will also need enough working capital for at least the first 12 months of trade. You should do your own calculations as franchisors sometimes underestimate this, and that can place franchisees under a great deal of financial stress within their first year.”

IS IT THE RIGHT KIND OF FRANCHISE? Toth recommends choosing a franchise that draws on your skills and experience. “I’ve seen many franchisees regret their decision to move into a completely different area,” he

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says. “One went from middle management to a roast chicken franchise and hated every minute of it! Ask yourself whether you can see yourself enjoying the business in a year or two. If there’s any doubt, it may not be right for you.”

IS IT THE RIGHT SYSTEM? Some would-be franchisees know worryingly little about the business they would like to buy. “When I ask people why they chose a particular brand I’m often told they didn’t know there were other brands in the sector,” says Watt. Other franchisees can be an important source of information, particularly those who have been in the system for two or three years. “Ask them whether they’re satisfied with the system and the support they get from the franchisor,” says Toth. “Are they enjoying the experience or do they feel they’re stuck in prison? Are they getting the financial returns they hoped for and expected?” You can also search for information on the internet.

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Your accountant will help you to decide whether you should buy the business and how much you should pay

“Social media and blogging have given everyone a voice,” says Watt. “These days, people are very quick to share their opinion, particularly if things aren’t going well.”

Watt. “It doesn’t matter how many times the lease has been renewed in the past there’s no guarantee it will be renewed again or, if it is, what rent the landlord will ask for.”

A NEW BUSINESS OR A GOING CONCERN?

A business that isn’t performing well may seem like a bargain but it may not be easy to turn it around.

Buying from a franchisor can be easier than buying from a franchisee. “A franchisee vendor will have a trading history and financials that need to be assessed, so you’ll have to do due diligence on the franchisee as well as the franchisor,” says Toth. “The franchisor will still have final say on the sale so you will also have to provide the same work and trade history, references and financials. If you do go down this path, it’s very important that you appoint an experienced franchise lawyer to do all of the necessary searches and inquiries.” If there’s a lease on the premises you should be careful to check the details. “In general, the less time there is remaining on a lease, the lower the value of the business,” says

“Remember that the current owner poured savings and assets into the business and has had the same support from the franchisor that you can expect,” says Kilham. “You might well be able to do a better job, but do your homework first and be realistic in your expectations.”

DON’T WAIT TO GET ADVICE If you appoint your lawyer and accountant early you can be sure of getting the right answers to all of your questions as they arise. “Both should be specialists in the field and, ideally, members of the Franchise Council of Australia,” says Toth. “These are the people with insider knowledge of the good, the

bad and the the industry.”

ugly

within

Anything less that specialist advice could be false economy. “When you’re putting your home and other assets on the line, you can’t afford to take unnecessary risks,” says Watt.

DO THOROUGH DUE DILIGENCE Franchisors frequently ask for a deposit before they provide information. Under franchise law this is fully refundable, but you should still ask a lawyer to look over the document before you sign it. “Someone came to see me when he had signed what he thought was a conditional offer,” says Kilham. “He had actually committed himself to buying the business.”

should buy the business at all and, if so, how much you should pay.” You shouldn’t be afraid to make an offer. “Most people presume the cost of a franchise is set in stone but there’s often room to negotiate,” Kilham adds.

SECURE YOUR FINANCE There’s no point in approaching the bank for a loan until you can provide financial information from the franchisor. “Franchisors will often provide templates for things like cash flow and the business plan,” says Watt. “These are helpful but, ultimately, the success of your franchise will be down to you. The bank will be more interested in your history and your own plans for the business than something you’ve cut and pasted.”

By now, your lawyer and accountant will be working on legal and commercial due diligence.

CRACK OPEN THE CHAMPAGNE

“Your accountant is trying to predict how profitable the business will be in the future,” says Kilham. “This will help you to decide whether you

You’re sure the business is sound, that it’s right for you and that you’re right for the business. It’s time to exchange contracts – and to embark on a successful franchising future.

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HAND IN HAND

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ould you, should you, work with your better half? And if so, how would you effectively bring your work and home life into one package, asks Donna Bennett? Pack & Send franchisee Maria Varkevisser and Coco Cubano franchisor Tony Melhem discuss the challenges and rewards of sharing a business with your spouse.

Maria and Wayne Varkevisser purchased their Pack & Send franchise in Chermside in 2011, after immigrating to Australia from South Africa, where they had built up a successful mobile phone business over 10 years. They live by the same key business rules they established in South Africa where they devoted team members to different segments, which dramatically grew their business. Maria says it is imperative to separate the business and to allocate roles from the outset. “This makes decision-making easier because personal emotion is not involved.” Other key rules are that the customer is continually their highest priority, and there is only one boss. Maria simply loves business. “I naturally became the leader; I was able to see opportunities in the marketplace and the demand for the business.” She explains further, “It is important to have a vision for the business and be able to plan and think it through, be quick to make good decisions for the business and be confident at all times; even if things are tough – because they will get better.”

SEPARATE ROLES Over the years, Maria and Wayne identified their strengths and weaknesses, learning to balance out their separate roles. Maria is responsible for retail sales, new business, delivery co-ordination, business strategy, marketing, PR and suppliers. Wayne is in charge of accounting, despatching and booking, packing, collections, stock ordering, franchise reports and administration functions. “We balance out as a team; we don’t overlap on functions in the business but we are able to cover each other’s functions in the business if required,” she says. The couple had to also learn to manage a different business in a new country, every day facing challenges that could affect the success of the franchise. “The fear of making mistakes that could cost us financially started eroding our confidence and clouding our MAR/APR 2015 | 27 | WWW.FRANCHISEBUSINESS.COM.AU

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1 - WAYNE AND MARIA VARKEVISSER 2- AVRIL AND TONY MELHEM

thinking,” Maria explains. When these situations arose, Maria and Wayne would discuss them and work through the process within the business model, and accept the outcome either way. “We had to accept this as part of the learning curve in the business until we could conquer the fear,” Maria adds.

GOOD COMMUNICATIONS Ultimately, they overcame their apprehension by trusting the Pack & Send business model and realising they didn’t have to micro-manage their business or suppliers on a daily basis.

ship and appreciate the value they have gained from having to make the business work to survive. “This is the thread that makes us a team,” says Maria. It’s impossible not to talk business in the Varkevisser home and Maria explains their family has been around business for many years. “The children grew up in a selfemployed environment and we are proud to say this has been a great experience for them as well.” Although home and business is one life, after three years, Maria and Wayne are able to work a five-day week and enjoy exploring the picturesque state of Queensland.

to have some common values, interests and goals,” Tony says. Over time, if a couple is not working on their relationship, it can be easy to lose sight of those shared objectives and ambitions. Although he is an advocate for couples in business, Tony acknowledges it works better for some more than others. “Business just intensifies everything one way or the other,” he warns. “But if it’s going to be good, it’s going to be sensational.” Partners that tend to play the blame game should be cautioned against it, because in business there will be plenty of reasons to hold the other person responsible.

“We love getting in the car over the weekend and driving up the coast to explore new places, having breakfast on the way, a swim at secluded beaches, and just to get out in the sun and appreciate beautiful Australia,” Maria says.

Tony recommends couples make certain it’s something they really want to do and ask themselves questions:

“We take time every year to holiday, even if it is a short one, because it is important to distance ourselves from the business and to strategise for the coming year,” she explains.

“Can they work together? Are their goals and visions aligned? Are they going to be supporting each other in the business, and have clear and defined roles?”

“We always benchmark a much tougher time in our lives against the current issue and then things are not so bad,” Maria says.

COMMON VALUES

LINKING BUSINESS AND HOME LIFE

Maria admits she and Wayne are complete opposites. “But we complement each other and in our strengths that we bring to the business.

Before establishing the Coco Cubano franchise in 2008, Tony and Avril Melhem were Gloria Jean’s franchisees, and have been involved in business and franchising for more than 12 years.

“We are both fully aware of who needs to be the good or bad cop in business when required,” she adds.

The couple challenges each other, and their partnerships in business have strengthened their personal relationship.

They benefit from a strong, loyal relation-

“To have a successful relationship you need

Other challenges included increasing and, at times, changing their business roles, and maintaining good communication with each other. Some days were challenging and frustrating but the couple just let the tears roll down their cheeks, hugged each other and carried on.

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KEY QUESTIONS

Tony believes experience in the industry a couple is contemplating is not necessary, but at least one of the pair should be passionate about it. “You need passion to get you through the tough times and there are always testing times in any business,” he says. “If you’re not passionate about it you should be doing something else.”

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Tony says talking about Coco Cubano is not work for him and Avril because business is intertwined into their daily lives. “We enjoy it, that’s why it’s fun to be passionate about it.” With daughters aged seven, five and two the Melhems appreciate quality time and holidays, but even family time in the office is enjoyable: “The good thing is we get to hang out together.” When Tony and Avril first began in franchising, they established individual roles and job descriptions, which were based on their strengths and interests. “Whether it’s front of house, back of house, administration, service, hospitality or HR, have clearly defined roles and areas of responsibility,” he advises. “Debating everything all the time serves no purpose or gain.” For the five years the Melhems were Gloria Jean’s franchisees, Tony was actually employed elsewhere. He explains, “I still had my job working with the government and I worked in the

business part-time.” Tony was responsible for the marketing and management, while Avril was in charge of all the operations. Tony says having one of the partners maintain a full-time job, while starting up the franchise, is beneficial. “You need to factor in some time for it to become established, I think that’s really important. Having one person in the business allows you to have more perspective and to be objective.” He concedes owning a business is not for everyone. “There will be challenges, especially in the beginning. People need to do their own due diligence to ensure they can fund and sustain building a business.” Tony warns that jumping into any business without adequate finance is naïve. “If there are two of you and you don’t have as much working capital as you’d like, then it’s important to have someone that’s still working.” Now as franchisors the pair both work in their business full-time and their position descriptions have evolved over time. “My role is very broad as CEO where

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Avril’s role is more about operations.” Naturally, being with your spouse versus partner means emotions more heightened.

design and in business a business are much

Tony explains, “You share in the tough times as a couple but at the same time, you’re sharing the journey, the rewards, the growth, the learning.” He says honesty is paramount and you need to be each other’s biggest supporter. “You’ve got to want to encourage each other to grow and develop; you need to have a lot of candor and not make it personal. “If you’ve got a good, healthy, positive relationship, it’s the best thing you can do together.”

TIPS TO COUPLE SUCCESS 1. Your relationship must be secure. 2. Be passionate about your business. 3. Allocate yourselves specific roles. 4. Only one of you can be the boss. 5. Be open, honest, supportive and encouraging.

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Get moving with a

MOBILE

FRANCHISE

ou might not have bricks, mortar and rent to pin you down but a mobile or service franchisee has to ask all the same financial questions as any new business starter – and then some.

When you invest in a mobile franchise you buy rights to work according to a brand and its intellectual property in a defined territory. You also buy rights to market it and benefit from central marketing and lead distribution. A mobile franchise lacks passing trade and

the ongoing shopfront visibility of a stationery franchise, so relies more heavily on quality of territory and central marketing. You know what sort of work suits you – outdoorsy, physical or less active and indoors. You’ll be attracted to being out and about between jobs. Yet, when choosing an opportunity, remember there’s back-office work for mobile services. “Unless you are buying into a high-end franchise which trains in selling and marketing and has strong business management systems,” says Kate Groom, co-founder of Smart Franchise and The Franchise Accounts Network, “you need to do all this yourself. You also have to plan the best way to do it.” MAR/APR 2015 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

If you’re inclined towards professional services such as bookkeeping or coaching, Groom warns to think carefully because, she says, “the value of the brand is harder to define” although there are training and qualifications. And you have to work closely with professional services clients. “So clients want a rapport with you,” says Groom. “And it’s harder to demonstrate your professional advantage whereas with cleaning or mowing, results are obvious when the job’s done.” Be aware that mobile businesses, however small, still need a business plan that fits with the franchisor’s longer-term

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business vision. Decide whether you just want an income or a business to build into a saleable asset and be sure it fits the franchisor’s long-term view. It’s especially vital for mobiles which are so often a one-or two-person show - without staff to stretch when busy or cover if you’re unable to work. Jane Garber-Rosenzweig, a principal at Gable Lawyers in Melbourne, believes good agreements have options for more growth or less. She recommends asking about a franchisor’s longer-term plans for: ✱ future numbers of territories over what period/s. Is there a guide to a total? ✱ whether any will be near your territory? ✱ will you be required to put on a second van at any point? ✱ options such as split or trimmed territories, subcontractors, on-selling or buying back territories “At first glance, franchisees might think changes to territories are not in their interest. But it goes both ways,” says Garber-Rosenzweig. “Revisiting territories and making changes can benefit them. “When signing, ask a franchisor for a current expansion plan but it’s not mandatory under the Franchising Code of Conduct,” says Garber-Rosenzweig. “Where a longer-term plan that affects territory selection does exist, it should also be disclosed, as part of the territory selection policy.”

SIZE ISN’T EVERYTHING It’s not a territory’s size and population that counts most, it’s the demographics and the level of interest in a service. In fact, a big territory could be just what you don’t want because travel is money – in petrol, vehicle maintenance and driving time. Condensed trade is the most efficient and profitable. In country areas, territories need a really good town centre or two and ideally will be growth areas. “Small isn’t always best,” says Peter Buckingham, managing director of Spectrum Analysis, “but, based on freeways and waterways, an area should be logistically and geographically efficient.” Sizing up a territory is not all about square kilometres. Franchisors should present solid evidence of how a territory was drawn, showing potential custom based

THREE EASY WAYS TO MASTER YOUR CASHFLOW Thinking of investing in a mobile franchise opportunity? One important consideration before you sign up to a system is the cashfl ow issue. Cashflow varies – and poses risks - for all businesses. For mobile businesses, so often a one-person act, there’s less flexibility in hours worked. Usually there’s less cash flowing than bigger businesses where a good month can buffer the next. For these smallest of businesses there’s less ‘wobble-room’ says Kate Groom, co-founder of SmartFranchise. “So it’s vital to plan for likely peaks and troughs.”

1. GET AN ACCOUNTANT Groom says cashfl ow projections by an accountant are bedrock for business plans. Use marketing to level out cashfl ow or create revenue peaks to set aside for troughs. “Many mobile franchisees are used to a regular income. Employers have buffered them against risks to cashfl ow. Often they skate over these priorities too quickly without planning around them,” says Groom. “The worst risk is not having a marketing plan to combat identifiable risks.”

2. INCLUDE ALL THE COSTS You might think you’ve done your business plan because you’ve budgeted for travel costs – petrol, travel time, vehicle insurance and maintenance. Factor into your business plan all payments such as personal and business insurance, tax, services such as bookkeeping, business planning or accountancy. Remember to also double-check your agreement for required upgrades to equipment or vehicles – or risk an expensive surprise.

3. BE LOGISTICAL The biggest time-waster can be driving around between jobs. Concentrate your early marketing in blocks where you already have jobs. Add logistics to your admin work and boost productivity by planning ahead, adjusting routes to be more efficient and fi lled with more jobs.

on demographics. This includes residential and business numbers, ages, incomes, disposable spend – all backed up by maps. The Code of Conduct requires not only disclosure of site selection policy but also annual updates. It’s up to buyers to investigate a franchisor’s method to be satisfied that a territory will work for them. “Do your own research on the territory’s demographics, what they mean for your business,” Buckingham advises. Buckingham believes good franchisors understand and present their ideal customer profile and the likely number of these cust-omers in an area based on the Australian Bureau of Statistics’ Socio Economic Index for Areas (SEIFA shows affluence and disposable income) and, if freshly available, Census data or Household Expenditure Survey (HES shows spend on household services). Or, for business-to-business franchises, look to ABS business data.

“Find a franchisor whose logic on territories makes good sense to you.” Use common sense to see if a territory matches your service. There’s no point running a a mowing franchise in a highly populated but high-rise area. Well-planned territories are not equal in base numbers of population, households or businesses. “Better that territories are similar in potential business each area offers each of you”, says Buckingham. “No franchisor will stick their neck out to claim a definite number of customers for an area,” he says.

MAPPING YOUR ASSET An indisputable map is vital. Unfortunately these are often presented with a list of postcodes or, worse, a description of boundaries. Postcodes, along with streets, can change. A map is not mandatory but, to avoid problems, it should always be part

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of your original agreement, according to Garber-Rosenzweig. “If you can refer to your original, clearly drawn map,” adds Buckingham, “most discussions between franchisor and you can be worked out happily.” Buckingham advises that boundaries based on suburbs, main roads and other obvious topography avoid issues arising from postcode changes. Be careful, too, of variations between ABS postcodes for demographics and Australia Post postcodes for area maps and lead allocation – because new customer leads will follow Australia Post’s numbers.

and the way it is spent. “A franchise buyer can ask about marketing results – sales and growth - but the franchisor isn’t bound to supply that.” Your rights to do franchisor-approved marketing in a territory will be spelled out. Guidelines or restrictions should be very clear, right down to what you can say when cold-calling. Then there’s internet marketing which needs to be disclosed. “Disclosure includes online presence within a franchisor site or whether a you can run your own Facebook page,” she explains.

SELLING YOUR SERVICES

CREATE YOUR OWN LEADS

Without passing trade, mark-eting and leads are all-important. You need to buy into good central marketing nous – and action – or be confident your own marketing will drum up business.

Lead allocation is a bigger part of the value of a mobile franchise – because there’s no walk-in business. Yet franchisor leads are unlikely to be enough. “You can’t afford to wait for centrally generated leads to come in,” says Groom. “It’s a bigger deal to make that mistake if you’re not where there’s passing trade.”

Marketing in a territory is either active – most often leafleting - or you can respond to leads from passive marketing such as word-of mouth that pulls customers from outside a territory. Garber-Rosenzweig advises checking out disclosure on the central marketing fund

Allocate regular hours for marketing, and factor it into your business plan, she suggests. “You shouldn’t be doing 40 hours a week on paid jobs and no marketing or admin. Unless you’re buying in MAR/APR 2015 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

with a high-end franchisor which trains you in selling and marketing, and has really strong systems, you needs to do this work yourself.” Research how many leads other franchisees get from a franchisor weekly or monthly, how easy it is to convert leads to work. Then estimate how many of your own leads you’ll need to generate. You should also find out how fast and efficient the lead allocation system is, because this will affect your ability to convert leads into business. Buckingham helps expedite leads by embedding a map of territories in Google Earth so franchisors can immediately see which territory gets a lead. The franchise agreement should cover how lead allocation works, says GarberRosezweig, including what you’ll pay per lead, and time-frames for you to respond. It must also cover in what cases the franchisor gives a lead to you outside a territory - because this affects whether a territory is truly exclusive or not. “Some central offices send a lead to three franchisees near the job – so it’s competitive like a taxi system – whomever answers first gets the job.”

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YOUR FUTURE IS BRIGHTER WITH BOZZY

BECOME A BOZZY AUTHORISED AGENT TODAY! We are a quality outdoor product company that pride ourselves on great customer service, fast turn around times and professional & reliable staff. Specialising in Outdoor Blinds, retractable roof systems, folding arm awnings and shutters we cater to all outdoor living experiences. We believe so much in the service we provide that we want to let the whole of Australia know what we do best! 2015 will certainly be a massive year at Bozzy as we expand our wings to the east coast and launch Bozzy around Australia.

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How to be the

BEST

FRANCHISEE you can be

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LINDA STEELE Linda is an organisational specialist at ThinkDONE Management Consultancy

ou want to buy a franchise? Great idea. It can be a thoroughly rewarding career change with a profitable outcome. How can you ensure you set yourself up to succeed? Here are some ways to avoid common mistakes franchisees make. If you consider and apply each point, you could set yourself up to become the best franchisee you possibly can be.

WHILE YOU ARE LOOKING FOR THE PERFECT FRANCHISE 1. STAY LEVEL HEADED Definitely fall in love with the product or brand – just don’t let it cloud your judgment. There are many franchise brands in each category. One could be better than another. Compare the brands in the category sector you are keen on. Remember that there is more to running a successful franchise than great branding. So ask questions… a lot of questions. 2. LEARN ABOUT FRANCHISING Take the time to learn what a franchise actually is – it is basically a right or privilege to use a brand and the systems attached to it. Learn more about what the basic principles of business are. You could take some short courses to learn educated yourself more about business in general. We can never learn too much and learning never stops, no matter our age. 3. BE PATIENT Be excited, but not too eager. Let’s do it now! doesn’t always work in franchising. Franchising is heavily regulated with lots of rules and hoops to jump through before you can start in your new business. It pays to take time to get it right, and not to be rushed by the franchisor either. Following due process gives you the chance to iron out any niggles you or your advisors might discover. 4. RESEARCH Do your due diligence and homework and get appropriate advice. There is much to learn and there are experts out there to help you in the areas of legal, accounting and business advice. Sure there is a cost to the advice, but paying this up front is preferable to the costs of a failed business. Don’t sign MAR/APR 2015 | 37 | WWW.FRANCHISEBUSINESS.COM.AU

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any documents unless you are convinced you have thoroughly done your homework. 5. KNOW YOURSELF Consider if you are right for franchising. If you are the type of person who wants to create new products and try new things, some franchise systems may not be right for you. Franchising is about following a system that has previously been tried and tested. This can be frustrating to anyone who loves a lot of change in their life. 6. KNOW THE LIMITS Understand that franchising is not forever. In effect, you are renting a brand for a period of time. Have a realistic expectation of what can be achieved in the term you will sign up for and make sure you are clear about any trading restrictions. 7. LOOK AT THE FIGURES It’s helpful to understand the financial model for the business from the outset and also understand that the franchisor has a financial model. For retail, rent is the starting

It's helpful to understand the financial model for the business from the outset point and should be a certain percentage of the turnover you project. The cost of goods and wages should also be a certain percentage of your turnover. Understand what these percentages are so you can monitor them on an ongoing basis. Ensure you can make enough money to suit your needs.

anyway and creating an exit plan gives a shape to your business and allows you to work towards a goal. 9. THINK AHEAD

8. HAVE A PLAN

Set goals for yourself. What do you want to achieve in your first year? After five years? In 10 years time?

Do an exit strategy before you buy. Things happen in life that we don’t expect. Have a strategy set for any potential situations that may occur that could force you to sell your business. If you have managed your business so it’s sale ready, this will make stressful situations that bit easier. You will have to leave the business at some point

Write the goals down and review them frequently. Have a vision for what you want to achieve – this might change over time, so keep it up to date. Perhaps you will be ready to leave the business after the first term, perhaps your ambitions will see a new horizon of multi-units? Who knows? You just have to keep thinking ahead.

MAR/APR 2015 | 38 | WWW.FRANCHISEBUSINESS.COM.AU

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ONCE YOU HAVE MADE YOUR DECISION TO GO AHEAD Invest in your own training – you spend hard earned money to buy into a franchise system and it is only fair that you invest in yourself – learn everything you can about how to be the best franchisee – from how to operate the business, how to market the business, how to be compliant – anything. If you are required to train for four weeks, then be 100 percent available for that time and put the effort in. Listen! Your franchisor and the head office support team will be knowledgeable. They’ve usually been there and done that. They know what works and doesn’t work. During your training, make sure you fully comprehend everything you are learning. Observe what is going on, learn and practice until you are competent. The best franchisees will, at the end of their training, be “confident, competent and compliant franchisees” and will remain so during the term of their franchise.

MAR/APR 2015 | 39 | WWW.FRANCHISEBUSINESS.COM.AU

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2015-03-02T11:06:41+11:00

Tools of ENGAGEMENT M

arketing plays a big role in franchising, as Tina Elliott finds out. Read on for tips on what franchisees should get in their marketing package, and a behind the scenes look at OPSM’s award-winning campaign.

For franchise buyers who are not marketing-savvy, a franchisor’s product or service might not be the main attraction. What is sold is sometimes eclipsed by the vital ingredients of great marketing:

Buying into a franchise should pay for these three marketing assets, according to Joel Bason, manager of client services with Fuse Partners which creates platforms for compliant, targeted local marketing.

✱ brand, identity, consumer trust ✱ umbrella marketing, and tools and support for local efforts ✱ indepth research to inform marketing

“You can’t really buy identity and trust any other way than in franchising,” says Bason.

MAR/APR 2015 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

Ongoing centralised market-

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1 - OPSM'S OUTDOOR DIGITAL CAMPAIGN

If a campaign fits a brand and is communicated very clearly, then it’s taken up really well because partners believe in it

ing should offer tools and strategies for both attracting and retaining local customers. This should be informed by thorough market research on products, services and customers and, Bason says, franchisees should have access to the data. “Franchisees contribute up to five percent of revenue to a franchisor for marketing,” says Bason, “so they want to be sure a franchisor doesn’t blindly put out initiatives” he says. “The Internet and its forums make it easy these days to find out if a brand is well liked or not.” Fuse Partners advises joining a franchisor that supports local marketing and traditional, multichannel forms of marketing. “Five years ago, the message was ‘this is what we’re doing. You can localise it and fend for yourselves’. Now franchisees are more savvy and pay for marketing so they demand head office [have financial] input to local marketing.” Incentives might match franchisees’ local marketing dollarfor-dollar. Or a franchisor can offer, say, an electronic direct mail campaign in return for a letter-box drop.

“Consumers now look for a bespoke, individual feel about what they buy and where they shop. So they engage well with more traditional marketing.” “When digital was all the rage, people took money out of traditional local marketing but this trend is reversing,” suggests Bason. Franchisees need to work with brands marketing in what Bason sees as the top four channels – letterbox, press ads, electronic direct mail and SMS. Social media and web sites follow and then presence on Facebook, Pinterest, Instagram and Twitter. Separate franchisee Internet presence is just too risky. Then again, it’s not just about money. Even the best camp-aigns can go awry without support: expert advice on advertisement specifications, placement, what wins consum-er buy-in and customisation. “But franchisees must not go to market till they’ve been approved by head office – it’s essential quality control.” Components of a campaign and advice around it should be easy to access. Logging on to a franchisor’s site should give franchisees everything needed for their own promotions. Franchisees need brand guide-

MAR/APR 2015 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

lines, and these should be frequently updated across the network. “If they can’t access brand guidelines, franchisees need good access to head office experts,” suggests Bason. The icing on the cake is when franchisors are adventurous marketers. “It’s good to work with brands doing things you’ve not seen before – such as [our client] Crust Gourmet Pizza which this summer has run pop-up restaurants at events such as the races and the Australian Open. They’ve built restaurants into shipping containers and take them on semi-trailers to the crowds.”

THEY SPIED THE OPPORTUNITY A giant game of ‘I Spy’ atop the Shangri-La hotel over-looking Sydney Harbour had the media competing for prizes of iPads preloaded with OPSM’s Eye-Check App – then being launched. OPSM’s goal was to put a tool in people’s hands to encourage them to have an eye test, and book one too. The eye-check app campaign exceeded even OPSM’s wildest expectations and won the Franchise Council of Australia 2014 Excellence in Marketing

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award. As well as getting customers into stores, franchisees use the app to reach out to new customers. OPSM encouraged franchisees out of stores by providing Vision Screening Stands to set up in public areas. OPSM’s marketing team of 20 has a strong digital focus and a database of five million names (parent Luxottica has another five million). Staff are dedicated to brand marketing, public relations, sponsorships, partnerships, and visual merchandising which covers 389 stores in Australia and New Zealand, including 50 optometry franchises. “Marketing is massively important,” says Peter Baily, OPSM‘s director of franchising, “and it’s becoming more important in two increasingly competitive environments eyecare and digital marketing.”

PETER BAILY, OPSM

The media launch ran with an intense burst of 30-second TV ads. Thirty different artworks, created as location-specific, outdoor digital ads, also asked people how well they could see objects around them.

SECRETS OF OPSM’S SUCCESS The campaign worked on many levels in large part because of excellent preparation, including

market research, plus creative in both ads and app by Saatchi & Saatchi. OPSM research showed most people (84 percent) don’t have regular eye tests and, of these, 74 percent could have their vision corrected. The campaign and app frame the key message, “Question Your Vision”. The app answers by showing most people their vision could be improved.

MAR/APR 2015 | 43 | WWW.FRANCHISEBUSINESS.COM.AU

OPSM had researched the explosion in public use of Internet and apps for health issues and saw timing was excellent for a credible new health app. There was much early input, too, from OPSM’s legal team which negotiated myriad restrictions on promoting a health device. This was essential to get the app sanctioned by the Therapeutic Goods Association – a TGA ‘first’ for an app. Close alignment with OPSM’s brand, messages and reputation simplified buy-in from both franchisees and public. “It wasn’t a complex campaign because it leveraged what we do every day – optimising people’s vision,” says Baily. “The app dovetails with that beautifully. The only risk was if people struggled to use it. That was

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THE CAMPAIGN IN ACTION

overcome by good app design.” Campaign alignment with branding, “OPSM loves eyes”, was exact. It also fitted OPSM’s reputation as an investor in technology, such as ultra-wide 200-degree retinal scanning.

TAKING IT TO THE STREETS Marketing is always controversial in a franchise business because franchise partners always have an opinion. “Yet if a campaign fits a brand and is communicated very clearly, then it’s taken up really well because partners believe in it,” says Peter Baily, director of franchising for OPSM and its parent, Luxottica. “Our franchise partners loved the app,” says Baily. “What surprised us was the way the they embraced it, and the way it has become a long-term tool that’s used in so many ways,” Setting up stands in shopping centres to demonstrate the app, franchisees highlight individual needs for OPSM’s services, the brand reputation and their own outlet. OPSM sponsors cricket and AFL so other franchisees show off the app at community events and clubs.

Still others use it to strike up a conversation at local fetes. Maintaining a consistent message and impact was not such a challenge, Baily says, because alignment to brand made it easy to grasp and so reduced risks. The results doubled OPSM’s target with almost 200,000 downloads in four weeks, making it number three in the App Store and OPSM very happy with conversion to bookings. The campaign also scored well with the Franchise Council of Australia’s awards judges for identifying an opportunity and goals, for sophisticated planning and monitoring, and for communications that engaged franchisees. OPSM’s template for communicating ‘campaign essentials’ includes: campaign elements and how they work, how to execute in-store and locally, expected campaign results and how to respond, weekly e-newsletter updates, and in-store support from field staff. For this campaign there was extra support from a national roadshow in all capitals, and a focus on customer contact. “There’s skill as to how to interact with customers,” says

Baily. “It’s the initial contact with someone who has used the eye-check app so we needed to ensure the optometrist is up to speed for customers to get the best service.” The eye-check app inspired OPSM to another app and book: ‘Penny the Pirate’, which helps parents screen children’s sight while reading to them. It’s easy to see why apps are a new way for OPSM to talk to customers. THE APP IN HAND: ✱ Tapped into a huge market: 86 percent of Australians do not have eye tests every two years; 74 percent of these could have their vision improved ✱ Advertising was successful: 165,000 downloads in a week; now approximately 380,000 ✱ It engaged the public, revealed whether or not they needed a comprehensive eye test and enabled bookings ✱ There was a double-digit percentage increase in appointments during the campaign ✱ It put a tool in the hands of franchisees who were surprisingly creative with it ✱ It’s ongoing: the app is still being downloaded and channelling bookings 18 months later ✱ Use of the app can be boosted any time by local or national marketing

MAR/APR 2015 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

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2015-02-17T16:27:53+11:00

Celebrating 50 stores

Following the announcement of Shingle Inn as the 2014 Emerging Franchisor of the Year at the FCA Awards in October, Shingle Inn will add another milestone this year with the opening of its fiftieth store. Shingle Inn was established in 1936 when the first store opened in Edward Street, Brisbane. The decision to franchise the café was implemented by second generation owners, Peter and Andrew Bellchambers, in 2009 when the eight-café-strong, company-owned chain introduced its first franchisees. Since then Shingle Inn has grown to a network on the brink of opening its fiftieth store (scheduled for mid-March in Perth), with cafes now open in Queensland, New South Wales, ACT, Victoria & Western Australia. With a reputation for great coffee, unsurpassed atmosphere, a diverse lunch menu and decadent sweet treats, the true strength of the network lies in the

foundation of eight overarching brand values, with ‘family culture’ and ‘brand belief ’ at its core. In remaining true to the brand values of ‘embracing tradition’ and ‘superior quality’ Shingle Inn’s Directors have aimed to retain the traditional recipes and intimate atmosphere of the original store, while ensuring longevity for the brand in modern times with a constant focus on ‘innovation’, being ‘environmentally proactive’ and exceeding ‘customers’ expectations’. Having only ever been owned by two families, and now with an ever-increasing franchise family, Shingle Inn is proud to retain the heritage and tradition that has guaranteed the café’s place in the hearts of generations of customers in it’s almost 80 year history.

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Autumn 1936

Shingle Inn opens its first café on Edward St, Brisbane

March 2000

Shingle Inn’s second store opened at Westfield Chermside.

May 2001

Shingle Inn Garden City opened.

August 2002

Shingle Inn Edward St was closed to make way for Brisbane’s Queens Plaza development.

Award winners shine bright

Shingle Inn was recognised by the Franchise Council of Australia in two categories in October last year. As well as being awarded 2014 Emerging Franchisor of the Year, Shingle Inn Mt Ommaney was also named 2014 Franchisee of the Year (2 or more staff), after being named the Queensland Finalist in both 2014 and 2013. “The past few months have been a very exciting period in our business’s history,” says co-Director Andrew Bellchambers whose family has owned Shingle Inn Café since 1975. “This award show us that we’re achieving our vision of being at the forefront of franchising in Australia with a unique concept that’s going from strength to strength,” says Mr Bellchambers. “We are very grateful to the other families of franchisees who have come on the journey with us and shared in Shingle Inn’s collective history by owning a Shingle Inn cafe,” says Mr Bellchambers of his franchise ‘family’. “We are very proud that our very first franchisees at Shingle Inn Mt Ommaney were also recognised as the 2014 Australian Franchisee of the Year (2 or more staff ) by the Franchise Council of Australia.”

Join us

If you’re interested in joining Shingle Inn’s network at this exciting time in our company’s history, please contact Franchise Development Manager, Patrick Mulcahy, on +61 7 3399 3000 or patrick.mulcahy@shingleinn.com

2003-2009

November 2002

Shingle Inn Macarthur Central opened, bringing the much-loved café back to the CBD.

Shingle Inn opened another five company-owned stores in Brisbane.

2009

Shingle Inn introduces its first franchisees at Mt Ommaney, Caloundra and Garden City, taking the chain to 10 stores

August 2011

Shingle Inn Hornsby opens as the first store in NSW.

September 2012

Shingle Inn Fountain Gate opens as the first store in Victoria.

April 2013

Shingle Inn’s original store was re-established in Brisbane’s City Hall, including many of it’s original features.

December 2013

Shingle Inn Belmont opens as the first store in WA.

shingleinn.com shingleinncityhall.com

March 2014

50th store, Perth CBD

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Six steps to get your

FINANCES

IN SHAPE

ANDREW GRAHAM Andrew is the national head of business solutions for RSM Bird Cameron. With more than 20 yearsâ&#x20AC;&#x2122; experience, Andrew has a record of strategy development and managing growth to deliver substantial improvements to business.

MAR/APR 2015 | 48 | WWW.FRANCHISEBUSINESS.COM.AU

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efore deciding to purchase a franchise it pays to make sure your personal finances are in the best shape that they can be. Doing this before you even decide which franchise interests you will help avoid disappointment and unnecessary stress during the purchase process. Applying for and obtaining finance can sometimes be a lengthy and complicated process and it will be made easier if you are planned and prepared.

2. INCREASE CASH One of the most important indicators of potential success is the amount of cash you have on hand. While you may be able to finance most of the purchase, there will still be a certain amount of cash required for operational working capital purposes. The more savings you can accumulate before starting the purchase process, the stronger your position will be. After the purchase sometimes franchisees can be left short of cash and undercapitalised to operate the business.

3. PLAN FOR NO INCOME Any new business, even if it is a well-known and highly-successful franchise, takes some time to break even, let alone turn a profit. It is vital that you plan for this time when you will not be earning significant income from the business. In order to do so you need to understand three key factors: Here are six tips to make sure your finances are franchise-ready:

1. REDUCE OR CONSOLIDATE DEBT If you are currently having trouble paying all your bills on time then buying a franchise may not be the right decision for you right now. The financial burden of having a new business means you will need to have as little debt and as many cash reserves as possible. Consolidating your debt position can be an important consideration.

WANTED! NEW FRANCHISE PARTNERS AUSTRALIA WIDE

1. When the business is likely to begin turning a profit. The length of time it takes for the business to start earning money will determine how long you need to budget for in terms of sourcing income from elsewhere. 2. How much money you will need to cover your daily living expenses. Once you have calculated all of your liabilities and expenses, add a buffer to make sure that you aren’t left short in case the business takes longer than expected to start earning. It is essential to create a realistic budget for both the business and your living expenses and, most importantly, stick to it. Addi-

DO YOU FIT THE BOX?

WHAT CAN WE OFFER YOU? Australia’s largest noodle based franchise chain Dedicated Franchise Support Centre team with focus on proﬁtable development National & local area marketing campaign support Full training in-restaurant & in our purpose built training centre Innovative & exciting new restaurant design Australian owned Competitive capital entry level Successful business model for sustainable growth International expansion

Visit noodlebox.com.au/franchise & ﬁll out enquiry form to receive an Information Kit. Or contact our Network Development Manager - Michael Standley on (03) 8851 4200 or 0416 256 338.

MAR/APR 2015 | 49 | WWW.FRANCHISEBUSINESS.COM.AU

FR0315_050

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You may need to have an alternative income source while you wait for the franchise to begin earning money

tional, unexpected costs can sink a business before it really gets going. If your cash reserves are depleted before you intended then your business may not get the chance it needs to succeed. 3. Where your income will come from. It will be critical to either have strong cash reserves or an alternative form of income.

4. CONSIDER ALTERNATIVE SOURCES OF INCOME Depending on how much cash you have in reserve, you may need to have an alternative income source while you wait for the franchise to begin earning money For some couples this can mean one person keeps their full-time job and the regular salary that entails. It may also be possible for you, as the main franchisee, to keep your day job while you set up the franchise. But bear in mind that new businesses require a lot of hard work and commitment and the additional stress of maintaining a job while getting the franchise up and running may not be worth it.

5. STRUCTURE THE FINANCE There are many different financing options available to franchisees and choosing the right one can be confusing. It is essential to make sure the deal is structured appropriately for both tax purposes and to ensure that the repayments are manageable. Consider seeking professional advice before signing any contracts to make sure finance is structured in the best possible way.

6. PREDICT THE FUTURE Part of the selection process means understanding how much the franchise is likely to earn for you once it starts making a profit. If this amount is not high enough to satisfy your living requirements then it may be necessary for you to retain your alternative forms of income. You could also consider a longer-term plan in which you add additional franchise units to your existing investment. Whatever you decide, knowing in advance how much you can realistically expect to earn from the franchise will help you make better decisions right now in terms of financing and income retention. The decision to buy a franchise is a big one. If you have no trouble paying your bills, you have more assets than debt and you can accumulate savings while still living comfortably, then you are in a good place to consider a franchise. MAR/APR 2015 | 50 | WWW.FRANCHISEBUSINESS.COM.AU

FR0315_000_COC

2015-02-19T10:23:59+11:00

FRANCHISING

NOW

y’ in d a ‘Re ture

for

C •

? e t a l o hoc u

tf e e w as

•

Intimate dessert and coffee lounge

Long established South Australian Icon •

•

9 fantastic stores & growing

National Rollout •

•

NSW, QLD, VIC, SA, NT, WA and TAS

Proven business model

Handmade award winning unique products •

Excellent training and support • •

Master Franchises available Prime locations available

Sydney

Franchise Expo Special *

$20,000 off

Initial licence fee Limited to the first 5 franchises sold

For more information contact the Cocolat franchising team Email: franchise@cocolat.com.au http://www.cocolat.com.au/franchise-opportunities * Applicants must register in person at the Franchise Selection stand at the Sydney Franchising Expo, 27-29 March 2015. Royal Hall of Industries, Moore Park, Sydney or by registering via the above online franchise opportunities link by no later than 5PM 29 March 2015. Limited to the first 5 franchises sold.

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10 tips for

PROTECTING YOUR INTERESTS LIARNA JIFKINS Liarna is a solicitor with HWL Ebsworth, an integrated full service national commercial law fi rm that offers advice on all disciplines relevant to retailing, distribution and franchising.

aking steps to ensure your invesment in a franchise business is protected to the best of your ability starts before you sign the franchise agreement.

The very nature of a franchise relationship means that a franchisor will invariably have the greater level of control and bargaining power, leaving a franchisee sometimes feeling they have little, if any, bargaining power.

MAR/APR 2015 | 52 | WWW.FRANCHISEBUSINESS.COM.AU

Usually the time when a franchisee has the greatest bargaining power is when they are negotiating to acquire the franchise. Although the failure rate of franchises is reportedly relatively low, you should not enter into a franchise relation-

FR0315_000_DRE

2015-03-03T14:52:11+11:00

Dream Doors – Don’t let anyone Dream Doors – Don’t let anyone steal your dream… steal your dream…

Hi, my name is Derek Lilly and I am the worldwide co-founder of Dream Doors, an internationally proven franchise system with a 14 year history of success. I am now expanding into Australia via a network of Hi, my nameand is Derek andfor I am the worldwide co-founder of Dream Doors,and an Entrepreneurs internationally proven Franchisees I am Lilly looking Marketers, Business Innovators, Go-Getters to franchisethe system a 14 yearwith history success. I am now expanding intokitchen, Australiabathroom, via a network develop brandwith in Australia me. of Dream Doors is different from other and of Franchisees and I amcompanies. looking for Marketers, Businessthe Innovators, Go-Getters to save bedroom renovation By simply replacing doors, drawer fronts,and andEntrepreneurs bench tops, we develop the brand in Australia with me. Dream Doors is different other kitchen, bathroom, and the customers $1,000’s on their own renovation and therein is thefrom secret to our international success. bedroom renovation companies. By simply replacing the doors, drawer fronts, and bench tops, we save History of success: the customers $1,000’s on their own renovation and therein is the secret to our international success. t 50 Franchises in the UK where I co-founded the business What does it cost: t Territory Franchise areas available with t In 2007 I moved to New Zealand to start the Dream History of success: What initialdoes costs:it cost: Doors business tt 50 Franchises in thehappy UK where I co-founded the business tt Territory Franchise areas available capital with From $60,000 $65,000 + GST + operating I have an extremely network of Franchisees t In 2007 I moved to New Zealand to start the Dream initial costs: t I look forward to sharing more of my in NZ and Australia (Just ask them) Doors business t From $65,000 story with you...+ GST + operating capital t I am now sharing my success and winning formula t Ithroughout have an extremely t I look forward to sharing more of my Australiahappy network of Franchisees Contact details NZ and Master AustraliaFranchise (Just asksold them) story with you... t in Australian Derek Lilly (Managing Director) tt IQueensland am now sharing my success and winning formula Regional Master sold Dream Doors Australia Pty Ltd throughout Australia t 10 3 x xAustralian areas (South Adelaide, AustralianFranchise Franchises soldsold (Adelaide, Melbourne x2, Contact details Address: Alfred St, t Perth Australian Master soldDandenong/ Derek Lilly26a (Managing Director) Northern and x 2,Beaches SydneyFranchise xSydney 2, Brisbane x 3) Milsons Point NSW tt Queensland Master soldwork or not” is no Dream Doors Australia Pty Ltd2061 North Casey Regional Melbourne) The question “does this business PO Box 907 tt 3 x Australian Franchise areas soldwork (South Adelaide, Address: Suite 3, The question “does this business or not” is no longer open for debate Milsons Point NSW 1565 Northern Beaches Sydney and Dandenong/ 203-205 Henley Beach Rd, longer open for debate Sydney, Australia North Casey Melbourne) Torrensville, SA 5031, Australia Ph: 1800 DREAMDOORS t The question “does this business work or not” is no Tel: 1-800-373-263 (1 800 373 263) longer open for debate Email: del@dreamdoors.com.au Email: del@dreamdoors.com.au

FR0315_054

It is often the case that a franchisor will accommodate reasonable requests for amendments

2015-03-03T16:53:38+11:00

ship on the assumption that the franchisor you have chosen is successful or even solvent. There are many things that you can do before you enter into a franchise agreement to protect your rights. It is recommended that you have your lawyers review the prospective franchise agreement and disclosure document.

DO YOUR DUE DILIGENCE The importance of conducting a legal, accounting and financial due diligence on the franchisor before you enter into a franchise agreement is paramount. Under the Franchising Code of Conduct a franchisor is required to provide to a prospective franchisee a copy of the Code, the disclosure document, a copy of the franchise agreement in the form in which it is to be signed and an information sheet on the risks and rewards of entering into a franchise. The disclosure document must be provided to you 14 days before you can enter into a franchise agreement with a franchisor.

It is important that you take the time to read and understand these documents and the impact they will have on you. You will be asked to sign an acknowledgement that you have had a reasonable opportunity to read and understand them and seek advice on them. You should investigate the franchisorâ&#x20AC;&#x2122;s reputation, history, financial position and experience. Details of the franchisor and its associates must be provided in the disclosure document. You can also conduct searches such as company and bankruptcy searches on both the franchisor and its associates as well as trade mark searches. You should also see if the system has been pre approved and accredited by your financier. The Code also requires a franchisor to provide in its disclosure documents a list of contact details for current and former franchisees who have left the system in the previous three financial years. It is also a good idea to contact these ex-franchisees to discuss their experiences with the franchisor and whether their departure from

MAR/APR 2015 | 54 | WWW.FRANCHISEBUSINESS.COM.AU

the system was amicable.

10 KEY QUESTIONS TO CONSIDER Pay close attention to the details of the proposed business and the terms and conditions of the franchise agreement, you should be asking yourself the following questions (amongst many other things): 1. Has proper disclosure been provided? 2. Does the franchisor have a good compliance culture in their organisation? 3. Do you get the right to an exclusive territory or can the franchisor grant other franchises or operate (or allow its associates to operate) the same or similar businesses in competition with you? 4. Has the territory previously been occupied by another franchisee and what were the circumstances of their exit? 5. How long is the term and renewal term (if any); do you get a right to renew or extend the franchise? 6. What are the fees and expenses required in establishing and operating the

FR0115_000_WAT2

2014-12-04T10:57:23+11:00

TAKE YOUR PICK! 2 business opportunities from Swimart. Work for yourself and be part of the Swimart success story.

Tired of working on the tools or in an ofﬁce for someone else? If you love the outdoors and have a passion for customer service, you could be running your own successful franchise business with Swimart.

1 Own

2 Own a Swimart

YOUR OWN Swimart Store

Mobile Pool Services business

With over 30 years experience in the industry and a huge network of independently owned stores, we’re Australia’s leading pool and spa specialist. A Swimart franchise offers: - Strong gross proﬁts and low operational costs - Low ﬁxed fees - Comprehensive training - Professional support including marketing, TV advertising and business training.

A brand new business opportunity from Swimart. - In specially selected regional and rural areas - At last, the chance to open a business in the area you love to live in! Get with the strength When you become a Swimart franchisee, you’ll beneﬁt from: - Strong brand awareness and a powerful marketing program including TV advertising hosted by Susie O’Neill - Comprehensive initial and ongoing training through the Swimart Training Academy - Exclusive Territory - The backing of a franchisor with 30 years in the business. - Customer database of pools in your area.

ng “Nothing beats achievi success in the pool” Susie O’Neill

To ﬁnd out more, call Chris Fitzmaurice on 02 9898 8608

swimartfranchise.com.au SWI2243-R

ISL 207 ADW i dd 1

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FR0315_056

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You can conduct searches such as company and bankruptcy searches on both the franchisor and its associates as well as trade mark searches

franchised business? 7. Who holds the lease of the premises? If you donâ&#x20AC;&#x2122;t, do you get a sublease or licence? 8. Does the lease allow you to operate a franchised business for the full term of the franchise agreement? 9. Have you factored in the nature and extent of refurbishment required by the franchisor and landlord and other significant capital expenditure you may have to incur during the term? 10. What are your rights in the event that the franchisor sells the franchise system? For example, must the franchisor obtain a deed of covenant in your favour from the incoming franchisor to observe the terms of your agreement as if it was named in your agreement in the event that this occurs?

NEGOTIATE Often, and particularly with larger franchise networks, franchisors will only use one standard form franchise agreement. They typically are reluctant to negotiate its terms with prospective franchisees although in many cases a willingness to negotiate the terms may demonstrate how reasonable and commercial the franchisor is. Typically

franchisors

argue

they do not want to amend them to ensure consistency throughout the network. Because of this, many prospective franchisees will not initiate negotiations regarding the terms and conditions of their franchise agreement, thus increasing the bargaining position of the franchisor. It is often the case that a franchisor will accommodate reasonable requests for amendments, or special conditions to their standard form franchise agreement, particularly in smaller networks that are seeking to increase their numbers. Remember that often franchise agreements have few if any obligations imposed on a franchisor while having significant obligations imposed upon a franchisee.

SEEK ADVICE Before entering into a franchise agreement, it is important that you seek advice from your lawyer, accountant and business advisor. You should also get advice on insurance requirements from your broker as well as taxation advice on the most appropriate structure to use to acquire and operate the franchise.

MAR/APR 2015 | 56 | WWW.FRANCHISEBUSINESS.COM.AU

AF_FRXPRMAY13_RHP

2013-04-04T10:04:41+11:00

UNHEARD Of Flexibility and Semi-Passive Income Introducing Xpresso Delights 1, 2 or 3 day a Week Business Solution At Xpresso Delight we are in the BOOMING Workplace Coffee Business

We put Coffee Machines like this…

Into Workplaces like this FREE

Then, all week long your coffee machines automatically make professional cappuccinos and lattes at a fraction of café prices. Once a week you drop by and give them a clean and service, stock them up and invoice for a whole week of coffees. WOW, now that’s what you call real semi-passive income.

This is me running my business

And so is this…

So is this…

Now you have flexible time to do the important things you need to do but still have a business and only work 1, 2 or maybe 3 days a week. What a typical franchisee’s calendar may look like below... Monday School Function

Tuesday

Wednesday

Thursday

Catch up with Friends

Friday Go Shopping

Join the Xpresso Delight Team now and experience real Business Flexibility

HURRY Limited Offer: Your COFFEE Machines come with Locations ready for you to earn almost immediate income. www.xpressodelight.com.au FCA Magazine RHP.indd 1

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3/04/13 11:37 AM

FR0315_058

2015-03-02T11:30:49+11:00

What does

GOOD

FAITH mean?

t is often said that parties must “act in good faith” when they are doing business together. What is meant by this phrase, particularly when parties are about to enter or are already in a franchise relationship?

franchisor will want you to comply with various standards so that the franchisor’s brand is uniformly presented to the market. It is, therefore, not unusual that strict obligations are imposed on you whilst limiting your ability to freely undertake your own initiatives.

UPDATES TO THE FRANCHISING CODE OF CONDUCT The franchise agreement, the disclosure document and the mandatory Franchising Code of Conduct provide the perimeters of your relationship with the franchisor. Frequently, this relationship can be imbalanced in favour of the franchisor. As the owner of a particular business model, the

The recent updates to the Code have tried to redress this imbalance by compelling both parties to act in good faith when dealing with each other. As the new Code took effect from 1 January 2015, it is important that you are aware of this and the other amendments to it. Unfortunately, the new Code does not MAR/APR 2015 | 58 | WWW.FRANCHISEBUSINESS.COM.AU

provide a definition of good faith. The Code states that good faith takes on the same meaning as given to it under the Australian unwritten law. As this unwritten law continues to develop over time, it is impossible to provide you with a firm definition. As a guideline, the new Code sets out that both parties must act honestly and not arbitrarily and to cooperate to achieve the purposes of the franchise agreement. Acting oppressive, unfairly or unreasonable may result in a breach of the good faith obligation. What is good faith when it is applied in franchising? You should be mindful that the obligation exists during the entire franchise relationship from the negotiations to after the termination of the franchise relationship. The obligation to act

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BIANCA SEVASTOS Bianca is a partner at Baybridge Lawyers where she specialises in franchising and licensing. Bianca advises on all aspects of franchising industry compliance with the Code, day-to-day management of franchise systems and relationships with suppliers and franchisees.

in good faith does not, however, prevent the parties from acting in their own legitimate commercial interest. For example, there is no breach if the franchisor has reasonable grounds to deny an extension of the franchise agreement or issues a default notice for a true breach of the franchise agreement.

EXAMPLES OF BREACHES

CONSEQUENCES AND CONCLUSION

trivial breaches of franchisee obligations; (d) the franchisor undertaking commercial activities in the exclusive territory of the franchisee; (e) the franchisor preventing the franchisee from meeting its minimum performance criteria by refusing consent to open additional stores which are required to meet these criteria; (f) making unilateral changes to the franchise agreement.

The obligation to act in good faith should not be taken lightly as there may be significant consequences for the wrongdoer. The new Code entitles the Australian Competition & Consumer Commission to either issue infringement notices up to $8,500 or to request the Federal Court to award civil penalties up to $51,000.

It is important to emphasise that the Code also obliges franchisees to act in good faith when dealing with a franchisor. For example, franchisees are not allowed to publish untrue and negative statements about the franchisorâ&#x20AC;&#x2122;s business in social media.

Accordingly, it is important that the parties act in good faith throughout the entire franchise relationship. Although we have seen that it is difficult to define, it may serve as a reminder that parties to a franchise agreement must act in the interest of the relationship, whilst not forgetting their own commercial interests.

Some examples to consider may include: (a) default notices were issued without any reason to do so; (b) not assisting the franchisee where the franchise agreement obliges the franchisor to do so; (c) terminating the franchise agreement for

MAR/APR 2015 | 59 | WWW.FRANCHISEBUSINESS.COM.AU

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17/02/2015 4:39 pm

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17/02/2015 4:40 pm

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How to work with a

LAWYER JANE GARBER-ROSENZWEIG Jane is a partner at Gable Lawyers. The practice focuses on commercial law, franchising, distribution and licensing on a domestic and international basis, leasing, and the protection of intellectual property. Jane is also adjunct lecturer at the College of Law and a board member of Awards Victoria.

t can be daunting to deal with a lawyer but it is a vital step in purchasing a business. Check out these five tips to achieving a happy legal outcome.

When purchasing a franchised business, it is highly advisable to obtain advice from a franchise lawyer, as it is a decision that should not be made lightly and requires careful consideration. However, before you instruct your lawyer, you should remember the following five points:

1. ENGAGE A LAWYER WITH EXPERIENCE IN FRANCHISING If your lawyer does not have any franchising experience, then you will be inadvertently paying them to learn franchising. They may also miss some of the intricacies in relation to the franchising documents. MAR/APR 2015 | 62 | WWW.FRANCHISEBUSINESS.COM.AU

2. ENSURE YOU KNOW THE TOTAL LEGAL COSTS All lawyers are bound by the relevant State or Territoryâ&#x20AC;&#x2122;s disclosure rules for lawyers. This includes providing estimates of costs upfront prior to commencing to act for you. Many lawyers in the franchising industry will provide advice on a fixed fee basis, which makes it more transparent and easier to budget for.

3. DO YOUR OWN DUE DILIGENCE Research the franchise sector, the particular franchise system you are looking to buy and its competitors.

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If the franchise you are interested in is premises-based, ensure that you have researched the site to confirm that it is located in a prominent location with adequate foot traffic. Consult with an accountant in relation to all costs involved and listed in the franchise agreement and the lease, prepare a budget and draw up projections of profits and cash flow. Have a look at the legal documents yourself to see whether the duration of the franchise agreement corresponds with the duration of the lease. Speak with current and former franchisees, who will always be your best source of information about the franchisor and the franchise system.

4. CONSIDER YOUR PERSONAL CIRCUMSTANCES AND SET OF SKILLS Your lawyer will need to know your personal circumstances as the business you end up buying must be suitable for your personal circumstances and family

It is vital that your lawyer has all the information which is relevant to the purchase of the franchised business commitments. It's possible that your set of skills may not be suitable for the industry or a business that you have chosen or you may be required to undertake further training and obtain further qualifications.

5. BE PREPARED Unless your lawyer works on fixed fee bases, you need ensure that you: Provide your lawyer with all the relevant documents in a timely fashion Make a list of questions that you want answered in addition to the general advice

MAR/APR 2015 | 63 | WWW.FRANCHISEBUSINESS.COM.AU

to be provided in relation to the franchising documents. Refrain from calling and / or emailing your lawyer excessively as it may be reflected in your bill. The main thing to remember is that communication is one of the key aspects to a successful working relationship between you and your lawyer. It is vital that your lawyer has all the information which is relevant to the purchase of the franchised business you have chosen. Lastly, ensure that you carefully consider the legal advice and take it on board.

FR0315_064

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WHAT

TURNOVER

WILL YOUR BUSINESS

ACHIEVE? PETER BUCKINGHAM Peter is managing director of demographic and location analysis fi rm Spectrum Analysis. He has wide experience in management, market research and projects as an experienced consultant to the retail and franchise industry.

hat is our new store likely to sell? This should be the biggest question asked in selecting and opening a new business. You are thinking of opening a new business so how do you estimate what your revenue is likely to be? Whether it is a large franchised brand, an ice cream or yoghurt store, a big box bulky good retail franchise or any other store business, the same basic questions need to be addressed.

MAR/APR 2015 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

FR0914_000_DODO

2014-08-29T13:36:43+10:00

Dodo Connect is on a nationwide search for franchise partners Help us grow the hundreds of thousands of existing Dodo customers already enjoying our great value products and services.

Be a part of Dodo Connect’s retail expansion to 150 major locations in Australia

Represent Dodo’s huge range of great value home services including telecommunications, energy and insurance

Enjoy the beneﬁts of our simple business format with low-cost entry

Reap the rewards of your sales success through the opportunity of earning uncapped income

Join the flock!

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MOBILE

03 9923 3514

MOBILE BROADBAND

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INSURANCE

dodo.com/franchise

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GAS

franchise@dodo.com

FR0315_066

2015-03-03T18:25:06+11:00

How do you realistically estimate the sales dollars your new business will achieve? In many cases, you are joining an established franchise chain, and the franchisor will offer to provide some information such as the demographics of the area, and maybe a listing of phone numbers of other franchisees for you to talk to. The final word from the franchisor is along the lines of “Do your own due diligence, as I cannot say what sales revenues you will generate”, (and you will probably be asked to sign a document confirming this).

FORECAST P & L In most businesses you think in terms of forecast profit, and you are relying on this to live, pay back your debts and secure your future. The simplest way (in my view) of looking at a forecast P&L is as follows: SALES REVENUES (VERY HARD TO PREDICT) Less ✱ Cost of goods sold (factor of sales revenue)

✱ Rent – fairly predictable cost ✱ Wages – fairly predictable cost (with some variable component) ✱ Other (power, phone, all fairly small) = PROFIT/LOSS While most of the costs are fairly predictable, and the cost of goods sold is a factor of the total revenue, the sales revenue is the most unpredictable factor in a simple forecast P & L. If any of the other factors are out by a small percentage, there is a relatively small effect on the profit (up or down). If the sales revenue is out by a fair percentage, say up or down by 50 percent, then the effect on the bottom line is either fantastic or catastrophic. So how do we do a good estimate of future sales? That’s the $64,000 question.

RESEARCH – THE ANALOGUE APPROACH The simplest way to guesstimate sales is what I call the analogue approach. This means think of your future store or

business, and look for similar stores or businesses in similar situations. Try and find out what their sales revenues are, and use that as the basis for forecasting your own. In a café, consider asking how many kilos of coffee are used a week if talking actual dollars is a bit too sensitive. If you are joining a franchise chain with a site in a food court of a shopping centre, and the franchisor has 10 other stores in similar situations find out how these outlets are performing. Shopping centres are normally measured with a few main factors: ✱ Gross leasable area retail (GLAR) – or how many square metres is the centre? ✱ Moving annual turnover (MAT) – total dollars transacted in a 12 month period. ✱ Seats in the food court ✱ Number of cinema screens And then quite a few other factors. This information is available from shopping centre directories which are available through the Property Council of Australia, and most large franchisors

Are you looking to set up a franchise network? Reaching your franchise goals has never been easier. “As a company we were looking for a well respected firm with strong ties to franchising. Baybridge actively support our company’s growth through their proven franchise systems and legal advice.” Chris Marvis, General Manager. SOUL ORIGIN.

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* Contact us today for a free meeting.

02 9232 3511

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info@baybridge.com.au MAR/APR 2015 | 66 | WWW.FRANCHISEBUSINESS.COM.AU

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should have this information. You might for example be going into a shopping centre of 60,000 sq m (GLAR), which has a MAT of $250M, 500 seats in the food court, and no theatre screens. Normally you will not find exactly the same analogue, but you can look for say two variables that are similar to the shopping centre you are considering, and I would suggest using GLAR and MAT. In shopping centre terms, centres are grouped using the Property Council definitions by their GLAR as follows, and these are a good start to compare apples to apples: ✱ Super regional centres: 85,000 + sq m ✱ Major regional centres: 50,000 – 85,000 sq m ✱ Regional: 30,000 – 50,000 sq m ✱ Sub regional: 10,000 – 30,000 sq m ✱ Neighbourhood: < 10,000 sq m If you are going into a regional shopping centre, don’t compare sales you would expect to those achieved in outlets in super regional centre. If there is a network of stores, you can learn from their sales

The sales revenue is the most unpredictable factor in a simple forecast P & L

history. The franchisor should have store sales, and be able to bring together other information to explain why the good stores are top performers... and why the poor stores are below par. In some cases it may be the franchisee, however in other cases, Superman could not run it at a profit!

MORE STATISTICAL METHODS As a potential franchisee you may have reached your practical limit with the logic above. However the franchisor can provide more in-depth information. Regression modelling is a proven statisti-

cal technique that looks at which individual factors contribute positively or negatively to a store’s performance. Once the strongest individual factors are identified, these can be combined by statistically trained people to create a prediction model. As an example: in a coffee shop chain in shopping strips, the franchisor may have concluded from statistical modelling that the main positive and negative variables for sales are: ✱ Number of households within 3 km radius is a positive. ✱ Higher household income is a positive

for the retail and franchise industry 07 3352 6972 | 18 Hayward Street, Stafford QLD MAR/APR 2015 | 67 | WWW.FRANCHISEBUSINESS.COM.AU

FR0315_068

2015-03-03T16:01:52+11:00

Predicted Sales

Underperformers

If there is a network of stores, you can learn from their sales history

Star Performers

Actual Sales ✱ Size of the shop is a positive ✱ Number of seats inside is a positive ✱ Number of outside seats is a positive ✱ Number of retail shops in the strip is a positive ✱ Number of Coles or Woolworths supermarkets in the strip is positive ✱ Section in strip – busiest, middle, quietest section - rated (3,2,1) is positive ✱ More coffee shops in the shopping strip is a negative If we only have a small number of stores to work with – say 15 stores in the network, we can really only create a check chart. If there is a large network of more than 50 stores, we now may have a multiple regression model which may look something like: Monthly Sales $ = 3.55 X number of households within 2 km + 1.28 X average household income within 3 km + 256 X sq m of store + 200 X number of seats inside + 150 X number of seats outside + 25 X number of shops in the strip + 2,567 X number of Coles and Woolworth outlets + 5,400 X rating of section of strip - 3,233 X number of other coffee shops in the strip [note this is an example only and not tested] This will deliver a dollar prediction, and this is tested by looking at each individual store,

Source: Spectrum Analysis

and how closely the sales predictions are to the actual sales. The closer they come to the diagonal line, the better the prediction model. As a potential franchisee, it is comforting to know your franchisor uses some statistical process before it approves the site you are placing your capital in. While they may not be prepared to show you their internal workings and calculations, confidence in the process they use should help in making good decisions for both parties.

SUMMARY Your sales estimate is the number you will be building your business plans around, and the better the logic and the process that generates this, the higher the chances of your business meeting your expectations. As a franchisee you cannot access all the resources your franchisor has, but you can use an analogue process to at least give yourself some logic in what sales revenues you should generate in your new business venture. Having confidence in your franchisor that they have a proper site selection process is essential as it is your money that is being spent. If the site is a dud, it is your money that will be lost, and unless you are prepared to run a very costly legal battle with your franchisor, there is very little comeback. Good luck with your new business.

MAR/APR 2015 | 68 | WWW.FRANCHISEBUSINESS.COM.AU

FR0315_000_JUS_r

2015-02-20T16:24:20+11:00

IN - H O M E, S OCI AL & LI FES TYLE S UPPORT

Are you ready to own a dynamic business providing services in a high growth industry that revolves around rewarding work? Just Better Care is one of Australiaâ&#x20AC;&#x2122;s largest franchised in-home, social and lifestyle support providers with 31 franchise territories located around the country and now recognised as a provider of choice with the Federal Government after our successful application for Aged Care Package funding. We are now looking to build on this success and expand our franchise network with opportunities currently available in NSW, QLD, TAS, VIC and SA. We are seeking dedicated people with a passion for business and a desire to provide the very best in-home, social and lifestyle support services to our aged, disability, hospital to home, respite, basic and complex care customers and to the community at large.

Visit our website to learn more about franchising with Just Better Care and view a list of sites current available at: www.justbettercare.com/franchise-me

or contact Paul Stearn, our Franchise Manager, on: (02) 9934 9929

Untitled-49 1

19/02/2015 11:36 am

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he organisers of the Sydney Franchising & Business Opportunities Expo promise it will be more vibrant and exciting than ever, with the return of the Malaysian Pavilion, plus a host of new exhibitors.

The Sydney expo is the first of three shows to be held in 2015. “This expo and the ones to follow in Brisbane and Melbourne, are must-see

events for advice, inspiration and information about the latest life-changing franchising opportunities,” says exhibition manager Fiona Stacey.

the world stage,” she says. “I can’t think of a better endorsement for the Franchising Expo than the fact that international companies are eager to be involved.”

Stacey adds that a highlight of the Sydney show will be the Malaysian Pavilion; showcasing industries including hairstyling, health food, greeting cards, wedding accessories and Malaysian cuisine.

Visitors keen on joining the hospitality industry will have a wide range of businesses to investigate, including The Coffee Emporium, Xpresso Café, La Porchetta, Nutrition Station, The Coffee Club and Zambrero (read the interview with founder Dr Sam Prince on p111)

Other international opportunities include Dream Doors from New Zealand, The Kase from Singapore, Tutor Doctor from the US and Caffe Bene from South Korea. “This really brings the Sydney show onto MAR/APR 2015 | 70 | WWW.FRANCHISEBUSINESS.COM.AU

The beauty and wellbeing sector will also be well represented at this year’s show. New and returning exhibitors include Ella

FR0315_071

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STEPPING UP to a

NEW LIFE

Baché and Endota Spa, offering exciting opportunities in these growth industries. Ella Baché’s CEO Pippa Hallas will be one of the speakers at the expo seminars. She will be joined by an impressive lineup of industry players including John O’Brien from Poolwerx, Sara Pantaleo from La Porchetta, and Jason Zickerman, past president of the International Franchise Association. “The free seminars are always a popular feature of the expo,” says Fiona Stacey. “It’s a good idea to check the seminar program on our website before you attend, to make sure you’re in time to hear from any

speakers who particularly interest you.” Stacey adds that the brands on show from varied industries will provide the opportunity to compare and research a diverse range of franchise opportunities, with investment levels from under $10,000 to more than $500,000. “Some visitors come with specific businesses in mind, while others are open to new ideas, in industries they had never previously considered,” says Stacey. “That’s the magic of the expo, you never know quite what you’ll find!” The expo is on daily from 10am to 5pm MAR/APR 2015 | 71 | WWW.FRANCHISEBUSINESS.COM.AU

Friday 27 March to Sunday 29 March 2015 at the Royal Hall of Industries at Moore Park. You can pre-register at franchisingexpo. com.au for a discounted entry fee. Who’s going to be there? Check out some of the exhibitors here. We asked them to highlight their industry and brand in their own words.

APPLIANCE TAGGING SERVICES The workplace health and safety (WHS) sector is amongst the highest growth sectors of business to business services in Australia. Appliance Tagging Services

FR0315_072

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EXPRESS BUSINESS GROUP

electrical safety and fire protection services are governed by both WHS legislation and Australian Standards. Sarah Allen, general manager, says "Our proprietary systems and testing technology enable ATS franchisees to provide the most comprehensive and efficient testing service in Australia. A significant level of national contract work servicing major networks is offered to our franchisees. "A highly user friendly online portal is available for ATS clients and franchisees. Scheduling, invoicing and data management support is provided to franchisees with one-on-one, field sales support for franchisees and territories over 10 times larger than many other test and tag franchise systems. ATS franchisees Megan and Ken Black from Canberra say that the administration support provided by ATS was a major factor that attracted them to the system. â&#x20AC;&#x153;Being new to business we were looking for the support of a franchise system. With the professional team at ATS head office managing client reporting and billing, as well as national tendering for the franchise network, we can focus on providing the very best face-to-face experience in our community. "We believe that is what will set us apart from our competition.â&#x20AC;?

The turnkey cost is $47,000 + GST. In addition, a franchisee needs to purchase a suitable vehicle which normally costs from $18,000 to $35,000 + GST.

AUSTRALIAN WEALTH AND SERVICES MANAGEMENT Australia has a sophisticated financial services sector, but is currently dominated by banks and large institutions who essentially sell their products to clients rather than be a clients trusted adviser. Investing in an industry and business that provides solutions to clients is a good business decision as large corporations cannot compete, there is continuous demand despite the economic cycle stage, and there is a strong opportunity to grow. We offer a true turnkey solution to our licenses, starting from business setup to on the job mentoring and finally even processing of transactions. In between these steps, there are various activities that take place and we assist our licenses in all activities. The AWSM management and processing team is available 24/7. The turnkey cost is $75,000.

CHOICE HOME LOANS Mortgage broking is a low entry cost sector that provides the opportunity for business MAR/APR 2015 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

owners to tailor their work around family and lifestyle, as opposed to being chained to standard business hours. It is also an industry with high growth potential, with latest research showing that 51 percent of Australian home loans now going through mortgage brokers. The majority of consumers are expected to source their loan from a broker rather than a bank branch by 2025, according to forecasts from National Australia Bank. Choice Home Loans delivers competitive commissions and more dedicated, personalised support for broker businesses through our team of practice management specialists. We are also a uniquely flexible franchise in that business owners are able to start a franchise in whatever location they wish, without being subject to zoning restrictions from existing members. In addition, we donâ&#x20AC;&#x2122;t have any strict requirements on franchisees in terms of the way they present their office or market their business. Our upfront franchise fee is $15,000, which includes an induction course, our industry-certified mentoring program for new brokers and several other essentials for new starters. Costs can also be tailored to the experience level of a broker when they start with us. Additional costs may apply if the franchisee wants a dedicated Choice Home Loans shopfront.

FR0315_000_MAR

2015-02-26T09:02:53+11:00

FRANCHISE SPECIALIST ROBERT TOTH has moved! The new Franchise Code has commenced 1st January 2015 “What you need to know and do” Email Robert for a complimentary guide for Franchisors.

Well recognised and published franchise specialist with over 30 years industry knowledge, Robert now heads the Franchise Group at Marsh & Maher Lawyers. We can update your franchise suite of documents for 2015 compliance for a fixed fee. Providing advice to: 1. International Franchisors 2. Master Franchising 3. Dispute Resolutions - solutions and strategies 4. Franchisee Advice - Fixed Fee Reports 5. Sale / Purchase Franchise systems 6. IP / Trademark Advice 7. Company Structure & Tax Advice 8. Network of Franchise Consultants We offer fixed fees based on scope of work for our clients. Contact Robert Toth: p: 03 9604 9400 | m: 0412 673 757 e: rxt@marshmaher.com.au | www.marshmaher.com.au

FR0315_074

2015-03-03T14:41:27+11:00

LUXAFLEX

Some visitors come with specific businesses in mind, while others are open to new ideas, in industries they had never previously considered

ELLA BACHE The growing stability in global markets, emphasis on health care and the increasing perception of beauty therapy as a necessity is expected to boost the the $4bn beauty sector in Australia over the coming years.

Our franchise prices start from just $5,950 + GST and majority of our services cost less than $10,000.

KASE

As a family owned and operated franchise Ella Bache imbues a unique culture. Franchisees are empowered to strive and achieve and have a contagious passion for the brand.

The smartphone and tablet accessory market is the fastest growing market around the world with 800 million smartphones sold in 2014 and an estimated 1.6 billion sold in 2016. The Kase has opened 140 company owned stores in five countries in 15 months and is offering a franchise opportunity in every country. The Kase is operated by the founders of the fastest growing e-commerce etail company in Europe between 2002 and 2012; “Pixmania.com” reaching €900m revenue in 26 countries.

Costs vary but an average salon in a strong foot traffic area will require a $250,000 investment.

Innovation, fashion and uniqueness are the cornerstones of the concept.

EXPRESS BUSINESS GROUP

Total investment starts at US$120,000 per store of 40m2 to 60m2.

Ella Bache has for 60 years shown that a commitment to innovation and education are the keys to success. New products are developed through a dedicated research and development department.

We offer an enormous range of services from home and office cleaning to property maintenance, lawn mowing to bookkeeping. We have over 28 divisions across home, maintenance, wellness and professional services industries. Unlike other franchises which may cost anywhere between $20,000 and $85,000+, Express Business Group franchises start from just $5,950 + GST. We offer all inclusive packages where we provide all training, equipment, marketing material and ongoing support. We do not charge a lead fee to our franchisees and we have a team of master franchisors who give ongoing support to every franchisee.

LA PORCHETTA The restaurant industry in Australia is dynamic and growing. It’s currently valued at $11.4bn with a 5.5 percent annual growth rate (IBIS World June 2014). Consumers have ever-busier lifestyles, with longer work hours and less downtime. Restaurants provide a meal solution, allowing them to combine mealtimes with leisure, without needing to prepare food and clean up. La Porchetta is an iconic and much loved brand having looked after our customers for over 30 years. The successful and sustained growth is the

MAR/APR 2015 | 74 | WWW.FRANCHISEBUSINESS.COM.AU

FR0315_000_ZOO

2015-02-18T10:24:56+11:00

ULTIMATE MUSIC SOLUTIONS Customised For Your Franchise.

Join thousands of Australian businesses using Zoo Business Media audio visual marketing solutions and watch your business grow. Zoo Business Media is Australiaâ&#x20AC;&#x2122;s leading supplier of music, video and voice messaging solutions, to the hospitality, retail, fitness and general business sectors. We creatively deliver the right first impression to your customers via professional on-hold messaging, customised in-store radio, the latest in branded digital music video technology and lightning fast voiceover production. Call the friendly team at Zoo Business Media today and find out how we can make your business sound great.

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THE ZOO BUSINESS MEDIA GROUP

FR0315_076

2015-03-03T14:41:27+11:00

result of distinctive branding and effective marketing, combined with a commitment to the highest standards in training, service, food quality and menus, all backed by highly developed business systems.

PACK & SEND

We consult on an ongoing basis with our franchisees and seek their feedback. They regularly come back to use with comments like, “the network is very strong, approachable and family orientated. With the regular meetings and conferences throughout the year there are many opportunities to interact, engage and be inspired.” The all-inclusive cost of a new La Porchetta franchise starts from $600,000. This includes restaurant fit-out, equipment, training fees and all other fees and charges.

LUXAFLEX

advertising and public relations program.

NEW YORK SLICE

Why invest in this sector? There are more than eight million households in Australia – think how many window furnishings that amounts to!

Jonathan Pretty, Luxaflex Window Fashions Gallery licensee at Shades of Pittwater, says “I think some franchise businesses promise you the world, help you set up and then you never see them again. It’s just not like that at Luxaflex. There is ongoing support, a fantastic range of product, and I genuinely believe they do everything they can to help you. And when people are doing everything they can, you can’t really ask for any more, can you?"

Although the Australian Pizza market is worth $4bn annually, the major pizza franchisors have less than one third market share. This leaves over two thirds of the national pizza market available - yet this is comprised of mostly single store operators with little leverage in terms of buying power or economies of scale. With annual growth of three percent, people still clearly want to eat pizza and it also demonstrates that there is room for new participants with new concepts and franchise models.

Hunter Douglas which owns the brand offers an unrivalled partnership to meet specific commercial needs, under our Luxaflex Window Fashions Gallery and Luxaflex Window Fashions Showcase Alliance programs. In fact, Luxaflex is the only national brand offering a wholesaling business licensee model. Being part of our programs not only mean access to exclusive and innovative products but also exclusive promotions. There is also the benefit of the ongoing

The Luxaflex Gallery program ranges from $120,000 to $150,000+ for the retail showroom fitout including a complete set of sampling. Additional costs vary subject to the requirements and condition of the location the store.

MAR/APR 2015 | 76 | WWW.FRANCHISEBUSINESS.COM.AU

In contrast to the major pizza franchises that are 90 percent delivery based and 10 percent walk in – New York Slice is 90 percent walk in (served in 90 seconds) and 10 percent delivery. We have developed a central

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production kitchen that simply distributes our par-baked stock to the stores on a just in time basis. As a result, this preserves margins and frees up the franchisee to focus on local store marketing and growing local relationships for the brand. New York Slice has dominated the inner city Brisbane pizza market over the last 12 years and now has five company stores to franchise. Our smallest footprint is $250,000 and our largest is $500,000.

PACK & SEND Globalisation and digital technology have reshaped the way both businesses and individuals buy and send things, resulting in an ever increasing demand for sending goods throughout the world. Travel is becoming more frequent and affordable with the movement of people increasing the demand for convenient consumer freight solutions such as excess baggage. IBISWorld predicts the revenue from online shopping to be $8.13 bn in 2017-18, an increase of 22.8 percent in

five years (IBISWorld October 2012). There are many things that set us apart at Pack & Send – but none more important than giving customers the power of more choice. No other company offers such a wide selection of transport and packaging solutions – together with a choice to book services through either a retail service centre, phone or online. According to Sydney based Tony Stamboulie, Pack & Send’s 2013 Franchisee of the Year, his journey has been “one amazing year after the other.” Tony says that the best thing about Pack & Send is that it can offer “an unlimited amount of service”. Turnkey cost is $160,000 to $170,000 plus working capital.

POOLWERX The service sector is thriving and has changed considerably in the past 10 years, evolving into a multifaceted one utilising multiple sales channels and markets. No longer are franchisees restricted to a purely service based business model,

Great lifestyle Great income Great fun! Partnered exclusively with Di Bella Coffee – we bring the ultimate coffee experience to businesses around Australia every day! At the cutting edge of the coffee industry Xpresso Mobile Café offers franchisees innovative products, a new Mercedes Benz van and a high level of support and training, virtually guaranteeing a solid return on investment and a great income.

Xpresso Mobile Café is on the hunt for energetic people who share our passion for speciality coffee. Enquire TODAY on 1300 655 559 or xpresso.com.au MAR/APR 2015 | 77 | WWW.FRANCHISEBUSINESS.COM.AU

instead they are enjoying success through a combination of service, retail, commercial and e-commerce elements and it is paving the way for franchisees to be build big businesses. One of the key differences is our focus on growth opportunities for franchise partners (as we like to call them). Poolwerx offers a four–step career path providing solid opportunity to grow both the size and earning potential of the business. A franchise partner can start with a single mobile service van and work their way up to a multi-million dollar business encompassing numerous retail stores and service vehicles. Poolwerx also negates any seasonality that might be associated with the pool service industry by working within the commercial sector. On average, more than 30 percent of a franchise partner’s income is generated through this market. We do not take franchisee satisfaction for granted, so every year we conduct external research to determine if we are doing the right thing by our partners. We

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have been listed in Australia’s top 10 franchises for franchisee satisfaction for the past five years, covering categories of support, marketing, passion, lifestyle, brand, opportunities for expansion and financial success, as rated on topfranchise.com.au The first level is a single mobile service franchise that starts from $90,800 + GST.

SCOPEIT We are in the IT education sector that caters to children and teaching them the language of computer programming and coding. We know that all children today will need a fundamental understanding of IT and technology in their future and instead of having them consuming apps and games as they grow, let’s teach them how to make and build them. The need for our children to know technology will only increase in the future and the professional development, time and hardware requirements for schools to do this themselves is prohibitive. There is no other provider who is offering comprehensive course work that marries with current Department of Education curriculum outcomes. There is no other provider that can potentially teach a whole school in one day each week for a whole term and have the children developing computer programming skills year on year. We believe we will be the unrivalled benchmark in this sector for the foreseeable future. Our franchises range from $25,000 to $75,000 depending on the territory. The fee includes all course syllabus’, all hardware and software requirements to conduct classes, marketing, full IT, teacher and business training and ongoing training and business support.

SNAP-ON TOOLS Snap-on provides mechanics, engineers and technicians with a high quality range of products and services. Snap-on offers more than 19,000 products to customers, including tooling, tool storage, software, shop equipment and other solutions for vehicle dealerships and repair centres. The global business invests $50 million in R&D, has more than 19,000 products in the range, works with more than 4,500 franchisees worldwide and offers a finance program. Rod Brown, franchisee, says “It’s been fantastic. I should have done it earlier; I love the product and I’m passionate about it.

That’s what got me over the line.” Investment is from $37,000 to $304,000.

TUTOR DOCTOR With more demand than ever in the private tutoring industry, supply is finding it difficult to keep up. There are many factors driving this growth including busier family schedules, an increase in children diagnosed with learning difficulties, and larger classroom sizes resulting in less one-on-one learning. Private tuition is in the top 15 expenditure items for Australian families which shows parents place a high importance on education for their kids. So much so that in 2014 parents spent an average of $800 a month on home tutoring, an increase of $600 a month in just two years. Tutor Doctor provides franchisees with a multifaceted lead generation system as well as online marketing services that provide service inquiries from parents and students alike within their local area. Due to the hyperlocal nature of the business, our services are targeted to this and enable our franchisees to build a targeted localised online presence. Our centralised management system aids in ongoing coordination and management of tutors as well as client management. This system, called the “Big Apple”, has been designed to simplify the business and drive profits. The turnkey cost starts from $64,700.

XPRESSO COFFEE Australia’s multi-billion dollar love affair with espresso coffee shows no sign of slowing. The only difference is the move towards quality coffee. Australians are increasingly becoming knowledgeable about espresso coffee and now have very high expectations. That said, it’s incredible how many businesses still get it wrong. We use premium specialty coffee - Di Bella Coffee - sourced directly from farmers through the Crop to Cup direct trade green bean buying programme. The program enables us to make significant contributions to coffee farming communities through emp loyment, healthcare and education. To continue the theme of ethical business, we only use biodegradable BioCups which help to offset carbon emissions. We encourage our franchisees to make wholesale food arrangements with their local suppliers so that they make a better margin on food items sold rather than the franchisor! The turnkey cost is $119,500 + GST.

MAR/APR 2015 | 78 | WWW.FRANCHISEBUSINESS.COM.AU

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United Franchise Group are proud to announce our newest brand, Transworld Business Advisors With more than 300 Transworld Business Brokers worldwide, we are preparing to transform the Australian market The Transworld Business Advisor Model • High proﬁts • Low monthly overhead • Low start-up cost • No inventory to buy • Comprehensive training • Ongoing support • Operate from a virtual or executive ofﬁce suite

As a Transworld franchisee, you will receive:

Streams of Income

Business Brokerage Franchise Consulting Franchise Development

• Two weeks initial training (including time in our world headquarters in the US) • Transportation, lodging and lunch during training • Turnkey business • Initial supply of marketing materials • Marketing and ongoing support • Access to proprietary software and brokerage support

http://fd.tworldba.com.au Call 02 8878 0411

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CHOOK FEST

MAR/APR 2015 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

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o you want to run a chicken shop. Here is our guide to what you need to know about the market conditions, consumer trends and regulations.

CONSUMER TRENDS Chicken is considered the most popular meat in Australia, on a soaring trajectory from 1992 to 2012 according to Australian Bureau of Agricultural Resource Economics and Sciences 2013 (ABARES). Most of us consume it weekly, and a third of us are eating chicken at least three times a week, reports the Australian Chicken Meat Federation. That’s 42.3 kilograms of chicken meat in a year. And we have an appetite for more chook on our plate, with ABARES predicting we will digest a further four to five kilos annually by 2017-18. There’s a cost advantage to chicken that appeals to consumers but on top of value for money, cultural and demographic influences come into play. According to Food magazine the popularity of chicken for dietary reasons is boosted with the continued migration of Asian cultures, which favour the meat. The king of the poultry run remains the second most popular fast food, after burgers, according to a report by IbisWorld. Chicken accounts for almost 20 percent (19.7 percent) of the fast food market. Burgers are leading the charge with 26.5 percent and pizzas pull up third, slicing a 16.6 percent share. However, chicken businesses have faced challenges as the landscape for takeaway meals changes. IBISWorld senior industry analyst Stephen Gargano says “Takeaway chicken shops have faced significant competition over the past five years due to the changing face of fast food. Fast food providers have shifted their offering away from traditional, unhealthy fried foods towards healthier, restaurant-style food. In order to maintain demand, operators have shifted their menus to provide a range of higher-quality, gourmet options. “As a result, chicken-based fast food has risen slightly as a share of industry revenue over the past five years. Operators have also sought to introduce a range of healthier options in order to maintain clientele that would otherwise move towards healthier fast food providers. Given the underlying healthy nature of chicken, many operators have introduced grilled chicken products in an effort to benefit from demand for healthy food.” MAR/APR 2015 | 81 | WWW.FRANCHISEBUSINESS.COM.AU

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Rewarding franchise opportunities now available

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Strength in brands RFG’s long term philosophy of ‘strength in brands’ is our point of diﬀerence – our franchisees enjoy the benefits of working with Australia’s largest multi-food franchisor every day, dealing with expert management teams, enjoying supply benefits from increased scale and gaining access to best in class initiatives. Retail Food Group (RFG) is one of Australia’s leading retail food franchise operators with 11 franchise systems boasting in excess of 2,400 outlets across more than 40 countries. RFG’s franchise systems are some of the most successful in Australia, oﬀering high quality products, innovative store designs and exceptional customer service. With several market leaders under our stewardship, our major franchise systems are well known household names.

We believe buying a franchise is about going into business for yourself, not by yourself, which is why we have extensive hands on training, innovative marketing initiatives and ongoing dedicated business operations support to our Franchisees for the life of their business. Our proven business models and support systems have been perfected over 25 years of operation, and we’ve built an experienced and highly skilled support network to ensure the success of our franchisees. If you’ve been thinking about becoming your own boss and want the support, stability and strength that comes with a franchise call our friendly Sales and Leasing Team today.

Start your journey with Retail Food Group by visiting www.rfg.com.au or call 1800 067 619

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STEPS TO SUCCESS 1. A multiskilled and flexible workforce 2. The framework, market exposure and brand awareness provided through a franchise model. 3. Good stock control systems 4. Easy access for clients 5. A high volume of passing traffic 6. The capacity to refine goods and services to suit the market conditions Source: IbisWorld

KFC has just launched a gourmet offer appealing to the urban consumer as Nikki Lawson, chief marketing and development officer for KFC Australia, explains. “Our existing KFC menu is designed to appeal to every Australian. However, in some locations such as our Church Street store [Parramatta], where the customer base is predominantly working adult Australians, we wanted to trial a smaller menu more targeted to their needs."

1 -A NEW MENU IS UNVEILED AT KFC 2- THE NEW KFC STORE

The menu includes ingredients like jalapenos and quinoa to appeal to a more sophisticated palate, while keeping the core KFC flavours. “We cook our chicken fresh in-store and that requires large kitchens and large pieces of land for each of our stores. We’ve found that our stand-alone drive through stores are big and successful and with over 600 in Australia, we are well penetrated in suburban areas. “However where we are not well penetrated is in urban, city areas. This is simply because the size of the actual shopfronts are usually too small for us to build a whole kitchen in. So we’ve been looking for a model that can work in these kinds of urban locations. “So what we’ve done is actually slimmed down the menu, keeping our core favourites, while adding other premium ingredients to create a menu that is attractive to adults working in urban areas, while giving us the ability to actually cook in these smaller store fronts." This is the first store of its kind for KFC Australia. The business will evaluate opening other stores and what those store models will be down the track.

Red Rooster has adjusted its offer to suit the more health-conscious consumer, indicates Anna Jones, marketing manager. "Roast chicken has been at the core of our menu since our founding over 40 years ago. In order to meet the increased demand from the health conscious shopper, as well as selling whole roast chicken dinners, we've also expanded our range of rolls and wraps with our stripped down roast chicken.

we are proud to have taken some industry leading steps forward by proactively removing all artificial colours, flavourings and added MSG from our kitchen made menu. It's all part of our real food commitment to our customers," she says.

And it isn't just about the cooking method.

Former Bakers Delight general manager Chris Caldwell has launched in Melbourne the Love Pollo franchise. Aiming squarely for the discerning consumer looking for more than the standard roast chook sourced from a supermarket or neighbourhood chicken shop, Love Pollo serves up free range and gluten free options, with gluten free burgers and wraps soon to join the menu.

"It has always been important to us to provide food that consumers can trust and

“Free range is absolutely essential,” Caldwell says. “Ninety percent of our customers

"This gives our consumers lunchtime options made from freshly roasted chicken that is non-processed and most importantly, not fried."

MAR/APR 2015 | 84 | WWW.FRANCHISEBUSINESS.COM.AU

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/thecheesecakeshop

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1 - SALAD IS PART OF THE LOVE POLLO OFFER 2- A ROAST IS AT THE CORE OF RED ROOSTER'S OFFER

either know we are free range, or ask.” Chatting to customers in-store reveals many are keen chicken consumers but have not found a regular favourite store. “A lot of our regular customers when we talk to them say they have a repertoire of different places, they shop around. But when they go to the supermarket they don’t know how long the chicken has been there, or where it has come from. In individual outlets, they can’t be sure their meal is free range or gluten free.”

LAW AND ORDER Good news: the level of regulation within the industry is fairly low, with the Competition and Consumer Act 2010 the overarching bill governing the fast food sector. A trend for deregulation of opening hours is feeding the demand for 24 hour retailing. What any fast food franchisee needs is a food business licence, often issued by local councils. Where food retailers can be challenged is in adhering to the correct food safety standards (these are set out by Food Standards Australia and New Zealand). Issues to consider include food poisoning, staff hygiene, storing food, cross-contamination, displaying and serving food. Caldwell believes its essential that fast food outlets are following stringent policies, ensuring their whole team follows the standards. "This is chicken, there are no shortcuts," he says.

A franchisor can help you deal with the demands of managing these legal requirements through training and by providing regular updates on changes to law and occupational health and safety guidelines. “It’s a franchisor’s responsibility to provide training and re-training. We will continue to upskill to ensure our teams are best in class.”

WHO’S WHO IN THE CHICKEN RUN? Gargano says the market for takeaway chicken in highly concentrated, with the largest four players accounting for more than 80 percent of industry revenue. Top brands are KFC,Red Rooster, Oporto, Chicken Treat and Nandos. He indicates the remaining operators in the industry are smaller in scale, with many operators owning a single store. “Despite the high level of concentration, there remain opportunities in the industry for new entrants. "Established operators are largely associated with traditional, unhealthy fast food. New entrants providing premium, healthy options are able to enter the industry and capture market share from existing chicken shops and other fast food providers. “Premium providers are also able to be successful with less healthy products, provided that the food is high in quality and captures the interest of consumers. Essentially, consumers are willing to forgive unhealthy food if the quality is high,” says Gargano.

MAR/APR 2015 | 86 | WWW.FRANCHISEBUSINESS.COM.AU

FR0714_000_SNO

2014-06-26T14:11:50+10:00

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We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: • Marketing and Promotional Support • Product Development and Buying Power • Proven operating system that includes comprehensive product and sales training • Business Management support from our on the ground field team • Assistance in site selection and property negotiations • Business finance available to approved applicants

For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169

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hould you invest in the gym business? Sarah Stowe finds out there is more to the shape of the sector than just statistics.

The last few years have seen strong growth in the fitness arena, focused on the spread of gym franchises. Customers can now choose from full-service gyms, budget-conscious centres, gyms offering all-hours access, contract-free membership, womenonly venues, and gyms based in schools. The options available now when it comes to picking up the heart rate or toning flab are extensive. It’s all good news for the customer, but what about you as an investor? Health consciousness is fundamental to the continuing growth of the gym sector. More than 60 percent of the Australian population is considered overweight. That’s the view of the authors of IbisWorld’s Gyms and Fitness Centres in Australia, July 2014 report. The Biggest Loser and comparable tv reality shows have helped drive home the health message, while government has instigated school and workplace initiatives. So is the big boom over? What has happened in the last five years with the introduction of the 24 hour, budget-focused model has been an explosion of gym members from previously untapped consumer markets: the time poor, and the cash-constrained. Now this market is almost completely catered for, and while there will continue to be growth, it will be at a more subduel level, suggests the IbisWorld report. The gym sector is a mature industry and the trend towards budget gym memberships, allowing customers greater flexibility over payments, is holding back revenue growth. However, an increasingly obese, and ageing, population will help stem the tide of declining revenues. The mature market has both disposable income and a preference for impact-free, leisure-based fitness programs, and this may energise the fullservice gyms. There are “no innovative gym structures on the horizon,” the authors indicate, and the result will be reduced membership across the industry over the next five years with gyms competing with each other for member growth. MAR/APR 2015 | 90 | WWW.FRANCHISEBUSINESS.COM.AU

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The most recent innovations have been training programs such as high intensity martial arts training and the US success, CrossFit. So how will you make money as a gym owner? The main source of income is membership fees – for the 24 hour model without extra services, it can be the only revenue source. There has been little change in the income derived from any merchandise such as food and beverages or clothing. With younger people likely to be engaged in organised sport, the older customer is increasingly important in the gym sector. WHO ARE THE GYM JUNKIES? ✱ Aged 15-34 = 48.1% of industry revenue (lower income but increased leisure time) ✱ Aged 35-54 = 32.8% of industry revenue (higher incomes) ✱ Aged 55 + = 19.1% of industry revenue (preference for more leisurely activities) WHO ARE THE BIG BRANDS? The top four brands are expected to account for more than half of industry revenue in Australia 2014-15: 56.4% 1. Fitness First 2. Goodlife Health Clubs 3. Anytime Fitness 4. Jetts Fitness Other major players are Genesis Fitness, Fernwood Fitness and YMCA Australia.

WHAT WILL MAKE IT WORK? ✱ Maintaining facilities ✱ Easy customer access ✱ Pricing and cost control ✱ Value-add services ✱ High profile branding WHAT ABOUT THE COSTS? “The rise of highly profitable budget 24-hour gyms, which have a reduced cost base as they minimise wage costs, has caused profit margins to widen,” the report reads. At the same time, margins for full service gyms have shrunk. Typically labour intensive, gyms have been reliant on personal training and class instruction, with a high ratio of part-time and casual workers. But this is different in the no-frills models. For all gym models, rental costs have increased for both sites and equipment. Depreciation has grown as a cost structure, the report indicates. Insurance, marketing, brand royalties for overseas chains, and machinery maintenance costs have increased, particularly for unmanned 24-hour models requiring higher insurance and security investment.

SO IS IT WORTH IT? “The industry is highly competitive, with competition based on price, location and MAR/APR 2015 | 92 | WWW.FRANCHISEBUSINESS.COM.AU

quality of facilities and services. Gyms also target particular niche markets in order to gain a competitive advantage. The industry also faces external competition from organised sport and independent fitness instructors,” the IbisWorld report suggests. While figures from the Fitness Industry of Australia indicate that more than four million Australians are gym users, there is still plenty of potential to capture more of the Australian population. WHAT ARE THE CHALLENGES? Signficant capital investment, franchise fees, cashflow, and a highly competitive marketplace are the biggest barriers to new business. Finding a location, leasing equipment, insurance costs are other serious considerations. This is where it pays to be a franchisee though; joining a strong franchise chain represents a better opportunity than opening up as an independent business. So how do franchisors sum up the market and their offers?

JETTS CEO Martin Oliver says “We can see what’s happening in the UK and the US where there is a move into a boutique format. Gym members are very instructor driven, and they might go to a gym for convenience but then attend two yoga sessions at a yoga studio.

FR1114_000_WILD

2014-10-29T14:26:00+11:00

Join Australia’s #1 cards, gift & wrap franchise By joining Wild Cards & Gifts you immediately gain the commercial advantages not offered elsewhere in our industry, plus an outstanding, award-winning image and brand… Profitability is second to none Low cost start up from $200,000 High turnover, outstanding margins and low service fees Backed by one of the world’s largest retail groups WHSmith EXCLUSIVE product through WHSmith, meaning greater margins for franchisees Outstanding franchise system, industry best knowledge and business support Local and national low cost marketing campaigns and national loyalty program Existing and new opportunities available! To find out more please download our Franchise Information Pack from wildcardsandgifts.com/franchising You will not be disappointed...

“When we commenced working with Wild neither of us had any retail experience. The support and advice from management and other franchisees is a major reason for the success of our business” Owners, Wild Cards & Gifts Toowoomba

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FITNESS ENHANCEMENT

The mature market has both disposable income and a preference for impact free, leisure based fitness programs

“They might have spent $60 at a full-service gym, but are now sending $100 across a selection of activities. They are going to specialists.

THE AMERICAN COLLEGE OF SPORTS MEDICINES TOP 20 TRENDS FOR 2015

“Spend is certainly shifting, and it’s all coming out of the big box clubs.” In Australia there are about 750 24/7 clubs, each has about 1000 members and this has created a lift in demand, he says. “Brisbane is the most competitive market in the world for 24/7 gyms, there are five or six different operators, that’s about one gym for every 25,000 people, and they are all reasonably successful. “We’re careful about our site selection. “We ensure the franchisee in the business is capable of running it, we pick sites where they can make money. It’s a longterm approach, not a short term sale.” For Jetts to operate successfully gyms need a catchment of a minimum 20,000 people. “We see the population growth and land releases, and there are 200 to 300 more sites in Australia. We’ve reached a slowdown and you have to be careful about sites. “We’re not that aggressive, we want to be the best. We plan to open between 20 and 30 stores a year, for the next three to four years. After that it will be more opportunistic. There are 100 sites left in the market for us, a reasonable chunk in Sydney.” The core income comes from membership fees. So how in a slowing market does a franchisee

1. Body weight training 2. High-intensity interval training 3. Educated, certified and experienced fitness professionals 4. Strength training 5. Personal training 6. Exercise and weight loss 7. Yoga 8. Fitness programs for older adults 9. Functional fitness 10. Group personal training 11. Worksite health promotion 12. Outdoor activities 13. Wellness coaching 14. Circuit training 15. Core training 16. Sport-specific training 17. Children and exercise for the treatment/prevention of obesity 18. Outcome measurements 19. Worker incentive programs 20. Boot camp

keep growing the business? “We’re trying to deploy strategies to keep people longer,” says Oliver. “The future of our brand and model is about engagement.” This can be hard in a business model with

MAR/APR 2015 | 94 | WWW.FRANCHISEBUSINESS.COM.AU

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FR0315_000_BRI

2015-02-20T14:46:14+11:00

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Focal Point is a coaching franchise powered with the well researched Brian Tracy training materials. We are actively looking for qualified individuals to join our team of highly regarded coaches. Please enquire for more information if you have 10 plus years of executive experience and would like to add professional coaching tools to your skill set.

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www.briantracyglobal.com Franchising Magazine Full Page Feb 2015.indd 1

20/02/2015 8:57 am

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JUSTIN AND JACINTA MCDONELL AT ANYTIME FITNESS

WHAT TO CONSIDER Now: $1,309.8m revenue 3,606 gym outlets $468.2m wages Projected 2019-20 $1,280.4m revenue 3,582 gym outlets $453.7m wages IbisWorld estimages 15 cents is invested in capital for each dollar the industry spends on salaries, and the ratio is expected to increase. What to look for: What about technology? Has your franchise invested in customer database systems? Improved communications with customers will boost client retention.

typically just a manager and maybe assistant manager as the regular staff. Jetts recently linked with Velocity and within the first month there have been about 4000 memberships linked to the rewards program and earning points, half of these new members. The club business also implemented a membership promoter score to gauge customer feedback. “We listen to the members, this is rich information. We launched it in May and have had 30,000 comments. We’ve started to formulate a strategy about what the model looks like.” Membership retention reduces the investment in marketing to bring in new members. The club chain is now overseas too, with its European launch last year in the outskirts of The Hague, in Holland. The country has a 20m population and the dynamics are right for the gym brand to introduce value for money, says Oliver. He predicts this to be a 500 to 600 club market and will master franchise the opportunity. Another master will be appointed for the introduction of the UK business. Spain, Germany and Austria are also in

the line-up for Jetts’ expansion.

but promise Qantas…”

“You have got to have a credible model and credible partners. You have to spend a lot of time working the market.”

The investment level reflects the business model, with the popular mobile option a $30,000 entry, and studios priced between $130,000 and $190,000 for a turnkey business.

FITNESS ENHANCEMENT “This sector is in a price war, no-one wins except the company with the deepest pockets. Bigger ones will eat up the smaller brands.” That’s the view of Fitness Enhancement’s Scott Hunt. “They are now offering more service but more costs could break the business model; 24/7 is low expense," he says. He believes it isn’t all about convenience, customers want to go somewhere where the staff know their names. Other customer considerations when choosing a gym are help, support, the care factor and diet, he suggests.

A typical studio will comprise three rooms, each with one trainer to a single client – or group sessions like a bootcamp, but with a care factor, says Hunt. “Easier, safer, less intimidating,” is how he describes the group fitness offer. “Our core customer is aged over 40 and overweight. I think the mature market has been missed.” Rather than sign up to monthly memberships, customers at a Fitness Enhancement gym will purchase a number of sessions, with no time constraint. On average a client will spend $5,000 in their time at the gym, says Hunt.

Gym chains fail when they over promise and under deliver.

A slow and steady approach has built the business to four mobile franchises, and a Gold Coast studio. While mobile operators may take their equipment to clients homes or outdoors, there are no branded cars – clients value privacy, says Hunt.

“We get more clients from full service gyms,” he says. “it’s like Tiger Airways, we don’t expect service, we get what we pay for. If you give someone Tiger Air service

The co-founder, with sister Jacinta, of the Australian master franchise of this US based

“People get the best from care factor, from exercise tailored to you, what motivates you.”

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ANYTIME FITNESS

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Wisewould

The health club sector in the US and the UK is turning towards a smaller boutique offer

Wisewould Mahony Mahony Lawyers Lawyers Lawyers in love...... with Franchising

business predicts the chain can reach 550 clubs across Australia, following months of careful mapping of opportunities. “There is still growth in the market,” Justin McDonell says. But he also expects consolidation of outlets over the next two to three years. The repositioning of the Fitness First model is good news for the market leader, he says. The health club sector in the US and the UK is turning towards a smaller boutique offer, he agrees. “People will pay more a month for a personalised environment,” he says. Marketing has always been targeted to fitness enthusiasts but what’s important is how to appeal to the other 80 percent of the population and attract these people to the gyms, he suggests. Anytime has launched a membership application offering nutrition and exercise advice. “We want to have more communication through mobile and emails. Our focus is on the long term. Clients ideally would exercise three days a week, and eat healthily. We are trying to be part of their lifestyle." Prices are creeping up, McDonell agrees. On average a membership is $58 a month at Anytime. But the increase is not driven by the gym’s costs. “We think we can charge more, it’s driven by the competition,” he says. “We were accused of being a discount chain; we are trying to be affordable.” What is the customer prepared to pay? The standard of the gym will affect pricing and McDonell says every five years outlets need a refit. “New cardio equipment, bathrooms, a fresh design scheme. We gut and start again so it’s all fresh and modern.” Anytime has two preferred suppliers who offer five year leases and funding options. “We encourage our franchisees to consider this as a monthly cost,” says McDonell. When the business launched back in 2008 the earliest franchisees came with an entrepreneurial approach because it was a new concept. “They probably had more of a ‘have a go’ attitude,” he says. “Today it’s a proven concept and we are getting franchisees with more secure backgrounds who are probably looking more into the numbers.

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MAR/APR 2015 | 97 | WWW.FRANCHISEBUSINESS.COM.AU

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DIANA WILLIAMS AND FERNWOOD FITNESS

“We’ve evolved our support to suit. We offer a bit more guidance about cost control and marketing plans.”

ENVIE FITNESS The market is definitely cluttered but in Australia only about 10 percent of the population are members of a gym so there is a huge opportunity, says Dave Hundt, who heads up the women-only, studio format Envie chain. So how challenging is it to operate a niche business in today’s marketplace? “The franchisor has to understand the viability of their market. If you only need 100 to 150 members to break even in a niche market then it can be achievable.” The 24/7 gyms were a disruptive technology, a game changer, he observes, and the big box gyms felt the impact. Suddenly you only needed 400 to 500 sq m rather than 5,000 to run a gym, so it was a more economical business proposition.

Programs are suited to the client profile – not all customers are 22 year old gym bunnies, says Hundt. Most are less confident in the gym, they want assistance and need motivation. “The group element is huge for us. Customers enjoy the social side, they like to know people recognise them at the gym. There is a push back towards service.” The business is expanding rapidly in the US; Gary Findlay, the former president of Curves,is now the chief operating officer. “He brings great experience to the business,” says Hundt who also employed fitness franchisor Liberty Harper as director of operations.

pipeline of other outlets in development. In 2015 Hundt hopes to add another 20 to 25 outlets. “We’ve invested heavily in creditable team in the US, they will run it, they are very experienced.” The expansion is being funded from Australia but it will have no financial impact on local franchisees, assures Hundt. “We’re very well placed,”he says.

FERNWOOD FITNESS

“We offer non-intimidating supportive environment, customers feel comfortable.

“The business is a constant innovation.”

Diana Williams has been in and out of the business she founded 25 years ago; most recently the disruption of the 24/7 model brought her back from a hands-off role to oversee a high level of change and innovation within the company.

“Baby boomers are a big market, more suited to our market than some of the others.”

Two studios have been opened in the US (Phoenix and Dallas), and there is a

“We needed to reinvent ourselves. We’ve changed our brand, our demograph-

“Fitness is very convenience focused, the 24/7 access, but how many people do use it?

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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

• 50 Franchisees in Australia, 5 in Dubai • 20 year history • Contracts with Australia’s leading furniture retailers • Proven system ensure success Give us a call and we can help you take the drivers seat in your future… or in our case the easy chair.

Retailing market research 2012)

The Leather Doctor offers a proven system that ensures success. We have a national customer base of major furniture retailers and manufacturers as well as a well recognised brand within the private market. This is backed up by the fact that our growth has continued each year despite economic conditions.

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FP Franchising Mag.indd 1

National Marketing Manager: Dean Reid - 0438 844 238

27/07/12 5:21 PM

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ics, become 24/7 as well, and have an online membership.”

THE SHAPE OF THE SECTOR [figures for 2014-15]

The all-female clientele remains, but while the senior market demographic around Australia may be on the increase, Williams says a greater percentage of younger women take up exercise and fitness so there are greater gains to be hand by appealing to a more junior profile. This has been achieved through adoption of different fitness programs within the gyms, marketing and pr.

Revenue: Annual growth 2010-15: Annual growth 2015-20: Profit: Wages: Businesses: Market share Fitness First Anytime Australia Ardent Leisure Group 24/7 Brands (Plus Fitness) YMCA Australia

“We have introduced more intense fitness group sessions like Functional Fit,” explains Williams. There’s a focus on personal trainers too. “We’ve had them for years, but now there are more options,” she says. “Groups are more popular. Members enjoy the community. Fitness is more than just exercise, you need to have fun and be part of a community.”

$1.3bn 3.3% -0.5% $149.3m $468.2m 2,854 19% 15.2% 12.4% 9.8% 7.5%

Source: IbisWorld Gyms and Fitness Centres in Australia report, July 2014

next 12 months would be an appropriate level of expansion.

Altering the franchise model to allow gyms to open all hours was not a difficult process, just a case of going through the relevant council permits. Like any other 24/7 gym, after hours the Fernwood Fitness venues are unmanned.

And while that’s not a significant boost to the network the focus is as much on retaining members as adding them, insists Williams.

Williams says it has been a success in the urban areas, with less of a take-up in suburban and regional outlets.

“We have our online program, which when members sign up is intense for the first 28 days. They get videos, meal plans, exercises. The average weight loss in the first month is 3kg.

“But there’s been no negativity and it’s been good for franchisees. It can ease some of the staffing stress too, if someone is late opening up it doesn’t matter, the members can still access the gym.”

“There are some cheaper options but although we are perceived as expensive, we’re middle of the market.

Williams concurs with the IbisWorld view that the market is moving towards saturation. “I tend to agree. Something has to give. I can’t see that everybody will survive for ever. The small concept gyms will come and go,” she predicts. But she believes there is more to be done in attracting non-exercisers to take up fitness. However, Fernwood won’t be jumping on every trend that strikes the workout arena. Adopting the 24/7 access model wasn’t about a reflex copy-cat action, she says. “It was easy, and gave our members another level of service.” Fernwood has been re-shaping its future and is now ready to grow further. Williams indicates another four or five outlets in the

“It’s not about getting new members,” she says, contradicting the traditional gym model that typically recruits new members, signs them up to a contract, then makes no effort to engage them or encourage their attendance. “That’s really sad. We focus always on retention. We put a lot of energy into ensuring they get results,” she says. Fernwood members may choose to pay extra to participate in seasonal and oneoff challenges that are on offer. Williams agrees that the trend is for more passive forms of exercise such as tai chi, Pilates and yoga. “We’ve always had these but now people realise getting fit isn’t just about breaking out in a sweat.” All statistics, unless stated otherwise, from IbisWorld Gyms and Fitness Centres in Australia report, July 2014

MAR/APR 2015 | 100 | WWW.FRANCHISEBUSINESS.COM.AU

FR0315_000_PRI

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PRISM Franchise Mag Full Page.indd 1

20-Feb-15 11:09:32 AM

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ADVERTORIAL

Multi-Award Winning Franchise Launching in Australia Refresh’s awards to date include: • 2014 Deloitte Fast50 Award Winner (New Zealand)

• 2013 Interactive Media Award Winner: Best in Class (New York)

• 2012 NZ Franchise Association Business Service Provider of the Year Finalist 2012

• 2012 Summit International Marketing Effectiveness Platinum Award Winner • 2012 NZ Marketing Awards Emerging Business Award Finalist

• 2012 NZ Marketing Awards Judges Choice Award Finalist • 2011 Summit International Creative Silver Award Winner

Huge opportunity in a massive market Every year Australians spend around $30 billion on renovating their homes. Refresh Renovations is providing an opportunity for you to gain a foothold in this huge market.

A professional operation for business-oriented franchisees Refresh’s business model is sales, marketing and businessoriented. We’re looking for franchisees skilled in these areas. You don’t need to be a builder to join Refresh. Successful renovation projects require clear expectation management and excellent communication throughout the process; from initial consultation, through the design stages, through the build, and right through to the handover of the completed project.

‘ You don’t need to be a builder to join Refresh’ To be awarded a Refresh franchise, you will be: • Inspired by building a company that delivers a better renovation experience • Driven to build a multi-million dollar business • Sales and marketing oriented • A great people manager

• Professional and well presented • Customer service focused

• Enthusiastic and eager to learn

‘Refresh is the established market leader in New Zealand, and is now launching in Australia’

Some of the benefits of owning a Refresh franchise include:

We currently have 35 franchisees operating nationwide across New Zealand and are still growing fast.

• A unique position in the market

As a Refresh Renovations franchisee, you will gain access to best-practice IP and systems, which you can use and leverage to build a significant income and business asset. The revenue potential is huge, and being service based, the establishment costs for a Refresh franchise are far lower than most retail-oriented franchises. You will have a revenue target to build a $3-5 million business within 3-5 years of starting your franchise. Refresh’s core target market for renovation projects is 35-65 year old mid-upper income female homeowners. The offer revolves around a professional sales process. Refresh franchise ownership is equally suited to males and females. Refresh was established and is owned by Traffic (www. traffic.net.nz). Traffic is New Zealand’s leading business growth and strategy provider to the building industry. Traffic is a marketing specialist, and has over 20 staff involved in supporting the Refresh franchise system model. This is the kind of substance that you should look for in any franchise you’re considering. www.refreshrenovations.com.au

• An opportunity to build a significant business asset

• Differentiated by Refresh’s strong offer and customer service • Access to a huge market with enormous potential

• Low start-up costs (no up-front premises or fit-out costs)

• Full initial training and well-structured ongoing support

• Fully integrated, custom designed, cloud-based IT system • Very strong branding and marketing

• Be part of the innovative, market leading Refresh network

What are the building industry requirements? If you purchased a café or restaurant you would employ a chef. With Refresh, you will be required to employ at least one licenced builder. In Victoria, that licenced builder must also be a director of your company, so if you’re based in Victoria, you might like to consider partnering up with a builder.

Contact Refresh Renovations: Does this sound like a franchise that you’d like to be involved with? If you’d like to find out more email Jon Bridge; jon.bridge@refreshrenovations.com.au or visit Refresh’s website; www.refreshrenovations.com.au.

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$30 billion renovation market WESTERN AUSTRALIA $4 billion

NORTHERN TERRITORY $0.3 billion

QUEENSLAND $7.2 billion

ACT $0.4 billion SOUTH AUSTRALIA $2 billion

NEW SOUTH WALES $8.9 billion

VICTORIA $6.7 billion TASMANIA $0.8 billion

Do you want a share of this?

FR0115_000_ENV

2014-12-02T09:33:08+11:00

Looking to own your own ﬁtness business?

Welcome to the world of EnVie Women’s fitness is an underserved niche market and EnVie Fitness is the perfect solution. EnVie offers a modern, safe and fully equipped fitness center with extended hours and a variety of training options - exactly the environment ladies are looking for. EnVie offers franchsees: • An affordable initial investment with leasing and financing options available for a turn-key solution. • Advanced operating and security systems, reducing staffing needs and allowing you to manage your fitness centre remotely. • Complete training and ongoing support in marketing, operations, finance, people, technology retention and sales - from a fitness franchise team truly vested in your success.

To learn more or for information on ways we can work together, visit enviefranchise.com.au or call 02 9332 2824.

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oes the mortgage business appeal to you as an investment oppportunity? There’s a future in home loans, but what does it look like?

It’s been a roller coaster ride for the mortgage business over the past five years and right now competition is intensifying with major banks taking action to gain market share. However analysis firm IbisWorld insists the mortgage industry is well-positioned for expansion over the next five years although it predicts there will be reduced profitability. Consolidation is on the cards with mergers and acquisitions between building societies, credit unions and banks. The number of businesses is expected to decline – despite incoming foreign subsidiary banks.

KEY INDUSTRY STATISTICS 2014-15 ANNUAL GROWTH 2015-20:

2010-15:

1.9%

SECTOR VS. INDUSTRY COSTS Average costs of all industries in sector (2014-2015) 1.5% 2.4%

Another driver is the ratio of interest payments to disposable income. The higher the ratio the more limited the opportunities, as the debt burden for households increases. Investor confidence is affected by residential property yields, while housing affordability can affect the demand for mortgages. Factors that contribute to interest rate rises are economic growth, inflation, housing prices, the strength of the Aussie dollar and the state of the US economy.

8.8% 3.9%

18.7%

1.6%

1.3%

21.0% Percentage of revenue

WHAT WILL DRIVE THE INDUSTRY?

Industry costs (2014-2015)

100

Looking ahead to 2019-20, the industry revenue is expected to reach $141.8bn, an annualised growth rate of 10.5 percent.

Obviously the state of residential housing loan rates is an influencer; IbisWorld believes an increase in housing loan rates is likely to benefit the mortgage sector.

REVENUE $85.9 BN PROFIT $16.1 BN WAGES $5.3 BN BUSINESSES 118

10.5%

60 13.6%

72.3%

PROFIT RENT UTILITIES

DEPRECIATION OTHER

48.8%

WAGES PURCHASES

6.1% Source: IbisWorld Infographic: Julia Gee

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any rate increases so what happens to the official cash rate will be a key concern. In early February the Reserve Bank Board voted to lower the rate for the first time since August 2013.

MARKET SEGMENTATION

Housing Industry of Australia (HIA) chief economist, Harley Dale said at the time, “The RBA hinted at a further elevation in the use of macro prudential tools to restrict mortgage lending in a targeted manner. Care needs to be taken that any such action does not have adverse impacts on confidence and activity in the broader residential market.”

A MATURE INDUSTRY Mortgage lending has reached maturity: it is fairly homogenous with little sign of fresh ideas to stimulate demand among consumers, and the number of businesses in the sector has declined. The major four banks have a total share of home lending of more than 66 percent.

55.8% RESIDENTIAL OWNER-OCCUPIERS

28.4% RESIDENTIAL INVESTORS

According to the latest findings from the Australian Bureau of Statistics, there was a one percent rise in December 2014

15.8% COMMERCIAL INVESTORS Source: IbisWorld Infographic: Julia Gee

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“There is a great sense of family at Luxaﬂex - you get to know everyone that you deal with, in INTEGRATED MARKETING

retail, sales or at head office on a first name basis. Overall I feel the Luxaflex team goes above and beyond to support us in every way. They’re a pretty impressive

HIGH YIELD PRODUCT RANGE

organisation to be honest!”

Jonathan Pretty, Shades of Pittwater With the market leaders by your side, establishing and managing your own Window Coverings business is a highly rewarding experience. The Luxaflex Window Fashions alliance programs provide comprehensive marketing, training, development, networking, incentives, events

and showroom fitouts to support our innovative high yield product range. With opportunities available in numerous prime positions, the time to join our highly successful network of over 150 specialist Luxaflex Window Fashions showrooms is now.

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C13491_Franchising_13Mar

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compared to the previous month in the total value of dwellings financed. THE CONSUMER The market comprises residential owneroccupiers, residential investors and commercial mortgages. Baby boomers are retiring so likely to downsize, add to their funds by investing in rental properties and this means first home buyers will be even more challenged to take the first step to home ownership. While the percentage of first home buyers searching for finance fell slightly late last year, the average loan size for newbie home buyers rose by $4,700 to $332,200, reports the ABS.

“This is a clear indication that actual residential construction activity will rise in the current early months of 2015, which is good news for the broader domestic economy in addition to the housing sector.” INDUSTRY SUCCESS

Not surprisingly, credit worthiness is a big attraction to the consumer. Taking out a mortgage is a big step and consumers prefer to deal with institutions that provide a sense of security and trust.

IbisWorld suggests that to be a success in this sector requires the following:

PRODUCTS SEGMENTATION

✱ Top level financial and debt management ✱ New and highly efficient technology and techniques ✱ Management of a high quality asset portfolio ✱ Access to funding ✱ Economies of scale

45% standard variable loans

40 28% basic variable loans 30

COMPETITION

NEW HOMES HIA economist, Diwa Hopkins, says “This year will be another healthy one for the national new home building sector. The two key leading indicators of new home building activity, new home sales and residential building approvals, both saw increases during the December quarter of 2014.

rather than a total reliance on retail outlets to deliver services.

Products, price and how easy it is to access the service are the key determinants for competing lenders. It’s increasingly difficult for lenders to differentiate their products but innovation is central to competitive advantage. Today technology allows for mobile lenders

12.6% fixed-rate loans

10.8% other

3.6% line of credit

0 Source: IbisWorld Infographic: Julia Gee

Genuinely interested in your community? Since our humble beginnings back in 2008, Afea Care Services are now very proud to be one of Australia’s leading Care providers. We are currently expanding our business and engaging with exceptional people to join the Afea Franchise. If you are wanting to move into meaningful work based on authentic relationships, please connect with us for more information.

info@afea.com.au Phone

1300 65 11 33

MAR/APR 2015 | 107 | WWW.FRANCHISEBUSINESS.COM.AU

Join our franchise network. www.afea.com.au/franchising

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What it takes to be a franchisee So what does it take to be a franchisee? Here are 10 things you will need to get in shape.

PASSION FINANCE FAMILY SUPPORT A PLAN HARD WORK BUSINESS SKILLS TRUST ORGANISATION AMBITION GOOD HEALTH Whatever the hopes and personality traits you bring to a franchise system, there are certain non-negotiables that will help you on your way to success as a franchisee.

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ILLUSTRATION: MATT NORRIS

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Soul

TRADER

ould Dr Sam Prince be the embodiment of the franchise directive, ‘live your passion’? The medical man, philanthropist and entrepreneur is the heart and soul behind the successful Mexican food retail chain, Zambrero.

Of course it isn’t just about serving up bold fresh Mexican cuisine in a fast-paced environment. The humanitarian initiative Plate 4 Plate is Zambrero’s way of providing food to those in need: for every burrito or bowl purchased at Zambrero, a meal is donated through distribution

partner Stop Hunger Now. Zambrero was founded in 2005; since then more than one million meals have been delivered through the Plate 4 Plate initiative. Dr Prince has been nominated

as Entrepreneur of the Year in 2010, named ACT Young Australian of the Year in 2012 and the hospitality brand recognised as a fastest growing franchise in Australia by BRW Magazine. In his ultra-hip 24th floor corner office with its picturepostcard view of the Sydney Harbour Bridge and Opera House (and a set of turntables that records music for the stores to play) Prince talks with passion about his ever-expanding business ventures (six at present, including the hospital-

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ity arm and health technology and bio-tech organisations) and how the well-publicised aid initiatives fit in. The answer is, they don't. It is far more seamless than that. At the core of all Sam Prince’s enterprises is an alignment of his beliefs with action. “For me it’s about reconciling who I am with business. My family comes from a remote area in the developing world, and thanks to political reform my mum got a free education. Five degrees and a PhD later

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1 - INSIDE A ZAMBRERO STORE 2- DR SAM PRINCE

about innovation. I feel strongly that I’m a customer advocate. That’s what gets me out of bed in the morning. “I’m an entrepreneur. I shape and purpose reality into ideas. I hope I can be courageous to live with it for the rest of my life.” People are central to any business culture and he has a young team. He values their youthful exuberance and lack of complexity (they are usually unencumbered by family and financial commitments). “What I’m also attracted to is the beginner’s mind,” he says.

and she moved to the UK, where I was born. When we came to Australia the government gave us a $200 voucher for our first grocery purchase. “I’ve had battens of kindness passed to me and I need to pass them on. I don’t think we’re doing anything particularly amazing. It’s our story. It is what we do and we feel good about it.”

In the early days of the Zambrero business the hospitality chain funded the building of 15 schools, under a different name. But when customers wanted to know what the business was up to, Prince realised the customer was inextricably linked. “When I started Zambrero it was to delight the customer any way that I could. It was

“The restaurant business will always have Asia and the US as huge markets. It’s been fantastic to have the Australian market but now it’s time to play with the major players," says Prince. But don’t for a moment think that Zambrero has turned its back on its domestic market. “Mexican is still underserviced in Australia. We’ve infiltrated metro and busy CBD areas, but we are still at less than 20 percent of our final store numbers. “

EXPANDING HORIZONS

There are 71 stores in Australia, two in Thailand, four in New Zealand. By the end of 2015 the Australian portfolio will have more than doubled to 150 stores. And the model itself is not static. Among the restaurants are kiosk and drivethrough models, broadening the investment opportunities for franchisees.

In 2014 Zambrero International CEO Stuart Cooke took the brand to Asia, starting with the Thai market, and plans for the chain to launch in the US are underway.

It will be no surprise to learn that the business demands of incoming franchisees passion, desire, enthusiasm and eagerness for all that Zambrero offers.

More mature employees have their role to play too, among the 175 staff count. “You have to wrap the power with wisdom,” he says.

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Profiting from

INNOVATION W

hy would you invest in a mobile storage system? Edward and Jordana Thirlwall took their experience in removals and created a model that brings an extra level of convenience to the self-storage arena. What makes it work?

The original concept, and basic service, is a do it yourself loading package where the module is delivered to the client’s address but the customer fills it themselves. The couple have introduced a premium loaded service where the trained packers will wrap and load the goods, and now about 90 percent of the customers choose this option. Another add-on is protective padding, often not available in cheap storage options.

There’s no doubt this is a competive market but the greatest challenge in the world of mobile storage is managing customer expectations, says Supercheap Storage CEO Edward Thirlwall. “We want to ensure we deliver what we promise. Customers don’t understand how much work it is to get goods into storage and the labour required.”

MEETING CUSTOMER NEEDS Co-founder Jordana Thirlwall agrees. “We like to take the time and effort and pack and store everything properly.” Preparation is key; for instance, customers who can properly defrost their fridge before packing will be able to get it back in pristine condition, she explains. Packing staff undergo accredited training too, she says. Another concern is the cost conscious nature of the storage business. “Price comes up every day,” says Jordana. “We want to have a superior service at the best price so we offer add ons and benefits. We are always thinking about what extra we can give the customer.”

“From our experience these are essentials,” says Jordana. The 11 locations that cross the country will be joined by three more this year predicts Edward. Key to the sites is the customer preference to keep their belongings no further than 8km from their home. “People have a comfort zone, they just want things nearby,” he explains. Customers’ four concerns are access, price, convenience and security. Despite the no-frills model, with wooden packing crates rather than lock-up storage units housing personal goods, clients can easily access their stored items. Jordana says about a third of customers regularly make appointments to unlock their storage modules which are delivered to an easyaccess loading dock.

HOW FRANCHISEES BUILD A BUSINESS To man this business an employee count would typically reach 10 full time warehouse/mobile staff, an office assistant

and the warehouse manager. But it’s possible for franchisees to start out with small storage spaces and build up. “That’s how we started,” explains Jordana. “We had a space the size of a garage that had 10 modules. Now we are in an unlimited space and have 1000 modules.” The franchisor only collect fees off the storage revenue, not the income earned from the removals element of the package. “So everything the franchisee makes on moving sales, is theirs to keep,” says Jordana. “Regarding storage revenue, we take 12.5 percent in fees, plus an additional five percent contribution for the marketing fund. It may seem that 12.5 percent is high, and yes compared to other franchise models like food and beverage it would be. However the profit margins in our industry are higher, and therefore the fee reflects this.”

EXPANSION AND INNOVATION Edward points out that it is a capital intensive business. “We have grown so quickly, capital resources have been heavy. “But we’re not after a high number of franchisees, we’re concerned about their success. I think we have capacity for 50 in Australia.” The big expansion will come from business in China, he believes. The company formed a joint venture/master franchise agreement and have launched a unit in Beijing, with

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strict protocols about growth. “We had to change the model, the average storage unit in China is three cubic metres so we had to make the modules smaller and able to fit into a van, not on a truck,” says Edward. Jordana points out other shifts in business development. “We’ve had to change our advertising too. Google is banned there, so it’s been difficult to get an online presence, we’ve had to go back to old school advertising with flyers. “It’s made us think about it a bit more though. You can get a bit lazy and we’ve had to think about how to crack in to the market.”

1 - EDWARD AND JORDANA THIRLWALL

The Thirlwalls are looking at a 20 year development in China. “We’re not in a particular rush,” says Edward. “We still don’t have all our ducks in a row.” There’s a new model too that will make its way to the Chinese marketplace in time. In February the first of the brand new concept modules was un-

veiled – a waterproof, steel, adjustable module that can be stored on the street. Typically on-street storage units are timber modules with waterproof covers. The Supercheap Storage version is made from steel sheets printed with company branding and held in steel frames. “It looks like a Lego set,” says There are three, six, nine and metres that can fit together in formats to suit exceptionally wide items.

Edward. 12 cubic different high or

The new modules can fit on a flatbed truck and can be accessed by a gantry crane in the warehouse, allowing for wasted space to be utilised. “This means we can pass on some cost savings to the customer,” Edward says. WHAT DO THE COUPLE LOOK FOR IN A FRANCHISEE? ✱ Cultural fit ✱ Desire for success ✱ Ambition to be a small business operator ✱ Happy to get hands dirty and get involved in the business

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COFFE E TO GO

ow would you like to visit a drive-through cafe outlet and have your favourite cup of coffee freshly poured and handed to you as you arrive? That’s the latest technique that brand new franchise chain Sunriser Espresso is adopting with its licence plate recognition technology.

Although it’s a fresh name to franchising, the Sydney based business has been operating in Concord for a few years and has evolved the café-on-wheels concept over time. It’s just undergoing a sharp redesign, the striking sunshine yellow and black colourway just the start. The yellow topped takeaway cups make for easy brand recognition when customers arrive at work with their hot drink – and that has helped expand the client base

through word of mouth, building by building, says founder Nathan Smith, a former marketer at Nestle. But there is much more to the new look. A big awning reaches over the customer at the café point; a display case at carwindow height tempts the customer to indulge in the baked goods; wooden panelling is used to accentuate the café feel – most evident in the sticker graphics that wrap around the box trailer and create a sense and perspective of a lively coffee

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FR0315_000_AUB

2015-02-20T16:47:43+11:00

CLEANING

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FRANCHISES AVAILABLE Want to be your own boss? Change your life today! CALL: 1800 733 847 Or look us up online:

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Meet us at the Franchising & Business Opportunities Expo 2015. Stand D39

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1 - THE TRAILER NOW 2- NATHAN SMITH

We can just licence the space based on the trading hours and pay in the region of 10 to 20 percent of the full rental costs

shop complete with a queue of customers! Billboard size branding on the reverse of the trailer, facing the street, is designed for high impact at a distance, while customers who drive in for their barista-served coffee will be able to read the inspirational text that covers the end of the trailer. It’s a far cry from the test vehicle that Smith began with. The trailer box had been purchased from online site e-bay, and fitted out with just enough room for one barista to work the equipment - the order-taker was positioned outside. “When we started out we set up the machines in the garage and practised and practised until we knew we could make the coffees. We had happy neighbours,” Smith laughs. The idea came together when Smith was researching a business venture, had seen the potential for drive-through sites in the US, and then passed an unused car park, a council site on the way to work. The first step was to lease space and gain access to power, and despite scepticism about the true nature of the business, the council finally came though, leasing two parking spots to Sunriser. “We had pitched it as asset utilisation and a service to the locals.” The opportunistic choice of neighbourhood paid off with Smith developing a loyal and friendly customer base. “It is in Concord, an Italian area. We served a lot

of macchiatos,” says Smith. The model was developed in response to market conditions, he adds. “The problem is land costs are so high. We need 1000 sq m but can’t afford to pay 24/7 rent for that. “We can just licence the space based on the trading hours and pay in the region of 10 to 20 percent of the full rental costs. “We’re always a sub-licence and take a five year lease that rolls over.” The plan is to take a lease of three and a half years to start, allowing six months to set up the business

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THE NEW LOOK SUNRISER

and sell it to a franchisee as a going concern, with a follow-up three year term. Key to the success of the model for Smith, who handles the rent negotiations, is signing up with corporate landlords who have multiple sites. Marketing is mostly word of mouth, social media, and making a big noise when the business first opens up. “It’s hard to break a morning routine,” explains Smith. “Price offers can attract discount-focused customers who only come back when there’s a special deal. For us it’s about visibility.” Key sites are major commuter routes either at the beginning or end of people’s journey. “At the end of the journey, schools are a great volume multiplier,” he says. “The trick is to be where locals leave the suburb, the back routes. It’s about local knowledge. You don’t always have to pay big rents.” The first franchisee is one of the baristas, a vote of confidence in the brand, Smith believes. The site has been running since 2009. Smith wants to target baristas and people who love and have a passion for cafes. In

setting up a business there’s a line to cross – how do I set up, how do I negotiate rents? Buying a franchise answers these questions he says. The investment level for the new look package is $120,000 plus GST, with royalties to pay but no marketing fee. Out of this investment Smith expects franchisees to be able to draw a return on investment, a salary and a profit in their term. Vendor finance is being considered for the first few franchisees to help the typically under-resourced baristas get a foot in the business. So, back to the licence plate technology. It came about as a way of bringing a personal touch to the business model. This is high volume, but people still like to be remembered, says Smith. “The technology was primarily for the customer.” When the licence plate is read, it’s logged in the database and the last three orders brought up – if there is consistency in the coffee order, that’s sent through to the barista. “We can get to the point of building a relationship much quicker, it’s a talking point.” The 12 month trials have brought wastage down to about one percent.

Now Smith is addressing how to bring in mechanical triggers that ensure cars don’t tailgate so the plates are clearly seen. The technology is a bolt-on to a standard quick service point of sale system; but it is an option, and it works independently – if the camera fails, everything else in the system keeps working. But there is an added benefit – efficiency: cutting down the service time makes the queue shorter, and means smaller sites can be an option – with suitably shrunk rental costs. Smith has ambitious targets: just six new outlets each year for two years, but then the pace will step up and he plans to reach 70 outlets within five years. He has already attracted equity partners, two partners in franchise law firm Baybridge have invested in the brand, and he is looking for more private investment. “The reason we’ve gone premium is that we can’t compete with McDonald’s or Starbucks,” he says. “Our customer is white collar, someone who likes a good cup of coffee. We’re not about fast food, cheap coffee and bad service. “We are good coffee fast. We are bringing the café experience to the commuter; we’ve driven the café to the side of the road.”

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Buying a new or existing franchise? Refurbishing your store? Need new equipment? Cashflow It are the franchise finance experts. Rental or traditional leasing solutions tailored just for you. With terms from just 12 months to 5 years, you have the option to: Purchase the equipment at any time. Return your equipment at the end of the term. Own your equipment over your preferred term. Additional benefits for Accredited Franchise Systems. Call us today!

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he healthy eating marketplace can be an exercise in branding but one franchise is backing itself on authenticity, flexibility and its “see it, taste it, buy it” philosophy.

Back in the 1990s, Lebanese immigrant Ali Sawan started up his own business, a fruit and veg shop in Sydney’s upmarket suburb Double Bay. In these early days customers were treated to a selection of juices, cut fruit and yogurts, as well as the traditional greengrocer stock. Over the years Sawan built up a portfolio of stores, and in 2000 signed up to run the fruit and veg concession in selected David Jones outlets – and a juice bar was added to flagship stores. The Top Juice brand appeared for the first time in 2008 when Sawan took on a free standing kiosk in a level below the Myer store in central Sydney. At this stage there were no plans to franchise and the business took a conserv-

ative growth trajectory. Four years later the model was tested in the suburbs, and, explains general manager Barry Barber, “it confirmed strong support across all demographics”.

we’re also working with local growers,” explains Barber.

Since then a slow and steady approach has been the modus operandi for the business which now has 35 outlets in New South Wales and two in Melbourne, with 23 of these stores franchised.

The foundation of the fruit and veg business has set it apart, he suggests. It has allowed for the development of an efficient supply chain and the central kitchen model so franchisees receive their fresh merchandise daily. An easy, timesaving option for franchisees is to get deliveries of prepped ingredients ready for juicing.

Barber says Top Juice has a target of another 10 to 15 openings this year, evenly spread between Sydney and Melbourne suburbs, with two stores to take the brand into the Queensland market. So what’s the appeal of this fruit and veg business? “It’s an authentic product offer, no gimmicks,” says Barber. What the customer sees is fresh fruit and veg ready to be juiced, ready-made salads, yogurts with a choice of toppings, and chocolate dipped fruit. It’s a business driven by seasonality, so specials reflect the market availability of ingredients. Head office is just minutes from the Flemington wholesale markets at Homebush in Sydney. “We’re in the markets every day, and

HELP ON HAND FOR FRANCHISEES

“We do all the tedious work for them,” says Barber, “allowing franchisees to focus on presentation and customer service.” But when franchisees are ready to undergo appropriate training, and if they want to boost their bottom line by reducing the cost of goods, they can choose to take delivery of whole fruits from the kitchen and undertake the preparation themselves. Purple carrot juice, soursap granita, finger limes, gooseberries are typical seasonal additions that come out of the kitchen. There’s no direct competitor for this

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Kiosk sites range from 16 to 30 sq m, inline outlets have a footprint of between 35 and 70 sq m. A typical 20 sq m kiosk requires a $350,000 investment – that’s turnkey, and with franchise fees included. “In terms of ROI and a payback period, it’s competitive. We tend to align the term to the lease and typically we’re signing seven year leases now, giving a bit longer on the first lease for the franchisee to extract a return from the business. “Franchisees need to have a passion for the work we do,” says Barber. “We look to engage our customers at a grassroots level,” he explains. So brand building is achieved through both social and traditional forms of media, for both potential franchisees and customers. franchise but Top Juice touches on other markets: “we do salads, but we’re not Sumo Salad, we do shakes but we’re not Boost Juice,” says Barber. What is common is the appeal of healthy food to an increasingly broad customer base. “They’re all moving in the same direction, meeting the demand for healthy products.”

BEYOND THE FOOD COURT Flexibility in the model and location

is serving the brand well. While the majority of outlets are located in either, and sometimes both, the food court or the fresh food market of a shopping centre, Top Juice has felt the style vibe at Sydney’s Macquarie Centre and pitched a kiosk in the fashion area in addition to its food court store. What is vital to any location is good footfall and accessibility, and Barber admits that a conservative site selection is the company’s philosophy.

“In our franchise model we don’t levy a brand marketing fee. We agree with franchisees that they will allocate a percentage to their own activities, and we work with them on that.” The brand has potential he believes, because of its wide appeal, and the capacity to tailor the offer to feature more combination purchases in price-conscious locations. “We are nimble and can expedite new product to stores - and innovate - very quickly.”

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LATEST NEWS! Welcome to our news panel. Our new restaurant in Munno Para, South Australia is now open and going gangbusters. Great also to see continued support across SE Queensland with new restaurants open at Waterford West and Morningside. Our loyalty program continues to grow with over 3,500 customers now enjoying special discounts and the great taste of Indian Brothers.

New Opportunities... Want to open your own Indian Brothers Restaurant? Call now, we have existing sites in SE Queensland and new sites interstate. If you have relatives down south who are looking to start their own business, let them know about this great opportunity.

Not all food franchises are the same. The Indian Brothers system has been built from the ground up to comply with the Franchising Code of Conduct in Australia. Complying with the code is mandatory and provides protection for both the franchisor and franchisee. Thereâ&#x20AC;&#x2122;s safety in a system!

Is your food franchise compliant? If you are thinking about buying a franchise, speak to the team at Indian brothers. As members of the Franchising Council of Australia we have a reliable system you can trust.

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THE BEAUTY

OF A FRANCHISE BUSINESS

hat are the benefits and challenges of franchising? We asked Katie Mills, the Pacific Fair Ella Bache franchisee, to take our Q&A.

obvious choice for me as I was already working within the company as a store manager. I was familiar with the stability and support that the Ella Baché franchisors provide, and the feeling of family that comes from being a part of a family owned and operated franchise.

WHAT ARE THE BENEFITS OF INVESTING IN A FRANCHISE AS OPPOSED TO AN INDEPENDENT BUSINESS? Buying an Ella Baché franchisee was the

opened in December 2004, and I worked there for five years before I took over on the first of December 2009.

ARE YOU A SOLE FRANCHISEE OR IN PARTNERSHIP?

I also felt that, as a first time business owner, that the staff and marketing training that franchisors provide would be really valuable.

I am in partnership with my sister. While we both work in the salon I prefer a management type of role and my sister takes care of the accounts.

HOW LONG HAVE YOU BEEN IN THE SYSTEM?

HOW DID YOU FUND YOUR FRANCHISE INVESTMENT?

I have been involved with Ella Baché for just over 10 years. The original salon

Ella Baché requires a certain amount of assets from their investors, so we saved up

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a fair amount of capital and then we got a loan to fund the rest of our investment.

HOW LONG DID IT TAKE YOU TO ACHIEVE A RETURN ON INVESTMENT? We are still paying off the loan, but only because we have chosen to put a lot of our income back into the business, by investing in new technologies and products that will benefit us into the future. Otherwise, it probably took us about two years to achieve a return on our original investment.

WHAT SURPRISED YOU ABOUT THE BUSINESS? Honestly, I was surprised at how much work there is involved with running your own business. Before I bought the salon I was managing it full time, so I thought I had a pretty good idea as to what owning it would be like. How wrong I was! While I knew everything about the day to day running of the business, I was unaware of the amount of behind the scenes work that goes in. Luckily, I received great training and have had so much support along the way.

As a first time business owner, I felt the staff and marketing training that franchisors provide would be really valuable

WHAT CHALLENGES HAVE YOU FACED IN THE BUSINESS? Initially the biggest challenge was the state the salon was in. It was a profitable business, but there were many procedures and processes in place that were not the most efficient choices for the business. We reassessed everything; staff, marketing, the day-to-day protocols, everything got a fine tune. It was exciting, but was also a huge amount of work. Our biggest ongoing challenge is finding the right staff for the business. In order to find staff who suit we have developed

some of our own processes, like particular interview techniques that help us determine who will fit well into our salon. This is something we are always re-assessing in order to try and make the best decisions for our business and our clients.

WHAT SKILLS ARE REQUIRED TO BE A SUCCESSFUL FRANCHISEE? I think you need to be motivated, driven, hardworking and incredibly organised. You need to have your finger on the pulse of everything thatâ&#x20AC;&#x2122;s happening, at all times. Good leadership skills will also come in handy.

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NO SUCH THING AS A

typical day

ward winning Sarah Littleproud loves the sense of satisfaction that comes from working for her own success.

FRANCHISEE: SARAH LITTLEPROUD FRANCHISE: MR RENTAL STORE: SOUTHERN DOWNS

the opportunity to utilise a pre-existing network of more experienced franchisees in the same industry. I saw there was a definite need for a service offering in household rentals in the region and felt that Mr Rental was a leader in this market. The support structure offered was what we were after.

ARE YOU IN BUSINESS ALONE?

WHY DID YOU CHOOSE MR RENTAL?

Yes I am now, however I was originally in business with three investors.

I decided to go with a franchise so we could receive the support and knowledge we would not get if we started a business from scratch. Also a franchise provides

I was the chief financial officer of Warwick Credit Union, risk and compliance manager

WHAT DID YOU DO BEFORE?

at Management Accounting. I have a strong background in business and finances.

WHAT TRAINING AND SUPPORT DID YOU RECEIVE? I attended a 10-day training course, and had ongoing access to a business coach and the national support office to prepare for my role.

WHAT IS A TYPICAL DAY FOR YOU? There really isn’t a typical day; it is very varied which is great. However staff management is an important part of being a franchisee, as is customer relations. Without your staff and customers you don’t have a business.

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MR RENTAL FRANCHISEE SARAH LITTLEPROUD

WHAT CHALLENGES HAVE YOU FACED? I have overcome many challenges. It can be hard to find good reliable staff. I found that our initial investment style approach really did not work well for us. I needed to become involved for the business operations to reach its full potential.

chisor, which I adapt to my local market. However developing business connections and relationships with community groups is also important.

WHAT MAKES A SUCCESSFUL FRANCHISEE? A successful franchisee has the willingness to look for faults and weaknesses in their business and address these. They must also have the ability to see upcoming challenges and opportunities. Striving to improve is also a key attribute needed.

Another challenge I faced was business growth. It is your goal to grow your business. However it is not always easy and you usually need to try several things to achieve your desired goals.

WHAT ADVICE WOULD YOU GIVE TO A POTENTIAL FRANCHISEE?

Other daily challenges include stock management and finding quality stock that is reasonably priced within required timeframes. I can also struggle with a lack of time meaning work life balance can become difficult.

most jobs don’t provide. Franchising can be really rewarding as you see the fruition of everything you do and you are ultimately responsible for everything. This makes each success feel that much better.

You must research the business thoroughly and plan to put in the time and effort. This will mean you get out what you put in.

WHAT TOOLS DO YOU USE TO GROW YOUR FRANCHISE?

Yes, although I would have approached it differently and been more involved in setting up the operational processes, spending more time in the shop and running team meetings and training sessions.

HOW HAS FRANCHISING CHANGED YOUR LIFE? It has been a really busy time with a young family and while it can be challenging and full on it does allow for flexibility

I predominately use the marketing and promotional tools provided by the fran-

WOULD YOU DO IT AGAIN?

Is LMA the business you’ve been looking for? Leadership Management Australia (LMA) has been creating exceptional results through people for over 40 years. You have an exclusive opportunity to become a recognised leader of training and development in Australia. Leadership Management Australia (LMA) is a professional white collar B2B company in the $3.5 billion dollar training and development industry.

Invest with LMA to invest in you

Receive everything needed to kick start your business

Through building client relationships and changing people’s lives, you will have the opportunity to enjoy the freedom that owning your own business offers, while capitalising on high margins and building the future value of your business. Proven success strategies, training and support

Work-life balance some only dream about

Opportunities are limited - Contact our New Licensee support team today Bob McCarthy m 0417 778 030 e bmccarthy@lma.biz

Michelle Ioannidis t 03 9834 4566 e mioannidis@lma.biz

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www.lma.biz/license

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hy should you invest in a franchise? Thatâ&#x20AC;&#x2122;s a serious question, and the first consideration to make on the journey to investing in a business.

Well, for starters, franchising is on a roll. This is a $144 billion industry and according to the Asia-Pacific Centre for Franchising Excellence, there are about 1160 franchise businesses operating in Australia.

business opportunity? How can you be sure that life as a franchisee will suit you? If youâ&#x20AC;&#x2122;re an entrepreneur would you be better placed to consider developing your own business concept?

That's a significant number of different systems for anyone to choose from.

Of course the rigours of establishing a business from scratch are considerable and in a franch-ise there is a wealth of experience to draw on that can ease the process. There is never any guarantee of success but the presence of tried and tested systems, a brand, and experience in trading creates

Any potential business investor will be asking questions that will get them closer to making a decision about where to invest. How would you find exactly the right

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something of a shortcut in establishing a business for franchisees. What a franchise network offers the new franchisee is the chance to start off with knowledge and experience at their fingertips. What could be better than starting out in business with a brand that customers already recognise and love? Our website www.franchisebusiness. com.au can take you on a six-step journey that will guide you through the maze of understanding what franchising is all about, how to evaluate your own suitability to franchising, lead you to consider what will best suit your needs, get to grips with conducting due diligence, and get you closer to understanding the legal and financial requirements of a franchise investment.

“A franchise makes it possible for people who have never been in business before to run one successfully,” says Professor Lorelle Frazer, director of the Asia-Pacific Centre for Franchising Excellence at Griffith University.

ant to align yourself with the franchise that best suits you and in doing this, you must consider your current family situation, as well as your energy levels, whether you will be supported by family and friends, and take into account your financial situation.

Any would-be franchisee should consider whether his or her personality will suit franchising; successful franchisees have faith in the system and are prepared to follow it to the letter. “Some people find having a franchisor worse than having a boss because of the restrictions the system places on you,” Frazer says.

A realistic assessment of what you can undertake will stand you in good stead when you come to discover the details of the business opportunities. Not every business is a success, and to give yourself the best chance of achieving your goals you need clarity about the support levels around you and how much you can afford to invest – before you start out.

“Compare what you could do for yourself with what a franchised system has to offer. If you decide to go ahead with a franchise, look closely at different systems to see exactly what you can expect.”

PERSONAL ASSESSMENT There are a multitude of franchises available and you should ascertain where your interests and current abilities lie.

BENEFITS OF FRANCHISING In the first stage you will learn about the benefits of franchising and how it compares to running an independent business.

Personal assessment is crucial. It’s import-

DUE DILIGENCE The third stage of this journey takes a look at the all-important issue of due diligence – researching the business opportunity. When a potential franchisee is seriously interested in purchasing a franchise, the franchisor will present them with a franchise disclosure document, and it must be provided at least 14 days before they sign their franchise agreement.

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Love your work MAR/APR 2015 | 133 | WWW.FRANCHISEBUSINESS.COM.AU

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In conjunction with the franchise agreement, the disclosure document should greatly assist a prospective franchisee in making a well-informed decision on whether or not to go ahead with the franchise purchase. Prospective franchisees undertaking this franchise journey will learn what is in included in a disclosure document, and what a franchise agreement entails. These are both legal documents, central to the business you will purchase, so it is essential to understand what to look for.

WHICH SECTOR? Some of our readers and online audience have absolute clarity about the sector they plan to invest in; others are open to great opportunities. Some are looking for the key trends that will inform how we spend, what we consume and who will be buying. This is where the fourth stage of the journey takes us. The franchising sector is a microcosm of Australia, both economically and culturally. An ageing population, focus on wellbeing, a changing workforce, tighter economic conditions and greater integration of technology are all shaping the future business landscape. We look at how this translates to business opportunities for you.

FINANCE You’ve considered your options, done your research and finally homed in on the franchise that’s perfect for you. Now comes the question of finance – how will you cover the costs associated with acquiring the business and running it until you’re making a reliable profit? “If you need to borrow, you really only have two options – a private lender, such as a friend or family member, or a bank,” says Rod Nuttall, former national head of franchising at CBA who is now principal of Biz Loan Connexion, a finance broking firm. In the fourth stage of our franchise journey we look at the three things the banks will want to know, where to get advice and provide 10 tips for getting the loan across the line. In among the discussions will the subject of profit. Some businesses do make a profit in their first year, but not all – even in a franchise system. Kate Groom, co-founder of SmartFranchise, says “The reality is it takes time for a business to consistently make enough revenue to cover all the expenses, pay a wage to the owner, and have something left over as profit.” This financial stage gets practical with advice on how to work out profit levels and understanding its ongoing importance in the business. Accountant Naomi Mitchell at YCG says

“As a rule of thumb, I generally recommend your business plan show profitability after two to three years. If profitability within this timeframe appears unlikely then it’s possible that the eventual return on your investment will fall below what you may be able to find elsewhere.” A business’s profitability is also crucial to an exit plan. If you decide to sell the franchise, its sale value will depend significantly on how much profit the business has achieved and what it can produce in the future.

LEGAL The final step along the journey broaches the legal aspects of franchising. Our legal experts start off with the first five questions that you can expect your lawyer to pose. We discover the 10 things you need to know about franchising and the law, and get to grips with the Franchising Code of Conduct, the regulation that governs the sector and is administered by the Australian Competition and Consumer Commission. This six-step journey is an essential path to tread for anyone serious about investing in a franchise system and it draws on financial, legal and franchising experts to provide pertinent and detailed guidance along the route. Visit www.franchisebusiness.com.au to fi nd out more about taking the journey to discovering if franchising is right for you… and what to do next.

MAR/APR 2015 | 134 | WWW.FRANCHISEBUSINESS.COM.AU

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LEGALESE

CHAO NI Chao is an associate in the workplace relations team at MST Lawyers

DON’T GET CAUGHT OUT BY EMPLOYMENT LAW:

top tips for staying legal

re you poised to purchase your first franchise business and about to hire staff? The experience can be quite daunting if this is a new situation for you. You may be vaguely aware of employment laws “out there” but not entirely sure what they are.

In this article, we examine the common pitfalls experienced by new employers.

EMPLOYING STAFF When purchasing an existing business, you will likely have access to a pool of existing employees to recruit. In most cases, if any existing employee accepts employment with your business, they become a “transferring employee” under the law. Do not feel obliged to offer employment to all existing employees of the vendor. Rather, take the time to interview each employee and select those of whom you think will fit best into the business. Ensure, however, that your decision not to employ is not based on any discriminatory factors (e.g. age, gender, carer’s responsibilities etc.). CONTINUOUS SERVICE It is important to know that if you employ transferring employees, you must recognise their continuous service with the vendor for the purposes of unused personal leave and long service leave.

service. If, at the time of the transfer of employment from the vendor to your business, the employee had reached six years’ service, you will bear the entire liability for long service leave after a year. Furthermore, if the employee had 30 days of unused personal leave accrued with the vendor, they can take all 30 days of paid personal leave whilst under your employment. If a modern award or enterprise agreement applied to a transferring employee before a transfer of employment and you employ the transferring employee to carry out the same work, the same modern award or enterprise agreement will continue to apply to the transferring employee after the transfer. A transferring employee will also continue to be covered by the relevant industrial instrument which applied to them. For the above reasons, it pays to do some homework before you decide to offer employment to existing employees, particularly information about the employees’ service periods. Adjustments for personal and long service leave liabilities should be made during a sale of business process to ensure that they are fairly shared with the vendor.

For example: ✱ In Victoria, employees become entitled to pro-rata long service leave after seven years of continuous

GIVE CONFIRMATION If you do offer employment to an existing employee,

MAR/APR 2015 | 136 | WWW.FRANCHISEBUSINESS.COM.AU

FR1114_000_FIB

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The Experts in Leather & Plastic Restoration

Why Fibrenew? The ever-growing consumer-driven need for the repair and restoration of leather, plastics and vinyl represents a huge opportunity for all franchise owners.

Seeking franchise partners throughout Australia Single Operator or Fleet A Fibrenew franchise can operate as a single operator or as a fleet. Our flat-fee franchise model and low overhead make it a great fit for budding entrepreneurs.

First-Rate Support & Products Fibrenew scored a 99% satisfaction rate with existing franchisees regarding the ongoing support, products and service that are provided.

An Eco-Friendly Business Fibrenew offers a business solution to a serious environmental problem. Our products and services help preserve mother nature.

Fibrenew-Franchising.com.au Visit our website to learn more about the opportunity to start your franchise. Fibrenew is a proud member of the IFA.

www.fibrenew-franchising.com.au

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LEGALESE

we further recommend that you provide a written letter of offer confirming whether you will recognise their services with the previous employer for the following purposes including: 1. Annual leave; 2. Redundancy pay; 3. Eligibility for unpaid parental leave; 4. Eligibility to request for a flexible workplace arrangement; and 5. Eligibility for unfair dismissal remedies. The last point is particularly important. Ordinarily, an employee would have to work at least six months with an employer (or 12 months with a small business employer) before becoming eligible for unfair dismissal remedies. If you do not wish for transferring employees to have access to unfair dismissal remedies from day one of their employment with you, the letter of offer should expressly state that the employee’s “continuous service with the previous employer will not be recognised for the purposes of unfair dismissal remedies”.

which are set out in: 1. The Fair Work Act 2009 (Cth), which contains the 10 National Employment Standards. 2. Any industrial instruments such as a modern award or registered workplace agreement, which typically sets out minimum rates of pay, shift penalty loadings, overtime pay entitlements, allowances and other terms of employment. 3. Their common law agreement (e.g. individual letter of offer or formal employment contract). 4. The employer’s internal policies and procedures. The above list is arranged in order of priority. For example, the terms of a common law agreement cannot be inconsistent with a relevant industrial instrument or the Fair Work Act 2009 (Cth). Some employers mistakenly believe that they are not in breach of the law because their employees had signed a contract (i.e. a common law contract) accepting reduced entitlements. This leads to possible underpayment of wages, staff complaints and civil proceedings commenced by the Fair Work Ombudsman on behalf of staff.

Finally, always provide new employees with a copy of the Fair Work Information Statement.

ENDING EMPLOYMENT

DURING EMPLOYMENT

There are many laws that protect employees relating to termination of employment and this article does not attempt to list all of the possible claims that could be made against a former employer.

During employment, you must ensure that your employees receive all of their legal entitlements

There should always be a valid reason behind any termination of employment. Usually, the reason for termination could be related to performance, misconduct, ability to carry out the inherent requirements of the role, or redundancy. THE LEGALITIES There are legal requirements surrounding terminating employment. They include: ✱ The need to provide minimum periods of notice to the employee (or payment in lieu of notice); ✱ The need to provide a written letter of termination; and ✱ To pay the correct final pay amount and provide a payslip detailing the breakdown. Grievances and complaints relating to pay entitlements often lie dormant until termination time. We recommend that you obtain legal advice before dismissing any employee if there are any doubts about whether a complaint could arise. As the Workplace Relations advisor for multiple franchise networks, MST Lawyers is able to provide reliable and no nonsense legal advice on anything relating to employment issues. MAR/APR 2015 | 138 | WWW.FRANCHISEBUSINESS.COM.AU

It pays to do some homework before you offer employment to existing employees

FR0315_000_NEW

2015-02-17T13:47:28+11:00

In 2014–15, the top 4 pizza companies in Australia are only expected to account for

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Appointing Master Franchisees & Store Franchisees across Australia – Apply now!

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TRENDS

The four fundamentals of franchising ANDREW TERRY Professor of Business Regulation, The University of Sydney Business School

he “four fundamentals of franchising” may not have the gravitas of the “four horsemen of the Apocalypse” or the “seven deadly sins” or the “ten commandments” but it is an interesting exercise to compile, at the editor’s request, this list. Any such list is inevitably idiosyncratic and personal. If my mum rather than Pope Gregory the Great had documented the deadly sins I have no doubt that the list would have been a lot longer than seven. Identifying the four fundamentals of franchising presents a similar challenge. This is my list. Others will have their own.

THE BRAND At the heart of a franchise system is the brand. In a narrow sense this is the name – distinctive and trade mark protected - under which the business is carried on and in which the goodwill of the system resides. But in a wider sense the franchise brand refers to so much more - to the entire brand architecture and the “look and feel” of the outlet. The franchise brand is an holistic concept which represents the recognisable public face of the franchise and promises the consistent, standardised, familiar experience which consumers value. The prospective franchisee must be satisfied that the brand and its front of house manifestation is attractive and distinctive and compelling and viable.

THE SYSTEM The term franchise “system” is generally used to describe the totality of the franchised offering - the business which is franchised, the branding and “front of house” dimension, the distinctive and standardised method of offering the goods and services as well as the individual units which are part of the system. In a narrower sense it refers to the “back of house” side of the package - to the business, management and operational systems which, although generally imperceptible to the public, ensure not only uniformity and replicability but also the efficient and profitable operation of the franchised units. The prospective franchisee must be satisfied that the system is proven – an exercise in which the experience of the existing franchisee network is the most valuable resource.

THE RELATIONSHIP The franchisor/franchisee relationship is one of the key factors in successful franchise systems and will feature

prominently in anyone’s “four fundamentals” list. The franchisor/franchisee relationship is of course a legal relationship enshrined in the franchise contract which records the complex and intricate commercial relationship between the parties, but it is so much more than that. The term “commercial marriage” is often used to describe the franchising relationship because it is characterised by inter-dependence and longevity and good faith to a much greater extent than other business dealings. A franchise agreement records a relationship rather than a transaction and, as we all know from our personal lives, relationships involve challenges beyond the merely commercial. A prospective franchisee must be confident from his or her due diligence, which must include discussions with the existing franchisee network, that the relationship is strong and respectful and effective. As with any marriage there are a number of dimensions to building a strong relationship but effective communication is probably top of any list.

THE DOLLARS At the end of the day it’s really all about the money. Enterprises with a successful business model franchise them not to share the love but to improve their bottom line. Individuals acquire franchises to profit from their investment of time and money. The combination of the franchisee’s proprietorship and the franchisor’s system is a proven formula for unleashing synergistic entrepreneurship for the financial benefit of both parties. But franchising is not fairy dust – it is not a magic moneymaking formula for either party. Franchisors will rarely, and understandably given the factors that will impact on turnover, provide definitive financial promises and the prospective franchisee must be satisfied, by comprehensive due diligence, that the numbers add up.

MAR/APR 2015 | 140 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

Don’t let your fears hold you back JOAKIM AHLSTÖM Expert in continous improvement and the author of How to Succeed with Continuous Improvement: A Primer for Becoming the Best in the World

o you have the courage to confront your fears? If you don’t they will subconsciously influence your decisions and actions.

These five fears are particularly important to acknowledge if you want to succeed with continuous improvement. When these fears are prevalent, openness and creativity are replaced by ‘watching your back’ and ‘looking good,’ and when those drive you, you will never truly succeed.

1. FEAR OF POWER LOSS The courageous know that true power is gained by sharing knowledge, not hoarding it. Only the courageous can access the full power of their organisation, because only when you let go of your fear of losing power will you be able to launch a way of working with continuous improvement where everyone is empowered to engage.

2. FEAR OF REGRET From time to time I hear people asking, “Why didn’t we do this earlier?” To me, the question has a simple answer: “Because you didn’t know then what you know now.” Your decision to change is in fact a sign of learning that should be celebrated and not a reason for regret. The courageous accept what is and let go of what was to create the future they desire; they change their perspective

without fear of regret, since they know that they have done and will do their best in every situation. Without fear of regret you will go from defending your own viewpoint to sharing each other’s perspective, and only then will you learn from each other and give yourselves optimal conditions for creating the future you truly desire.

3. FEAR OF LOSING FACE In the short tale The Emperor’s New Clothes, two weavers promise an emperor a new suit of clothes that is invisible to those unfit for their positions, stupid, or incompetent. When the emperor parades before his subjects in his new clothes, it takes the untainted mind of a child to point out the obvious fact that the emperor is naked. When you see the kind of behaviour the tale illustrates in an organisation, you know that fear of losing face is in the air. Do you dare to ask questions such as: “Why are we measuring this?”, “What is the purpose of this meeting?” and “How does this improve our performance?” When you’re not afraid to lose face you can stop unnecessary window dressing activities and spend your energy on important improvement initiatives instead.

MAR/APR 2015 | 142 | WWW.FRANCHISEBUSINESS.COM.AU

4. FEAR OF FALLING BEHIND Running does you no good if you are heading in the wrong direction. When you let go of your fear of falling behind, you will be able to stop focusing on short term productivity and spend some time on the strategic initiatives you ‘never had the time address because of all the firefighting.’ That’s when your improvement work can become the growth strategy it is supposed to be.

5. FEAR OF LOSING FRIENDS Do you have the courage to hold your colleagues accountable or are you afraid to ruin your artificially cheerful relationship? True friendship is about expecting the very best of one another rather than allowing each other to be lesser versions of ourselves. When you let go of your fear of losing friends you can start helping your colleagues to utilise their full potential and their strengths. The effect will be improved results, people who grow and superficial friendships turning into deep and mutual trust. Fear will either stop you or strengthen you. Without the courage to confront these five fears, you will never get down to the true root cause of many of your problems, and they will stay with you and forever prevent you from succeeding. Remember that your fears, like vampires, will lose their power when they are exposed to the light. The courage to talk openly about these five fears will be rewarded with true power, satisfaction, recognition, peace of mind, rewarding relationships and, last but not least, a foundation for truly succeeding with continuous improvement.

FR0315_000_FRA

2015-02-17T16:18:43+11:00

LOOKING FOR RELIABLE TRANSPARENT BRANDS?

THE FRANCHISE REGISTRY™ CAN HELP YOU.

FOLLOW THESE THREE EASY STEPS TO FIND WHICH FRANCHISE BRANDS HAVE SATISFIED REGISTRATION REQUIREMENTS WITH THE LODGEMENT OF THEIR FRANCHISE AGREEMENT AND DISCLOSURE DOCUMENTS. Step 1 enter the brand name in the free search box at www.thefranchiseregistry.com.au Step 2 check that a registration number has been allocated Step 3 look for a “confirmed” status to confirm that documents lodged are current. At the request of lenders, the registry now also highlights brands that are ‘Lender Friendly’ and have provided additional information to improve loan processing. Contact us at info@thefranchiseregistry.com.au for further information. Level 8, 1 O’Connell Street | Sydney NSW 2000 | +61 2 8346 6093 | info@thefranchiseregistry.com.au | thefranchiseregistry.com.au

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The registry of Australian franchise brands The Australian Franchise Registry is powered by FRANdata Australia ACN 163 778 461

16/02/15 5:21 PM

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DIRECTORY

ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE A pre-entry franchise education program is available for free and online through this centre. Funded by the ACCC this course aims to help franchisees understand the process of due diligence and have realistic expectations of what it means to be a franchisee. The Centre was launched by Griffith University in 2008 and undertakes research on franchising best practice. The research helps inform policy and team members regularly engage with government bodies and franchise associations across the Asia-Pacific. VISIT: WWW.FRANCHISE.EDU.AU

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC) The ACCC is an independent Commonwealth statutory authority that is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

directory of government and business associations, planning templates, business videos, and businessÂ checklists. Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training. VISIT: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA (FCA) The FCA is the main body for representing franchisees, franchisors and service providers in the $131 billion franchise sector in Australia. Becoming a member of the FCA is voluntary and is available for any organisation or anyone involved in the franchise industry includingÂ franchisees. VISIT: WWW.FRANCHISE.ORG.AU

FRANCHISE BUSINESS

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries. The ACCC also regulates the Franchising Code of Conduct (Code) which is a mandatory industry code that applies to parties involved in a franchise agreement, namely the franchisor and franchisee. The purpose of the Code is to regulate the conduct of the parties involved and if allegedly breached prompts investigations by the ACCC.

As the online arm of Franchising magazine, this website is focused on providing essential advice and information for anyone looking to invest in a franchise - short and snappy business tips and news, video interviews, industry commentary and market reports.

VISIT: WWW.ACCC.GOV.AU

Franchise Business is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore by location opportunities that currently exist in the market and enquire about the franchisor or brand.

BUSINESS.GOV.AU This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business. New business owners can access the advice finder, events calendar, grants and assistance finder, a

Financial, legal and business guidance are key components of the independent, authorative editorial that helps potential franchisees make their purchasing decision.

Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees or franchisors with any legal, financial, education and training, IT and other services. VISIT: WWW.FRANCHISEBUSINESS.COM.AU

MAR/APR 2015 | 144 | WWW.FRANCHISEBUSINESS.COM.AU

FR0115_000_HAIR

2014-12-02T09:34:41+11:00

GOOD HAIR HAS ITS REWARDS JOIN THE LEADING HAIR AND BEAUTY BRAND

HAIRHOUSE WAREHOUSE is Australia’s leading hair & beauty brand, with plans to expand its network by 20% over the next 3 years, across the nation. We are looking for passionate people with a desire

Do you have what it takes to be successful?

to strive for results and take control of their own destiny. Whilst hairdressing experience is not required,

Franchisees are able to own their piece of one of

strong work ethic and drive is essential.

Australia’s largest retailer, and build their business

What sets us apart from the rest?

faster. So if you want to start achieving your goals, now is the time to join, with Hairhouse Warehouse

• A proven profitable turnkey operation

offering up to 30% reduction in the entry costs for

• Multiple revenue streams, including retail,

all new stores. Locations are available in all states

hair salon, piercing and beauty services

and territories in Australia.

• Extensive training and support from a dedicated team of professionals • Exclusive stockists of world leading brands and the most lucrative merchandising terms

CONTACT PETER FIASCO for a confidential discussion on 0451 370 060 hairhousefranchising.com.au

hairhousefranchising.com.au

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GLOSSARY

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. GREENFIELD new site.

SITE: a brand

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 franchisor’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 franchisee’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

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.

MAR/APR 2015 | 146 | WWW.FRANCHISEBUSINESS.COM.AU

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centre.

mbe.

Design, Print, Deliver. The benefits of MBE ownership:

Visit us in the 9 at booth B2 ising Franch o, xp Sydney E 29. March 27

Not a Single Product Franchise

Franchisee Network

Unlike most other franchise systems, MBE offers a wide range of B2B services. We do more than pack and ship, we do more than print and copy, we do more than courier services and mail receiving. We do it all.

Our franchisees are talented, experienced executives who have been successful in other businesses and the corporate world.

Internationally Recognised Brand

Strategic Technology Planning

With a network of more than 1500 business centres become part of a growing worldwide family.

We stay on the cutting edge of technology to ensure that we offer our customers state-of-the-art solutions.

Strategic Sales and Marketing Support

Full-Service Capabilities

We help you develop relationships with your customers by helping you show them that you are their vital connection for business support services.

Every MBE franchise is equipped with the technologies, capabilities and training that will ensure you exceed customer expectations and eclipse the competition.

Are you ready to take control of your destiny by joining one of the worldâ&#x20AC;&#x2122;s largest international franchises? Contact us today for more information. 1800 556 245 REGISTER ONLINE NOW FOR OUR OBLIGATION FREE OPEN NIGHT

http://mbebusinessfranchise.com.au/2015-information-night

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CHECKLIST

THINGS TO CHECK BEFORE YOU INVEST BEFORE YOU PURCHASE YOUR FRANCHISE YOU NEED TO TICK OFF ALL THE MUST-DO ITEMS. CHECK THE FOLLOWING:

Are you confident in the franchisor?

What are the franchiseeÂ and franchisor obligations?

Have you seen a disclosure document?

What training is available and who pays for it?

Have you evaluated the financial returns?

Who owns the intellectual property andÂ what is licensed to the franchisee?

Do you know all the expenses franchisees are required to pay?

What marketing will the franchisor implement?

Have you worked out your operating costs?

Who pays for the marketing?

Do you know the term of the agreement?

What is the dispute resolution process?

Is the business operating from fixed or mobile premises?

Do you know what it is like to be a franchisee?

Are you working within a territory? If so, is the area exclusive?

Can you assign the franchised business?

Are you restricted in your product purchase?

How can the franchisor or franchisee terminate the Franchise Agreement?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

MAR/APR 2015 | 148 | WWW.FRANCHISEBUSINESS.COM.AU

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CHECKLIST

STEPS TO OPENING YOUR FRANCHISE WHAT ARE THE PRACTICAL STEPS YOU NEED TO TAKE TO SET UP YOUR FRANCHISE? HERE IS A CALENDAR GUIDELINE TO OPEN DAY:

✓

Book franchisee training

✓

Sign the lease or licence agreement

Research your market

✓

Lease vehicle

Conduct due diligence on your franchisor

✓ ✓

1-3 MONTHS AHEAD

✓ ✓ ✓

Speak to franchisees

✓

Read the disclosure document

✓

Research the location

✓

Do a business plan

✓

Get legal and accounting advice

✓

Organise finance and working capital

✓

Decide on and set up your business structure

1-4 WEEKS AHEAD

✓ ✓

Sign the franchise agreement Register your business (Business Name, ABN, GST etc )

✓

✓ ✓ ✓ ✓ ✓

Organise fit-out for your store or office Order and check the delivery of any stationery, uniform and vehicle wrap required Clarify what support the franchisor will provide for opening and the first few days of trading Check what insurance policies you need to protect your business Check any relevant regulations or local by-laws Understand your tax liabilities Purchase a telecoms package and organise installation Open a business bank account If you will be an employee, start the staff recruitment process Start planning your local area marketing strategy

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A-Z LISTINGS

Phone: 02 8913 6400 Fax: 02 8088 6637 Contact: Esha Oberoi esha@afea.com.au www.afea.com.au

Phone: 02 8346 6093 Contact: Darryn McAuliffe info@thefranchiseregistry.com.au www.thefranchiseregistry.com.au

Start up costs: $155,000

PROFILE: Afea care services is a leading provider of qualified and compassionate Community Support Workers, Carers and Nurses to hospitals, nursing homes and care facilities around Australia, including carers for personal support services at home. Afea is setting the benchmark for nursing services delivered with compassion, excellence, and reliability. One of the finest health care providers nationwide, Afea offers a full range of nursing services, from skilled nursing and personal care to rehabilitation and therapies, for paediatric, adult, and geriatric clients.

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au

PROFILE: The Australian Franchise Registry™ is operated by FRANdata Australia Pty Ltd (www.frandaataa.com.au) and contains a free and publicly accessible search function. The registry lists all known franchise brands operating in Australia and identifies those that have met the requirements of registration. (A registration number and certificate is provided to brands that meet registration requirements with an annual filing of current key compliance documentation required to maintain a “confirmed” status. At the request of lenders the registry also enables lenders to access key information provided by participating brands.

Phone: 0417 077 633 Contact: Michael Payne michael@palmoasisventures.com www.baskinrobbins.com.au Start up costs from: $190,000

Start up costs from: $47,000 + GST 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 45 franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

PROFILE: At Baskin-Robbins, we love ice cream. Everything we do is for the fun, indulgence and enjoyment that ice cream provides to our beloved guests around the world in over 7,500 locations – with our 1,000 unique and much-loved ice cream flavours, frozen drinks and famous range of ice-cream cakes, there’s a delicious treat for everyone. Our world class training program will prepare you, our national marketing platforms and comprehensive Local Store Marketing programs will generate the brand awareness and our operations team are there to support and assist you. If you love to have fun & put a smile on people’s faces and are as passionate about ice cream and the Baskin-Robbins brand as we are, then we want to hear from you.

Phone: 07 3373 1760 Fax: 07 3373 1770 Contact: Battery World Support Office admin@batteryworld.com.au www.batteryworld.com.au/franchising

Phone: 02 9232 3511 Fax: 02 9223 4625 Contact: Marwan Kojok info@baybridge.com.au www.baybridge.com.au

Start up costs from: $250,000 + GST PROFILE: Australia’s leading battery retailer Battery World is offering a unique retail opportunity with a great growth potential. Battery World stores carry batteries for everything from mobile phones and laptops to vehicles and boats. With 82 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category. If you want to invest your time and money in a powerful franchise, Battery World offers a unique opportunity to tap into an ever-growing market. Franchises are currently available throughout Australia for motivated individuals with strong communication skills and a love for retail.

PROFILE: Baybridge lawyers deliver a progressive and efficient approach to clients’ legal issues. Going beyond the traditional service offering, we act as legal representatives as well as trusted advisors on many initiatives, adding value at every step. As leaders in the field, Baybridge Lawyers are able to identify solutions and opportunities that are both practical and timely. From working alongside a diverse range of clients including listed companies, national and international franchisors, small and medium businesses, and private individuals, we have the perspective and experience to continually add value.

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Phone: 1300 800 234 Contact: David Bozuwa info@bozzyshadeblinds.com.au bozzy.com.au

Phone: 07 3352 6972 Fax: 07 3352 7962 Contact: Danny Sinclair danny@bengadesigns.com.au www.bengadesigns.com.au

PROFILE: Benga Designs specialise in the design, manufacture and installation of custom made signage for retail shopfitting and national franchises, including but not limited to 3D illuminated signage, plastic fabrication, large format printed graphics and vehicle wraps.

PROFILE: Bozzy…Who are we? We are a quality outdoor product company that pride ourselves on great customer service, fast turn around times and professional & reliable staff. Specialising in Outdoor Blinds, retractable roof systems, folding arm awnings and shutters we cater to all outdoor living experiences.

We also produce a large range of “point of sale” products such as banners, flags, A-frames and corporate stationery.

We believe so much in the service we provide that we want to let the whole of Australia know what we do best!

Our success has been directly attributed to Benga’s refined project management skills. We pride ourselves on the attention given to upfront planning, communication and liaising with our clients and shopfitters.

2015 will certainly be a massive year at Bozzy as we expand our wings to the east coast and launch Bozzy around Australia.

Benga Designs is a proud member of ASOFIA, ASGA, BAA, DIA and FCA.

G L O B A L

Professional Coaching | Corporate Training

We are passionate about seeing your home or business covered with the right outdoor system.

Phone: 1300 99 55 12 Contact: Gavin Trewin gavin@buyaustralianproperties.com.au www.buyaustralianproperties.com.au /welcome/

Phone: +61 418 500 721 Contact: Andrew Phillips ap@briantracyglobal.com www.briantracyglobal.com

Achieving Personal and Business Goals Faster

Start up costs from: $49,950 + GST

Start up costs from: $25,000 plus GST PROFILE:

PROFILE: The name Brian Tracy is synonymous with personal and professional success. Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community. We are searching for high-calibre individuals who are self-motivated thinkers, looking for a business opportunity beyond the generic franchise. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find out more about the prestigious Brian Tracy franchise opportunity.

Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au

PROFILE: Cashflow It specialises in equipment financing solutions for the franchise sector. Cashflow It can get you pre – approved so that you can find the best deal on the equipment you need from any supplier in Australia. Whether you are looking for just one piece of equipment, fitting out a brand new store or buying an existing business with established equipment, we have a funding solution that can help.

Buy Australian Properties is the first professional franchised property investment company in Australia. We are leading the industry with safe, ethical and proven ways of investing in residential property with integrity. We supply quality approved direct property investments in brand new full turn key house and land packages, apartments, townhouses, units and row houses Australia wide. We have created a simple yet very effective 4 step client engagement process incorporating proven systems and procedures designed to produce outstanding results and highly satisfied clients every time we use them. Franchisees have the opportunity to operate a very unique, first of its kind property investment business in Australia. • great work-life balance • work from your home office • a team of highly motivated and dedicated professionals • excellent company culture

• comprehensive initial and ongoing training

• unlimited growth and earnings potential • vendor finance available for a limited number of foundation members • No Real Estate Licence required

Phone: 03 9508 4417 Fax: 03 9508 4499 Contact: Gavan Meadows gavan.meadows@retailzoo.com.au www.ciboespresso.com.au Start up costs: $280K to $550K

PROFILE: CIBO Espresso is your traditional Italian espresso bar. At CIBO, we have a passion for everything Italian with great food, beautiful coffees and of course, that cheeky Italian hospitality.

Choose terms from just 12 months up to 5 years. At the end of the term you can Continue Renting, Purchase Equipment, Rent To Own or Return Equipment.

With amazing coffee’s, savouries and pastries, it’s easy to understand how CIBO espresso has become such an institution. With 27 CIBO‘s operating throughout Adelaide, Melbourne and Perth, we are looking for quality individuals wanting to ‘add value’ to our network and get involved.

If you belong to a Cashflow It Accredited Franchise then you will enjoy additional products, benefits, and cost savings.

With proven systems and back end processes in place, the hard work is done. All you need to do is make every one of your customers experience truly rewarding!

Apply online today in less than 10 minutes.

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Phone: (08) 8388 4666 Contact: Duncan Powell Duncan@cocolat.com.au www.cocolat.com.au

Phone: +61 02 9207 8877 Contact: Rod Laycock rodl@civicms.com.au www.civicmanagedservices.com.au PROFILE: Civic Managed Services (CMS) is a professional service provider and experienced franchisor offering tailored solutions for small to medium sized businesses on a short or long term basis. CMS offers a full suite of business services, including Operations, IT Support, Online and Offline Marketing, Purchasing, Warehousing and Distribution, Finance and Management Reporting, Franchising and Strategic Management and Planning. CMS is ideally suited to provide infrastructure to businesses wishing to launch or expand their business, without the need to invest in costly staff recruitment. We have expertise and experience in a range of industries including retail, franchising, food, technology and education. CMS could be the cost effective solution to provide you with an experienced team to grow your business.

Start up costs: $200,000 +

PROFILE: “Now Franchising” At Cocolat we pride ourselves in our handmade artisan Products – Deserts, Chocolate Truffles, Gelato and Coffee. Our Team of Chocolatiers and Bakers use only the finest of ingredients in our full production kitchen based in the beautiful Adelaide Hills. Cocolat is a popular South Australia Icon which has just opened up their first store in St. Ives, Sydney. Now Franchising throughout NSW, VIC, SA, QLD, WA, NT and TAS.

Call us for an obligation free discussion.

Phone: 07 3839 4733 Contact: Adam Brazda opportunity@combined.com.au www.combined.com.au/ partnerwithus

PROFILE: Combined Insurance, a division of ACE Insurance Limited (ACE), has been providing Australians with peace of mind with our Accident and Sickness Insurance products. Now is your opportunity to become part of our future. Please note this is not a franchise opportunity, but rather a chance to become a Corporate Authorised Representative (Principal Agent) of ACE. If you want to run your own business and build equity with strong support and minimal start-up up costs, then look no further. Become a Principal Agent of ACE. As a Principal Agent, you will be able to build your own operation and engage Sub-Authorised Representatives while being authorised under the ACE Australian Financial Services Licence to advise on, distribute and sell the Combined Insurance Accident and Sickness products underwritten by ACE.

Phone: 03 9923 3514 Contact: Ross Malcomson franchise@dodo.com www.dodo.com/franchise

Phone: 03 9417 5000 Fax: 03 9419 0937 Contact: Sarah Le Breton sales@displaydesign.com.au www.displaydesign.com.au

PROFILE: For over 25 years, Display Design has been helping businesses both large and small with their retail merchandising and display requirements. Specialising in the manufacture and supply of a vast range of products suitable for use in any retail, commercial or corporate environment, Display Design’s range includes: Wall display systems, freestanding merchandising units and racks, light boxes, showcases and counters, graphic display products, metal and acrylic accessories, suspended cable and rod display systems and sign connection components. In addition, the business also encompasses areas such as design, custom manufacture, project management, installation & fit out.

Phone: 1300 131 888 Contact: Ashleigh Williams Franchise.recruitment@dominos.com.au www.dominosfranchise.com.au Start up costs: $250,000

PROFILE: Dodo Connect is a fun, vibrant and energetic technology and home utilities driven business. Core to Dodo’s success has been the provision of extremely competitively priced products, along with superior customer service. A Dodo Connect franchise provides you with low-cost entry, a simple business format, a wide range of products and services (including: internet, home phone, mobile phone and mobile wireless broadband, electricity and gas, plus vehicle, home and contents insurance. Dodo is backed by an ASX listed powerhouse the M2 Group, in a dynamic and growing sector.

PROFILE: Looking for a new career path and want to be your own boss? Join the success of the Number One Pizza Company in Australia- Domino’s! Our objective is to ensure every franchisee in the network is successful by offering; • Proven Systems and procedures for single unit and multi-unit operators • Clear growth & development strategies • Un-Paralleled Support from a dedicated team • Comprehensive training programs • Constant innovation • Leading Marketing Strategies • Support through all stages of the store building process • Local franchise consultant to help with ongoing store operations Our stores generally cost between $300,000-$600,000 + GST we require you to have approximately 40% of the total investment in cash and/or available equity. Live your Dream and apply now.

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Phone: 0408 444 734 Fax: 02 4321 0286 Contact: Jack Zervos jack@execucon.com.au www.drboom.com.au

Phone: 1800 373263 Contact: Cam Hadlow cam@dreamdoors.com.au www.dreamdoorskitchens.com Start up costs from: $65,000 + GST + operating capital

Start up costs on application

PROFILE: Dr Boom Communications pride themselves on being one of the longest established and most innovative mobile phone and tablet accessories and repairs specialists in Australia having commenced trading from a single kiosk site in 1987. With eight well established stores in premium locations across Sydney, a modern central distribution, training and service centre and a secure exclusive supply chain including premium global brands we invite entrepreneurial, hardworking and committed people to leverage our experience, share in our success and build our future.

PROFILE: Dream Doors is different from other kitchen, bathroom and bedroom renovation companies. By simply replacing the doors, drawer fronts and benchtops we save the customers $1000’s on their renovation and there in lies the secret to our universal success. We will give you 14 years worth of International experience and knowledge and help you run your local Dream Doors Franchise. Working together is crucial to any new undertaking in the business arena and working with the company co-founder and the Australian Master Franchisee to set up and develop your own Franchise Territory will be a major advantage to the growth of your business. Long term this relationship will flourish because it is absolutely in the interest of both parties to make this business work together. Our joint incomes depend on it.

Phone: 1300 FASTWAY Fax: 02 9264 4966 fastway.com.au

Phone: 02 9332 2824 Contact: David Hundt dave@enviefitness.com.au enviefitness.com.au

Start up costs from: $25,000 Start up costs from: $100,000 + monthly leases PROFILE: Don’t buy a fitness franchise without exploring this exciting opportunity. EnVie is the innovative new approach to inspirational Women’s Health and Fitness. With sites ready for opening across the eastern seaboard we are seeking enthusiastic and passionate business owners NOW; with a determination to succeed and a passion for health and fitness. Incorporating the best elements from a range of franchise models an EnVie business is completely systemised. An innovative new franchise model means franchisee and franchisor have the mutual goal of your SUCCESS. The business is further supported by extensive training and ongoing coaching from a team of fitness, business, franchise operations, marketing and sales experts with a combined 127 years of experience in the franchise and fitness industries.

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: t Guaranteed income package* t Low start up costs t No weekend work t Ongoing business support & training t Exclusive territories t 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. *Conditions apply

Phone: 1300 362 994 Contact: Glen Jenkins info@fibrenew.com.au www.fibrenew-franchising.com.au

Phone: 1800 PT for U (783 678) Contact: Scott Hunt franchise@fitnessenhancement.com www.fitnessenhancement.com

Start up costs from: $75,000 + GST

Start up costs: From $29,000 including all equipment, training and advertising

PROFILE: Fibrenew is the industry leader in the restoration of leather, plastic and vinyl. We are a mobile service that caters to the aviation, automobile, commercial, insurance, marine, medical and residential markets. With the diversity of all these opportunities across so many markets, our company and franchisees have grown and thrived through every rise and fall of the economy. That really speaks to the fact that there is always a need for our services. Right now, there are franchise territories available throughout Australia. This is your chance at an exceptional business opportunity with potential for great income. To find out more about joining our franchise team, visit: www.fibrenew-franchising.com.au

PROFILE: A low cost fitness franchise where the average customer spends over $5,000 and many have spent over $30,000! Established in 1999, Fitness Enhancement is Australia’s third largest Personal Training company. You don’t have to be a Gym junkie to be an amazing Personal Trainer, we can get you qualified with your franchise purchase and teach you our award winning skills that have seen our clients lose up to 100kg. All you need is a passion for a fit and healthy life and helping others change their lives. Our Mobile and Studio franchises offer unlimited growth and expansion opportunities with unparalleled head office support. Personal Training qualifications are available through us for an extra $3,000.

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Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Karen Pollard franchise@gelatissimo.com.au www.gelatissimo.com.au

Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja kevin@franchiseselection.com.au www.franchiseselection.com.au PROFILE: Franchise Selection is the leading franchisee recruitment company in Australia that assists potential franchisees through the interview and selection process. We offer potential franchisees a wide selection of franchises covering all industries including retail, food, automotive, telecommunications, construction and even service franchises. We pride ourselves in being leaders in our industry and our approach is not to sell franchises but to educate and assist buyers in finding the right business opportunity for them and to assist franchisors in selecting the very best franchisees.

Phone: 07 5515 0119 Fax: 07 5500 3716 Contact: Geoff Biddle mail@groutpro.com.au www.groutpro.com.au

Start up costs from: $350,000 PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees. Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service. Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

Phone: 0451 370 060 Contact: Peter Fiasco franchising@hairhousewarehouse.com.au www.hairhousewarehouse.com.au/franchanising

Start up costs from: $39,950 + GST & vehicle Start up costs from: $200,000 - $400,000 PROFILE: Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and re-colours old grout saving customers time and money without having to re-tile. Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.

Phone: 02 9224 0460 Fax: 02 9224 0469 Contact: Mark Buckland office@healthyhabits.com.au www.healthyhabits.com.au

PROFILE: Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse is built on passion and creativity. t Extensive and ongoing training programs t A proven turnkey operation t A focus on world class service t Multiple revenue streams, including retail, salon, piercing and beauty services t Exclusive stockists of world leading brands with the most lucrative merchandise trading terms worldwide

Phone: 0427 208 462 Contact: Steve Potter franchising@indianbrothers.com.au www.indianbrothers.com.au Start up costs from: $160,000

PROFILE: Healthy Habits is a fast food retailer with a difference. You see, we’re all about feeling good - about the food we eat, our lives and our bodies. Everything we do is centred around this approach, maximising the opportunity to bring healthier, feel good food choices to the communities we live in. Franchising with Healthy Habits provides you with the financial control of owning your own business, whilst being supported by proven systems and market leading innovation. So, if you’re energetic, ambitious and ready to learn, contact Healthy Habits today and let’s start a conversation.

PROFILE: Indian Brothers restaurants began in 2002 with a simple philosophy – to bring the authentic taste of North India to Australia. Our first restaurant became a local institution in Queensland, offering tasty meals cooked to perfection. Using the freshest ingredients, traditional spices and only genuine Tandoor ovens enabled us to offer an Indian experience like few others. Today, Indian Brothers Restaurants provide opportunities for motivated individuals to own and operate their own Indian take away food business. Our unique system has been designed from the ground up to meet the increasing demand from time poor customers who are looking for instant, value for money, fresh and tasty food.

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Phone: 0418 600 919 Contact: Meredith Ham sales.au@inxpress.com inxpress.com inxpress.com.au/franchising

I N - H O M E , S O C I A L & L I F E S T Y L E S U P P O RT

Start up costs from: $49,000 +GST PROFILE: InXpress provides a revolutionary concept delivering customers with express freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money. Operating in 15 countries with over 250 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: t Low entry costs t Low risk t No inventory/warehousing

t Minimal employee base t High income potential t Ongoing training and support

Phone: 02 9934 9929 Fax: 02 9934 9900 Contact: Paul Stearn Paul.stearn@justbettercare.com www.justbettercare.com Start up costs: $130,000 + GST

PROFILE: Just Better Care is a dynamic business providing in home support services to the Aged, people with a Disability, Dementia, recovering at home from illness or medical procedure, domestic care, respite, and new mums. Founded by Trish Noakes in 2005 with franchising beginning in 2007 we quickly became recognised as a care provider of choice leading to us becoming one of the countries largest franchise care provider’s with 31 franchised areas. With a significant growth in our aging population over the coming years, Just Better Care is perfectly positioned to become the care provider people are talking about.

For more information about becoming an InXpress franchisee contact us now.

Phone: +61 2 9527 5444 Fax: +61 2 9527 5144 Contact: Luke Manning Luke@justcuts.com Justcuts.com

Phone: 1300 989 366 Contact: Drew Davies info@kubarz.com.au www.kubarz.com.au Start up costs from: $19,990 - $49,990 (ex GST) depending on territory size, location and equipment

Start up costs: $85,000 - $120,000 (Kiosk) $160,000 - $240,000 (Salon) PROFILE: Join the largest hairdressing network in the Southern Hemisphere! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business coaching and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and on average own 2.3 salons each! Why? Because proven systems, support and training means your Stylists become the technicians and easily run the business for you. Just Cuts™ are also excited to announce our NEW kiosk option! With only 49 sites available Australia wide, buy yourself a new lifestyle from $85,000! Just Cuts™ Franchisees have exclusive access to our professional retail range made in Europe; JUSTICE Professional™!

PROFILE: Kubarz is Australia’s premier and original beverage catering and mobile bar company established in 2003 and we have now limited territories available in this boutique franchise network across Australia. With everything included from training, operations manuals, equipment, marketing and more – all you have to bring is the right attitude! We have successfully been servicing clients with our professional and stylish beverage and mobile bar catering services for functions, parties and events for over 10 years and are looking for the right people to take advantage of our clients demand to take our service nationally. With minimal royalty fees, extensive ongoing head office support and already a handful of territories secured now is the chance to get into this exciting and rewarding industry whilst enjoying a flexible lifestyle. Contact us today for an obligation chat about our limited opportunities!

Phone: 03 9822 1301 Contact: Bob McCarthy bmccarthy@lma.biz www.lma.biz/license

Phone: 1300 453 284 Fax: 07 5564 9045 Contact: Dean Reid marketing@mobileservices.net.au www.myleatherdoctor.com.au

Start up costs: $50,000 + working capital

PROFILE: You have an exciting opportunity to become a recognised leader of training and development in Australia. Leadership Management Australia (LMA) is a professional white collar B2B company in the $3.5 billion dollar training and development industry. Through building client relationships and changing people’s lives, you will have the opportunity to enjoy the freedom that owning your own business offers, while capitalising on high margins and building the future value of your business.

Start up costs: $55,000 (plus GST) PROFILE: The Leather Doctor is the leading international brand in Australia for mobile leather repairs. With over 60 franchisees in Australia and teams in New Zealand and Dubai, this is truly a turn-key business with proven success. No previous experience required. All training included. For a unique business opportunity with little competition, great income and amazing support, call today for an information pack.

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Phone: 02 9638 8000 Contact: Mark Futeran mark.futeran@hunterdouglas.com.au www.luxaflex.com.au

Phone: 03 9604 9400 Fax: 03 9600 3313 Contact: Robert Toth rxt@marshmaher.com.au www.marshmaher.com.au

Start up costs: $30K (Luxaflex Showcase) $150K (Luxaflex Gallery) PROFILE: The LUXAFLEX® Window Fashions brand is one of the most widely known and respected window furnishing brands in Australia. Luxaflex was established as a brand of the worldwide market leading Hunter Douglas Group operating in Australia since 1953.

PROFILE: Robert Toth has moved!

Luxaflex Window Fashions are sold primarily through quality window furnishings stores nationwide.

1. International Franchisors 2. Master Franchising 3. Dispute Resolutions – solutions and strategies 4. Franchisee Advice 5. Sale / Purchase Franchise systems 6. IP / Trademark Advice 7. Company Structure & Tax Advice

We offer an unrivalled partnership to meet specific business needs, through the LUXAFLEX® Window Fashions Gallery and LUXAFLEX® Window Fashions Showcase Alliance programs. The Alliance programs provide marketing support, business management support, product supply, training and support, as well as on the ground local sales support.

Phone: 1800 776 747 Fax: 1800 194 525 Contact Name: Brad Dixon info@mynfib.com.au Mynfib.com.au

PROFILE: NFIB meets the Australian demand for a dedicated 24/7 online provider of insurance cover for franchisors and their franchisees. 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.

Well recognised and published franchise specialist with over 30 years industry knowledge now head of franchise group at Marsh & Maher. Providing advice to:

Fixed fee to be 2015 code compliant.

Phone: 1300 NEW YORK Contact: Todd McGregor www.newyorkslice.com.au/ franchise Start up costs from: $150k PROFILE: New York Slice is the home of authentic New York style pizza by the slice. Over the last 12 years we have served literally millions of slices of hot, tasty pizza across our 5 inner city Brisbane stores alone. We have long been asked from people right across Australia “Can I open a New York Slice Franchise?”. The answer is now a resounding YES! Fact: The Pizza industry in Australia is valued at $3.6Bn annually and growing at a rate of 3% yet the top 4 Pizza companies in Australia have only 32.3% of industry revenue! – source: IBIS World New York Slice is now appointing Master Franchisees and Store Franchisees across the country. • Less than 80% labour cost of other Pizza stores • Great Profits • No experience necessary If you are hungry for success and want a Slice of a well established successful business then apply now!

Phone: 03 8851 4200 Fax: 03 8851 4277 Contact: Michael Standley franchise@noodlebox.com.au noodlebox.com.au/franchise

Phone: 02 9822 5622 / 0423 052 456 Contact: Kate Bird franchise@packsend.com.au www.packsend.com.au

Start up costs from: $250,000 - $280,000

Start up costs from: $160,000 - $170,000 + working capital (ex GST)

PROFILE: Noodle Box is an Australian owned franchised QSR, delivering fresh, Asian-style street food specially crafted for the Australian palate. Locally owned and operated, Noodle Box has a strong network of franchise partners throughout Australia and internationally. Noodle Box provides an integrated offering for franchise partners, including a sophisticated training centre, award-winning online training platforms, highly experienced QSR management team, marketing support and strength of a recognised brand. Noodle Box is expanding. We are seeking enthusiastic, passionate franchise partners to join our network. We provide competitive entry-level investment and true partnership thinking, because we know that your success is also ours.

PROFILE: Servicing one of the world’s fastest growing markets, PACK & SEND is an award winning, full service logistics operation servicing corporate and small business clients, as well as householders. Established for 20 years with over 100 Australian stores – along with international networks in New Zealand and the United Kingdom – there is no other franchise system like PACK & SEND! With cutting-edge technology and a thriving e-Commerce network, customers can simply send anything, anywhere through an array of sales channels. With the exponential growth of online purchasing, the parcel and freight industry is among the top to benefit. Our innovative approach and developed infrastructure creates a future-forward franchise platform with ‘no limits’ to success.

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Phone: 02 9930 3023 Contact: John Nero au-pizzahut.franchising@yum.com www.pizzahut.com.au/franchise

Phone: 02 4648 2099 Fax: 02 8572 8222 Contact: Nigel Miller franchising@plusfitness.com.au www.plusfitness.com.au

Start up costs from: $300,000 - $350,000

Start up costs from: $249,000

PROFILE: Pizza Hut is the leading global pizza franchise, with over 14,000 restaurants throughout the world and is part of the quick service restaurant, 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, Northern Territory, South Australia and South East/Regional Queensland there has never been a better time to join.

PROFILE: Plus Fitness 24/7 offers a true turnkey, 24 hour gym franchise. A Plus Fitness 24/7 franchise will cost you from as little as $249k including all gym equipment, aesthetic fit-out, signage, access control, marketing, training and franchisee support. The Plus Fitness 24/7 business model offers low staffing, fast break evens and impressive returns in one of the fastest growing industries within the franchising sector. With over 120 gyms open across Australia and a further 50 territories sold, Plus Fitness has a clear goal of establishing over 200 gyms by end 2015.

Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill phil.hill@tic.com.au propertyclub.com.au

Phone: 03 9596 8633 Contact: Darren Klooger darrenk@prism-solutions.com.au www.prism-solutions.com.au

Start up costs from: $98,000 PROFILE: Prism Solutions, an IT services company supporting small business for over 20 years. Our history and longevity speaks volumes on our pledge to deliver quality of service. Our experienced team of professionals focus is on understanding your business to ensure we provide our clients with solutions and options. It’s all about the relationships we forge with our client’s which make Prism a leader in service delivery. We understand that good communications and clarity of information is important in understanding our client’s needs.

PROFILE: The Property Club is a division of The Investors Club. Since its establishment in 1994, The Property Club has assisted in the sale of over 17,000 properties throughout Australia and New Zealand and are looking to expand further in these markets. Property Club prides itself on providing investment opportunities and deals and a one-stop-shop to access property related services for its members. The company currently has 18 Franchises and 300 Property Mentors, as well as a head office with 40 staff specialising in all areas of Property Investment.

Experience and knowledge gained over 20 years of supporting small business sets Prism apart from the rest.

Phone: 1300 4 REDCAT (1300 4 733 228) Fax: 03 9696 1553 info@redcat.com.au www.redcat.com.au

PROFILE: RedCat provides end-to-end, point of sale, accounting and business management solutions that gives users total control of their business. RedCat supplies integrated software and hardware solutions that can manage sales, staff, stock, payroll, through to accounts, GST, customer loyalty, and web based multi-site reporting to provide a complete business management system. Franchised groups can benefit from their flexible centralised management capability that permits multiple levels of control and reporting. RedCat are also able to provide online ordering systems. Customers order and pay through a uniquely branded app, the order is then automatically integrated into the point of sale system.

Phone: 1300 139 557 Contact: Jon Bridge jonb@traffic.net.nz www.refreshrenovations.com.au/ get-in-touch/franchise-opportunity

PROFILE: Professional design and build renovation service. Refresh provides one point of contact and a clear process for consumers to receive an outstanding renovation experience. Refresh delivers cost effective, low stress renovations to homeowners. Refresh undertakes all types of renovations, from kitchens and bathrooms, to loft conversions and extensive house renovations. You will leverage the existing trade skills in the market but provide an overarching process which maximises efficiencies and facilitates quality. You don’t need to be a builder to join Refresh. Our head office infrastructure and support will help you extract maximum value from your operations.

MAR/APR 2015 | 157 | WWW.FRANCHISEBUSINESS.COM.AU

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A-Z LISTINGS

Phone: 03 9508 4409 Fax: 03 9508 4499 Contact: Olivia Elsley olivia@retailzoo.com.au www.retailzoo.com.au Start up costs: $260K - $320K + GST (Boost Juice) $430K - $650K + GST (Salsas) $280K - $550K + GST (Cibo Espresso) PROFILE: Since 2000, Boost has evolved from a single focus; single Brand Company, to a business platform! Our strength lies in the back end with comprehensive support services capable of being easily plugged into in order to generate high performance growth in a proven and profitable retail business. Retail Zoo has expanded to include Boost Juice Australia, Boost Juice International, Salsa’s Fresh Mex and Cibo Espresso. All brands utilise a collaboration of collective support services that provide everything a retail business needs behind it to be successful. With nurture, care and experience, Retail Zoo has the expertise for any retailer to join forces and maximise their growth potential.

Phone: 02 8417 2668 Contact: Josh Franklin apsales@revelsystems.com http://revelsystems.com.au Start up costs from: $1000

PROFILE: Get Amazing Control, Stop Money Leakage, Save Time and Increase Your Turnover. Upgrade Your Business With Revel iPad POS. Revel is a true business solution, developed from the ground up to be the world’s leading fully featured iPad POS. Available for single terminals to Enterprise and Global Franchises, Revel runs from an iPad connecting to the cloud with local back up, delivering incredible reliability that empowers you to access every single feature from anywhere with internet. Our features are designed to protect & increase your profit margins, automatically reduce mistakes, increase sales and improve efficiency.

Phone: 02 4323 7917 Fax: 02 4311 2330 Contact: Ceri Aubrey office@seethru.com.au www.seethru.com.au

Phone: 07 5591 3242 Fax: 07 5591 9021 Contact: Michelle Connor michelle.connor@rfg.com.au www.rfg.com.au PROFILE: Retail Food Groups (RFG) long term philosophy of ‘strength in brands’ is our point of difference – our franchisees enjoy the benefits of working with Australia’s largest multi-food franchisor every day, dealing with expert management teams, enjoying supply benefits from increased scale and gaining access to best in class initiatives. As the owner, developer and manager of the Donut King, Brumby’s Bakery, Michel’s Patisserie, bb’s Café, Esquires, Gloria Jean’s Coffees, It’s A Grind, The Coffee Guy, Café2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems RFG is one of Australia’s leading retail food franchise operators boasting in excess of 2,400 outlets across more than 40 countries. Our proven business models and support systems have been perfected over 25 years of operation, and we’ve built an experienced and highly skilled support network to ensure the success of our franchisees.

Start up costs from: $33,000 PROFILE: See Thru Cleaning was established in 2007 by Ceri Aubrey with over 17 years of experience in the window cleaning industry and a passion for customer service. Initially we were focused on large commercial work, but as the company and our reputation grew, we have expanded and grown to include the smaller commercial and residential markets. The quality of our work speaks for itself. We started franchising in 2013 to offer our knowledge and experience to others and help them establish their own See Thru franchise. As a See Thru franchisee you will gain access to the highest quality training, window cleaning tools and methods to help you offer a service like no other window cleaning company. We will help you gain clients who will offer you consistent work all year round with a steady income and great profit margins. We are looking for people who want to own a successful residential and small commercial window cleaning business, with a great potential for growth and income.

Phone: 0431 649 450 Fax: 07 3399 3077 Contact: Patrick Mulcahy patrick.mulcahy@shingleinn.com www.shingleinn.com

Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Les Coppin les.coppin@snapon.com www.snapontools.com.au

Start up costs: $290,000 - $430,000

Start up costs from: $40,000

PROFILE: Shingle Inn offers budding cafe entrepreneurs an opportunity to own an exceptional boutique cafe in some of the busiest city and regional locations in Australia. In our cafes the Shingle Inn ‘experience’ starts the moment customers walk through our doors. Luxurious high-back chairs, warm rich colours and decorative lamps together with our signature range of decadent cakes, superior quality coffee, delicious gourmet sandwiches and emphasis on exceptional customer service has helped us establish a renowned boutique cafe brand. All of these elements provide a proven business system to kick-start your success. Shingle Inn currently operates a network of cafes across Queensland, New South Wales, Victoria, ACT and Western Australia with expansion plans for South Australia and New Zealand in 2015.

PROFILE: Snap-on Tools Australia & NZ 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 with an established network of solid franchise operations across the globe. After more than 25 years in the Australian market, Snap-on continues to solidly perform, providing robust financial results for its network of over 170 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.

MAR/APR 2015 | 158 | WWW.FRANCHISEBUSINESS.COM.AU

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Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne alistairb@snooze.com.au www.snooze.com.au Start up costs from: $450,000 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. With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment. Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: t Vendor finance assistance t NAB & ANZ accreditation t Sales and product training

t Business management support t A national marketing program t IT services

Phone: 08 8376 3016 Contact: George Karamalis info@st-louis.com.au www.st-louis.com.au Start up costs from: $350,000

PROFILE: St. Louis franchisees will find comfort in the support and guidance they receive once they become part of the St. Louis family and take the first steps into owning their own business. With full training and on-going assistance franchisees will learn the art to producing the highest quality, premium ice cream and dessert creations, and much more in store, using a simple, user-friendly model. We are looking for franchisees who are passionate about dessert, have a love for all things sweet and decadent, and who believe in never compromising on quality. Change your lifestyle. Invest in something that warms you from the inside out.

Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator ssa@subway.com www.subway.com

Phone: 02 9898 8608 Contact: Chris Fitzmaurice enquiries@swimart.com.au www.swimartfranchise.com.au Start up costs from: Retail - $175,000 - $250,000 Mobile - $85,000 - $90,000

Start up costs from: Varies by site PROFILE: Subway® is the world’s largest restaurant chain with more locations than any other chain. We offer business owners simple operations, ongoing field support and a defined marketing structure, along with providing customers with a variety of freshly made menu options.

PROFILE: Swimart operates in the pool and spa industry providing owners with all their pool and spa needs from filtration equipment and chemicals to pool cleaners, accessories, spare parts and leisure products. We also provide extensive, in home services, such as pool cleaning and maintenance.

For over 47 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.

Established in 1983, Swimart has over 70 retail stores and more than 250 service vehicles across both Australia & New Zealand and is a fully owned subsidiary of Waterco Ltd, a publicly listed Australian company with operations in over eight countries around the globe. We offer both retail and mobile franchises with set up costs starting from as little as $85,000. If you’re looking for either a retail or service business that delivers solid revenues with high margins and low fees, just ask Swimart!

Join the winning team with the #1 Franchise! Register your interest today.

Phone: +61 439 222 422 (AUS) +64 21 917 148 (NZ) Contact: Glenn Dobson glenn.dobson@tdda.com www.tdda.com PROFILE: The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients. With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses. You will also benefit from a comprehensive 100 day training program; Australasia wide business networks; State Office support and large-scale clients that need services in your area. TDDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model. If you are seeking a next generation business opportunity with huge potential then contact us now to find out more.

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos franchise@cheesecake.com.au www.cheesecake.com.au Start up costs from: $200,000 - $800,000

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.

MAR/APR 2015 | 159 | WWW.FRANCHISEBUSINESS.COM.AU

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A-Z LISTINGS

Phone: 07 3827 8010 Fax: 07 3803 2320 Contact: Kerry Edwards kerry.edwards@spanbild.com.au www.totalspan.com.au

Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Grant grant@thefranchiseshop.com.au thefranchiseshop.com.au

Start up costs from: $20,000 + GST PROFILE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand. With more than 30 years experience 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: 0438 011 020 Fax: 03 5243 1476 Contact: Joe Rossi franchise@townandcountrypizza.com.au www.townandcountrypizza.com.au Start up costs from: $200,000-$350,000 PROFILE: Town & Country Pizza & Pasta want to share and help franchisees build a successful business with the development of their effective and profitable business model. They help you manage your team, cultivate your clientele and grow your business to ensure your full potential is reached and maintained. By using the right business systems, ingredients and recipes, Town & Country Pizza & Pastaâ&#x20AC;&#x2122;s proven franchise model can help franchisees take-off sooner without the usual headaches when starting up. Being a Town & Country Pizza & Pasta franchisee is a rewarding opportunity for people who want to thrive in a challenging environment and make a difference in their workplace and communities.

Totalspan not only offers you a proven franchise system, but weâ&#x20AC;&#x2122;re also the designer, engineer and manufacturer of all our products, so youâ&#x20AC;&#x2122;ll have a unique advantage in the market, by being connected across all aspects of the supply chain. Whatâ&#x20AC;&#x2122;s more, our quality, affordable steel buildings are designed and built for life â&#x20AC;&#x201C; we stand behind every one with a 25 year structural guarantee. Successful people are changing their life with Totalspan - you can too! Be part of our success story!

Phone: 02 8878 0411 Fax: 02 9807 2033 Contact: Peter Mavromoustakos peterm@ufgcorp.com.au www.transworld-info.com Start up costs: $64,500 + GST PROFILE: United Franchise Group are proud to announce the launch our newest brand into Australia, Transworld Business Advisers (TBA). Thus far UFG already have over 100 TBA franchises worldwide (with over 200 + brokers!) and we are about to enter the Australian market. United Franchise Group have over 100 Signarama and 50 EmbroidMe franchises in Australia with approximately 1700 franchised businesses in 72 countries globally. The cost of a Transworld Franchise is only $64,500 + GST including initial training in the U.S and ongoing support provided locally from our Australian office. This business does not require you to employ and manage staff, invest in capital equipment or utilise expensive premises however the potential earnings are enormous and there are many current Transworld Franchise owners to validate this and share their success stories with you as we move through the information process. The below link will give you some initial information: www.transworld-info.com

Phone: 13 26 13 Fax: 08 8220 4588 info@viphomeservices.com www.viphomeservices.com

Phone: 02 8338 0930 Contact: Daniel McDonough franchising@WHSmith.com.au www.wildcardsandgifts.com/franchising

Start up costs from: $25,000

Start up costs: $42,000 + GST plus $200,000 to $300,000 capital investment w/ recommended working capital of $80,000

PROFILE: V.I.P. was the first company to start franchising in home services in 1979. V.I.P. has over 1100 franchisees across Australia and New Zealand. V.I.P. has franchise opportunities available in: t ( BSEFO . BJOUFOBODF BOE -BXO . PXJOH t )PNF $ MFBOJOH t $ PNNFSDJBM $ MFBOJOH Over the last 35 years, V.I.P. has helped over 4,000 people just like you become successful business owners by providing: t *OJUJBM BOE POHPJOH USBJOJOH coaching and mentoring t "GGPSEBCMF GSBODIJTF PQUJPOT t /BU JPOBM BOE MPDBM NBSLFUJOH

PROFILE: Totalspan is part of the Spanbild Group, with over 40 yearsâ&#x20AC;&#x2122; experience in the building industry in Australia and New Zealand. Our franchising structure and systems are tried, tested and proven â&#x20AC;&#x201C; just ask any of our 100 franchisees, or 1,000 employees!

t " O FTUBCMJTIFE DMJFOU CBTF t " DDFTT UP B OFUXPSL PG GSBODIJTFFT t " O JOJUJBM TUBSU VQ LJU TP UIBU ZPV BSF ready to go

PROFILE: With 40+ stores across the nation, Wild Cards & Gifts is Australiaâ&#x20AC;&#x2122;s largest group of franchised card and gift retailers. The philosophy of Wild Cards & Gifts is simple - to make our stores #1 for profitability! We believe that the formula to having outstanding success comes from providing great support and having great relationship with our franchisees. We deliver high quality, high demand cards & gifts in a contemporary, well designed store whilst offering value for money to our customers in a fun and energetic environment. The card and gift market is highly competitive, worth in excess of $2b annually, and with the backing of UK giant WHSmith we have access to exclusive product not available in Australia through international suppliers creating our point of difference.

MAR/APR 2015 | 160 | WWW.FRANCHISEBUSINESS.COM.AU

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Wisewould Mahony Lawyers Lawyers in love...... with Franchising

Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Melissa Strain melissa.strain@wisemah.com.au www.wisewouldmahony.com.au

Phone: 1300 655 559 Contact: Jonathan Payne jonathan@xpresso.com.au www.xpresso.com.au www.facebook.com XpressoMobileCafe Start up costs: $119, 500 + GST including our FAST TRACK Program which guarantees your income!

PROFILE: Experienced Franchise Lawyers. Member Franchise Council of Australia (FCA), International Lawyers Association (IFLA), Franchise Association of New Zealand & US Commercial Services. FIXED COST FEES to Franchisors and Franchisees based on scope of works. No hourly rate surprises! Services provided: • Drafting & review of Franchise documents • Legal and consulting advice to Franchisors & Franchisees • Dispute resolution – mediation – strategies and solutions

• Code compliance requirements • Sale/Purchase of Franchise Systems & Business • Master Franchising • International Franchising

Call or email for a complimentary brochure for Franchisors and Franchisees.

We supply premium Di Bella Coffee products – both hot and cold. Frappés, energy drinks, cold brew coffee products, bottles of water and food options such as gourmet cookies that are designed to compliment the enjoyment of an awesome espresso coffee. An Xpresso Mobile Café is perfect for corporate and school/community events. Ask us about our unique school fundraising programs! We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia!

Phone: 0414 669 101 Contact: Stephen Spitz stephen.spitz@xpressodelight.com.au www.xpressodelight.com.au

Phone: 1300 ZAMBRERO Contact: Talia Waelsch & Melissa Geer franchise@zambrero.com www.zambrero.com

Start up costs from: $59,990 + GST

Start up costs: $250,000 - $400,000

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.

A-Z L I S T I NGS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

PROFILE: Xpresso Mobile Cafés operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts.

NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8484 0905 DAVID.STRONG@CIRRUSMEDIA.COM.AU

PROFILE: Zambrero is Mexican with a Mission: a fast casual Mexican restaurant franchise in the form of a humanitarian organisation committed to tackling world hunger. Through the Plate 4 Plate program, Zambrero donates a meal to developing countries for every burrito or bowl served to a customer. Since being formed in 2005 by Dr Sam Prince, over four million meals have been provided to those living in poverty around the world through the Plate 4 Plate initiative. BRW Magazine has recognised Zambrero as one of the fastest growing businesses for the past four years (2014 BRW Fast 100 list and 2013, 2012, 2011 BRW Fast Franchises lists).

Phone: 1300 139 913 Fax: 07 5587 7223 Contact: Vicki Travers vtravers@zbm.com.au www.zbm.com.au

PROFILE: Zoo Business Media is a full service supplier of innovative music, video and voice messaging solutions to hundreds of franchised businesses around Australia. We provide the latest in digital, customisable in-house radio and branded, music video technology. We help you create the perfect ambience for your retail stores, gyms, restaurants or bars with the latest internet-delivered music and messaging services - inclusive of public performance fees. Contact us on 1300 139 313 and find out how we can make your franchised business sound great!

MAR/APR 2015 | 161 | WWW.FRANCHISEBUSINESS.COM.AU

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ADVERTISING INDEX

INCORPORATING FCA NEWS

* INDICATES FCA MEMBER

Ace Insurance AFEA Home Nurseries Appliance Tagging Systems Baskin-Robbins Battery World Baybridge Lawyers Benga Designs Bozzy Shades Brian Tracy Buy Australian Properties Cafe2U Cashflow It Civic Management Services Cocolat Display Design Dodo Connect Dominos Dr Boom Dream Doors Envie Fitness Fastway Couriers Fibrenew Franchise Selection FranData Gelatissimo Groutpro Hairhouse Warehouse Healthy Habits Indian Brothers InXpress Just Better Care Leadership Management Australia Leather & Vinyl Doctor Luxaflex

4 107 117* 11* 41* * 67 35* 95* 23* 38-39* 121* 19* 51* 76 65* 9 115 53* 104* 163* 137 88-89* 143 21* 135* 145* 43* 125* 123* 69 129 99 106

MailBoxes Etc Marsh & Maher Lawyers National Franchise Insurance Brokers New York Slice Noodle Box Pack & Send Pizza Hut Prism Property Club Redcat Refresh Renovations Retail Food Group Retail Zoo Revel Australia See Thru Shingle Inn Signarama Snap On Snooze Specialised Events St Louis Subway Swimart The Cheesecake Shop The Drug Detection Agency The Franchise Shop Town & Country Pizza & Pasta VIP Wild Retail Wisewould Mahony Lawyers Xpresso Coffee Xpresso Delight Zambrero Zoo Business Media

MAR/APR 2015 | 162 | WWW.FRANCHISEBUSINESS.COM.AU

147 71* 113* 139* 49* 2* 25* 101 15 141* 102-103* 82-83 60-61, 130-131* 29 118 46-47* 79* 7* 87* 110 17 45* 55 85* 164 30-31* 63* 133* 93 97* 77* 57 127* 75

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There’s a lot of money in drugs.

We’ll help you get it! Workplace and pre-employment drug testing is exploding as a business in every state in Australia. Be quick to secure one of our exclusive franchise territories. With the right motivation, a bit of hard work and our comprehensive 100-day training program, the financial rewards will follow. If you’re ready to jump on board as a Franchisee in our proven business model, we want to talk to you. Sooner rather than later. Email our Franchise Manager glenn.dobson@tdda.com

Take a video tour on our website