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f r a n c h i s e e s VOL 12 ISSUE 06 sepT/oct 2018

AUSTRALIA and NEW ZEALAND

30 years of Hog’spitality

The hog’s story how to build a fearless culture good eATS:

WHY BRAND MATTERS IN FOOD $6.95 (AUD), $7.95 (nz) inc. gst.

FINANCIAL & legal ADVICE

LATEST NEWS

franchise directory


Be the

LEADER OF YOUR OWN SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous. A 7-Eleven franchise is a partnership in success. When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation. From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment. ƒ We set up shop for you and give you

full training

ƒ We take payroll admin off your hands

and help with the book-keeping

ƒ We deal with suppliers to get you the

best products

ƒ We manage the fuel

Financials

Contact Details

An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.

Franchise Development Managers

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits. Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

ƒ We have brands you won’t find anywhere

Brett Reading Queensland

E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674 Peter O’Hara Victoria / Western Australia

E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534 Shayne Boogaard New South Wales

E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

else

ƒ We provide advertising and promotional

support

START YOUR SUCCESS STORY TODAY www.7elevenfranchise.com.au

FRANCHISING


NFC18 | 14-16th OCT | MELBOURNE

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b us i n ess f r an c h i s e m ag az i n e aust r a l i a an d n e w z e a l an d

AUSTRALIA and NEW ZEAL AND

From the

AUSTR ALIA and NEW ZEAL AND

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 12 ISSUE 6, sept/oct 2018

Editor

publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Meaghan Galindo. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au publisher’s assistant: Jorgia Rice. support@cgbpublishing.com.au PRODUCTION: Christine Roberts. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au GRAPHIC DESIGN: Jejak Graphics - Michelle Quinn jejak@bigpond.com COVER IMAGE: Hog’s Australia TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisemagazine.co.nz

This issue of Business Franchise Magazine Australia and New Zealand is once again packed full of expert industry advice, Q&A’s with leaders in franchising and useful information for anyone thinking of entering the franchising industry. Ross Worth, CEO of Hog’s Australia, graces the cover of this issue of Business Franchise, and our cover story explores the Hog’s Australia success story – 30 years of Hog’spitality! This issue’s Feature is the Food and Beverage industry, and our friends at FC Business Solutions have written a great article on why a food and beverage franchise might be a great business option for you. We sat down with Mark Allen, a Hog’s Australia multi-store owner, to find out why he enjoys working with this well known and trusted franchise network. You’ll find all this and more on page 35. The Brisbane and Melbourne Franchising & Business Opportunities Expos over the past couple of months were a great opportunity for leaders in franchising to showcase the best that the industry has to offer. Thank you to Tim, Fiona and the whole team at the Franchising Expo for creating more great opportunities for franchisors and potential franchisees. Inside this issue of Business Franchise, you’ll find insightful articles from Mary Aldred - CEO of the Franchise Council of Australia, Dominique Lamb – CEO of the National Retail Association and many more. The Australian Taxation Office is offering up their six top tips on how to get your superannuation right on page 30, and Ashley Tan and James Young from DC Strategy have given a comprehensive guide to selling your franchised business on page 22. You’ll find all this and more in the latest issue of Business Franchise Magazine Australia and New Zealand. Enjoy the read! Meaghan Galindo Editor

SUPPLIER FORUM

The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.

Business Franchise Australia and New Zealand 5


contents

september/october 2018 On the Cover 12

Cover Story: Hog’s Australia 30 Years of Hog’spitality – The Hog’s Story

20 How to Build a Fearless Culture

20

48 Good Eats: Why Brand Matters in Food

In Every Issue 8

26

30

What’s New! Announcements from the Industry

14

Franchising in The Spotlight – The Real Story

40

Feature Editorial: Food & Beverage Food, Glorious Food

84

Hot Topics: Behind the Headlines

86

Professional Services Listings

88

Listings

90

A-Z Directory

Mary Aldred, Franchise Council of Australia

Jason Gehrke, Franchise Advisory Centre

Showcase 57 BoConcept: A Superior Retail Franchise

Franchising Making a Difference 26 Q&A with Karen Wren BrightEyes

48

62 A Worthwhile Partnership. Sport and Life Training (SALT) Corina Vucic | FC Business Solutions

Have Your Say 74

68

The Importance of Maintaining Brand Standards Anthony Stanley | Choice Hotels Asia-Pac

Franchisor in Depth 44 Fasta Pasta - A Franchise of Value


also in this issue: 7-Eleven......................................................................3, 90 Appliance Tagging Services. .............................. 90

Snapshot

Battery World............................................................... 90 Begin Bright.................................................................. 90 Bo Concept....................................................................91

52 Hog’s Australia

Books and Gifts Direct............................................91

56 InXpress

Cashflow It........................................................................ 4 Clark Rubber........................................................ 83, 91

Profiles

Crema Espresso.........................................................91

50 Simplicity Loans & Advisory

Dr Boom.......................................................................... 92

76 Franchising Expo

Ecomist............................................................................ 92

DeckSeal. ........................................................................91

Fasta Pasta.................................................................... 92

Expert Advice 16 Who’s to Blame: Franchise Enquiry to Separate Fact from Fiction Dominique Lamb | National Retail Association 20 How to Build a Fearless Culture Corrinne Armour | Leadership Expert and Author 22 8 Top Tips for selling your Franchised Business: A Franchisee Guide James Young | DCS Group

Ashley Tan | DCS Lawyers

30 Six Steps to Help Get Super Right John Ford | ATO 48 Good Eats: Why Brand Matters in Food FC Business Solutions

Fastway Couriers.....................................IFC, 92, 93 Franchise Council of Australia. .......................... 43 FC Business Solutions............................................19 Franchise Infinity......................................................... 53 Gecko Sports............................................................... 93 Hairhouse Warehouse...............................OBC, 93 Hog’s Australia............................................................ 93 InXpress. ......................................................................... 94 IP Partnership.............................................................. 86 LegalVision.................................................................... 86 Jim’s Pool Care........................................................... 94 Just Cuts......................................................................... 94

54 Get on the Local Reporter’s Radar Pete Burdon | Franchise Media Training

Laser Clinics Australia..................................... 33, 95

60 Why 25-Minute Meetings are easier than you think Donna McGeorge | Mentor, Speaker & Author

Magnetite Windows. ................................................ 95

64 How Uniforms Have Changed and what you need to do to stay on trend Pamela Jabbour | Total Image Group

Marsh & Maher Richmond Bennison Lawyers............................ 86

66 Is Retail Dead? Mono-Brands Vs Multi-Brands and the Hoohaa of Online Robert Toth | Marsh & Mayer Lawyers 68 Territory – Do you really know what you are getting Stewart Germann | SGL 72

Single Touch Payroll: What Businesses Need to Know Brad Loftus | RSM

78 How to Have Enough Capital to Drive Growth: Finding Working Capital to Drive Sustainable Growth Wayne Morris | Fifo Capital Australia 80 How the Right Technology can Make Franchises More Successful Aleesha Bailey | RSM

Listen To Your Body................................................. 95

Mail Boxes Etc (MBE)................................... IBC, 95

Midas Australia............................................................ 96 Mobile Skips......................................................... 71, 96 NanoShield.................................................................... 96 National Franchise Insurance Brokers........29 ProteinXpress............................................................... 96 Snap-on Tools.....................................................53, 96 Spudbar. ..........................................................................97 The Interface Financial Group.............................97 Theobroma, Chocolate, Lounges, Paviliions, Bars.............................................................97 Thermawood.................................................................97 Walker Wayland.......................................................... 86


what’snew! Laser Clinics Australia opens its 100th clinic in Wendouree Laser Clinics Australia has opened its 100th clinic at Wendouree Stockland Shopping Centre. Laser Clinics Australia is Australia’s leading provider of laser hair removal, skin treatments and cosmetic injections. The company recently announced a new brand personality and striking black-and- white visual identity. Clinic owner, Tony Seers, is thrilled to bring these incredible services to the local community. “We want Laser Clinics Australia Wendouree to become a known local business with a sense of community at heart,” he says. With a background in renewable energy, Seers became eager to get involved with Laser Clinics Australia after learning more about the company and the service they offer through his wife and business partner. Seers is overjoyed to bring Laser Clinics Australia to the Wendouree area and looks forward to becoming involved with the local community.

people skills and a strong team to the LCA network and Wendouree community,” says Seers.

“I have a lot of business management experience and I am a strong leader. I hope to bring some unique sales insights, as well as

Australians now spend $1billion annually on non-invasive cosmetic treatments. Laser hair removal, cosmetic injections and skin

treatments have become part of a regular beauty routine, for both women and men. The Laser Clinics Australia team delivers four million treatments annually, the most popular being laser hair removal, followed by antiwrinkle and dermal filler treatments.

VICTORIAN OWNERS TAKE OUT #1 PRIZE AT JUST CUTS INTERNATIONAL FRANCHISE AWARDS Victorian Franchise Owners have taken out the top gong at the Just Cuts Franchise Awards held during the company’s Annual International Conference in Alice Springs, Northern Territory. John and Georgina Apostolou took out the award for Franchisee of the Year. John and Georgina are the successful Owners of five Just Cuts salons; in Plenty Valley, Mildura, Knox (Wantirna South), Glen Waverley and The Pines-Doncaster, all located in Victoria. John and Georgina were awarded for their outstanding operational performance, investing in the ongoing training of their Teams and their positive relationships and helpful demeanour with other Owners in the franchise system. John and Georgina

8 Business Franchise Australia and New Zealand

opened their first Just Cuts, a brand-new salon at Knox, VIC in October 2014. They have since purchased two existing salons (Plenty Valley and The Pines Doncaster) as well as celebrating two more grand openings (Mildura and Glen Waverley since). “John and Georgina have consistently stood out amongst our network of Owners over the past 12 months. Their commitment to and passion for the Just Cuts system is reflected in their outstanding performance, their commitment to internal and external training and development for their team and the quality relationships they build with other Just Cuts Owners. They’re an impressive duo”, says Denis McFadden, CEO and founder of Just Cuts.


Sola Salon Studios set to makeover the Australian hairdressing and beauty services industry Sola Salon Studios will have two opportunities on offer: An Australian Master Franchise opportunity and a 10unit Area Agreement. Having found success in the USA, Sola Salon Studies is planning on opening in Australia. “It’s a franchise concept like no other. The business began almost 15 years ago in Denver, the Colorado capital. Now with more than 400 franchise and company owned locations open across the USA, Brazil and Canada, we are proud to offer salon professionals the freedom and benefits of salon ownership without the upfront costs and risks associated with opening a traditional salon,” a representative for Sola Salon Studio’s said. “The network has been created for professionals dreaming of their own business, yet worrying about maintaining their lifestyle, existing clients and relationships with colleagues,” the representative continued. Their innovative salon model empowers hairdressers, estheticians, nail technicians,

massage therapists and other like-minded professionals to take control of their lives and their careers. Sola Salon Studios provide beauty professionals with high-end, fully-

equipped salon studios alongside the support and tools they need to launch their salon business hassle-free. They are ready to shake up the Australian market!

Mercure reaches 50th hotel milestone in the Pacific Four new Mercure hotels have been announced for Auckland, Canberra, Melbourne and Gold Coast. Franchise network AccorHotels’ midscale hotel brand, Mecure has reached its 50th hotel milestone in the Pacific region with the announcement of four new hotels set to open in Australia and New Zealand within the next three years. The new hotels include Mercure Auckland Queen Street (2019), Mercure Canberra Belconnen (2019), Mercure Southport (2021) and Mercure Melbourne Doncaster (2021). Simon McGrath, AccorHotels Chief Operating Officer Pacific, said that the expansion of the Mercure brand in Australia and New Zealand will drive benefits for guests, loyalty members and the community. “We are thrilled to announce our 50th milestone for the Mercure brand and add four new Mercure hotels to AccorHotels’ Pacific network in dynamic locations including the Gold Coast, Canberra, Melbourne and Auckland. “Mercure is a leading global midscale brand with a strong reputation for delivering quality service and great guest experiences. Each of these hotels will have significant impacts locally, driving employment and tourism to each location. We look forward to working with the owners and further expanding our new-build Mercure network of hotels”.

Business Franchise Australia and New Zealand 9


what’snew! 7-ELEVEN GROUP ACQUIRES MAJORITY STAKE IN TIPPLE developed in-house by Tipple’s founders and engineering team to seamlessly integrate with local bottle shops and facilitate on-demand ‘last-mile’ delivery logistics at a national scale. “7-Eleven led the way in digital innovation with our world-first Fuel App, and continue to explore how we can best meet the evolving needs of our convenience customers through digital, delivery and in-store services. Tipple’s business model and platform is well-aligned with these interests, and has grown significantly since starting up less than three years ago,” said 7-Eleven CEO Angus McKay. “While in time there may be interesting opportunities for the two businesses to explore and work together serving convenience customers, for now this partnership is about bringing our customer insights and marketing expertise to help accelerate the growth and expansion of Tipple as a standalone business,” said McKay. The 7-Eleven Group is investing in on-demand ‘last-mile’ delivery and technological capability by acquiring a majority interest in Tipple (www.tipple.com.au) - Australia’s largest on-demand alcohol delivery start-up. Tipple provides customers a unique ‘bottle shop in your pocket’ experience, delivering in 30 minutes by partnering with local independent bottle shops. Since launching in October 2015 Tipple has grown rapidly to service more than 120 suburbs across Melbourne and Sydney, with more zones, cities and bottle shop partners targeted for the next twelve months in a bid to disrupt Australia’s alcohol market. Tipple is driven by a proprietary technology platform that has been

Ryan Barrington, Founder and CEO of Tipple, welcomed the backing of Australia’s largest convenience retailer. “We couldn’t be happier to be preparing for the next phase of Tipple’s growth alongside 7-Eleven,” said Barrington. “Their expertise and capabilities are unparalleled, but it’s our shared ambition to create new and engaging customer experiences on the cutting edge of convenience that excites us most. We’re very excited about the potential for this partnership to transform the landscape of both alcohol and convenience retailing in Australia,” said Barrington. Tipple was represented by Hillside Capital and Gadens as financial & legal advisors in the transaction.

The Best of Franchising Showcased at The Brisbane and Melbourne Franchise Expos The team at Business Franchise Magazine Australia and New Zealand were lucky enough to join dozens of other franchising industry leaders at the Brisbane and Melbourne Franchising & Business Opportunities Expos. The Brisbane and Melbourne Franchising Expos were a fantastic opportunity for leaders in franchising to connect with potential franchisees and interested members of the public. There were insightful and engaging talks from Mary Aldred - CEO of the Franchising Council of Australia, Jim Penman - Founder of Jim’s Group, Suzanne Jarzabkowska - CEO of DCS Group, and many more. “There’s no doubt that franchising’s reputation has suffered this year with the parliamentary inquiry and a barrage of negative press,” says Exhibition Manager Fiona Stacey. “However exhibitors at the Franchising Expo were always ready to answer the hard questions and demonstrate to visitors the strength of their system and why it was a worthwhile proposition.” Stacey adds there was no shortage of successful franchisees willing to participate in panel sessions and on exhibitor stands, sharing their stories of franchising success.

10 Business Franchise Australia and New Zealand

“I think it is so valuable for visitors to meet face to face with franchisors and current franchisees to find out all nitty-gritty details of the business,” she says. “Some people might then say that franchising is not for them, but for others it’s just the start of their successful and profitable small business journey.” We look forward to seeing everyone at the Expos next year!


UNDER 30 CEO HONOURED AS RETAIL INDUSTRY RISING STAR AS SHE FIGHTS AGAINST WORLD HUNGER Bianca Azzopardi, CEO of Zambrero, has taken home the prestigious ‘Rising Star’ award at the 2018 QSR Media Detpak Conference & Awards. As one of the youngest Executives in the country, Bianca has defied traditional conventions to be a shining example that relentless drive, sheer passion and intuition can triumph over experience. At 25, she stands as a leader of tomorrow and inspiration to others as she sets her sights on changing the world for the better. Bianca is CEO of Zambrero – Australia’s largest Mexican restaurant franchise chain and one of the country’s fastest growing companies with over 190 restaurants globally. Through the Plate 4 Plate initiative, every bowl or burrito purchased donates a meal to someone in need. Since it was founded in 2005, Zambrero has donated over 23 million meals, with a goal to donate one billion by 2025. The QSR ‘Rising Star’ award is for executives under 30 years of age and aims to recognise and reward an individual’s contribution in the quick service restaurant industry. Under Bianca’s leadership, Zambrero has already opened 45 restaurants globally, proving the franchise model is still thriving with 44 Franchise Partners secured. Bianca follows in the footsteps of Zambrero founder; Dr Sam Prince, who founded the healthy Mexican restaurant chain at the age of 21. Having been a part of the Zambrero family for over five years, Bianca was appointed CEO in January 2017, having previously held the role of International Commercial Director.

Her exertion within this international stream came to fruition this March with expansion into the USA, with two company owned restaurants in Massachusetts and Rhode Island. Bianca comments on her role as CEO and winning the award; “I feel incredibly honoured in this position. I’ve seen Zambrero grow and accomplish amazing things in the last five years. This award is a celebration of that and what is to come. My focus is now on continuing to support and grow our franchise partners and ensure we hit our goal of donating one billion meals by 2025. As the number of people affected by hunger has increased by 38 million

in the last year alone, now more than ever we need to do everything we can to combat world hunger.” Bianca was introduced to Zambrero whilst achieving a Bachelor of Business at UTS Business School - completing a project case study and an internship. She was offered a full-time position as HR Assistant and within a year became HR Manager for the entire Sam Prince Group, securing one of the industry’s premier accolades - HR Manager of the Year at the 2015 HR Awards. The accomplishments she has amassed so far as CEO are truly extraordinary and are what make Bianca an influential woman in business, one of the most inspiring young CEOs in Australia and QSR’s Rising Star Of The Year 2018.

Swimart Celebrates 35 Years in business Swimart, one of Australasia’s largest pool and spa specialist groups, is celebrating a major milestone: 35 years in business. Starting in 1983 with a single retail store in Killara, NSW, Swimart has steadily grown into a trusted expert in pool and spa care – and hugely successful franchise – with 75 stores across Australia and New Zealand and a fleet of over 220 mobile service vans. “We are an agile company that is customer focussed and service orientated, and we work closely with our franchise partners to educate pool and spa owners about how to get the most out of their investment,” says Swimart Franchise Development Manager Alex Johnson. Bucking the current trend, Alex also attributes Swimart’s success to its long-standing franchisees, including Bob Tully, Reg Blue and Murray Lonie, who have been with the franchise for up to and over 30 years!

Business Franchise Australia and New Zealand 11


c ov er sto ry: H o g’s Au st ra li a

continued to grow at an average rate of four to six new restaurants every twelve months. There are now 75 Hog’s restaurants throughout Australia and New Zealand. From the outset, Hog’s Breath Cafe set out to be different to anyone else and create a distinctive style of casual dining unique to the Australian marketplace. CEO, Ross Worth, who’s been with the brand for more than 17 years, said the Hog’s philosophy has always been to have fun and enjoy yourself.

“We don’t take ourselves too seriously and love to have a laugh and see our customers enjoying themselves,” said Worth.

30 years of Hog’spitality The hog’s story The first humble Hog’s Breath Cafe opened for business in beautiful Airlie Beach back in 1989 with founding father Don Algie at the helm.

staple of the Hog’s Breath experience. Almost 30 years later and this philosophy remains at the heart of the business, with the restaurant group even creating and owning the term ‘Hog’spitality’ and carrying the slogan, “There are many things we’ve never done, but we ain’t never had too much fun”. It’s a philosophy that has made Hog’s one of the most successful homegrown franchise systems in Australia.

There in the vibrant hub of the Whitsundays, influenced by the laid-back holiday atmosphere, Algie made fun and hospitality a

A second restaurant opened in Mooloolaba a year after Airlie, and was quickly followed by Cairns, Townsville and Darwin as Hog’s

12 Business Franchise Australia and New Zealand

“Our overarching goal has always been, and will always be, to see our customers have a great dining experience. Everything we do is based on that simple premise, from serving fabulous food, to delivering friendly service and a great atmosphere. “We serve over 7 million people a year and attract a broad range of customers. You could walk into any Hog’s restaurant and see young adults, couples, kids, mums and dads, grandparents, as well as corporates enjoying a business lunch. We’re extremely proud of that.” The Hog’s philosophy is clear when you walk into any restaurant and first see the wide smiles of the staff, followed by the unique decor that adorns the walls, most of which is unique to each restaurant and the region in which its located. You immediately know you’ve come to a place that’s unpretentious, where you can relax, have fun and, of course, enjoy one of Hog’s famous slow cooked steaks. This is another staple of the business that has remained unchanged throughout its almost 30-year history. The signature dish has always been its famed Prime Rib Steak, slow cooked for up to 18 hours to offer maximum flavour and tenderness. Worth said another feature of the menu that has remained unchanged over their long history is the commitment to local, seasonal produce as well as superior beef selected especially for Hog’s from cattle raised


“From the outset, Hog’s Breath Cafe set out to be different to anyone else and create a distinctive style of casual dining unique to the Australian marketplace.”

on fertile pastures and then graded to an exacting standard. However, as times and appetites have changed, Hog’s has moved along too, and now offers a whole range of healthy options and meals to suit all appetites and dietary requirements. Hog’s Executive Chef, Andrew Rennie, devises a new menu each year that’s designed to improve the profiles of existing flavours, and introduce on-trend new ingredients and products to improve the customers tasting experience. Worth concedes it’s important to change the menu in line with worldwide trends and cater to all appetites, but there are some menu favourites that are simply part of the Hog’s tradition. “We’ve had Prime Rib and other beloved classics like Curly Fries, Loaded Skins and Boss Hog Ribs on the menu for nearly 30 years and we’ll probably have them on the menu in another 30 years,” said Worth. “Our loyal customers come back for them time and time again and we won’t let them down.” Loyalty seems to be a keyword for the Hog’s group. It has retained franchisees and staff for over 20 years, and has worked with the same suppliers for decades from all areas of the business from the farmers who supply their produce, to the builders of their new restaurants, the team that looks after their printing needs, right through to the charities they support, and the sporting teams and individuals they sponsor. “Relationships are incredibly important to us as a group, and a large part of our success can be attributed to the people and businesses we surround ourselves with,” says Worth. “We put trust in our franchisees, staff and suppliers and that builds loyalty over time, and they become part of our family. And we love seeing their successes and growth”.

almost 30 years ago, the group hasn’t rested on its laurels and has continued to grow and diversify as the hospitality industry has changed. A major development in recent years saw the iconic Aussie brand get a fresh new look. In 2016 the group rebranded to Hog’s Australia’s Steakhouse to reflect their heritage as Australia’s favourite steakhouse.

“Having dished up the best steak for almost three decades, we wanted to pay homage to our background and celebrate what we’re famous for with a name that says it all,” says Worth. “Many of our restaurants now carry the new branding, and we’ll continue to roll it out across the group over the next couple of years, and of course on all our new additions to the Hog’s family. “We’ve also adopted a more modern design for our restaurant interiors, without losing our DNA,” says Worth. Elements such as the Mackay Cedar table tops and timber floorboards will remain but will be enhanced by timber, brick, steel and concrete fittings, as well as open kitchens. As each restaurant refurbishes, the franchisee will be able to incorporate new building and fit-out elements into their design, but each will also be uniquely different in featuring elements that embrace the local area and people. Modern technology, such as self-order with iPads, and phone charging stations will also be gradually introduced. Another massive development for the group was the introduction of a new generation of restaurant last year.

“All of our franchisees, and our head office team of 30, are crucial to our continued growth as a business, and they all work incredibly hard for the brand.”

“Hog’s Express is a quick service offering that allows us to be more versatile with our menu and take our product to a wider audience, as well as giving franchisees the opportunity to be part of the Hog’s family with much lower setup costs,” says Worth.

While Hog’s has retained much of its original philosophy and people from inception

The new model restaurant is now operating in Brisbane and Perth, and the first Hog’s

Express drive-thru has just opened in Burpengary, Queensland. “We’re really proud of Hog’s Express, from the world-class store design to the technology we’ve implemented. And of course our menu has a range of truly unique options,” says Worth. The selection of burger offerings includes Mac & Cheese, Pork Belly, Southern Chicken, Calamari & Whiting, Tex-Mex and Crispy Vegetarian. Also on the menu is a selection of ribs and wings and Hog’s favourites such as curly fries and onion rings, as well as salads and a special menu for kids. Hog’s Express takes advantage of the latest technology by way of a fully interactive customer ordering system via iPad, as well as offering power and charging devices storewide for customers who choose to dine in. Hog’s also quickly jumped on the online food ordering trend and is now delivering delicious menu options from a selection of restaurants.

“Although our heritage is as a family restaurant we know that our customers sometimes want the convenience of online food ordering, so we adopted the service as quickly as we could,” said Worth. “It’s a fast-moving industry so you have to keep up with trends and what the consumer wants or you’ll be left behind.” Since its inception in Airlie Beach, Hog’s has flourished and expanded across Australia over its 30-year history and has managed to stay true to its roots, while still progressing with the times. Worth says the group has many more developments in the pipeline, so stay tuned for what this iconic Aussie brand has coming next. For more information please contact Geoff Hargreaves, Franchise Development Manager at: geoffhargreaves@hbca.com.au www.hogsbreath.com.au www.hogsxpress.com.au

Business Franchise Australia and New Zealand 13


f r an c h i s e c o u n c i l o f aust r a l i a

Franchising in the spotlight the real story

The current federal parliamentary inquiry into the franchising code of conduct has created a springboard for a constructive national discussion about improving the standards, and therefore the standing, of franchising in Australia. I have been carefully listening to the feedback and ideas put forward by FCA members on how best to address these challenges. FCA members are keenly attuned to the broader franchising sector beyond the management of their own businesses. In my brief time as CEO, I have come to understand that FCA members are passionate about franchising as a positive way of doing business and want to see meaningful and sensible steps taken to improve the sector. There have been a number of thoughtful submissions to the parliamentary inquiry. There have also been some assertions made during the inquiry, and amplified by media, that are not correct or provide a skewed context of some issues. The FCA is currently preparing a supplementary submission to the inquiry to address these, with the intention that recommendations and conclusions made at the end of the inquiry are based on correct information driving any policy responses the Government may wish to consider. One of the key topics that comes up regularly in my conversations with FCA members is the need to ensure disclosure documents are up-to-date and franchise agreements are compliant. The FCA receives many calls a week to our office, particularly from franchisees, who seek information or advice. One of the first questions that we ask is ‘what does your agreement say’. Unfortunately, the response is often ‘I don’t know’, or worse; ‘I haven’t read my agreement’. The FCA is committed to driving cultural change in the sector,

“In my brief time as CEO, I have come to understand that FCA members are passionate about franchising as a positive way of doing business and want to see meaningful and sensible steps taken to improve the sector.” Mary Aldred | CEO | Franchise Council of Australia

14 Business Franchise Australia and New Zealand


“Be diligent in choosing a franchise and make sure it’s right for you.”

particularly around the need for franchisees to be better informed in the business decisions they make. From an FCA perspective, this needs to include leading a policy discussion around mandating legal advice for prospective franchisees, to streamlining avenues of advice and mediation that better assist people seeking support on low cost, sensible outcomes. Feedback from many franchisees who approach the FCA for advice often centres around where to access expert advice and information. Many franchisees are confused about which government or regulatory body performs which role. Often, they don’t know where to go. A one stop shop that provides expert and confidential advice, reliable information, and low-cost mediation needs to be further considered. On the issue of disclosure and agreement compliance, there needs to be a frank conversation in the sector about being willing to embrace some sensible steps of reform. The FCA is actively looking at ways to address this. When the idea of a sector wide register has previously come up in different forums, there has been some disagreement on the concept, but has to be considered in the current context. The aim is to drive higher sector standards, rebuild confidence and ‘social license’, and set a higher benchmark for compliance from the moment a person starts to consider buying a franchise. As the peak sector body representing franchisees and franchisors, it may be that the FCA has a role to play in helping to shape and lead a register, and to bring the sector along with it. Businesses are often more willing

to share business information with a nongovernment entity. No business venture is risk free. Owning a business does not guarantee you the salaried wage of a regular job with regular hours. Emotion will always play some role in the decision-making process of buying a business. And regulation will never fully mitigate against any of these risks. But the sector does need to evolve, where a culture of entrepreneurism and enterprise can coexist with effective risk-management and compliance. In its very essence, this is what franchising is all about: allowing people to realise their dream of owning a business, within a framework and system that supports, not stymies innovation. The Nine Network’s A Current Affair recently promoted a supposed ‘expose’ of franchising based on an ‘undercover’ visit to the Franchising & Business Opportunities Expo in Brisbane. A reporter with a hidden camera spoke with exhibitors and visitors about their experience. What he came away with was a consistent and sensible message – be diligent in choosing a franchise and make sure it’s right for you. Franchise Exhibitions are one of many ways opportunities are introduced to prospective franchisees. Through seminars, information displays and presentations, they enable prospective franchisees to view and compare some of the 1,100 franchise systems which operate in Australia. Buying a business is a serious decision. The Franchising Code includes a comprehensive pre-contractual disclosure process to assist

franchisees to make an informed decision, after taking legal and business advice. Industry statistics confirm that the vast majority of franchisees are satisfied with their business decision, but there are no guarantees of success. Prospective franchisees must undertake proper due diligence before they commit to buying a franchise. To assist franchisees make a considered decision and obtain advice, the Code contains a mandatory 14 day disclosure period, and provides franchisees with a further 7 day cooling off period from signing if they change their mind. A Current Affair posed the question ‘Do you deliver on your promises to franchisees? Whilst we can legitimately question their motivation, and no evidence was provided of franchisors failing to live up to their promises, this does not impact on the validity of the question. As a sector, we need the answer to be a resounding and demonstrable YES! In the current climate there is too much media generated uncertainty around such a key question. Franchising has successfully operated in Australia for decades. Through this, the sector has seen its way through recessions, the global financial crisis and crippling interest rates, while other businesses have fallen. A key reason for this is the sector’s ability to adapt and respond. Challenged by the latest need to respond, adapt and evolve, I have no doubt that franchising has the capacity to do it again. www.franchise.org.au

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Who’s to blame:

Franchise Inquiry to separate fact from fiction Tens of thousands of SMEs enter the marketplace each year, and tens of thousands exit, which means the Australian business environment, spread across all sectors of the economy, is ever-changing. This landscape is dotted by enthusiastic start-ups that may fail dismally or end up a roaring success; thirty-year-old businesses that have occupied the same premises for decades only to find they’re no longer relevant; or solo operations starting up that may go on to have 20 staff.

And there’ll be franchises – some will be highly-profitable, successful businesses for years to come, others not so - but all of them in the mix nonetheless. The number of entries and exits remains steady across all models of business however, simply because not everyone is cut out for it! Running a business takes discipline, hard work and good decision-making. Starting one also requires extensive research and due diligence, along with independent professional advice. Despite the exit rate remaining steady across different business models, the franchising industry has attracted a hefty level of criticism of late following wage scandals among several high-profile chains. In some of these cases such as 7-Eleven, the Fair Work Ombudsman (FWO) found there was systematic, intentional exploitation of

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vulnerable workers by some franchisees. Some franchisees have been out in force in the media, blaming (fairly or unfairly) their franchisor for pushing them to the brink financially by making their businesses unprofitable through unfair contact terms, misleading negotiations before signing up, hefty fee structures or forcing them to use non-competitive running costs. But the veracity of such claims often plays second fiddle when an attention-grabbing headline is at stake. In reality, when business practices are put under the microscope, such instances are rare indeed in a system that’s been working extremely well for hundreds of thousands of businesses, for more than half a century. These very public cases however, have created a perfect storm of purported non-compliance


The Franchise Council of Australia estimated in 2014, there were an estimated 79,000 franchise units (operating under 1160 business format franchisors), with a collective sales turnover of an estimated $144 billion.

“Some argue franchisors are to blame for not devoting enough time and resources toward regularly auditing its franchisees for compliance or for including allegedly unfair contract terms.”

In the twelve months prior to when these figures were collated, just 1.5 per cent of franchisees had been involved in a substantial dispute with a franchisor.

Dominique Lamb | CEO of the National Retail Association, Director of NRA Legal

within the franchising regulatory framework by both franchisors and franchisees.

So who is actually at fault in this, and other cases?

Caltex for example, was also sanctioned after the regulator found some level of non-compliance in 76 per cent of audited franchises.

Some argue franchisors are to blame for not devoting enough time and resources toward regularly auditing its franchisees for compliance or for including allegedly unfair contract terms.

The petrol giant has stressed on several occasions that there was no correlation between each site’s profitability and its associated underpayment of workers, but the company has stumped up the money to make sure affected staff are compensated for their franchisees’ non-compliance with a $20 million fund to rectify the underpayments. Since the FWO’s findings, Caltex has started auditing its entire store network, and as of May, had terminated 19 franchisee agreements for underpayment of workers or other cases of non-compliance, and it is well within its rights to do so, as these are contract terms that are set out clearly in each franchise agreement, which have allegedly been broken by the franchisee.

Others say it’s the franchisees’ faults for failing to do their own due diligence, mismanaging their own businesses or thinking it’s acceptable to make up their shortfalls through underpaying their employees’ wages and entitlements. The Federal Government’s Vulnerable Workers Act, which was introduced into Parliament in a hurried manner in September 2016, was an attempt to try and repair or further regulate a system that in reality, was operating quite successfully. According to the Australian Small Business and Family Enterprise Ombudsman, in 2016, there were 2,066,523 small businesses; 50,995 medium businesses; and 3,717 large businesses in Australia – totaling 2,121,235 in total.

While the jury’s still out on whether or not the Vulnerable Workers Act will actually have any effect on cases of intentional underpayment of workers, what is has done is add more costs for those doing the right thing. The Federal Government’s recent Parliamentary Franchising Inquiry – the findings of which are due at the end of September – is a further attempt to establish the fact among the fiction. We know that franchisees operating under unscrupulous franchisors are effectively powerless when it comes to franchisor abuse, and will suffer tremendous financial losses as a result. This is something that is never acceptable and must be rooted out – which the Inquiry certainly aims to do, as it investigates areas like how the Code is being operated and its effectiveness, dispute resolution, termination rights, unfair contract terms, reporting obligations and disclosure of information. The same goes for franchisors with unscrupulous franchisees in their network who think they’re above the law when it comes to paying their staff the correct wages and entitlements - and in these cases, the franchisor’s reputation is always going to end up suffering the most damage. What has emerged while trying to weed out the unscrupulous, is that in many instances there has simply been a great deal of business mismanagement – on both sides of the fence. Put simply, not all franchisors are perfect, and not all franchisees are perfect, and poor decisions are almost certain to lead to financial pain.

“Others say it’s the franchisees’ faults for failing to do their own due diligence, mismanaging their own businesses or thinking it’s acceptable to make up their shortfalls through underpaying their employees’ wages and entitlements.”

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For franchisors, there have been cases of: • Borrowing too much; • Overspending; • Expanding too quickly; • Failing to invest in the internal systems needed to maintain a growing network of stores; • Allowing people who were totally unsuited to running a business to buy a franchise (many of whom have disregarded instructions to engage independent professional legal and financial advice); • Having inconsistent franchise agreements between franchisees; • Failing to keep a close enough eye on ‘red flag’ behaviour; • Inadequate back-end support for those who needed it; • Disadvantageous contract terms that don’t support competitive sourcing practices

For franchisees, common mistakes have included: • Inadequate due diligence when buying the franchise through independent, professional legal and financial advice; • Inadequate prior research; • Not obtaining professional advice when negotiating lease agreements; • Poor stock control systems and practices; • Expensive and inappropriate rostering due to a lack of understanding about award rates and applications; • Poor staff management in general; • Borrowing excessively and spending on areas with a poor ROI; • Overspending in general; • Extremely poor customer service On the opening day of the Parliamentary Inquiry hearings, HWL Ebsworth special counsel Derek Sutherland said that government could not legislate to protect people from their own poor conduct when they signed up to be franchisees. “They’re not taking enough interest at the time when it matters, to really get some advice and make an informed decision,” he said at the time. Mr. Sutherland went on to tell the Inquiry that while franchise agreements clearly state that small business owners should get

“The Federal Government’s recent Parliamentary Franchising Inquiry – the findings of which are due at the end of September – is a further attempt to establish the fact among the fiction.” financial and legal advice before entering an agreement, in practice, many didn’t, because they didn’t want to spend the money.

and franchisees both do their homework, a franchise model can be incredibly rewarding.

Issues like supply contracts where franchisees must buy ingredients from the franchisors, (which can lead to business owners paying an unfairly high price on goods, which can shift profit margins from their business back to head office for example); or problems surrounding dispute resolution in some franchise agreements, have been discussed during the hearings.

Dominique Lamb is the CEO of the National Retail Association and Director of NRA Legal, who has extensive experience providing industrial relations and employment law advice to a range of small, medium and large businesses across a range of industries.

But these and many other problems raised could have been picked up very early in the negotiations by a qualified, independent legal and financial professional, and could have easily have been negotiated prior to finalising contracts. So, while we wait for the results of the Inquiry, there’s one clear takeout – when franchisors

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Dominique brings a level passion and motivation to her role which is hard to find. In 2011, she was awarded the Australian Institute of Management’s Young Gun of the Year Award and in 2016 Dominique was a finalist in the Brisbane Women in Business Awards. For more information contact the National Retail Association at: 1800 738 245


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How to build a Fearless Culture What is a Fearless Culture? When people come together; conversations are focused, lively and creative. The things that matter are surfaced and resolved. This environment promotes positive risk taking that comes from safety to try things and fail. People feel empowered in their roles and confident to speak out. This lifts the performance bar, promotes curiosity and leads to individual and team development and accountability. Fearless Cultures get results.

The challenges for franchise owners 1) Being a leader can feel like hard work. The responsibility of having to ‘know’ everything keeps us stuck in the day to day and prevents us from being strategic. It’s tough to run engaging meetings, and we put off crucial performance conversations. 2) Staff engagement is patchy. Maybe your organisation is growing rapidly, and is experiencing risk and growing pains. Or maybe your organisation isn’t growing and the legacy of history is slowing things down; staff engagement is low and people are stuck and lacking in purpose. Problems may be simmering, and it’s hard to identify the real issues. When challenges arise, you’re

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fighting fires rather than building culture. 3) Leadership bench-strength is lacking. A key responsibility of leadership is developing others. While we might have the right intentions, we get busy and development conversations don’t happen. Regular feedback discussions don’t seem to have much impact. 4) The results are questionable. Performance within the franchise is inconsistent with some areas divisions not delivering on expectations, and there is a lack of accountability. Perhaps KPIs are being achieved, but you are concerned about the approaches being taken. 5) You see that more is possible. The franchise is performing well; there is a


“A Fearless Culture is the result of a cumulative focus of leaders within the franchise led and modelled by those at the top.” “The leader who asks has a clear purpose for every conversation and facilitates discussion in that direction.”

healthy culture and targets being met—yet you believe more is possible. Leaders who ask are brave enough and skilled enough to connect deeply, lead fearlessly and achieve transformational results. Leaders who ask create Fearless Cultures by telling less and asking more.

Building a Fearless Culture A Fearless Culture is the result of a cumulative focus of leaders within the franchise led and modelled by those at the top. Drawing on questioning techniques and a coaching approach, leaders who ask build Fearless Cultures. Three critical competencies leaders who ask utilise to build Fearless Cultures are: 1. Questions – Ask more and tell less 2. Purpose – Vision for what we want to achieve 3. Courage – Leadership is not taking the easy way

Ask more questions Leaders who ask leverage what they know about brain science by asking questions to build engagement and accountability. The ‘generation effect’—replicated in a number of behavioural and neuroscience studies—shows that people are more likely to remember an idea they generate themselves.# When you ‘tell’ people the answers, the rational brain may be listening but this won’t

Corrinne Armour – Leadership Expert and Author

help with recall or ownership. Conversely, when you ‘ask’ questions that lead people to a new understanding, ‘insight’ is involved. Insight is that light bulb moment where the brain pulls seemingly unrelated ideas together and connects them in new ways. Insights are valuable; they engage the brain’s reward system and trigger a release of dopamine: a neurotransmitter known as a ‘happy chemical’. The simple act of searching for and finding our own answers is rewarding to the brain. Insight also activates the hippocampus: the area of the brain responsible for long-term memories. Our memory is augmented by insight—we construct rich neural connections to things we already know and can then apply the solution more broadly in the future. So, one insight can address multiple challenges. If you notice that your people repeatedly bring the same problems, or that your previous solutions aren’t being implemented, it might be time for you to tell less and ask more.

Get clear on purpose In a Fearless Culture, leaders understand the broad vision. They are clear on individual, team and organisational purpose. The leader who asks has a clear purpose for every conversation and facilitates discussion in that direction. Having purpose gives form and leads to an outcome, whether it be a casual chat in the lift, a semi-formal fortnightly catch-up with a direct report, or a team meeting. Broad types of purpose in conversation might include building awareness, developing new behaviours, extending skills, correcting poor performance, challenging norms, problem solving, generating new ideas, leading a team meeting or connecting a group around a common cause. Regardless of the location and occasion, we need to know why we are having a conversation. Questions are the best way to clarify the purpose, keeping in mind that shared ownership of, and commitment to, the conversational purpose is more likely to achieve outcomes.

Show courage A coaching approach isn’t for the faint hearted—the leader who asks needs courage. It takes courage to consider your own stuff, put it aside and focus on another person. It takes courage not to have the answers, and ask the questions anyway. It takes courage to ask rather than tell and to abdicate from the role of ‘leader with all the answers’. Perhaps we need the most courage when we challenge peers and senior leaders. Consider the situations uncovered by the Finance Sector Royal Commission. I believe there were some senior leaders who were not comfortable with things that were happening but where were the dissenting voices? Did people speak up? Were they heard? These were not Fearless Cultures. Courage is not the absence of fear. In fact, the only time you will ever feel a complete lack of fear is when you are dead or dead drunk. Neither are useful states for leadership. Courage is pushing through despite the fear, using the fear as data, fearing less.

Over to you Franchise owners have the dual role of leading and building a Fearless Culture in their own teams as well as influencing the organisation as a whole. Culture is the sum of everything we do, each day, and the leader who asks creates culturechange momentum through telling less and asking more, being clear on purpose, and showing courage. Corrinne Armour is a leadership expert who helps leaders and organisations develop Fearless Leadership and deliver transformational results. She is the author of Leaders Who Ask: Building Fearless Cultures by telling less and asking more. She is co-author of Developing Direct Reports: Taking the Guesswork Out of Leading Leaders and two specialist texts on human behaviour. For more information contact Corrinne at: 0414 742 557 hello@corrinnearmour.com. www.corrinnearmour.com

Business Franchise Australia and New Zealand 21


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8 Top Tips

for Selling Your Franchised Business:

A Franchisee Guide

It might sound strange, but you should begin to consider what the process of selling your franchise business will be like before you buy it!

you consider purchasing. This includes setting

Seriously, becoming a business owner should include the forward planning that considers how long you will need to be in the business to maximise the return on your investment. We assist franchisees to enter quality franchise businesses every year, and one of the key points we talk about during the recruitment process is the ‘exit strategy’.

will play a part in your ability to capitalise on

Sounds strange? Not at all.

We have 8 handy tips to position your

Preparing for the sale starts from the moment

business for the best outcome at sale:

up your trading structure - will you require a family or unit trust, a partnership or a limited liability company to manage tax and wealth creation? It also covers your record keeping, financial reporting, employment structures, lease terms and MUCH more, as each of these your hard work ahead. It’s not too late to prepare, even if you are already trading. But start NOW! Planning for your sale early means that when the opportunity or the need to sell arises, you will be ready.

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1

Understand and demonstrate your value proposition

Know what you are selling and have details of: a. Your customers, how you engage with them and why they are loyal to you; b. The assets of your business such as equipment, fit out, stock, human resources and brand and marketing collateral; c. The history of the franchise and your specific business - when you purchased it, green-field or going concern, details of previous owners and duration of operation; d. Up-to-date licenses and permits required to operate the franchise business; and e. The franchise agreement, leases and any legal documentation or legislation that your franchise business must comply with;


Visually “Preparing for the sale starts from the moment you consider purchasing.” James Young | Head Of Recruitment | DCS Group

f. Many would say this is the most crucial component in a prospective buyer’s consideration: accurate trading and financial data. Try and present a minimum of 3 years to the current date, but preferably since commencement of the business. Knowing and being able to demonstrate your annual turnover, your cost and revenue drivers and your profit will directly impact both the saleability of your franchise and the sale price. Meet with your accountant or business advisors well ahead so that your balance sheet and profit and loss statements are upto-date, correct and ready to be subjected to the buyer’s and their advisor’s scrutiny. Even though you may have prepared a future budget or sales forecasts and may reference them during discussions, it is important that

you do not make any representations to a prospective buyer about such projections or include such documentation without adequate waivers, in a sales kit or other information you give. This can have legal implications of being misleading or deceptive on the seller’s part post-sale if it is not achievable by the purchaser.

2

Preparing your franchise business for sale

You’ve seen the television programs that show you how important it is to make your home look as appealing as possible when you put it on the market. Just like selling your house, it’s important to present your business at its best. This means visually, operationally and financially.

Take a long hard look at your premises (or mobile unit). Like our homes we can become so familiar with the look that we fail to see the shabby furniture, tired paintwork, missing globes, and worn fixtures. Obviously you don’t want to make any major capital investments, but a thorough clean, some fresh paint, getting round to the repairs and fixing the little things that have lingered undone will make a huge difference. Give it back the love and sparkle you did when it was brand new and get your team invested in keeping it that way. Take a look at your team, their uniforms and personal presentation, and work with them to take renewed pride in how they look and act with customers and each other.

Operationally The visual presentation of your store and your team will be further enhanced by reinvigorating your operations. Again, this too can become a little jaded and ho hum. So examine your operations, systems, procedures, customer service, inventory management, employee engagement and cultural commitment and see where some training and incentives and your good example could uplift and improve performance.

Business Franchise Australia and New Zealand 23


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“You’ve seen the television programs that show you how important it is to make your home look as appealing as possible when you put it on the market. Just like selling your house, it’s important to present your business at its best. This means visually, operationally and financially.”

Financially Managing costs and boosting sales are the two ways in which you can improve your profit. A profitable franchise sells itself. First, look to any ways you can reduce your overheads: utilities, cleaning or other contracts, better rostering to reduce staff costs and managing waste better are just a few things to consider. Then look to improving revenue. Many franchisors require or permit each franchisee to conduct local area marketing. It may be valuable to conduct some active, targeted marketing in your community to boost your sales in preparation for the sale of your franchise. Talk to your franchisor and they may help with marketing material or promotional assistance or even training and support.

3

Communicating with the franchisor, lessor and suppliers The key parties in a franchise sale transaction are the franchisor, the lessor (if you are leasing) and any suppliers. Each of these parties generally have their conditions to sell or assign outlined in their respective agreements, so peruse them to familiarise

yourself with the terms. Some of these may include:

with the franchisor, landlord and suppliers to ascertain their requirements will be fulfilled.

• Incoming franchisee’s/lessee’s financial position and resources in relation to their ability to

4

i) purchase and conduct the franchise, ii) pay any assignment or other fees, iii) provide bank guarantees or other warranties to secure their obligations under the franchise agreement, the lease, loans or supply, in their capacities as a franchisee and/or a lessee; • Incoming franchisee’s/lessee’s business experience; • Approval of the incoming franchisee by the franchisor (and possibly lessor) • If applicable for you as a franchisee or a lessee - to remedy any breach under the agreements and pay any amounts owing to the franchisor or suppliers; and • Incoming franchisee/lessee to receive training from the franchisor. It is important to communicate effectively

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Negotiating the sale price

There are some common methods to value a business: a. Asset valuation method b. Capitalised future earnings method c. Earnings multiple method – generally 2.5 - 3 times of EBITDA (earnings before interest, tax, depreciation and amortization) d. Comparable sales method that is price that similar businesses have sold for. There are two categories of factors that will impact the sale price - internal and external factors. Some internal factors are the duration of the franchise operation, your customer data base and the circumstances surrounding the sale whether it is a well-planned sale or forced sale due to cash flow issues, termination, ill-health or death of a key person in your franchise. Some external factors that will impact sale price are sales of competitor businesses


e. collate all supplier details including payment dates and delivery times.

“Conduct some active, targeted marketing in your community to boost your sales in preparation for the sale of your franchise.”

8

Timing of your sale and getting the best result

Ashley Tan | Lawyer | DCS Lawyers

and their sale prices. This is a particularly important factor as a prospective buyer will generally have a purchase price in mind and would consider your competitor as well. Other factors include how your industry is trending in the marketplace and the wider economic conditions.

5

Find a franchise business broker

The selling process can be time consuming, complicated and stressful. It requires hands on project management to ensure that all parties (franchisor, lessor and suppliers) are on board. By using a competent and reputable franchise business broker, you’ll have the best chance of managing the sale process from marketing the opportunity to execution of all the documents and getting the proceeds in your bank account Make sure you get testimonials from past clients who have worked with the broker. You could ask your franchisor about the best brokers they have been involved with in successful past sales. It’s important to engage a broker who is experienced with franchise re-sales rather than any business broker. Remember that unlike any business sale, the purchaser of your franchise will need to undergo the same qualification you did to be approved by the franchisor to enter the network. The broker assists with: a. walking you through and explaining the sale process; b. pre-qualifying the prospective buyer including understanding their business and management experience, financial position, referees, background checks and credit history; c. ensuring that the prospective buyer understands franchising and is acceptable to the franchisor d. assessing the appropriate valuation method and best case scenario sale price; e. finding the buyers by advertising and marketing the sale of your business; f. negotiating conditions for the sale of the franchise, specifically getting guidance on what to compromise to ensure the best outcome for you; and

g. Identifying and avoiding common pitfalls in a sale transaction.

6

Speak to a franchise lawyer

The contract of sale of business has a number of important elements including restraints, training of the buyer, asset and price apportionment, accompanying documents such as the franchise agreement, disclosure document, leases, transfer of business names and permits, transferring employees and their entitlements, and tax implications (CGT and GST). We highly recommend having a lawyer handle the contract of sale of business agreement A competent franchise lawyer will be able to assist you, hand in hand with a broker to ensure that all conditions are fulfilled, that the requisite consents are received and all agreements are executed correctly. Your lawyer will be able to advise you on any postsale obligations under the contract of sale and any post termination obligations under the franchise agreement. Some of these post termination obligations under the franchise agreements may be that you return any copies of the operations manual, surrender the client list, as well as confidentiality and restraint of trade obligations.

Timing is everything. The best time to sell is when you have options. That’s why it’s imperative to have your financial documentation ready, to understand the franchisors resale process and to ensure the length of lease remaining is sufficient to meet potential buyers finance requirements. Waiting until there is a downturn in your business is not the right time to sell. You need the business showing positive growth and looking as good as it did on the first day of opening. And here’s an interesting observation: many franchisees have followed these steps in point 2 - preparing your business for sale visually, operationally and financially. The results of the uplift they created to enhance their franchise to a potential buyer, so invigorated their business, their staff and their customers, they were motivated all over again and kept their business for a few more years. So here are the 2 most valuable tips: 1 Think ahead to your exit when you purchase your franchise, setting it up and running it to build the maximum value for when you are ready to sell. 2 Maintain and operate your business as though it was always on the market as this will ensure you and your team keep on top of sales, customer service, store presentation, maintenance and financial performance. It also enhances its value to attract the widest range of buyers. Good Luck!

7

Prepare for the physical handover of the business

c. ensure that policies, procedures, permits and other statutory and regulatory requirements are up to date, such as Work Cover, Workplace Health and Safety etc;

For over 30 years DC Strategy has been providing end-to-end franchise consulting, law, recruitment, brand, marketing and technology services. Their experienced multi-disciplinary teams have built over $2 billion in enterprise value for clients in the last decade alone, developing and supporting many of the most successful national franchise brands here and internationally. DC Strategy manage the franchise commercial, legal and recruitment needs of a large number of networks providing specialist services including trademark, employment, migration, mediation and international recruitment assistance.

d. notify the buyer of any local area marketing that has been performed and its performance statistics (if available); and

For more information please contact: james.young@dcstrategy.com ashley.tan@dcstrategy.com

You will need to prepare the franchise business for handover. Some of these tasks include: a. ensure that the premises is clean, orderly and operating in accordance with the operations and procedures manual; b. collate all staff roster and employment contracts that detail each employee’s job descriptions, skills and experience, resumes, pay rate, and leave balances and up-to-date superannuation and tax records;

Business Franchise Australia and New Zealand 25


Fran c h isin g Ma k in g A D ifferen c e

Q&A with

Karen Wren

BrightEyes Foundation and The Franchise Whisperer

26 Business Franchise Australia and New Zealand


“I really focus on the fundamentals of good business practice and try to keep things simple. I enjoy working face to face with franchises to achieve better outcomes.”

Karen Wren has been involved in the franchising industry for many years, having established a successful franchise consultancy - The Franchise Whisperer - with her husband, Steve back in 2004. Since then, Karen’s passion and expertise have allowed her to assist people to succeed in the franchising industry right around Australia. In 2013, Karen channeled her passion and expertise once again when she founded BrightEyes, a foundation with one goal in mind: to rid the world of child sexual exploitation. Business Franchise Australia and New Zealand sat down with Karen to chat about her career in franchising and her work through her incredible charity – BrightEyes.

How did you become involved in the franchise industry? “In 2004 I was retained by an emerging License model in the local area marketing industry in Victoria, who wanted to establish a National Franchise Network. My role with them was to work with current operators to assist and develop sound business principles and good franchise ethics to become more successful franchisees, and to assist the franchisor understand his role and obligations as a franchisor.” “My role in franchising now is focused on business coaching for existing franchise models as well as implementation of franchise

recruitment systems and processes to grow their networks. I really focus on the fundamentals of good business practice and try to keep things simple. I enjoy working face to face with franchises to achieve better outcomes and am passionate about franchises being focused on franchisee success, as this really holds the key to the growth of our industry. We also work with an overseas franchise business and assist in the Master Franchising of their brand globally, and my role will be International Franchise Development Manager.”

What is your advice to someone thinking of entering the franchise industry? “My advice to those seeking to purchase a franchise is for them to step back, take off the rose coloured glasses and make an assessment on the business and how well they are suited to this opportunity. Don’t look at how much money you can make first, but rather ask yourself the question; ‘am I passionate about this business and what do I really like doing?’ Then everything thing else should flow. Yes, it’s going to be hard work, but look at the rewards.” “To those who want to franchise their dream and become a franchisor, I always recommend that a simple feasibility study is done on their business by a qualified franchise industry expert before they invest too much and time going down the wrong path.”

How has your career in franchising helped shape BrightEyes? “Working within the franchising industry has really shown me that nothing is impossible, that passionate and focused people can do amazing things. Franchising is all about

influencing others in the most positive way and to encourage, empower them to follow their dreams no matter how big or small and not to allow others to take the dream away. Success in franchising is all about believing in yourself and being strong. People will follow a strong leader who knows where there going and can demonstrate rather than just talking.” “My work in BrightEyes has gained much from my experience in franchising, my ability to never give up, show tenacity and stay focused were honed during my career in the industry. I extend this into The BrightEyes organisation and my work with the young women and girls who want to believe they too can have a better life and can dream. Whenever I get an opportunity, I encourage them to not let circumstances that they had no control over define who they are. At the end of the day whatever you’re doing in life, you choose your journey don’t let others take control of your dream.” Since 2013, BrightEyes has been active in Mumbai India, where they have seen great progress being made in saving women and

Business Franchise Australia and New Zealand 27


Fran c h isin g Ma k in g A D ifferen c e

“The young women I’ve worked with in India are just like any you would meet here in Australia. They laugh. They cry. They have fun, but most importantly, they have hopes and dreams.”

children from sex trafficking and prostitution. BrightEyes continues to help many girls and young women find new direction and hope away from the industry they were forced to endure. “The young women I’ve worked with in India are just like any you would meet here in Australia. They laugh. They cry. They have fun,” Karen explains, “but most importantly, they have hopes and dreams.” Thanks to organisations like BrightEyes and their sponsors, these young women who have been so brutally treated by society can at last begin to believe again in their hopes and dreams. In order to continue doing this important work, BrightEyes needs donations and sponsorship. On the 25th May 2019, BrightEyes is holding a Gala Dinner Ball at The Savory in Brighton,

one of Victoria’s most elegant venues. During the gala you will enjoy: • A champagne and canape reception • A sumptuous 3 course meal with beverages • LIVE entertainment by exciting music band Rumours and special guests, playing dancefloor favourites

to this important cause. In the lead up to the event, there will be a strategically planned social media campaign. This campaign will expose your business to a large, influential audience.

• A raffle and live auction to bid on a unique selection of generously donated items

For more information on The Franchise Whisperer or to find out more about The BrightEyes Organisation and see examples of their work so far in Mumbai India, visit:

There are opportunities for businesses to sponsor the Gala Dinner Ball and contribute

www.brighteyesinc.org www.franchisewhisperer.com/

KINSHIP $10,000

HOPE $5000

Premium tickets to the 2019 BrightEyes Gala Ball – seated on a table with BrightEyes Founder& CEO Karen Wren

4

2

Your brand promoted on pre-event BrightEyes Facebook posts

2

2

1

Your brand promoted on post-event BrightEyes Facebook posts

1

1

1

S p o n s o r s h i p Pac k ag e s

Certificate of appreciation from BrightEyes Verbal recognition on the night during Founder & CEO’s speech Logo on the BrightEyes website for a 2-two-year period (from the date the Sponsorship Agreement is finalised) Opportunity to display a pull up banner at the Gala Ball even Ability to utilise the BrightEyes logo in company auto signatures Opportunity to include a business card at the place setting for each guest Logo on the BrightEyes Gala Ball flyer Speaking slot during the Brighteyes Gala Ball Opportunity to have Founder & CEO Karen Wren as guest speaker at a company event for a half hour presentation. Karen will passionately draw on her incredible life experiences to inspire event attendees to believe in themselves.

28 Business Franchise Australia and New Zealand

VITALITY $2000


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Business Franchise Australia and New Zealand 29


e x pert a dv i c e

Six steps to

help get super right 30 Business Franchise Australia and New Zealand


“Paying super is certainly a topic that generates quite a bit of community interest. The ATO is committed to detecting the non-payment of super. We want to work with employers to help them get their super obligations right.” John Ford | Assistant Commissioner for Superannuation, Engagement and Assurance | Australian Taxation Office

Super is everyone’s business. Regardless of whether you’re a franchisee or franchisor, you need to understand your super obligations. A franchisor can be held responsible if they know a franchisee is not getting their super right. Employees rely on super to fund their retirement. For most people, super begins when they start working – full time, part time, or casually – and retirement can seem a long way off. So, put some time aside for super; by doing so you’ll not only take care of your most valuable asset, you’ll minimise risk to your brand. Here are six simple steps to help you get it right.

1 Check you’re paying for the right people You need to pay super for all of your eligible employees. Generally, an employee is eligible for super if they are 18 years of age and get paid at least $450 before tax a month.

and a contractor: ato.gov.au/calc_ employeeorcontractordecisiontool If you send an Australian employee to work temporarily in another country, you must continue to pay super contributions in Australia for them. The other country may require you or your employee to pay super (or equivalent) there as well. Australia has bilateral agreements with some countries so you don’t have to pay super twice – provided you continue to pay compulsory super contributions for the employee in Australia.

2 Check you’re paying the right amount Currently you need to pay 9.5% of your employee’s ordinary time earnings (OTE) into super. Your employee’s OTE will be the normal hours they work, including over-award payments, commissions, shift loading, allowances and bonuses, unless their hours are specified in an award or agreement. The ATO’s checklist at ato.gov.au/OTE will help you identify what payments are

considered salary and wages for super purposes. With your agreement, an employee can ‘sacrifice’ part of their salary or wages into super. If they choose to do this, you make super contributions to their fund on their behalf. The main benefit for your employee is that this reduces their assessable income and the amount of PAYG tax they have to pay. Instead the contributions are taxed in the super fund at the concessional rate of 15%.

3 Check you’re paying on time You need to pay super at least quarterly some super funds, awards or agreements may require more frequent payments. The payment due dates are 28 October, 28 January, 28 April and 28 July. When a due date falls on a weekend or public holiday, you can make the payment the next working day. If you don’t pay on time and to the correct fund you will have to lodge a ‘superannuation guarantee charge statement’ form and then pay the charge liability. You can find the form at ato.gov. au/sgccalculator

Claiming a tax deduction To claim a deduction for super contributions, your employer contributions must have been received by the employees’ super funds by 30 June. If your payments are received on or after 1 July, you can claim the deduction for the payment the following financial year.

Employees under 18 must work for more than 30 hours per week to qualify. You have to pay super for some contractors, even if they quote an Australian business number (ABN). If you’re a franchisee and employ an individual and pay them (greater than 50%) for their labour and they’re unable to delegate the work, then you must pay super. If your contract is with someone other than the person actually providing the labour, such as a company or trust, you don’t have to pay super. The ATO’s employee/contractor decision tool will help you determine the difference between an employee

Business Franchise Australia and New Zealand 31


e x pert a dv i c e

4 Check you’re paying to the right place Your employees are generally entitled to choose their super fund, unless they are under an enterprise agreement or workplace determination. You need to provide them with a standard choice form so they can advise you of their chosen fund. You also need to nominate a default fund that you will pay their contributions into if they don’t choose a fund. The standard choice form is available for download at ato.gov.au/choiceform The super fund selected must meet specific legal requirements. You can check whether a fund is complying by going to Super Fund Lookup superfundlookup.gov.au/

5 Check you’re paying the right way You must pay the SuperStream way. This means you pay your employees’ super, and send associated data, electronically. The data needs to be in a standard format so it can be transmitted consistently across the super system – between employers, funds, service providers and the ATO. The data is linked to the payment by a unique payment reference number. There are a number of ways you can pay super to ensure you’re meeting the SuperStream standard. These include using your payroll system, your super fund’s online system or a super clearing house.

The benefit of a super clearing house is that you make a single electronic payment and the clearing house distributes the money into your employees’ funds on your behalf, in the standard SuperStream format. The ATO offers a free super clearing house for small businesses with 19 or fewer employees, or annual turnover below $10 million. The service is called the Small Business Superannuation Clearing House (SBSCH) and is one option to ensure you are paying super correctly. Information on how to access the service can be found at ato.gov.au/sbsuperclearinghouse

6 Check you’re keeping accurate records And of course, you need to keep accurate records. You must be able to show the ATO how much super you paid each of your employees and how it was calculated. You must also be able to show you offered each eligible employee their choice of super fund. You can use whatever method suits you best to keep records, but they must be in English (or in a format that can be easily accessed and converted into written English). You must keep records for five years. This is the case with tax and super. If you keep electronic records, software must be available to access older floppy discs, CDs or computer records. Finally, you can also visit ATO Community at community.ato.gov.au to ask specific questions about your own situation.

32 Business Franchise Australia and New Zealand

“The ATO takes the nonpayment of SG seriously. Superannuation provides income for workers in retirement. Employers that are failing to pay super to their employees are taking away money from their retirement.” For information on Super for employers visit ato.gov.au/superforemployers (you can also enter search terms on the ATO website). John Ford is an Assistant Commissioner, who has been with the ATO since 1998. He has held senior roles in a number of areas within the tax office. Having most recently led the ATO operational response to the Panama and Paradise papers, John moved to Superannuation in February 2018 and now leads Engagement and Assurance. In this role he works closely with the superannuation industry and leads over 400 officers across the country who administer the superannuation compliance program. John is also the chair of the Superannuation Risk Committee that is responsible for identifying, assessing and ensuring treatment strategies are in place. Find a list of the supporting services for small business at ato.gov.au/sbsupport For information on small business, visit ato.gov.au/business (you can also enter search terms on the ATO website). For information specific to franchising and tax, visit ato.gov.au/franchise


Your success is our success. You are just the person we are looking for. We are the global leaders in the booming laser, skin and cosmetic injectables industry, since 2008. And we want people like you. Spirited. Driven. Unstoppable. With our unique 50/50 franchise partnership, we’re with you, working together and supporting each other on the pathway to success. So if you want to run your own successful franchise, be your own boss and take control of your future then let us help you turn your dream into a plan.

Why partner with us. • Guaranteed $100k Salary per annum • Award-winning Growth • Turn-Key set up with state of the art equipment and design • Booming Aesthetics Industry • Market Leading Brand • On-going training on all products and services • Marketing initiatives at the national and local clinic level • Human Resource support • Recruitment and training of cosmetic injectors • Ongoing IT support and a full suite of cloud-based business tools Let’s do this in Australia and New Zealand Visit laserclinics.com.au/franchising or www.laserclinicsfranchising.com/nz for more information. Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272.

We’re with you.

Business Franchise Australia and New Zealand 33


Don’t miss an issue

Get the App C OV ER STO RY: H o g’s B re at h Cafe

“From the outset, Hog’s Breath Cafe set out to be different to anyone else and create a distinctive style of casual dining unique to the Australian marketplace.”

continued to grow at an average rate of four to six new restaurants every twelve months. There are now 75 Hog’s restaurants throughout Australia and New Zealand. From the outset, Hog’s Breath Cafe set out to be different to anyone else and create a distinctive style of casual dining unique to the Australian marketplace. CEO, Ross Worth, who’s been with the brand for more than 17 years, said the Hog’s philosophy has always been to have fun and enjoy yourself.

“We don’t take ourselves too seriously and love to have a laugh and see our customers enjoying themselves,” said Worth.

30 YEARS OF HOG’SPITALITY THE HOG’S STORY The first humble Hog’s Breath Cafe opened for business in beautiful Airlie Beach back in 1989 with founding father Don Algie at the helm.

staple of the Hog’s Breath experience. Almost 30 years later and this philosophy remains at the heart of the business, with the restaurant group even creating and owning the term ‘Hog’spitality’ and carrying the slogan, “There are many things we’ve never done, but we ain’t never had too much fun”. It’s a philosophy that has made Hog’s one of the most successful homegrown franchise systems in Australia.

There in the vibrant hub of the Whitsundays, influenced by the laid-back holiday atmosphere, Algie made fun and hospitality a

A second restaurant opened in Mooloolaba a year after Airlie, and was quickly followed by Cairns, Townsville and Darwin as Hog’s

12 Business Franchise Australia and New Zealand

“Our overarching goal has always been, and will always be, to see our customers have a great dining experience. Everything we do is based on that simple premise, from serving fabulous food, to delivering friendly service and a great atmosphere. “We serve over 7 million people a year and attract a broad range of customers. You could walk into any Hog’s restaurant and see young adults, couples, kids, mums and dads, grandparents, as well as corporates enjoying a business lunch. We’re extremely proud of that.” The Hog’s philosophy is clear when you walk into any restaurant and first see the wide smiles of the staff, followed by the unique decor that adorns the walls, most of which is unique to each restaurant and the region in which its located. You immediately know you’ve come to a place that’s unpretentious, where you can relax, have fun and, of course, enjoy one of Hog’s famous slow cooked steaks. This is another staple of the business that has remained unchanged throughout its almost 30-year history. The signature dish has always been its famed Prime Rib Steak, slow cooked for up to 18 hours to offer maximum flavour and tenderness. Worth said another feature of the menu that has remained unchanged over their long history is the commitment to local, seasonal produce as well as superior beef selected especially for Hog’s from cattle raised

on fertile pastures and then graded to an exacting standard. However, as times and appetites have changed, Hog’s has moved along too, and now offers a whole range of healthy options and meals to suit all appetites and dietary requirements. Hog’s Executive Chef, Andrew Rennie, devises a new menu each year that’s designed to improve the profiles of existing flavours, and introduce on-trend new ingredients and products to improve the customers tasting experience. Worth concedes it’s important to change the menu in line with worldwide trends and cater to all appetites, but there are some menu favourites that are simply part of the Hog’s tradition. “We’ve had Prime Rib and other beloved classics like Curly Fries, Loaded Skins and Boss Hog Ribs on the menu for nearly 30 years and we’ll probably have them on the menu in another 30 years,” said Worth. “Our loyal customers come back for them time and time again and we won’t let them down.” Loyalty seems to be a keyword for the Hog’s group. It has retained franchisees and staff for over 20 years, and has worked with the same suppliers for decades from all areas of the business from the farmers who supply their produce, to the builders of their new restaurants, the team that looks after their printing needs, right through to the charities they support, and the sporting teams and individuals they sponsor. “Relationships are incredibly important to us as a group, and a large part of our success can be attributed to the people and businesses we surround ourselves with,” says Worth. “We put trust in our franchisees, staff and suppliers and that builds loyalty over time, and they become part of our family. And we love seeing their successes and growth”.

Express drive-thru has just opened in Burpengary, Queensland.

almost 30 years ago, the group hasn’t rested on its laurels and has continued to grow and diversify as the hospitality industry has changed.

“We’re really proud of Hog’s Express, from the world-class store design to the technology we’ve implemented. And of course our menu has a range of truly unique options,” says Worth.

A major development in recent years saw the iconic Aussie brand get a fresh new look. In 2016 the group rebranded to Hog’s Australia’s Steakhouse to reflect their heritage as Australia’s favourite steakhouse.

“Having dished T up H the E bestMsteak A G for almost three decades, we wanted to pay homage to our background and celebrate what we’re famous for with a name that says it all,”

The selection of burger offerings includes Mac & Cheese, Pork Belly, Southern Chicken, Calamari & Whiting, Tex-Mex and Crispy

AVegetarian. Z I NAlsoEon theFmenu O is R F ofR A N C H I S E E S a selection

says Worth. “Many of our restaurants now carry the new branding, and we’ll continue to roll it out across the group over the next couple of years, and of course on all our new additions to the Hog’s family. “We’ve also adopted a more modern design for our restaurant interiors, without losing our DNA,” says Worth. Elements such as the Mackay Cedar table tops and timber floorboards will remain but will be enhanced by timber, brick, steel and concrete fittings, as well as open kitchens. As each restaurant refurbishes, the franchisee will be able to incorporate new building and fit-out elements into their design, but each will also be uniquely different in featuring elements that embrace the local area and people. Modern technology, such as self-order with iPads, and phone charging stations will also be gradually introduced.

ribs and wings and Hog’s favourites such as curly fries and onion rings, as well as salads and a special menu for kids.

VOL 12 ISSUE 06 SEPT/OCT 2018

Hog’s Express takes advantage of the latest technology by way of a fully interactive customer ordering system via iPad, as well as offering power and charging devices storewide for customers who choose to dine in. Hog’s also quickly jumped on the online food ordering trend and is now delivering delicious AUSTRALIA menu options from a selection of restaurants.

and NEW ZEALAND

“Although our heritage is as a family restaurant we know that our customers sometimes want the convenience of online food ordering, so we adopted the service as quickly as we could,” said Worth. “It’s a fast-moving industry so you have to keep up with trends and what the consumer wants or you’ll be left behind.” Since its inception in Airlie Beach, Hog’s has flourished and expanded across Australia over its 30-year history and has managed to stay true to its roots, while still progressing with the times. Worth says the group has many more developments in the pipeline, so stay tuned for what this iconic Aussie brand has coming next.

30 YEARS OF HOG’SPITALITY

Another massive development for the group was the introduction of a new generation of restaurant last year.

THE HOG’S STORY

“All of our franchisees, and our head office team of 30, are crucial to our continued growth as a business, and they all work incredibly hard for the brand.”

“Hog’s Express is a quick service offering that allows us to be more versatile with our menu and take our product to a wider audience, as well as giving franchisees the opportunity to be part of the Hog’s family with much lower setup costs,” says Worth.

While Hog’s has retained much of its original philosophy and people from inception

The new model restaurant is now operating in Brisbane and Perth, and the first Hog’s

For more information please contact Geoff Hargreaves, Franchise Development Manager at: geoffhargreaves@hbca.com.au www.hogsbreath.com.au www.hogsxpress.com.au

HOW TO BUILD A FEARLESS CULTURE

Business Franchise Australia and New Zealand 13

GOOD EATS:

WHY BRAND MATTERS IN FOOD $6.95 (AUD), $7.95 (NZ) inc. GST.

FINANCIAL & LEGAL ADVICE

LATEST NEWS

FRANCHISE DIRECTORY

www.businessfranchiseaustralia.com.au 34 Business Franchise Australia and New Zealand


VOL 12 ISSUE 06 sept/oct 2018

F ood, F ood s u o i r o Gl FASTA PASTA

A FRANCHISE OF VALUE good eATS:

WHY BRAND MATTERS IN FOOD Business Franchise Australia and New Zealand 35


what’snew! Muffin Break’s Commitment to the War on Waste Muffin Break, a coffee and bakery franchise, has made their commitment to reduce their impact on the environment. Ever wonder what happens to your takeaway coffee cup at the end of the day? Each year, Australians use around one billion disposable coffee cups, the majority of which end up in landfill. On average, just one of those coffee cups will take around 30 years to biodegrade. It’s an underground mountain of plastic that’s only going to get bigger if we don’t take action. Muffin Break’s motto is that the ‘Good Goes In,’ from freshly ground coffee beans, to award-winning brew and famously fresh baked goods, made in-store daily. It’s now about making a commitment to sustainability and the community that the brand loves serving, which is why they have just launched two new initiatives aimed at reducing the coffee cup waste stream.

For every takeaway coffee or hot drink sold by Muffin Break, they’ll pay to have one cup recycled by Simply Cups. Most takeaway coffee cups can’t be recycled easily, due to the combination of paper and waterproof plastic. Simply Cups work with innovators to solve this problem. They’re collecting disposable coffee cups from all over the country and giving them a second lease on life as a new recycled, and recyclable, product. With 210 Muffin Break stores across Australia, the brand believes they can take 11 million cups out of landfill.

NeNe Chicken has come to Darwin! NeNe Chicken, the undisputed Kings of super crunchy Korean fried chicken, have opened an outlet in 247 Trower Road, Casuarina, Darwin. The Casuarina store will be the most northern

store in Australia and takes the total of NeNe Chicken outlets to 14 stores in total. NeNe Chicken is fried at a sizzling 175 degrees to become super crunchy on the outside and soft and tender on the inside.

Surprisingly, NeNe Korean fried chicken is served not only in the tasty ‘original’ flavour but offers an extensive selection of five other tantalizing flavour toppings as well. You can choose your own NeNe Korean Fried Chicken flavour taste explosions with original, snowing cheese, swicy, freakin’ hot or snowing vegetable. NeNe Korean Fried Chicken is also available in a boneless meat option too. But wait, the choices don’t stop there! As NeNe loves to celebrate all that is Korean Fried Chicken they also offer their fried chicken devotes - burgers, fusion tacos, wingettes & drumettes, wraps, lunch box options and even soft serve (a choice of sesame or green tea flavours) for dessert. Also stay tuned for a proposed delivery service for NeNe Chicken, so you can get your delicious Korean fried NeNe Chicken delivered, succulent and spicy, direct to your door. With locations across Australia, Korean fried chicken lovers can get their delicious fix of NeNe Chicken in Queensland, Victoria, New South Wales, Western Australia and now the Northern Territory.

36 Business Franchise Australia and New Zealand


Roll’d fuelling Murdoch’s brightest with new store at Murdoch University

cuisine available in the new Student Hub of Murdoch University. Widjaja believes the brand will be extremely well received by some of Murdoch’s brightest minds. Widjaja said of the learned location, “it is a unique market and offers the opportunity to work with students and make delicious food for students. We are confident that Roll’d Murdoch will be the pioneer for more fresh, healthy food offerings at universities across WA.” Roll’d began with a single store in Melbourne’s CBD back in 2012. Since then, Roll’d has gone from strength to strength launching close to 70 stores in six years. Growing up surrounded by delicious food and family, Roll’d is inspired by co-founder Bao Hoang’s Mum and Aunt’s home style Vietnamese cooking.

Vietnamese juggernaut Roll’d has just opened its newest WA store at Murdoch University to great excitement (and hunger).

Roll’d Murdoch is lead by Raymond Widjaja, a small business owner since 1998 who loves the “rewarding and challenging” nature of being part of a successful brand.

One of Australia’s quickest growing fast-casual dining restaurants, Roll’d celebrated its first on campus offering in WA by serving up fresh, delicious Vietnamese street food to ravenous students for free.

“It is a space where you can dream, work and determine your own destination,” he said of his Roll’d franchisee family. Roll’d offers the first authentic Vietnamese

Now located in Victoria, New South Wales, ACT, South Australia, Queensland and Western Australia, Roll’d is continuing to grow and is looking to expand their Vietnamese offering to overseas locations later this year. Roll’d is bringing the concept of family made Vietnamese street food to Australia. With a fresh, innovative and quality offering alongside a memorable experience, Roll’d was ranked fourth on the AFR’s Fast Starter (recognising Australia’s highest turnover businesses less than four year’s old) in 2016 and continues to thrive.

VEGANS, SAY CHEESE! Zambrero introduces vegan cheese to the menu across Australia “Grate” news plant-based-diet-lovers, Zambrero launches today its vegan cheese. The premium quality, non-GMO, and gluten free vegan cheese will be available as a regular menu item across all 170 Zambrero restaurants in Australia…and what’s more it’s permanent! Australia is the third fastest growing vegan market in the world. Having seen an upsurge in popularity of its other vegan alternatives, including a spiced cauliflower filling, Zambrero made the unquestionable decision to continue to expand on its ability to cater to all dietary requirements. Carrying out a not-so-secret, state-wide trial in Victoria earlier in the year, Zambrero received an overwhelmingly positive response to the new menu item and requests flooded in for a national roll-out. Bianca Azzopardi, Zambrero CEO comments; “Across the industry we have seen an increase in the desire for veganfriendly products, not only by vegans but also those that are lactose intolerant and health conscious. We know it can be tricky to find consistency in plant-based alternatives, especially that taste really good,

and we continue to aim to position Zambrero as the first choice for a healthy, vegan-friendly meal.” Zambrero’s vegan cheese is made with coconut oil and has a cheddar flavour. It does not contain lactose, whey, or casein, making it suitable for customers that are lactose intolerant or avoiding dairy products. It also contains no soy or palm oil. From bowl to burrito, taco to quesadilla, vegan cheese can be added to any product as an extra for $1 and is currently available across the country.

Business Franchise Australia and New Zealand 37


what’snew! SumoSalad enters voluntary administration

Oporto Launches in Sri Lanka In conjunction with Master Franchisor, Ataraxia Capital Partners, Oporto opened its first restaurant in Colombo, Sri Lanka, in mid-September 2018. To launch Oporto into market, Ataraxia secured a prime location in the first ever international Food Atrium in Colombo, at the newly built Colombo City Centre Mall. In early 2019, Oporto will also open in ShangriLa’s One Mall Food Atrium, which is widely expected to be a pre-eminent destination for foodies. Australia’s leading premium quick service restaurant business is on a journey to create the most ‘craveable’ food experience on earth. With authentic Portuguese heritage and an Australian upbringing, Oporto has an adventurous spirit with feel-good flavour that’s ‘craveably’ different. Natural born explorers, the Portuguese first visited Sri Lanka nearly 500 years ago in 1505 and are credited with introducing chilies to Sri Lankan cuisine. Fast forward to 2018, the authentic taste of Portugal will be available with Sri Lanka’s first Oporto restaurant. Craig Tozer, Oporto CEO, said “For over

30 years Oporto has been serving Aussies our famous Bondi Burger and flame grilled Portuguese chicken. We are so proud of our Portuguese heritage and Australian upbringing, and we aim to feed millennials’ appetite for food adventure to become the most craved food experience on earth. It is an honour for us to now share our passion with Sri Lankans.” The Food Atrium caters to the foodie generation who want more out of their dining experience. It will house 15 outlets both local and international, and patrons will be able to choose from authentic Indonesian, Chinese, Japanese, Indian, Sri Lankan, Malaysian and Singaporean cuisine as well as fusion of Western selections. Partner and Co-Founder of Ataraxia Capital Partners, Sharad Sri, said “Sri Lankans are very excited by the entry of Oporto into the market. For many years Sri Lankans have asked for Oporto to come here. It really celebrates our love of chicken, Portuguese heritage and of course chilli. We have always loved the Oporto brand and are really delighted to add this to the existing Ataraxia Foods portfolio.”

38 Business Franchise Australia and New Zealand

Australian salad bar chain SumoSalad Group has been placed into voluntary administration by its management as part of a long-term strategy to “restructure and extend the brand into grocery and convenience,” according to a media report. The restructuring process is expected to take 35-60 days with the 85 SumoSalad stores continuing to trade as normal during that period. It is anticipated that a Deed of Company Arrangement (DOCA) will offer creditors with “the best possible outcome” and maintain positive relations with suppliers and partners, according to Sumo CEO Luke Bayliss, who cites legacy issues and retail lease renewals are cited as drivers for the restructure. The move comes on the back of SumoSalad Group putting two of its companies, Sumo Westfield Leasing Pty Ltd and Sumo Leasing Pty Ltd, into administration in 2017 in an attempt to force its retail landlord into lease payment negotiations.


Red Rooster and FoodBank Join Forces to Fight Hunger in Australia Red Rooster and Foodbank have joined forces to fight hunger in Australia, with the roast chicken champions officially partnering with the country’s largest hunger relief organisation in the 2019 financial year. The first major fundraising event for the partnership will see volunteers from Foodbank and Red Rooster’s parent company Creative Brands collecting donations at the brand’s namesake racing event – the Virgin Australia Supercars Red Rooster Supernight 300. Taking place at Eastern Creek’s Sydney Motorsport Park, on Saturday 4th August,

the Red Rooster Supernight is the perfect opportunity for Red Rooster to launch their alliance with Foodbank, showcase their sponsorship and draw as much attention as possible to this very worthy cause. Red Rooster CEO Nick Keenan has said: “Red Rooster is proud to be embarking on this

partnership with Foodbank. As a family brand that has proudly fed Australians for almost five decades, Red Rooster is totally aligned with Foodbank’s message and mission and we are honoured to have the opportunity to make a difference to the lives of those who need it most.”

The Coffee Club rewards coffee lovers for taking a stand against waste The Coffee Club has announced a nationwide franchisee commitment to offer a 50 cent discount on hot beverage purchases when customers bring their own re-usable cups into The Coffee Club.

The discount, offered in all The Coffee Club stores across Australia, came into effect last month, and has the potential to save Australia’s nation of coffee drinkers up to $130 a year. In the wake of consumer demand for businesses to put their ‘green’ foot forward and reduce waste, The Coffee Club has offered Karma Cup refills for many years and wants to extend the environmentally friendly option for customers to also bring in their own reusable cup. The initiative hopes to further help make a difference to the estimated one million disposable coffee cups dumped in Australian landfill every year. Peter Collier, The Coffee Club Stockland Caloundra, said that his team were proud to be part of an initiative that was rewarding Australians for taking a step in the right direction to reduce waste. “The move to reusable coffee cups is a trend we’ve seen with our locals and regulars for a long time – it’s nice to be able to give back and reward them at the same time,” Mr Collier said. “Obviously disposable coffee cups are a huge cost not only to the environment but to our business as well, this is a great opportunity to trial what could be a more sustainable way of running our business.” The 50 cent discount on coffee purchases when a reusable coffee cup is presented is now available in all stores across Australia.

Business Franchise Australia and New Zealand 39


FE ATUR E : FOOD & B EVER AGE

, d o o F d o o F s u o i r o l G Australians spend billions of dollars every year in the food and beverage industry, and that number is only increasing. With food and beverage revenue increasing by 13.4 per cent per year, the amount that Australian consumers are spending on food and beverages is only going to skyrocket. With that in mind, it might be a great time to consider the benefits of purchasing a food and beverage franchise. It was food and beverage companies that first introduced Australia to the concept of franchising, with McDonald’s taking the country by storm in the early 1970’s. McDonald’s is still a major player in Australian and international franchising and has paved the way for more and more hospitality and fast food franchises to succeed in Australia.

40 Business Franchise Australia and New Zealand


Work For the Customer

Businesses like KFC and Pizza Hut soon joined McDonald’s, and since then the food and beverage industry within franchising has gone from strength to strength. Since these early days, franchising has grown in leaps and bounds to include almost every industry and covers almost every product and service imaginable. The food sector of franchising continues to thrive and grow, with food franchises representing a large proportion of the franchising industry.

Industry Leaders Most “Top 10 Australian Franchises” lists are dominated by hospitality, food and beverage franchises, with six out of ten being food and beverage businesses. There are numerous things to consider when purchasing any franchise, and hospitality franchises come with a unique set of considerations. Janine Allis, founder of Boost Juice

explains, “first of all you need to fully understand what it means to be in food, particularly healthy food. You need to be aware of the FSC (Food Standards Code), TGA (Therapeutic Goods Association) and the Health Authority. Then you need to consider what the ACCC rules are and of course if you get into franchising there is also the FCC (Franchise Code of Conduct). These are just a few of the governmental and industry bodies that have specific requirements when it comes to the food industry. “This can all be very daunting and confusing, particularly when many of these bodies do not give you a clear answer on a question regarding the rules. But business always has its challenges. You need to just keep going, becoming a sponge and soaking up all the information you can possibly absorb. Information is key, because making a mistake in regards to any of the above Codes and Associations can not only cause massive fines, but can be terrible for the public relations of your business.”

CEO of McDonald’s Australia Andrew Gregory, says you need to fully understand your customer. “Listening and responding to our customer’s wants and needs through constant innovation have been key drivers to our success. This success places pressure on all parties who have a responsibility to consistently rise to the occasion each time and deliver an exceptional customer experience. As we must deliver this leadership, we need our franchisees to do the same. Having dynamic individuals that are able to create high performance environments within their organisation/s is crucial. They must also be great brand ambassadors and run outstanding restaurants to deliver on our brand promise.” Working in any hospitality business is hard work, and it requires passion and dedication in order to succeed. Thankfully, Australian hospitality, food and beverage businesses are supported by enthusiastic and engaged consumers, and their love for food and drink is only growing stronger.

ings, od and trying new th fo ith w g tin en rim pe certainly “Australians love ex beverage industry is d an od fo ing his nc and the fra demand!” keeping up with this

Business Franchise Australia and New Zealand 41

FE ATUR E : FOOD & B EVER AGE

Additional to these numerous regulatory considerations, drive, passion and focus are also of paramount importance in order to help your food franchise succeed.


FE ATUR E : FOOD & B EVER AGE

“Australians are luck y to be living in a multi-cultural societ y, with influences from around the world creating a rich mel ting pot of ideas and tra ditions – particula rly when it comes to food.”

International Flavours Australians are lucky to be living in a multicultural society, with influences from around the world creating a rich melting pot of ideas and traditions – particularly when it comes to food. Established European cuisine inspired franchises such as La Porchetta are being joined by fresh, new franchise businesses offering flavours from around the world. Roll’s has been offering up delicious Vietnamese cuisine to consumers around Australia, NeNe Chicken has introduced us to the joys of Korean fried chicken, and franchises like Zambrero and Mad Mex have made Australians fall in love with good quality, fresh Mexican food. Australians love experimenting with food and trying new things, and the franchising food and beverage industry is certainly keeping up with this demand!

We Love Coffee Café culture is becoming the backbone of most Australian cities and towns, with Australians coming to expect the best quality café food and coffee wherever they go. Franchises like The Coffee Club, Oliver’s, Theobroma and Gloria Jeans are taking café culture to the masses, providing customers across the country with the desired café experience. There are ever-expanding opportunities for people interested to buying into this beloved café culture through an established and successful franchise network. Being able to develop a business you feel passionate about with the back of a big brand might be the ideal way to break into the hospitality industry!

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Explore Your Franchise Options It is the perfect time to start exploring your options when it comes to a food and beverage franchise, and Business Franchise Magazine has a wealth of information to help you along the way. Check out our Franchise Directory for a full list of all available food and beverage franchises to help get you started! One of the best things about researching food franchises is that you can just drop in and eat. You can scope out multiple locations, check the quality of the food and the uniformity of the franchise network. What better way to get a feel for the industry and enjoy some delicious food along the way?

“Franchises like Th e Coffee Club, Oliv er’s, Theobroma and G loria Jeans are taki ng ca fé culture to the mas ses, providing cust om er s across the country with the desired ca fé experience.”

Look out for our next special feature:

health, fitness & beauty franchises 42 Business Franchise Australia and New Zealand

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“Whether it be through dealing with one of the big banks, or engaging the services of a boutique financial services company, every business and franchise will need to be in contact with financial services at some point.”

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NFC18

MELBOURNE 14-16 OCTOBER 2018 Discover the ingredients to your success and unlock your potential This year, the National Franchise Convention is putting the focus on the most important ingredients for franchising success: your people. Because at the core of any successful franchise are happy and profitable franchisees, satisfied and engaged customers, enthusiastic innovative leadership team. To find out how you can be a part of NFC18 as a sponsor or exhibitor, contact Peter White on 03 9508 0811 or peter.white@franchise.org.au

REGISTER NOW! For more information and to register, visit nationalfranchiseconvention.org.au

Business Franchise Australia and New Zealand 43


FE ATUR E : FOOD & B EVER AGE

Fran c h is o r I n D ep t h : Fasta Pasta

“Having worked for Fasta Pasta at restaurant level, I could see first-hand the style of company it was, in the way they conducted themselves both with the public and also with the support they gave to the franchisees. It is rewarding to achieve your goals in business, knowing you have the support of a strong, respected company behind you.� Alinta Elson, Fasta Pasta Franchisee.

46 Business Franchise Australia and New Zealand


WANT TO STAY ON TOP OF THE LATEST NEWS AND WHAT’S HAPPENING AT THE FOREFRONT OF FRANCHISING?

Franchise BUSINESS

AU S TR A LI A A N D N E W Z E A L A N D

SUBSCRIBE TO Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week!

To subscribe visit: www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 47


FE ATUR E : FOOD & B EVER AGE

e x pert adv i c e

With so many successful stand-alone restaurants and cafés, it can be tempting for someone thinking about purchasing a food business to think that going it alone is a good option. However, there are many hidden benefits that come with owning a franchise brand in the booming food industry. I was recently driving between meetings, I’d missed lunch and needed a quick snack

to keep me going, but I didn’t have much time. Quickly looking at my options, my eye was drawn to a popular food franchise and I chose that. Why? It’d be consistent in terms of quality, prepared quickly and I was familiar with the menu and their range. Perhaps the food at a local, independent café might have been better but with limited time, why risk it? This got me thinking about the value of brand in the franchising sector, and importantly, in the popular food market. And it is popular. According to the Australian Bureau of Statistics, last year the average Australian spends $80 a week dining out – this is an increase of nearly one third on the $63 spend back in 2009-2010. And this is tipped to continue to grow, particularly as the millennial market is now spending an average of $100 per week eating

48 Business Franchise Australia and New Zealand

out or ordering deliveries through services such as Uber Eats. This trend is not unexpected. Consumers value ease, consistency and quality, and with people fitting more into their daily schedules, there is no doubt that restaurants and cafes are a popular choice for business owners to invest in. There are many people making success out of independent restaurants and cafes - going it alone certainly has benefits, but it is important for anyone looking to purchase into this industry to consider the value of buying into a franchise network. There are of course additional costs to enter a franchise network – there will be fees and royalty payments. This is important to consider and any aspiring franchisee must conduct due diligence to ensure


FE ATUR E : FOOD & B EVER AGE “For those considering buying into a franchise or taking an existing business into a network, there is no doubt there is a cost - but with that cost comes brand trust and awareness.”

they are aware of any costs, restrictions and conditions. That’s just good business practice. While there is a perception for some purchasing into the food industry that the café they have their eye on in that busy hub of shops that’s just near a business park, schools and homes must remain a stand-alone business. It’s entirely possible to take a café or restaurant that operated outside a franchise network, into a network, alternatively an existing franchise location may be chosen or a location from scratch – particularly important in growth suburbs where infrastructure like shopping centres and business parks are being developed and constructed. For those considering buying into a franchise or taking an existing business into a network, there is no doubt there is a cost - but with that cost comes brand trust and awareness. Brand goes beyond reputation. Yes, reputation is important and being part of a franchise network will align your reputation with that of your franchisor. And while that is important, there are many, small elements that go into that brand and with them, the benefits of being part of a network including: • Human resource management. How will you hire, train and manage staff to ensure you are giving your customers

the best experience and are in-line with a myriad of regulation in the space of industrial relations, equal opportunity and occupational health and safety.

blink of an eye. People like familiarity and there is no doubt that many will seek out an established brand in order to provide that consistency and familiarity.

• Product range, research and development. What are the latest food trends your market might be interested in? What will they pay? Who are your customers? This research and development is vital to ensuring your product is what your customers want to buy.

There are never any guarantees in purchasing any sort of restaurant or café but with the benefit of a franchise network brand, there is a strong potential for success, and tapping into a time-poor market who value consistency, ease and quality.

• Marketing. A sandwich board and a flyer are unlikely to bring in new customers – what marketing might be needed such as social media, community sponsorship and loyalty programs. • Look and feel. From team uniforms to layout of tables and chairs to lighting and decoration. Getting the right ‘feel’ is important to encourage people to stay and spend – getting it wrong can be costly. • Processes. Food handling, food storage, operating coffee machines, cooking guidelines, handling complaints or refunds. Purchasing into a franchise network will give you access to the policies and procedures you need to run the dayto-day operations of a business. • Consistency. Customers value walking into somewhere where they know they can get the chicken they like, the burger they want, the pasta they crave or their complicated coffee order made without a

FC Business Solutions is the only integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years. The FC Business Solutions team are actively involved members of the Franchise Council of Australia regularly attending events, participating in committees and assisting in raising the profile of franchising in Australia. FC Business Solutions is a business which has proudly been certified in accordance with the internationally recognised ISO 9001: 2008 management system which focuses our business on delivering a consistent level of quality to our clients defined by regularly reviewed processes and procedures. hello@fcbs.com.au (03) 9533 0028 www.fcbs.com.au

Business Franchise Australia and New Zealand 49


FE ATUR E : FOOD & B EVER AGE

pr o file : s implicity Loans & A dvisory

the specialists in franchise finance

simplicity loans & advisory After seeing a need for improved advice, support and expertise in the brokerage and property advisory industry, the directors of Simplicity Loans & Advisory decided to combine their 34 years of lending experience to create an organisation that could provide superior knowledge and service to a wide range of customers. Simplicity is a boutique brokerage and property advisory business located in two locations across Sydney; one office space on Castlereagh St in the CBD and an office north of the city in Pymble. The team at Simplicity’s ultimate aim is to help their clients achieve their financial goals, ensuring the delivery of high quality advice and outcomes. Simplicity will always work in the best interests of their clients, supporting the alignment of all parties to a common goal. Obtaining finance for buying a franchise can often be difficult, as many lenders hesitate to fund new franchises. The lending managers at Simplicity are experienced in securing franchise funding. They have established strong relationships with a large number of reputable lenders, offering tailor-made franchise financing packages that can help your investment succeed. Simplicity understand what lenders are looking for and can assist in presenting your loan application in order to maximise your chances of getting approval for financing. The team at Simplicity can assist you in obtaining finance for any type of franchise, and this is supported by a wealth of experience with many major franchises, including but not limited to; McDonalds • Oporto’s • Pandora • Jax • Crust • Dominos • Pizza Hut • 7 Eleven • Zeus • BP • Subway Simplicity is heavily invested in providing tailored assistance to commercial and self-employed consumers, maintaining the utmost regard for both their commercial and personal requirements. Simplicity pride themselves on providing assistance and support from day one of the finance application all the way through the life of the loan. The team at Simplicity can be considered small but mighty, consisting of nine dedicated and enthusiastic members ranging from experienced senior commercial bankers to innovative and progressive university graduates. The team at Simplicity is seen as a major differentiation point from their competitors. In addition to having increased ability to turn over deals quickly and efficiently, they are able to cover all aspects of finance, from large scale commercial and construction facilities to small business loans to personal and equipment finance. Not only do Simplicity have these capabilities, they have team members

50 Business Franchise Australia and New Zealand

who specialise in each of these areas, providing more knowledgeable and personalised advice and exceptional customer service to their clients. The extensive knowledge base and support at Simplicity allows the team to cater to any need that arises, whether it be commercial property debt, franchise financing, cash flow lending or property development loans. Since Simplicity’s inception in August 2017, the company has grown to a level that demonstrates performance scope well beyond its size. Acknowledging that you can’t be everything to everyone, Simplicity was set up to meet the needs of mid-tier and corporate clients with all aspects of lending and advisory. Having settled $200 million in the first 12 months of the business, the directors believe they have the right people in the right positions. Simplicity has provided amazing client outcomes and customer service, which will continue to exceed expectations as deals and revenue continue to grow. Simplicity’s success until now has been built purely on referrals and word of mouth from their broad network of professionals, a real testament to their level of service. If you would like to talk to someone about your finance options or obtaining a franchise loan, do not hesitate to get in contact with the knowledgeable and helpful team at Simplicity Loans & Advisory! franchising@simplicity.net.au 1300 022 022


FE ATUR E : FOOD & B EVER AGE

Q&A sna ps h ot: H og’s Australia

with franchisee

Mark Allen

Multi Store Owner

Business Franchise Australia and New Zealand were lucky enough to have a chat with Mark Allen, multi-store franchise owner at Hog’s Australia for this issue’s Food and Beverage Feature. Q What were you doing before becoming a Hog’s franchisee? I was a 24 year old restaurant worker with ambitions to own my own restaurant. I was visiting Airlie Beach (the home of Hog’s) in 1991 and met the founder, Don Algie, on Hog’s first birthday. I had such a good time that night, I wanted in and 27 years later, I’m still all in.

Q What was it that attracted you to the Hog’s brand? Hog’s is not just a restaurant, it’s a way of life. That’s true for the franchisee’s as much as it is for the customers. I saw joining Hog’s as a way to have fun and make money, and I have done lots of both.

Q What has motivated you to keep in the brand as long as you have? Growing my business has always been a priority of mine, and in the restaurant game that means opening new restaurants. Hog’s has allowed me to expand, owning up to 7 restaurants in partnership at one stage. Hog’s is a really good brand for multiple ownership with fantastic systems and training that make that all possible.

Q What’s the best part of being a franchisee? Being part of our Hog’s family of people, many of whom I’ve known for 10 and 20 years. Continual brand development. Terrific systems.

52 Business Franchise Australia and New Zealand

Q And the hardest part? I don’t always agree with all the decisions and directions that others believe in, but in a franchise group you have to follow that system. Sometimes doing things that you don’t agree with is hard, but I’ve found that the wisdom of the group is better than the wisdom of the individual – even when I’m that individual.

Q What would your advice be to anyone considering a restaurant franchise? Talk to existing franchisee’s, and do some time in a restaurant. Make sure that you like restaurant work because it’s too late to discover that you don’t like the work, the hours, the staff, the customers once you’ve bought into a Hog’s franchise.

Q What changes do you think we’ll see over the coming years in the hospitality industry? Technological change is now part of all areas of modern life. It’s very hard to get your head around one technology (say Facebook Marketing), only to find all your customers have moved to another technology (like Instagram and Snapchat). However, it’s much easier when you have the support of a franchise behind you than trying to keep up with these changes on your own. So right now, we have changes in marketing, ordering and accounting, reservation systems, delivery platforms, cloud systems, recruitment, customers preferences, all going on. And just when you think you’ve got one sorted, it changes again.

Q What do you attribute your success to mostly? Firstly, I have a great business partner. Secondly, I am certain I wouldn’t have had the success that I have had if I’d been an independent restaurant operator. And there is not another restaurant brand in Australia with the same mix of fun, longevity & success. So I’d have to say that it’s due to the choice of Hog’s as a franchise that is the reason for my success. www.hogsbreath.com.au


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e x pert a dv i c e

Get on the local reporter’s radar “Reporters, particularly local ones, are not out to get you. They have one job and that’s finding story idea that will interest their audiences.” Pete Burdon | Founder & Head Trainer | Franchise Media Training

Local media coverage is one of the most effective ways of getting your franchise local recognition. Reporters may seem intimidating, but it’s really just a matter of knowing what they want and understanding how to communicate with them.

that’s finding story idea that will interest their audiences. For local reporters, that means stories that involve local people and businesses, just like your franchise. These can be hard to find, particularly when some local newspapers have one reporter to write an entire weekly publication. Often, they rely so much on people approaching them with interesting ideas. That’s where you come in.

The Elephant in the room

They will be so pleased when you contact them with good, positive ideas and will subsequently see you as someone who is helping them, and even someone who could be useful on an ongoing basis. I used to be one of these people, and whenever someone came to me with a story idea, I never even considered taking a negative angle.

Before I carry on, I need to deal with the fears some people have around the media. Reporters, particularly local ones, are not out to get you. They have one job and

Firstly, local newspapers are almost always positive in their news. Secondly, I knew that if I did take a negative angle, I would lose that source for good.

The first step is getting on their radar - they need to know you and your franchise business exist!

54 Business Franchise Australia and New Zealand


So how do you get on their radar? The first step to getting on their radar is finding out who they are, and getting their phone number and email address. Never use an address like news@somewhere.com. Always find their personal contact details. Then, take a look at some of their back stories to get a flavour of what they write about. This will be helpful when you pitch ideas to them. The best thing you can do next is try to meet them in person. If you have a mutual acquaintance, get introduced, but if not just send an email with a follow-up phone call. Say what you do and that you want to buy them a coffee at a café of their choice. Explain that you want to discuss how you could be of help to them in the future as a possible source for stories. Ask what they look for and discuss possible areas of where you could help, but don’t pitch anything specific unless they ask you to. Whether they agree to the meeting or not, you

will now be high on their radar and they’ll take you seriously when you do pitch stories to them. They’ll know you are not looking to ‘score some free PR,’ but genuinely wanting to help. If they do turn you down, still ask them if they would like you to send through story ideas in the future that may interest them. Also ask what channel they would prefer you to contact them through. I strongly recommend you do this, but if you really don’t want to, there is another approach that’s better than not contacting them at all before pitching. This is where you find a story they’ve written on a topic that you could have commented on. In an email, tell them who you are and that you really enjoyed reading the story. Then mention a particular point they made and sign off by asking them to consider you as an expert source for future stories like this. This creates an additional point of contact, so they will know you if you do eventually pitch them a story. In the next column, we’ll look at what local reporters are looking for from you.

“The first step to getting on their radar is finding out who they are, and getting their phone number and email address. Then, take a look at some of their back stories to get a flavour of what they write about.”

Franchise Media Training prepares franchisees and franchisors to massively grow their sales and bottom lines. Go to www.FranchiseMediaTraining.com and download the free report, “3 Secrets To Explode Your Franchise Sale and Profits with Free Press.” http://franchisemediatraining.com.

Business Franchise Australia and New Zealand 55


sna ps h ot: I n X p re s s

and be coached will ensure that what you put in is what you get back – and more. We have a great franchise network made up of all age groups, across many different backgrounds. InXpress has established a ‘Young Guns’ program for franchisees under the age of 35 as a way of supporting and effectively developing our young and ambitious franchise partners.

How are you different to your competition?

with

InXpress What is your area of expertise at InXpress?

Marcel Lal, InXpress Country Manager for Australia and New Zealand

InXpress is an international leader in the transportation services industry, with annual sales revenues of more than $200 million across 14 countries. The organisation boasts a growing network of over 300 franchises globally, and its Australian operation of 45 franchisees is the third largest of all InXpress’ international operations. Business Franchise magazine sat down with Marcel Lal, InXpress Country Manager for Australia and New Zealand, to discuss the many benefits of joining InXpress as a franchise partner and gained some great insight into the company’s exciting future in Australia and around the world.

As Country GM for Australia & New Zealand, I oversee all operations for our business. More importantly, I am a part of a hardworking and caring corporate team which supports an amazing franchise network in this region. My expertise has developed over many years in franchising, as well as in both corporate and small business focused on sales, marketing, partnerships and leadership. I love being a part of the franchise industry as a whole, as new and existing business franchise owners can leverage the experience and support that an established model like InXpress provides.

What is the main service of InXpress? We offer businesses exceptional freight, shipping and courier services through an efficient, time saving and automated system. By utilising our close partnerships with leading carriers such as DHL, TNT, TOLL & Startrack, we are always at the forefront of the industry. Our franchisees provide local advice and client support, as well as offering competitive rates through our carrier relationships and bulk buying power, both globally and nationally.

What type of person would ‘fit’ your franchisee profile? You don’t need sales or freight experience to be successful at InXpress, but we have found that enthusiasm and a willingness to learn

For most business customers, navigating around the many freight and delivery services on offer is difficult. Being a small to medium sized business is the sweet spot for our InXpress franchise network, as they receive a level of attention, customer support, automated system and competitive rates that they are unlikely to receive anywhere else. Operations continue to grow year on year as a result of our unique and unrivalled business model.

What support do you provide your franchisees? Initially and ongoing, how do you look after them? We have very specific and comprehensive Fast Start, Bootcamp and Onboarding programs for new franchisees as well as ongoing conferences, events and training including our global InXpress Online University for everyone. Our Australian based franchise development team includes trained business coaches who provide regular one-on-one support and guidance to both new and established franchisees. Daily support to the franchise network is also provided through our large corporate office which includes a dedicated franchise support centre. InXpress continues to see phenomenal growth, with over 20 per cent growth in both revenue and margin last year. The company is currently on track to achieve a 30 per cent increase in revenue and margin this year! The InXpress focus continues to be providing industry leading systems, support, brand development and training to their franchise network, enabling them to keep growing their businesses. The company celebrates its 20th anniversary in 2019, making InXpress a trusted and established brand. InXpress has franchising opportunities in all Australian capital cities and most regional territories, creating opportunities for people all around Australia. For More Information Contact: 1300 469 773 info.au@inxpress.com www.inxpress.com.au

56 Business Franchise Australia and New Zealand

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organisation offers an array of benefits for their franchise partners, making BoConcept the superior choice in retail franchises.

A Superior Franchise Option By collaborating with world renowned designers, BoConcept continuously cultivates brand credibility and integrity, a huge benefit for their many successful franchise partners. BoConcept as a brand is globally renowned for its style, quality and fair price. Becoming a BoConcept franchisee means joining the ranks of this successful, stylish and profitable organisation. With 15,000,000 website visitors and 4,000,000 in-store visitors per year, you know you are partnering with a brand and company you can take pride in and find success with. With premium quality and design at reasonable prices, BoConcept franchisees are able to offer their customers affordable luxury. By focusing on functional and customisable furniture - for outdoor and for every room in the home - BoConcept has created an approachable, fashionable, trusted and customer focused brand. On top of this customer focus, BoConcept is passionate about facilitating the best possible experience for its franchisees. Becoming a BoConcept franchisee means joining a team of equals, with the support of a solid franchisor. BoConcept is an award winning company, with a proven, profitable business model. Franchisees are provided with world class

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“BoConcept is planning to open at least seven more stores in Australia within the next four to five years, and is looking for franchise partners who have the synergy and resources to be a part of this established and proven franchise model.” Support team who assists the franchisee in warehouse set up, store routines and more. The BoConcept IT system supports the processes in the stores by making administration, reporting and performance evaluation easier to access and work with. This ensures that Bill no longer needs to spend hours each week inputting codes into a generic stock control system. A business intelligence system has been added to enable the use of sales statistics and more from the IT system database. In addition to this, supply chain management and benchmarking are streamlined throughout the chain with logistics and performance improvements as a result.

“BoConcept continuously cultivates brand credibility and integrity, a huge benefit for their many successful franchise partners.” support, training and programs to ensure continued success for every BoConcept franchisee. BoConcept has developed a superior model for generating quick cash flow, ideal for their franchise partners. These numerous franchisee benefits, combined with the superior customer experience offered by BoConcept mean you can design your perfect lifestyle with a BoConcept franchise.

Opening Up To Australia

The BoConcept Customer Customising and designing furniture and accessories according to the needs – and dreams – of their customers, BoConcept appeals to the cosmopolitan-minded. Customers can choose their own design, size, shape, colour and material of an expansive range, ensuring a coordinated look where design, colours and materials always match. Simplicity and functionality are at the core of BoConcept’s values, and the modern and original furniture designs are specifically designed for the cosmopolitan lifestyle. As Australian cities expand up, rather than out, this lifestyle is only becoming more common. Adaptable to fit big or small spaces, clients can customise their furniture to adapt to their life and living spaces, helping them to get the most of their available space. BoConcept provides their franchisees with all the tools they need to offer their customers the best of the best. Their interior design service with complimentary systems and furniture customisation options make it easy for franchise owners to offer additional services to their local customers - and that’s

why BoConcept is loved by its customers and franchise partners across the world.

Support of a Global Brand When BoConcept’s Sydney franchise partner, Bill Zheng, first opened his store, he worked closely with Head Office to plan and begin the store opening process. An experienced Marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic, including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more. In conjunction with the Marketing team, the dedicated Store Opening team at BoConcept is responsible for supporting franchisees in a wide range of aspects when opening a new BoConcept store. This varies from the Store Designers designing and completing the store layout in a range of sizes to the Opening

BoConcept is looking for franchisees with a passion for design and style, with a willingness to lead, delegate and motivate. The interest and capacity to have one or more BoConcept stores is greatly encouraged. BoConcept is planning to open at least seven more stores in Australia within the next four to five years, and is looking for franchise partners who have the synergy and resources to be a part of this established and proven franchise model. Bill Zheng opened his first BoConcept store in 2012, and has since opened a second Sydney store. “My advice to new franchisees is this: if you work hard and follow the system, the financial rewards will follow. When you can achieve the financial results you are looking for, with the support of an international, established business behind you, why wouldn’t you join?” say Bill. There is so much potential within the Australian market to grow, develop and succeed with BoConcept, with franchise opportunities available for the right people across the country. For more information about joining a profitable business with a quick generating cash flow model, contact Carsten Brink today on: (+61) 474 278 485 franchise@boconcept.com www.boconcept.com/franchise

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Why 25-minute meetings are easier than you think Many of us are time-poor, stressed out, overwhelmed and on the verge of ‘death by meetings’. Our calendars are full of irrelevant or tedious back-to-back ‘catch-ups’ and our email is overloaded with messages screaming for attention. Every time we get a chance to breathe and catch up on some ‘real work’, our computers ding! to remind us of another pointless meeting that is starting in five minutes. Too often I have heard people say that they spend all day in meetings, so their evenings (when they should be with their families,

“Every time we get a chance to breathe and catch up on some ‘real work’, our computers ding! to remind us of another pointless meeting that is starting in five minutes.” Donna McGeorge | Mentor, Speaker & Author

friends or enjoying leisure time) are spent doing their actual work or catching up on emails they have missed. The problem is that we actually need meetings. We need them at work because when they work, they are valuable. Clear actions get set, decisions are made and the whole business moves forward. But what we don’t need is for meetings to waste our time, money and resources.

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That’s where a 25-minute meeting can help. A meeting that is short, sharp and productive. A meeting that gets the job done efficiently. A meeting that gets more value in way less time – seriously.

Are you on autopilot? The very idea of this might be enough to make you laugh. But just stop for a minute and look at your calendar. How many of your meetings are 60 minutes or more?


“Every time we get a chance to breathe and catch up on some ‘real work’, our computers ding! to remind us of another pointless meeting that is starting in five minutes.” Your team or organisation’s meeting culture is driven by everything from the default setting in your calendar app to how a lack of punctuality is tolerated. Your default mindset is wasting time and draining productivity levels. You are currently running meetings, as you have always done: unconsciously. When we are on autopilot, we look for excuses and reasons to blame external forces for the lack of engagement in our meetings: company culture, calendars, time, nature of work, projects — the list goes on. We say to ourselves, ‘If only the organisation would …’ or, ‘It’s management’s fault because …’ When we become an action hero, we give ourselves permission to take charge of the situation and change those things that don’t serve us. We stop thinking about things that are outside of our control and focus on things that we do have control over. When you use 25-minute meetings, you go from autopilot to action hero overnight – and it’s easier than you think

Time to get real Let’s look at a typical meeting scenario. You may show up on time, while others may not. Maybe they (or even you) rock up 10 to 15 minutes late with a few excuses about why others are not coming. Then the meeting starts with questions about

the agenda that no-one has seen and/or some are disputing. You finally get started on the first item and there is some active discussion that chews up 15 minutes, and you still have a further three items to get through. So, the remaining agenda items are rushed through before two people stand up and say they need to leave to get to their next meeting, which they are already late for. That’s 25 minutes of productive meeting at best. So you are already having 25-minute meetings, but right now, you’re cushioning them with extra fat — that is, a whole bunch of unnecessary time that is pushing them out to 60 minutes. Our bad meeting habits are costing us: • » waiting for latecomers: (at least) 5 minutes • » wondering about the agenda: 5 minutes • » waffling and going off track: 5 minutes • » watching mobile phones or PCs: 5 minutes • » wasting time on fixing tech: 5 minutes. There’s 25 minutes RIGHT THERE that you could recover if you got rid of bad meeting habits, and I think I’ve been generous with time. We frequently spend more than 5 minutes on some of these things.

Trim the fat See for yourself. In your next meeting, keep a tally of how many minutes are actually spent being productive. That means taking note of time where there is open discussion and debate, when decisions are made, relevant information is shared and problems are solved. I believe you will be lucky to make it to 25 minutes. I believe this because I have seen it happen time and time again, in organisations large and small. Renowned sculptor Michelangelo is reputed to have said that the statue of David was already in the block of marble, so all he had to do was take away the parts that weren’t David: ‘I saw the angel in the marble and carved until I set him free’. Useful and purposeful meetings are already there in the form of 25 minutes. You just need to chisel away the bits that ‘aren’t David’. Donna Mcgeorge is a speaker, author and mentor who helps people make their work work. Using a creative, practical approach, she improves workplace effectiveness while challenging thinking on leadership, productivity and virtual work. ‘The 25Minute Meeting: Half the Time, Double the Impact’ is published by John Wiley. www.donnamcgeorge.com

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Fran c h isin g Ma k in g A D ifferen c e

A Worthwhile

Partnership

Corina Vucic | Director | FC Business Solutions

I was delighted to announce recently that FC Business Solutions has partnered with the incredible organisation Sport and Life Training (SALT).

organisation that aims to transform Australian culture and society through sport, specifically the delivery of quality education, culture and leadership sessions to sporting clubs, schools and businesses. The heart of SALT is looking at how sporting clubs can become agents of cultural change, applying the existing values that are commonly shared on the field such as courage, commitment, teamwork, sacrifice, discipline and respect to lives off the field.

There are so many worthy causes and charities these days in a variety of areas, and FC Business Solutions has been seeking to partner with one that we felt did something extraordinary for people facing the challenges of our modern world.

SALT was launched in 2015 by Dave Burt with fully qualified and experienced teachers, who also understood sporting culture, SALT’s philosophy was to empower clubs to create a new era through education, responsibility and accountability.

And then we found SALT SALT is a not-for-profit health promotion

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They now work with schools, sporting clubs and businesses to provide support and leadership for those most at risk in our


community – including those facing issues such as drug abuse, mental health concerns, violence and exclusion. The programs SALT run are positive, practical and help people turn their lives around. They support the next generation in developing leadership skills. Programs at schools and sporting clubs focus on leadership and education units based on

“The heart of SALT is looking at how sporting clubs can become agents of cultural change, applying the existing values that are commonly shared on the field such as courage, commitment, teamwork, sacrifice, discipline and respect to lives off the field.”

the importance of psychology and sport to help tackle areas such as bullying, drug and alcohol abuse, peer group pressure, handling social media and other stressful life events. We believe tackling these issues at the grassroots level in sporting clubs and schools will help pave a brighter future for tomorrow’s leaders, including business leaders in our own industry. We believe in Dave and his team at SALT, and what they are achieving in tackling head-on the problems of our society and we applaud their efforts.

We wanted to help As anyone involved in a not-for-profit will attest, money is always a great way to support worthy causes, however, we believe that time,

expertise and resources are also important. The sponsorship by FC Business Solutions will focus on supporting the organisation with professional service support in key areas such as marketing to enable them to further their reach and recognition within our community. As Director of FC Business Solutions and with more than twenty years in the franchise industry and extensive operational and management experience, Corina works closely with leaders to take their business to the next level. Whatever their goals, Corina coaches, mentors and supports business owners and executives to maximise success and minimise risk for long-term business prosperity and security. www.fcbs.com.au www.thesaltfoundation.org.au/

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How uniforms have changed and what you need to do to stay on trend

What is your team wearing and what is that saying about your brand? First impressions count and dressing well is one of the few opportunities you have to really stand out in the crowd. Customers will form their opinion on the quality of the product or service you are offering based on the first interaction with your team. Team members wake up each day and are reminded when getting dressed who they work for and what that represents. Are they excited and motivated to put on their uniform? Does it resonate with what your company stands for? As a Franchisee, you may be wondering how this impacts you? Technically you’re part of a bigger brand and it is their responsibility to market the brand. Right? Not necessarily! Uniforms and a strong brand identity are equally, if not more important in a franchise environment then any other. As a Franchisee you are a part of a larger community of business owners representing that brand and the power or impact that brand has on the market. The clarity and consistency that brand has across all its locations and the power of the brand message is down to the support of each individual Franchisee. If each franchisee coordinates their own uniform and doesn’t follow the brand recommendation, there is the risk of diluting the power of the brand and membership you are technically paying to be a part of. Over the last 13 years I have worked with clients with as little as 100 employees to as big as 100,000 employees and retail brands

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specifically franchise-based form a large part of our portfolio. We get enlisted to work with head office on the design and implementation of the uniform and often put together a franchisee specific campaign to ensure the broader group is involved and engaged with the uniform change and process. Over this time, I have seen what works, what doesn’t and have had a range of experiences with clients when it comes to design and implementation, it never ceases to amaze me the two opposite sides of the spectrum and how this can make or break your company uniform design and launch.

“Uniforms and a strong brand identity are equally, if not more important in a franchise environment then any other.” Pamela Jabbour | Founder and CEO | Total Image Group

Franchisee’s that are disconnected from their company purpose and objective, are purely price driven rather than process or quality driven. The affect is that they don’t think through the details often end up with an illfitting uniform that not only looks poorly but results in an unenthused team. This exercise ends up being far costlier as it results in negative team culture, attitude and damaging to the brand you are paying to be involved with. A great franchise uniform reflects the changing market, exudes confidence, has a contemporary feel and inspires employees. Like any element of brand and marketing, a uniform design and implementation needs to be well thought out and planned. Whilst head office may control the marketing and setup of the brand, your engagement and involvement with uniforms is essential to ensure its success. If you are unhappy with the current uniform offering available, offer to lead the review process and share your feedback with head office. Having franchisee’s who are passionate about the uniform on a design and practicality front is essential in ensuring success. As a uniform provider we often visit stores and speak to the employees and franchisee’s around their current uniform, specifically the pro’s, con’s and what they would like to see different. After all, these are the team members on the ground and offer the most valuable insights to ensure a fashion forward, fit for purpose look for the brand.

where. The clearer the brief, the more fit for purpose the product and service • Do ensure marketing and HR requirements are considered when preparing your brief for the new supplier • Do insist your brand personality is communicated through the uniform • Do your homework on previous uniforms in your business - what has worked, what hasn’t and share your insights with your supplier • Do make sure the uniform design caters to your demographic. Know your teammale/female ratio, average age, any culture considerations! • Don’t try and be a designer and leave the designing to an expert

“A great franchise uniform reflects the changing market, exudes confidence, has a contemporary feel and inspires employees.”

• Don’t get more than 3 quotes- the more designs and product you see the more confusing it can be An outfit can speak a thousand words and when repeated correctly by each employee across every franchise the message to clients and the public is priceless. The company that takes the time to ensure their staff uniform represents the best version of their brand, culture and purpose are more likely to get ahead in sales and performance and be market leaders in their field.

Whilst price and practicality are important, there are several Do’s and Don’ts I recommend when reviewing a Franchise uniform design and implementation:

• Don’t ask a brand agency to design the uniform unless they have a uniform side to the business.

• Do take the time to engage the franchise network and ask for feedback about what they would like to see

• Don’t form a uniform committee with over 5 people. The more people involved the harder it is to conclude

Pamela Jabbour is the founder and CEO of Total Image Group, which designs, sources and manufactures uniforms to some of Australia’s leading brands such as Dan Murphy’s and Fantastic Furniture. With offices in Sydney, Melbourne and China, Total Image dresses over 300,000 Australians per day in their work wardrobe.

• Do your homework and have a thorough understanding of the who, why when,

• Don’t try and please everybody- It is impossible

Find out more at: www.totalimagegroup.com.au

• Don’t think cheap and drive the project on cost only - you get what you pay for

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Is Retail Dead?

Mono-Brands vs Multi-Brands and the HooHaa of online

What’s happening in the retail market in Australia is happening globally. The traditional retail concepts and local retail stores selling multi-brands are having to look at how they market to consumers who are choosing more and more to buy online. Landlords in Australia continue to seek higher rents, particularly in A Grade sites. These shopping centers demand enormous rent and occupancy costs, so generally only the big brand retailers can continue a presence - with smaller retailer’s having to find alternate ways into the market.

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Key shopping strips in Melbourne have undergone huge changes, with their traditional retail fashion stores that once drew in traffic now being replaced with hospitality – cafes, restaurants, bars and health and beauty business. High end fashion strips like Chapel Street, Prahran, Bridge Road, Richmond and Burke Road, Camberwell have undergone enormous change, which has had an impact on landlord’s and their returns.

“The presence of mono-branded stores also sends a message to the market that the brand is strong and dedicated whether it is a franchise or licensed outlet.” Robert Toth | Partner | Marsh & Maher Lawyers

Whilst many people still enjoy the village local shopping strip experience, with consumers now buying products online, at outlet centers or major shopping centres, the small retailer is under ever-growing pressure. Online shopping has now been fully embraced by Australian consumers in fashion, white goods, household furniture, coffee machines, sunglasses, appliances, rugs you name it ! My recent experience buying a fridge and washing machine on line with their being delivered and plumbed in within a few days and their taking away the old ones with no fuss and very good service was an easy no stress and time efficient experience. I didn’t have to go and shop and talk to salesmen! The whole shopping experience has undergone change, as have consumers expectations. Aligning the consumer expectations with the retail experience is the challenge retailers now face. Retail shops and sales will always be with us, but retailers are becoming more consumer focused and more brand selective in their offering. Retailers need to give the consumer an experience or a draw card offer to entice them into their shops, rather than just ordering online Brands now have even greater impact on consumer choice and many well-known and global brands have identified that rather than selling a product in a department store where they are competing with a multitude of other brands focusing on a stand-alone mono branded store has greater impact and appeal and is easier to control from a marketing perspective. Mono-branded stores can be totally dedicated to one brand and attract consumers with special promotion and instore activities becoming a destination for the brand such as Apple stores, Telstra shops, Pandora and Adidas. The presence of mono-branded stores also sends a message to the market that the brand is strong and dedicated whether it is a franchise or licensed outlet.

A Mono-branded store can also be more successful for the operator in terms of management, stock control and marketing. Although the same product can often be bought online for less than in a retail store, retail will continue to exist because people still want the physical shopping experience. Multi-brand stores will continue to exist but they need to lift their game and find points of distinction - how they deliver their product range to their customers, and the effectiveness of their in-store experience. The days when I used to sell cameras and projectors for my brother at Ted’s in Elizabeth street in 1976 when I had no idea how the Sanyo projector worked are gone. Which is a shame as they were fun days! Consumers now expect top-notch service when they walk into a retail store, otherwise – why bother? Sales charm only goes so far these days, staff need to be trained and have product knowledge as the consumer has most likely done their research before they walk into the store. When a brand supplies to a multi-brand store, there is less control over how that product is marketed, how the sale staff offer that product against other competing brands in the store and the brand has less control over the shopping experience.

“Although the same product can often be bought online for less than in a retail store, retail will continue to exist because people still want the physical shopping experience.” Mono-brand stores are not a new invention, however there is no doubt that with the changing trends in retailing, online shopping and the cost of operating a retail enterprise, there will be a focus on mono branded retail stores. The mono-brand store can offer a variety of experiences, education and entertainment. There is also the feeling of belonging with the offer of membership, loyalty rewards, dedicated launches and events. So is retail dead? No, just changing. Robert Toth is a Partner of Marsh & Maher Lawyers, with over 30 years of experience in franchise law. He is an Accredited Business Law Specialist with expertise in franchising, licensing and distribution and franchise dispute resolution (acting for both international franchisors and franchisees). 03 9604 9400 rxt@marshmaher.com.au www.marshmaher.com.au

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TERRITORY -

DO YOU REALLY KNOW WHAT YOU ARE GETTING? A key part of franchising is for a franchisor to be able to offer some sort of territory to their franchisees. Most franchise systems in Australia and New Zealand rely on specific territories. A potential franchisee who has selected a franchise system and obtained a copy of the disclosure document and franchise agreement from the franchisor must look carefully at the territories available and what is being offered by the franchisor.

By territory I mean a specific area within which the franchisee will be able to conduct the franchised business. If the business will be conducted in a shop in a shopping mall then will the territory just be the surrounds of the shopping mall? Will it be a territory covering a reasonable area which will be defined on a map to be attached to the franchise agreement? Will there be a nonexclusive territory or no territory at all, and, in consequence, “a free for all� within which numerous franchisees will be conducting their own separate businesses with no demarcation line? The issue of territory is a very important one for consideration. As a franchising lawyer, territorial disputes and territorial issues have increased in recent years and the main

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problem comes from franchisors allowing new franchisees to operate franchises either within what an existing franchisee thought was its own particular territory, or offering the right to open a second outlet to a franchisee within the same territory because the existing franchisee is under-utilising the territory or underperforming.

Concise Territory In the majority of cases, a franchisor will have divided up New Zealand into concise and separate territories which will be allocated to each new franchisee. In the case of Australia there will be often a master franchisee or master franchisees for New South Wales or Queensland or Victoria and then the master franchisees will appoint unit franchisees in


proposed operator of the proposed franchise. The existing franchisee, subject to meeting all new franchisee criteria, shall be offered a 14 day first right of refusal.”

“The franchisor shall have the right at any time during the term to reduce the territory if in the franchisor’s opinion the franchisee is not maximising or is unlikely to be able to maximise business exploitation of the territory.” Stewart Germann | Franchising Lawyer in Auckland, New Zealand | SGL

each particular location. Territories should be carefully defined on maps and a typical clause in the franchise agreement may be as follows: “The franchisor grants to the franchisee a franchise to establish and carry on a business within the territory as set out in the Schedule and delineated in red on the map attached and to carry on the business within the territory using the methods and techniques developed by the franchisor…” This type of clause gives certainty to a franchisee by way of a map being attached to the franchise agreement with the boundaries of the territory clearly defined. There can be no doubt as to the boundaries of the territory which a franchisee is contracting by way of execution of the franchise agreement and payment of the initial franchise fee. In my opinion, some franchisors make the mistake in the early days of giving franchisees too big a territory which a particular franchisee does not service and exploit to its maximum potential. Some franchisors may wish to cover their position by reserving in the franchise agreement the right to take back part of the territory in the future (perhaps when the system has become established) by redemarcation of the boundaries during the term. This may be framed as an absolute right or in the franchisor’s discretion (reasonable or otherwise) that the territory is not being (or has become) and/or may not be capable of

being serviced to its maximum potential. A franchisee should be aware of a blanket sole discretionary right which may be drafted as follows: “The franchisor shall have the right at any time during the term to reduce the territory if in the franchisor’s opinion the franchisee is not maximising or is unlikely to be able to maximise business exploitation of the territory.”

“If the franchisor considers the franchisee is capable of operating the proposed franchise in addition to the franchisee’s commitment(s) under its then existing franchise agreement(s), it shall notify the franchisee in writing and the franchisee shall indicate its willingness to accept the proposed franchise. The final decision as to the suitability or otherwise of the franchisee to operate the proposed franchise shall rest solely with the franchisor. If the franchisee declines within 14 days to accept the proposed franchise, then the franchisor shall be free to either itself open a new store within the territory or allow a new franchisee to open a new store within the territory.” As can be seen above, the clause is explicit, clear and unambiguous but it is essential in all cases for the proposed franchisee to have independent legal advice from a lawyer experienced in franchising.

A possible way out of the above is for the franchisee’s lawyer to suggest inclusion of an amendment along the following lines: “provided that the franchisor shall not be entitled to reduce the territory to an area within a [insert number] kilometres radius from the premises.”

Exclusivity of Franchise What a franchisee requires in entering into a franchise arrangement is certainty. There must be certainty as to the upfront franchise fee payable, certainty as to the ongoing service fees or royalties payable together with advertising levies and, most importantly, certainty in relation to the territory. A possible clause to consider is along the following lines: “If the franchisor or the franchisee identify the opportunity to establish a further franchise in the territory (“the proposed franchise”) then the franchisee shall be considered prior to any third party as the

What can be seen from this type of clause is a clear indication that the franchisee has not been given an exclusive territory, but will be considered first and foremost should the franchisor wish to open another outlet in the territory. However, an important caveat for the franchisor is whether the existing franchisee has been operating the business in such a way that gives confidence to the franchisor that the existing franchisee will be able to manage more than one outlet in the territory. Because of this important fact, the clause quoted above usually continues and says the following:

Alternative Clause Another way is to confirm that the franchisee has not been granted an exclusive territory but to combine that provision with a right of first refusal by a franchisee should a franchisor wish to establish another franchise outlet within the territory, and such a clause would read as follows: “The franchisee acknowledges that it has not been granted an exclusive franchise territory but that it has been granted the right to carry on a business at the premises. The franchisor agrees that it shall give the franchisee a first right of refusal (provided the franchisee is in full compliance with all of its obligations pursuant to this agreement) to purchase another franchise it may propose to offer in respect of the establishment of another [insert brand name] outlet at a site which is within the area as specified in the Schedule (“the Territory”) on no less advantageous terms than the proposed franchise offer to any third party. The franchisee shall then have

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fourteen (14) days from the receipt of notice of such offer to notify the franchisor by notice in writing whether or not it wishes to accept the offer. If it wishes to accept the offer then it must agree to open the new [insert brand name] outlet within ninety (90) days of acceptance.”

No Territory Franchises Some franchise systems prescribe no territories whatsoever. There is a difficulty here for the initial franchisee who should be concerned about saturation of the area of the franchisee’s proposed operation – ie. how far is the franchisee going to travel to get business? This is especially relevant when in the case of a new system there are no actual (as opposed to hypothetical or anticipated) figures to justify a viable business. The logical reaction would be to request a limit on the number of franchisees to operate in the area although this can also be counterproductive because it may stultify the establishment of and/or the growing of brand awareness to the public. Is it fair to appoint franchisees within a city area which may be divided into (say) five separate areas, and to say to 20 franchisees “Go and conduct your business all over the

city as you have no specific boundary except to ensure that any business conducted is within that city”? I consider the answer must be no. However, this would not preclude a franchisee who lives in one part of the city from servicing a customer who lives in another part of that city. Also, relatives and friends of a particular franchisee may want to be looked after by that particular person, regardless of where he might live. Territories or the lack of specific territories is a fascinating topic in franchising. A franchisor must be fair to each particular franchisee but must also abide by the provisions of the franchise agreement and also what is stated in the disclosure document. Too often a franchisor in the early years has granted a franchise to a franchisee and has given too large a territory. It is true that it is easier to give a person a limited area and later to agree to enlarge it if the business is succeeding than to give a person a large area and later take it away or subdivide it if the territory is not being utilised to its maximum potential. The key aspect for potential franchisees is always – know what you are getting into in relation to all aspects of the franchise agreement but, in particular, in relation to the territory.

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“Some franchise systems prescribe no territories whatsoever. There is a difficulty here for the initial franchisee who should be concerned about saturation of the area of the franchisee’s proposed operation.” Stewart Germann founded Stewart Germann Law Office (“SGL”) in 1993 as a boutique law firm at Auckland, New Zealand, specialising in franchising, licensing and business law. Stewart is a past Chairman of the Franchise Association of New Zealand and was on the Board for a number of years. Stewart has over 35 years’ experience in franchising law and acts for franchisors in New Zealand, Australia, USA and the UK. For more information contact Stewart at: stewart@germann.co.nz www.germann.co.nz


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Single Touch Payroll:

what businesses need to know

From 1st July 2018, the introduction of a new payroll reporting system has changed how organisations with 20 or more employees report to the Australian Taxation Office (ATO). Single Touch Payroll (STP) requires employers to report information such as salaries and wages, pay as you go (PAYG) withholding, and superannuation payments directly from their payroll solution each time they pay their employees. Smaller companies won’t be exempt forever, with STP due to come into effect for businesses with 19 or fewer employees on 1 July 2019.1 The system is designed to make reporting easier for employers and it’s anticipated that STP will also help address the massive unpaid superannuation issue in this country. Between 2011 and 2017, Australian employers failed to pay their workers $17 billion in superannuation, according to the ATO’s conservative estimates.2

“The STP system will let the ATO identify nonpayment of superannuation earlier because it will receive a report every time a company does a pay run, which is likely to be weekly, fortnightly, or, at least, monthly.” Brad Loftus | Principal, Business Advisory Services | RSM

Until now, it’s been difficult for the ATO to track superannuation payments and it normally catches employers only when their employees report superannuation nonpayment. This makes it difficult to tightly control superannuation obligations, since employees may not be aware of their rights, or they may be afraid to report their employer for fear of reprisals. The new STP system means employers will need to report on superannuation and other employee payments every single time the company does a pay run, making it far easier for the ATO to see what payments have been made and when. The system will let the ATO match up information from the employer that payments

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have been made, along with the taxation information it has received from individual superannuation funds. If the numbers don’t match up, the ATO can investigate. With the onus on the individual taxpayer in the past to chase up their unpaid superannuation, the ATO has also had the option of applying penalties and fines to recalcitrant employers. When an employer is found to have not paid the requisite superannuation amounts, company directors are held personally liable and are not protected under general liability limitations. In other words, their personal assets are at risk if they fail to meet their superannuation payment obligations.


“Business owners that aren’t sure whether they’ve met all of their superannuation payment obligations should contact their accountant or business advisor to find out what steps to take.” Director penalties can be as high as $6,400$10,600 or 75 per cent of the liability. This is in addition to owing the employee their backdated superannuation payments along with the projected earnings on those payments if they had been made on time. It can all add up to substantial penalties, particularly if there are multiple employees involved, which is usually the case. For a small business owner, this could put the entire business at risk, or even cause them to lose their home, for example. Most often, it’s smaller businesses that don’t pay superannuation on time, or at all. This is because smaller businesses tend to have limited cash flow. When superannuation only needed to be paid quarterly, it can become a significant burden that can be difficult to address when it comes due. Breaking those payments down so that businesses can pay a smaller amount every pay run can make it easier for smaller businesses to meet those obligations. While they may have gotten away with not paying superannuation in the past, the new STP system will make it much more difficult for businesses to fly under the radar. Company directors therefore have a genuine incentive to embrace the STP system because it will help ensure the business meets all of its obligations and reduce the risk of penalties. To help correct the superannuation payments gap and give organisations the opportunity to start doing the right thing by employees, the ATO has proposed an amnesty to run until May 2019. This is a one-off opportunity for employers to correct past superannuation non-compliance without the usual penalties. The amnesty still requires employers to pay all employee entitlements along with the nominal interest, as well as any associated general interest charges. However, it waives the penalties and administration fee that would normally apply. It can be backdated as far back as 1992, giving employers the chance to get completely up to date. Furthermore,

“The system will let the ATO match up information from the employer that payments have been made, along with the taxation information it has received from individual superannuation funds. If the numbers don’t match up, the ATO can investigate.” if employers don’t come forward during the amnesty, they may face higher penalties in the future.3 The STP system will let the ATO identify non-payment of superannuation earlier because it will receive a report every time a company does a pay run, which is likely to be weekly, fortnightly, or, at least, monthly. In the past, discrepancies might not have been identified until the employee lodged their tax return. Annual reporting will still occur, with annual statements reconciled with payroll data throughout the year to ensure all the numbers match up. The ATO will have a strong mandate when the current amnesty ends to come down hard on employers that fail to pay superannuation entitlements correctly, applying maximum penalties. This puts the onus on all business owners to prepare now both for the new STP system and to ensure they can meet all of their payment obligations. Business owners that aren’t sure whether they’ve met all of their superannuation payment obligations should contact their accountant or business advisor to find out what steps to take to take advantage of the amnesty and get their payments up to

date. Those that don’t believe they’re at risk of having failed to make superannuation payments should simply work with their adviser to ensure their accounting package is up to date and STP-compliant. 1https://www.ato.gov.au/Business/Single-Touch-Payroll/ 2https://www.news.com.au/finance/money/costs/aussie-workersripped-off-by-17-billion-in-unpaid-superannuation-ato-reveals/ news-story/b66e7135eea2a0e2ba0a84aec83a47fe 3https://www.ato.gov.au/Business/Super-for-employers/ Superannuation-Guarantee-Amnesty/

RSM Australia is committed to enabling clients through a greater understanding of what matters most to their business. In addition to local knowledge provided by their advisers in 30 offices across Australia, RSM Australia draws on their international reach and scale to ensure clients stay at the forefront of the world’s best practices, technology and innovation within a rapidly changing global economy. Providing ready access to expert corporate financial and advisory accounting services, RSM Australia’s one-firm structure underscores a client-focused culture. For more information contact: (03) 9286 8000 www.rsm.global/australia

Business Franchise Australia and New Zealand 73


h av e yo u r say

The Importance of Maintaining Brand Standards Revenue Management program, which assists our franchisees with growing their top line revenue, as well as looking after systems, training and support for our staff and franchisees. My expertise includes establishing brand standards and the implementation of these at a franchisee level.

Why is maintaining brand standards so important?

Anthony Stanley | Director of Distribution and Revenue Management | Choice Hotels Asia-Pac

Maintaining brand standards is of vital importance for all businesses, including franchises. Anthony Stanley sat down with Business Franchise Australia and New Zealand to share some of his expertise on the importance of implementing and maintaining brand standards across a franchise network. What is your position at Choice Hotels Asia-Pac and what is your area of expertise? I’m Director of Distribution and Revenue Management at Choice Hotels Asia-Pac. This involves defining company wide sales and marketing strategies, overseeing our

Branding is extremely important on both a franchisor and franchisee level. At Choice Hotels, our brands are a statement about who we are as a company, what we represent to our guests and how we are perceived by potential customers. With growing competition in the travel market, branding is key to ensuring that our franchisee’s hotels stand out and customers understand the value, experience and service they will receive when booking with a Choice property. Clearly executed brand standards across a franchise group create an opportunity for individual franchises to leverage a defined and respected brand in the market.

What are some keys ways franchisees can effectively maintain brand standards? There are a few ways to help effectively maintain brand standards, the most important is ensuring there is a clear system in place to communicate, implement and review brand standards across the franchise group. At Choice Hotels our brand standards are developed utilising industry expertise and regular customer feedback, and the properties that focus on ensuring the brand standards are implemented and regularly checked and reviewed are always our top performing hotels. As a franchisee, it’s also important that you take a long-term approach to branding, whether you are an owner-operator or lease holder. It’s always helpful to plan ahead for what improvements or changes may be needed

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to ensure brand standards can be continually upheld. Through our quality assurance process, we take a long-term view on the physical standard of our properties so we can advise franchisees on not just the state of the property today, but potential expenditure that will need to be budgeted for in the future. Franchisees can utilise the various resources available to help implement and maintain branding, whether that be action plans, financial modelling and leveraging supplier relationships to help find cost effective solutions to signage, printing etc.

What are your thoughts on the franchising industry? A franchise opportunity provides business owners with a path to success - and the key is engagement. If the franchisee and franchisor relationship is structured the right way, it is a symbiotic one and requires work on both sides. The franchisor needs to provide a solid branding and operational framework and the franchisee needs to engage and leverage all opportunities to maximise the benefits that a franchise can bring. At Choice Hotels we understand and appreciate the investment our franchisees make to be a part of the network and know that our franchisees are an integral part of our business. We’re always trying to find ways to make our franchisees more successful and ensure we operate in a transparent and open way, and if a franchisee is prepared to trust us then the partnership is sure to be a strong one.

How much responsibility do you believe is on the franchisee to maintain these standards, and how much on the franchisor? I think the best approach for maintaining brand standards is a collaborative one. The franchisors responsibility is to innovate and find new ways to surprise and delight customers, and it is then up to the franchisee


to execute on these innovations, services and offerings, with the support of the franchisor. It’s also critical to ensure that brand standards are easy to understand, implement and relevant to the market and the consumer, and that they make financial sense. If they tick all these boxes, then the franchisee should not have any hesitation delivering in line with the brand standards.

How can franchisors and franchisees work together to effectively maintain brand standards? My top tips for working together to maintain brand standards are: 1. Utilise a uniform brand elements initiative to ensure consistency across the franchise group. We introduced this a few years ago at Choice Hotels and the program aims to deliver a level of consistency to the guest experience through simple things such as bottled water in every room, complimentary newspapers, and complimentary in-room Wi-Fi. We are currently working on rolling out new targeted brand element standards

“There are a few ways to help effectively maintain brand standards, the most important is ensuring there is a clear system in place to communicate, implement and review brand standards across the franchise group.”

such as minimum bedding standards by brand – these simple changes make a huge difference to guest experience and ensure there are clear brand standards communicated by the franchisor for franchisees to implement. 2. As a franchisee, know the resources available to you from the franchisor Ensure you keep up to date with company news and brand standard changes by regularly checking the company intranet and touching base with your contact at the franchise group. Also, be sure to take advantage of any programs or support available when rolling out or reviewing brand standards. 3. Listen and take on board customer feedback This is important for both the franchisor and franchisee to keep in mind and a collaborative approach and sharing feedback is essential as this helps maintain brand standards. The franchisor might have access to great intel via dedicated customer feedback surveys and the properties continually receive day to day feedback from customers.

With an extensive and impressive career in the hospitality industry, Anthony Stanley joined Choice Hotels AsiaPac in 2004 and is now responsible for leading franchisee revenue in his role as Director of Distribution and Revenue Management. During his time at Choice Hotels, Anthony has also been General Manager of Franchisee Services where he was instrumental in introducing a new property management system that is now used by nearly 70 per cent of Choice Hotel’s franchisees. Prior to Choice Hotels, Anthony was Property Manager for Quest Apartment Hotels before moving to Nova Harbour View Apartments as General Manager. For more information visit: www.JoinChoiceHotels.com.au www.ChoiceHotels.com.au

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PR O FI L E : FR A N C H I S I N G E X P O

Expo Highlights:

Franchising Success Stories Despite challenging times for the industry, this year the Franchising & Business Opportunities Expo has continued to connect people with their dream of owning a small business more than any other event. “There’s no doubt that franchising’s reputation has suffered this year with the parliamentary inquiry and a barrage of negative press,” says Exhibition Manager Fiona Stacey. “However exhibitors at the Franchising Expo were always ready to answer the hard questions and demonstrate to visitors the strength of their system and why it was a worthwhile proposition.” Stacey adds there was no shortage of successful franchisees willing to participate in panel sessions and on exhibitor stands, sharing their stories of franchising success. “I think it is so valuable for visitors to meet face to face with franchisors and current franchisees to find out all nitty-gritty details of the business,” she says. “Some people might

then say that franchising is not for them, but for others it’s just the start of their successful and profitable small business journey.” The Franchising & Business Opportunities Expo is held four times a year in Sydney, Perth, Brisbane and Melbourne featuring a wide range of international, national and local business opportunities. “This year each city hosted an expo that showcased thriving Australian and international companies, all eager to share their success with potential investors and franchisees, or to assist and advise them in their venture,” says Stacey. “From well-established household names like Subway, Poolwerx, Jim’s and Red Rooster to newer concepts like Peddler Café, Cybercillin and Harness Training, there were businesses to suit anyone’s skillset, interests and budget,” Stacey says. The seminar program was particularly strong this year, with memorable presentations from Jim’s Group founder Jim Penman, Poolwerx’s CEO John O’Brien and the Franchise Council of Australia’s newly-appointed CEO Mary Aldred. “The shows proved once again that the Franchising and Business Opportunities Expo is the best place to take the first steps

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Above: Jim Penman, Founder of Jim’s Group, takes time to chat with visitors at the Franchising Expo.

“This year each city hosted an expo that showcased thriving Australian and international companies, all eager to share their success with potential investors and franchisees, or to assist and advise them in their venture.” towards being your own boss, or growing your business,” says Stacey. “It’s also an event where the industry comes together to educate, inform and network – the place where you can really turn your ambition into action.” “We are now getting ready for another exciting series of shows next year, returning to ICC Sydney in March. It’s time to start planning to turn your dreams into reality!” For information about exhibiting in the 2019 Franchising & Business Opportunities Expo contact Fiona Stacey at: 03 9999 5464 fiona@specialisedevents.com.au www.franchisingexpo.com.au


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e x pert a dv i c e

HOW TO HAVE ENOUGH CAPITAL TO DRIVE GROWTH: Finding Working Capital To Drive Sustainable Growth

“Reducing the amount of working capital your business needs is easy if you know where to look. We can show you where to look!” Wayne Morris | CEO | Fifo Capital Australia

When it comes to financial performance, we often focus on the bottom line and making a profit, but if you’re wishing to grow your business then there’s another number to watch which is critical for sustainable and fast growth. Understanding working capital, in particular your net operating working capital – can be the difference between smartly funding your business or having to borrow money to fuel your growth. So, what is working capital, and in particular, what is Net Operating Working Capital?

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“If you take control of your cash conversion cycle, you’re removing the negative impact from late paying customers, and poor credit terms with suppliers.”

Defining Working Capital Working capital is a measure of the money available for a company to run their day-to-day operations. Specifically, Net Operating Working Capital (NOWC) is calculated by taking the current assets required in operations and subtracting non interest-bearing liabilities – it’s one of the foremost indicators in accessing a company’s liquidity in the short term. When you understand your NOWC you’re taking steps to better understand the company and what it is capable of on a financial day-to-day basis. You can even figure what operating capital is right for your business growth and what to do to unlock tied up cash that could act as working capital. When you understand your net operating working capital you are taking steps to better understand your company and, by doing so, you can uncover significant financial intel which helps management build a better, less financially draining business.

Defining Cash Conversion Cycle The cash conversion cycle gauges the effectiveness of your company’s management and, consequently, its overall health. It measures how fast your company can convert cash on hand into inventory and accounts payable, through sales and accounts receivable, and then back into cash. If you take control of your cash conversion cycle, you’re removing the negative impact from late paying customers, and poor credit terms with suppliers. No wonder businesses are seeing extended and or late payments from their customers. These customers are savvy and understand paying later has a positive impact on their cash conversion cycle and know it reduces pressure on net operating working capital.

Here’s an example we take businesses through – Amazon.com and Dell; Amazon.com and Dell have been able to produce goods on demand, reducing their own inventory conversion period to close to zero. Since buyer payments are made by credit card, the receivables collection period is also close to zero. In addition, if they pay suppliers after a 20day payables deferral period, they can end up with a NEGATIVE cash conversion cycle. In that case, the faster the firms grow, the more cash they generate. The impact of changing your cash conversion cycle couldn’t be more prevalent in this example.

It all sounds too easy, so where do you start? It’s a regular occurrence that when we help businesses take control of their cash conversion cycle, the amount of working capital required reduces dramatically. For example, one business with annual sales of $10m saw a reduction in their Net Operating Working Capital of around $1.3m, in effect, free cash flow (cash unlocked from working capital) was obtained simply by using smart financial solutions to reduce their cash conversion cycle. Our off-balance sheet supply chain finance product is made for businesses that want to unlock cash tied up in working capital, and use this additional free cash flow to fund growth, stability or simply to sleep at night, knowing their business is no longer constrained by cash flow and working capital pressures i.e. not being paid on time or having enough cash on-hand to pay suppliers with.At Fifo Capital our charter is to help customers become robust. This can mean helping to solve immediate short-term cash flow, or, for

those businesses with strong balance sheets, using proven financial solutions to tune-up profitability. We achieve this by focusing on innovative financial solutions which can give you and your management team control over accounts payable and inventory, in doing so, businesses start to see phenomenal changes. The innovation and disruption Wayne and his team have brought to Australia positions their clients as lean, financial efficient, profitable businesses with ability to support their growth in local and international markets.A white paper further explaining working and cash conversion cycles can be downloaded at www.fifocapital.com.au/wcwhitepaper Wayne Morris is Chief Executive Officer at Fifo Capital Australia, an accounting and corporate finance specialist labelled a ‘game changer’ by his peers at Grant Thornton, London where he held a senior position in Government Advisory for corporate finance. His drive to disrupt traditional financing for businesses led Wayne to lead the UK for a major European Fintech, rewriting how invoice finance and supply chain finance works to deliver financial solutions to businesses throughout all tiers of supply chains. Wayne is often consulted or has advised on supply chain finance and has provided these solutions to many leading brands and their suppliers, including: Apple, Airbus, Carillion, EDF Energy, Lego, Lotus, McLaren, Porsche, and Wartzilla. Wayne understands how technology can be used to deliver robust finance solutions for business clients, which also satisfies internal risk controls and measures, such that its easy for businesses to access the finance they need. info@fifocapital.com.au

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How the right technology can make franchises more successful

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“With the right systems and technology in place, along with a clear understanding of how to leverage them appropriately, there is no limitation to the processes that can become more efficient.” Aleesha Bailey | CFO Outsourcing Coordinator & Digital team member RSM

Franchisees and franchisors often face key challenges around hitting financial targets, deciphering complex financial reports, meeting reporting deadlines alongside managing daily operations, managing client data, and identifying key financial trends to understand what actions can help increase the bottom line. These struggles aren’t unique; franchisees, franchisors, listed entities, large enterprises and small businesses alike report these pain points. However, with the right systems and technology in place, along with a clear understanding of how to leverage them appropriately, there is no limitation to the processes that can become more efficient. The solution could be as simple as automating bank reconciliations or as complex as implementing new HR and payroll systems to reduce inaccuracies and onboard new staff

more efficiently. Even managing inventory can be easier and more cost-effective with the right solution. Manual handling within core business activities creates an avalanche of issues impacting numerous stakeholders within the business. These activities can result in double handling, inefficiencies, inaccuracies, unnecessary costs, and delays in key stakeholder and franchisee reporting. For example, a common yet outdated internal process for customer sales within the hospitality or retail sector can result in all of the above negative outcomes:

Step three: The book keeper, charging by the hour, receives weekly takings reports in Excel and enters these into the accounting platform. The accounts, however, are not reconciled until the end of the month. This compounds the issues around double handling, inaccuracies and inefficiencies, and unnecessary costs. And, since the accounts aren’t reconciled until the end of the month, issues aren’t identified in a timely manner.

Step four: The book keeper has finally identified the typing error during reconciliation. However, they must produce the month-end accounts by close of business tomorrow. Only by way of elimination will they be able to find the answer. This leads to significant further inefficiencies since the book keeper must backtrack and investigate issues involving processes with multiple manual handling steps.

Step five:

Step one: A sale is raised within a point of sale (POS) system. The sales person accidentally types $1,000 into the EFT terminal but the sale is only for $100. This inaccuracy due to a manual keying error results in a number of knock-on effects.

Step two: At the end of the day, the manager extracts the daily sales reports and prepares a manual reconciliation. Unfortunately, the keying error is not picked up. The reports are consolidated into a weekly report to be emailed to the book keeper. This process results in double handling as well as failing to pick up the initial error.

The book keeper is unable to find the source of the problem and, consequently, the business now misses the reporting deadline, leading to a delay in stakeholder reporting. All of these issues could have been avoided with the right automated solution in place. For example, ensuring the POS system is connected to the EFT terminal means sales representatives don’t have to key in amounts manually, so the initial error would have been avoided. Choosing a POS system that presents a cash/EFT variance report at the end of the shift would have meant that, if the issue had occurred, it would have been identified immediately. A cloud-based POS system would have let the book keeper log on and extract reports automatically, reducing double handling and making it easy to see where any discrepancies may stem from. Streamlining each of these steps through automation and technology enhances the chances of achieving reporting deadlines. Implementing a cloud-based operational system and accounting platform significantly reduces inaccuracies from manual handling, inefficiencies caused by additional processes required to transfer data from one system to another, and delays in reporting. With cloud-based systems, reports can be generated in real-time, rather than at the end of the month. This lets you identify risks and opportunities throughout the month and use that information to make better business decisions sooner.

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“Implementing a cloud-based operational system and accounting platform significantly reduces inaccuracies from manual handling, inefficiencies caused by additional processes required to transfer data from one system to another, and delays in reporting. .”

key to improving operational processes, and engaging employees.

The key is to integrate systems so they work together. There are four key steps to achieving process improvements through technology, and none of them require you to become technology experts. The key ingredients are: knowing the business; understanding where the issues lie; being patient to see the process through; and consulting with the right people. The key steps include: 1. Identify the pain points: it’s important to understand what the business needs to achieve and who this will impact. Understanding this will help identify which team members should be involved in this process. Involving key staff in these decisions will increase the chances of proper use once the solution is implemented. 2. Review the available solutions: every business is unique and not all systems will be suitable. Decision-makers should compare the old process to what the new system will achieve to ensure it will make people’s lives easier, save on operational costs, and benefit all parties who will be required to use it.

3. Get the implementation right: too often, software is pushed on staff with no support, guidelines, or even appropriate training. Getting staff involved from the start, following a project plan, assessing it at all stages, and using a consultant if necessary is crucial. A failed implementation will only cost more in the long run. Training is an essential part of the technology implementation plan, not an added bonus. 4. Measure the project success: it’s important to identify whether the project achieved the aim of the change management process and determine how much internal processing time it saved, whether there are savings in obsolete software systems, whether the new system has improved staff morale, etc. Reviewing the project’s successes and failures will lead to further improvements. Franchisors who don’t know where to start should find a technology adviser who can help with the change management process and who has the resources available to step the business through all of these stages. Advisors understand that technology is a vital

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It’s important to remember that the best results come not from just buying a solution and installing it. Instead, it’s about carefully considering the business environment and choosing the right technology ecosystem for the franchise. This is likely to be different from other businesses even if they work in a similar industry. Taking advice from the right people will help manage risk and avoid wasted investment. Aleesha has worked with numbers virtually all her life. She stumbled into bookkeeping in the early days whilst managing the family business which led her down the path of a career in chartered accounting. With significant experience advising small and medium sized businesses and franchises on complex issues of financial administration including mentoring and assisting in-house finance teams through outsourced CFO services, Aleesha works with her clients to help streamline internal processes, focussing on changing operational systems, management accounting and budget/forecasting projections. Aleesha was previously at William Buck and Mazars. RSM Australia: 02 8226 4500 www.rsm.global/australia


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clarkrubber.com.au Business Franchise Australia and New Zealand 83


h ot to pi c s

Behind the

headlines RFG to consolidate $200m supply chain Multi-brand listed franchisor Retail Food Group (RFG) is attempting to consolidate its supply network by reducing from 16 suppliers to one or two in a bid to increase costs and efficiencies, according to a media report. The company, which owns 10 different brands, has maintained separate supplier arrangements for each brand and failed to capitalise on economies of scale, according to new CEO Richard Hinson who is trying to turn the business around after its share price collapsed 90% following a series of media articles exposing problems in its franchise brands. The combined supply requirements of RFG are expected to range in value from $100m to $200m per annum. RFG is under pressure from financiers, who are owed more than the company’s current value. Hinson recently completed a national road show to engage with franchisees and promote RFG’s increased focus on field support and franchisee financial performance.

Lenards founder buys out private equity partner

the private equity group also wrote down the value of some of its other investments, and after placing its Lenards ownership on the open market. Blue Sky bought into Lenards in 2008. Lenards was founded more 30 years ago by Len Poulter and in 2015 had 200 stores with plans to reach 400 by 2017, however has faced growing competition for its pre-prepared ready-to-cook chicken meals and growing operating costs. The chain currently has around 80 stores, according to a media report.

Franchisors unleash war on plastic straws Fast food chains globally are eliminating plastic straws from their stores with McDonald’s Australia experimenting with paper straws and pledging that its 970 restaurants will be free of plastic straws by 2020, with burger chain Grill’d boasting it is already plastic straw free saving 1.6 million straws from landfill each year, accord to media reports.

114 outlet retail chain in administration

The founder of the Lenards chicken retail chain has bought out the group’s 42% private equity shareholder Blue Sky Investments, according to a media report.

Watch and shoe repair chains Cobbler Plus and Watch Works have been placed into voluntary administration citing declining store revenues and “stubbornly high” expenses including rent and wages as key factors, according a media report.

The buyout occurred at around the same time

The company-owned businesses operate 114

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kiosk-style retailers in major shopping malls, employing approximately 200 staff. While some stores will continue to operate, staff losses are inevitable. Declining revenues have been attributed to changes in fashion with fewer people wearing watches and repairing shoes.

Woolies & Caltex to continue relationship Australian grocery giant Woolworths and fuel retailer Caltex will continue their alliance after signing a 15-year supply agreement related to fuel supply, convenience stores, wholesale food, and loyalty rewards, according to a media report. Woolworths had been negotiating with rival fuel retailer BP to sell its fuel business, but that deal was blocked by the Australian Competition and Consumer Commission (ACCC). The new agreement comes at a significant cost to Caltex – a one-off payment of about $50 million to Woolworths, and an estimated $80 million loss in operating earnings. The chief executive of Woolworths stated that plans are being finalised for an IPO to float the petrol business within the next year.

Inquiry update: Submissions pass 200 The number of submissions to the current franchise inquiry uploaded to the inquiry website has increased past 200, including 38


for which the name of the submitter and the details of the submission have been withheld, with reports that up to 300 submissions in total have been lodged with the inquiry committee. Submissions are uploaded to the inquiry website as they are processed by the inquiry committee and secretariat. Submissions may in some cases be redacted, and submissions received in confidence may not be uploaded to the website altogether. Three public hearings have so far been conducted by the inquiry in Brisbane on June 8, Melbourne on June 22 and Sydney on June 29. Transcripts for these hearings are now online, with further hearing dates expected to be announced soon. The inquiry’s previously advised reporting deadline of September 30 has also now been officially extended to December 6, 2018.

Law firm drops class action against RFG The law firm representing franchisees in a class action against multi-brand franchisor Retail Food Group (RFG) has dropped the case, claiming it was unable to fund it according to a media report. Bannister Law, assisted by consultancy and research group Franchise Redress, had been investigating a number of issues including the adequacy of disclosure to franchisees at the time of purchase, and potential breaches of the Franchising Code of Conduct, Australian Consumer Law, and Corporations Law. Franchise Redress has discontinued the partnership but continues to explore alternative options for RFG franchisees to receive compensation. RFG is facing three other shareholder class actions.

Godfreys finalises stock exchange delisting Vacuum and cleaning retailer Godfreys was suspended from trade on July 6, and officially delisted from the ASX on July 11, as new owner and original co-founder John Johnson proceeds with his strategy to privatise and resurrect the ailing business, according to a media report.

Music chain collapses for second time in six years Iconic music retail franchise Allans Billy Hyde has been placed into voluntary administration for the second time in six years, according to a media report. Allans Billy Hyde was on the verge of collapse in 2012 when it was purchased by music

industry veteran Con Gallin who runs the Gallin’s music chain. At the time the Billy Hyde group owed unsecured creditors $13.5 million. Stores have been progressively shutting down over the last few months and former employees allege they are owed thousands of dollars. Currently only two stores in Melbourne are expected to continue to trade through the administration process. A tough retail market is being blamed for the demise of a business that can trace its history back to the 1850s

Cafe chain to continue under existing management Beleaguered café chain Oliver Brown will exit voluntary administration after the majority of creditors voted to support a deed of company arrangement led by the current management team led by controversial director Eric Song, according to a media report. The administration and sale process has been frustrated by issues, including the transfer of trademarks and intellectual property to an entity linked to Song which frustrated the efforts of other potential buyers to bid for the company. Oliver Brown has outstanding debts of $29 million, including $5.2 million owing to the Australian Tax Office (ATO), and $20.7 million to a number of landlords.

September workshops highlight best practise recruitment A series of workshops to be held in Brisbane, Sydney and Melbourne in September will highlight best practise in franchise recruitment. Against a background of a parliamentary inquiry into franchising which has heard allegations that franchisors have misled or induced franchisees into buying a franchise, franchisors are recommended to review and update their recruitment procedures. The Effective Franchise Recruitment workshop will be held throughout September.

Founder removed from fast food group The founder of healthy fast-food alternative franchise Oliver’s has been completely removed from the business barely a year after the company’s listing on the ASX, according to a media report. Jason Gunn founded the business in 2003 but resigned as chief executive of Oliver’s in May and has now fully ceased his employment

Jason Gehrke | Director Franchise Advisory Centre

and stepped down from the board. In a move supported by Gunn, former Subway UK country director Gregory Madigan was appointed as his replacement and tasked with “stemming mounting losses in several key operational areas”. Recent announcements of significantly reduced earnings for the 2018 financial year have resulted in Oliver’s shares trading at around 13 cents, less than half their June 2017 listing price.

FWO’s reasonable steps guidance available for download A guidance booklet for franchisors on how to comply with the reasonable steps provisions of the Protecting Vulnerable Workers Bill is now available for download from the Fair Work Ombudsman’s website. The Guide to promoting workplace compliance in your franchise network was launched during the Ombudsman’s presentation at a recent Franchisee Forum, and is available for download from: www. fairwork.gov.au/find-help-for/franchises/ franchisors. The guide provides practical information to franchisors on how to manage their joint employer liability under changes to the Fair Work Act, and uses multiple case studies of hypothetical franchises to illustrate how franchisors can comply with the Act.

Learn how to improve the effectiveness of Advisory Councils A half-day workshop to help franchisors improve the effectiveness of their Franchise Advisory Councils will be held in Brisbane, Sydney and Melbourne in September. The workshop provides important insights into how to set-up, manage and support advisory councils, and discusses common mistakes that can derail their effectiveness. Participants are also provided with a sample advisory council structure and charter. www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 85


pr o f ess i o na l s er v i c es l i st i n gs

Level 6, 64 Marine Parade (Po Box 10857) Southport Qld 4215 P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell E pt@ippartnership.com.au www.ippartnership.com.au A specialist Franchising and Intellectual Property legal and consulting firm, providing comprehensive advice for Franchisors from conception through to recruitment of Franchisees and ongoing management of the franchise. Clients receive expert, cost-effective advice on a collaborative basis with the firm taking great pride in its long term relationships with Franchisors. Expert advice and assistance is also provided to Franchisees buying & selling businesses as well as in relation to disputes.

67 Fitzroy Street Surry Hills NSW 2010 105 Wellington Street St Kilda VIC 3182 59 Doggett Street Newstead QLD 4006 P 1300 544 755 E info@legalvision.com.au https://legalvision.com.au LegalVision is a market disruptor in the commercial legal services industry. Our innovative business model and custom-built technology allows our lawyers to provide a faster, better quality and more cost-effective client experience. LegalVision is a leader in delivering legal services in Australia and has assisted more than 50,000 businesses and franchises. The firm was awarded New Law Firm of the Year at the 2017 Australian Law Awards, named 2018 Fastest Growing Law Firm in APAC by the Financial Times and recognised as a finalist as 2017 Supplier of the Year at the MYOB FCA Excellence in Franchising Awards. Our experienced lawyers can assist franchisees and franchisors with a breadth of franchising matters. Our services include reviewing and drafting franchise documentation or leases, assisting with selling or buying a franchise and resolving franchising disputes. As a full-service law firm, we can also assist with employment law, intellectual property, disputes and litigation, business structuring and regulatory compliance. If you would like to discuss your franchise matter, contact the LegalVision team today.

fr an chise specialists

Lvl 2 100 Wellington Parade, East Melbourne VIC 3002 P 03 9604 9400 F 03 9419 7735 Contact Robert Toth E robert@mmrb.com.au www.marshmaher.com.au robert toth - 30 YEARS OF FRANCHISE INDUSTRY KNOWLEDGE AND EXPERIENCE. ACTING FOR LOCAL AND INTERNATIONAL FRANCHISES. Members of: Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Marsh & Maher Richmond Bennison Franchising, Licensing and Distribution Group act for local and overseas companies entering the Australian market and have a network of experienced consultants to assist clients with demographic, feasibility, market research and preparation of business entry plans to ensure the best success for our clients.

86 Business Franchise Australia and New Zealand

Level 3, 1 Preston Street, Como WA 6152 Level 129 Melville 6152 P 082,9364 9988Parade, F 08 Como 9367 WA 3444 P 08 9364 9988 www.ww-wa.com.au Contact John Dorazio E johnd@ww-wa.com.au www.ww-wa.com.au

Walker Wayland WA is an independent firm of Perth based Chartered Accountants and Business Advisors who provides a friendly, efficient and professional service for both developing and established franchises. We can assist you with: • Fixed priced service packages - including all bookkeeping, tax and accounting needs • Due diligence services when you are thinking about buying - or selling • Growth strategies • Marketing fund audits • Business planning and structuring Walker Wayland has offices based in every Australian mainland State and in New Zealand.

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l i st i n gs

FRANCHISE 7-ELEVEN STORES PTY LTD 357 Ferntree Gully Rd, Mt Waverley VIC 3149 Ph: 03 9541 0711 Website: www.franchise.7eleven.com.au

APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

CONVENIENCE RETAIL & FUEL

670+

FCA, AACS

(site specific– part of Min. Investment)

Average of $775,000

ELECTRICAL TEST ND TAG

55

FCA

$35,000

$52,000 + GST + Vehicle

BATTERY RETAILER

109

FCA / ARA

Initial Fee $55,000

250,000

SCHOOL READINESS & PRIMARY TUTORING

30+

Franchise Council of Australia

$48,000

$70,000 (includes Franchise Fee)

FURNITURE & INTERIOR DESIGN RETAIL STORES

265 brand stores in 65 countries

BFA, IFA, DFV

$40,000 per store opening

$600,000

Up to $20,000 dependent on requirements

From $420,000 + GST

BATTERY WORLD Level 3, 203 Wharf Street, Spring Hill QLD 4000 Ph: 1300 793 209 Email: franchise@batteryworld.com.au Website: www.batteryworld.com.au/Franchise-Opportunities

BEGIN BRIGHT Support Office, 20 / 8 Corporation Circuit, Tweed Heads South NSW 2486 Ph: 1300 234 462 Email: franchise@beginbright.com.au Website: www.beginbright.com.au/franchise

BOCONCEPT HQ | Herning, Denmark Phone: Business Dev. Manager 0474 278 485 Email: franchise@boconcept.com Website: www.boconcept.com/franchise

BOOKS AND GIFTS DIRECT Level 10, 8 West Street, North Sydney NSW 2060 Ph: 02 9899 9655 Email: enquiries@booksgiftsdirect.com Website: www.booksgiftsdirect.com

DIRECT SELLER OF BOOKS AND GIFTS

100+

-

New: $1-$10,000 / Existing: Dependent on size

RETAIL, POOL & SPA SERVICE

60

FCA, SPASA

$60,000

PREMIUM CAFÉ FRANCHISE

20

Franchise Council of Australia

DECK AND TIMBER RESTORATION

3

-

$30,000 + GST

$65,000 + GST,(incl Franchise Fee) + vehicle

INNOVATIVE RETAIL OUTLETS

5

-

$75,000

$195,000

HYGIENE PRODUCTS & SERVICES

33 in AUS, 18 in NZ

Franchise Council of Australia

None

$10,000 - $300,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

20

Franchise Council of Australia

$50,000 + GST

$500,000 $700,000

COURIER SERVICE

800+

FCA & FANZ

From $25,000 + GST

$25,000 + GST

COURIER SERVICE

250+

FCA & FANZ

$10,000

$10,000

KIDS MOBILE SPORTS & FITNESS

10

-

Initial Fee $38,000 +GST

$41,800 inc GST

HAIR & BEAUTY – RETAIL & SERVICE

140

FCA

$66,000 + GST

$390,000 incl. stock, for Greenfield sites

FAMILY RESTAURANT

80

FCA, FANZ

Initial Fee: $50,000

$350,000+

FREIGHT AND LOGISTICS

Aust 50 Intl 200+

-

$64,950

$64,950

MOBILE POOL SHOP & POOL SERVICE

85

FCA

$69,000

$69,000 + Vehicle

CLARK RUBBER FRANCHISING PTY LTD Administration Building, 254 Canterbury Road, Bayswater VIC 3153 Ph: 03 8727 9999 or 138090 Fax: 03 9729 3266 Email: dirk.heinert@clarkrubber.com.au Website: www.clarkrubber.com.au/franchise

CREMA ESPRESSO 16 Ashmore Road, Bundall QLD 4217 Ph: 07 5532 7727 Mob: 0417 637 626 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

DECKSEAL PO Box 4093, Burwood East VIC 3151 Ph: 1800 332 525 Email: admin@deckseal.com.au or info@deckseal.com.au Website: www.deckseal.com.au

DR BOOM COMMUNICATIONS 2/56-58 Buffalo Road, Gladesville NSW 2111 Ph: 1800 DR BOOM (1800 37 2666) Email: franchising@drboom.com.au Website: www.drboom.com.au

ECOMIST Unit 4/28 Barcoo Street, Chatswood NSW 2067 Ph: 0447 743 157 Email: info@ecomist.com.au Website: www.ecomist.com.au

FASTA PASTA PTY LTD Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: franchise@fastapasta.com.au Website: www.fastapasta.com.au

FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: fso@fastway.com.au Website: www.fastway.com.au

Dependent on Site $50,000 + GST conditions $300K Incl. Training $500K

FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz

GECKO SPORTS 4/29 Selwyn Ave Elwood VIC 3184 Ph: 0417 159 807 or 1300 432 565 Email: franchise@geckosports.com.au Website: www.geckosports.com.au

HAIRHOUSE WAREHOUSE Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 0451 370 060 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hhwhfranchising.com.au

HOG’S AUSTRALIA H/O: 152 Shore Street Cleveland QLD 4163 Ph: 1800 464 783 Email: geoffhargreaves@hbca.com.au Website: www.hogsbreath.com.au

INXPRESS AUSTRALIA PTY-LTD 3/14 Burke Crescent North Lakes QLD 4509 Ph: 1300 469 773 Email: david.wilkinson@inxpress.com Website: www.inxpress.com.au

JIM’S POOL CARE 48 Edinburgh Road, Mooroolbark VIC 3138 Ph: 131 546 Email: info@jimspoolcare.com.au Website: www.jimspoolcare.com.au

88 Business Franchise Australia and New Zealand


FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

HAIRDRESSING

206 across Australia, NZ & UK

FCA

$18,000 $35,000

$80,000 - $240,000

SKIN TREATMENTS, LASER HAIR REMOVAL & COSMETIC INJECTABLES

101+

FCA

$50,000

$290,000 $350,000

GROUP PERSONAL TRAINING

12

FCA

Franchise Fee $20,000

-

POSTAL, FREIGHT AND PRINT

2600+ (36 AUS)

FCA

$60,000

$150,000 - $200,000

AUTOMOTIVE MECHANICAL SERVICE & REPAIR WORKSHOP

80+

MOBILE SKIP HIRE

16

FCA

$67,000 $97,000

$67,000

ENERGY SAVING WINDOW COATINGS

-

POA

POA

$375,000 $550,000 + GST

NUTRIENT RICH BEVERAGES & SNACKS

4

-

$25,000

AU$183,500 + GST

MOBILE TOOLS AND EQUIPMENT FRANCHISE

175+

FCA / FANZ

Start-up cost from $50,000

-

HEALTHY FOOD RETAIL TAKEAWAY

19

-

$40,000

$250,000

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

60 worldwide

FCA, IFA, CFA, Irish FA

$34,500

$50,000+

FCA, BFA

$40,000

$150K - $400K depending on size & concept

AWA

$40,000

Varies depending if vehicle needed

JUST CUTSâ&#x201E;¢ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: (AUS) 02 9527 5444 (NZ) 0800 100 114 (toll free) Email: bdm@justcuts.com Website: www.justcuts.com

LASER CLINICS AUSTRALIA Level 2 / Unit 21, 39 Herbert Street, St Leonards NSW 2065 Ph 0402 171 399 or 0400 303 272 Email: franchiseopportunities@laserclinics.com.au Website: www.laserclinics.com.au/franchise-opportunities

LISTEN TO YOUR BODY First Floor 19/21 Centreway, East Keilor VIC Ph: 03 9331 5673 Email: franchise@listentoyourbody.com.au Website: www.listentoyourbody.com.au

MAIL BOXES ETC. (MBE) Suite 202, 54 Alexander Street, Crows Nest NSW 2065 Ph: 1800 556 245 Email: franchising@mbe.com.au Website: www.mbebusinessfranchise.com.au

MIDAS 76-92 Station Street, Nunawading VIC 3131 Ph: 03 8878 1122 Email: franchiseenquiries@midas.com.au Website: www.midas.com.au

$50,000 FCA, AAAA, ACRA Franchise Fee + Set-Up Costs

MOBILE SKIPS Unit 2, 26-36 High Street, Northcote VIC 3070 Ph: 1300 675 477 Email: franchising@mobileskips.com.au Website: www.mobileskips.com.au

NANOSHIELD 2/5 Michellan Court, Bayswater VIC 3155 Ph: 03 9738 0070 Email: ray@nanoshield.com.au Website: www.nanoshield.com.au

PROTEINXPRESS Suite 2201, Level 22, Tower Two Westfield, 101 Grafton Street, Bondi Junction NSW 2022 Ph: 0498 980 071 Email: info@proteinxpress.com.au Website: www.proteinxpress.com.au

SNAP-ON TOOLS PO Box 6077, Seven Hills NSW 2148 Phone: Aus: 1800 762 766 NZ: 0800 762 766 Email: Sota.franchise@snapon.com Website: www.snapontools.com.au

SPUDBAR 197a Waverley Road, Malvern East VIC 3145 Email: franchising@spudbar.com.au Website: www.spudbar.com.au

THE INTERFACE FINANCIAL GROUP IFG 50/50 Level 32, 8 Exhibition Street, Melbourne VIC 3000 Ph: 1300 957 900 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au/franchise

THEOBROMA, CHOCOLATE LOUNGES, PAVILIONS, BARS 3A Kia Crt, Preston VIC 3072 Ph: 03 9480 1030 or +61 431 727 004 Email: franchising@theobroma.com.au Website: www.Theobroma.com.au

THERMAWOOD RETRO-FIT DOUBLE GLAZING PO Box 1007, South Melbourne VIC 3205 Ph: 04 555 55 330 Email: info@thermawood.com.au Website: www.thermawood.com.au

CHOCOLATE LOUNGES, 11 worldwide PAVILIONS, BARS

RETRO-FIT DOUBLE GLAZING

3 AUS, 40 NZ

$200,000+, plus GST

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au

Business Franchise Australia and New Zealand 89


a-z d i r ecto ry

7-ELEVEN At 7-Eleven, we take a different approach to franchising. We take care of the things that are a hassle about being a small business owner, and provide you with support every step of the way. We’re looking for people with bundles of

APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

Battery World Over the past 20 years Battery World has expanded to be the largest and most comprehensive Australian battery retail franchise. The Battery World franchise network is a fast growing, sustainable, reputable franchise that continues to dominate the specialist battery market.

For more information: 03 9541 0711 www.franchise.7eleven.com.au

No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named FCA Emerging Franchisor of the Year 2011 and the FCA National Franchisee of the Year 2013 (less than 2 staff). For further information please contact Steve Wren, National Sales Manager on 1300 287 669, email steve@ats.com.au or visit www.appliancetaggingservices.com.au

to start your own business backed by a nationally established franchise network. Our Batteryologists are everyday people who have a passion for their work and for helping their customers. To find out more on becoming a Batteryologist and becoming your own boss contact us today! Call us on 1300 793 209 or visit: www.batteryworld.com.au/Franchise-Opportunities

BEGIN BRIGHT

owners! Becoming a Begin Bright franchisee means you’re equipped with operation and management support, a state of the art online booking system and strategic guidance – enabling you to run your best business!

Since 2008 we’ve grown to over 30 centres, delivering 84,000 sessions each year, with the mission is to help children become happy, smart and confident. With exciting opportunities for growth, there’s no better time to join our network of business

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

So if you think you’ve got what it takes, we’d love to hear from you.

With over 109 stores Australia wide and with more set to open in 2018, it’s never been a better time

Begin Bright has been leading Australia’s School Readiness and Primary Tutoring market over the last 10 years, and is now expanding with new territories available throughout Australia!

®

energy, love providing customers with great service, are great leaders and communicators and have an eye for detail.

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

90 Business Franchise Australia and New Zealand

No matter your background, franchising with Begin Bright is an exciting decision. For more information, or to enquire about how you can start your journey with us, visit our website today: www.beginbright.com.au/franchise

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz


BoConcept From Denmark to the world since 1952, BoConcept is present in 65 countries, with 265 brand stores specializing in interior design: furniture and accessories. BoConcept is more than a franchise. It is a concept for creating outstanding modern and sophisticated living spaces at affordable prices. We are experiencing a successful period of growth globally, so we are looking for franchise partners in the main cities of Australia who have the synergy and resources to be part of our success story. BoConcept main figures: • Global brand | 65 countries, 265 brand stores

BOOKS AND GIFTS DIRECT Books and Gifts Direct is Australia’s largest direct seller of books and gifts. We sell our products from lunchrooms and reception desks in more than 25,000 workplaces around Australia. Workplaces include schools, childcare centres, businesses, hospitals, community centres and other corporate entities. We also sell online. Our books and gifts sell up to 70 per cent off recommended retail price. As the leading

Clark rubber Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network to more than 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer.

• Stores | Europe: 149; America: 43; MENA: 10; Asia-Pacific: 63 • Yearly | 15,000,000 website visitors, 4,000,000 in-store visitors and 125,000 customers Why join BoConcept? • Global brand, with an outstanding reputation and demand worldwide • Solid franchisor, with a unique, proven and vibrant concept • Exceptional training and support in all business areas • Superior store opening process • Profitable business with a quick generating cash flow model For further information: Email: franchise@boconcept.com Website: https://www.boconcept.com/franchise

direct seller of books and gifts across Australia, we use our strong buying power and proven business franchise model, to save money for the consumer and to help you build a prosperous and successful business. For the opportunity of a lifetime… and to realise your dream, apply now: https://booksgiftsdirect.com/franchise/applynow enquiries@booksgiftsdirect.com 02 9899 9655

Clark Rubber offers a unique business proposition which includes business development, site selection, comprehensive training and ongoing marketing and IT support. Clark Rubber has identified several great opportunities for further growth, and is now looking for friendly, customer service-orientated business people to join its network. For further information and to register your interest, visit clarkrubber.com.au/franchise or call 13 80 90 or direct (03) 8727 9999

Crema Espresso

• A proven business with a simple operation;

Crema Espresso is a franchise that is continually evolving. Already well known for their food and premium coffee, Crema stores are beginning to make waves in the retail community with their store designs.

• Local support;

When recruiting new franchisees, Crema is always looking for community minded people. The business believes that this mind set and attitude brings a warmth and connection to customers that is invaluable. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. Joining the Crema Espresso team gives you the opportunity to own your own business, but not just any business.

DeckSeal Restore the old, Preserve the new. Leading the way in deck and timber restoration and maintenance services, specializing in the treatment of new and existing timber decks, structures and features. Through our extensive and on-going research, superior equipment and proven methods, we have the ability to remove the most faded, peeling and cracked coatings, and restore them with updated and improved penetrating finishes. The DeckSeal Franchisee Package is designed to maximise the opportunity for you to build and expand your own successful business - from practical skills to software systems and complete operational and technical manuals, we’ve got you covered! A Franchise with real benefits • DeckSeal are the industry leaders • Niche business • Booming

• Flexible floor plans; • Regional advertising; • A four week training program; • Ongoing learning for franchisees and their staff; • Store development assistance; • Design support; • Lease negotiations • Staff guidance; and • Much, much more. Crema Espresso where coffee is the souvenir of the experience. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au

growth segment • Large and exclusive territories • Established reputation • Industry connections to our excellent suppliers and products Becoming a DeckSeal Franchisee doesn’t require a trade, huge financial outlays or experience in deck and timber restoration. Instead, we offer Franchisees the rare opportunity of being able to quickly learn new skills and create a profitable business managed and grown on your own terms. If you’re an individual who is motivated to succeed, committed to working at building your own business and creating the life you want for yourself and your family, we want to hear from you! Contact us today to speak to our team about opportunities on 1800 332 525 or email admin@deckseal.com.au or visit www.deckseal.com.au

Business Franchise Australia and New Zealand 91


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DR BOOM COMMUNICATIONS Dr Boom has brought technology and fashion together since 1994. AUSTRALIA AND NEW ZEALAND

We have been both the leaders and innovators in mobile devices with brands such as Beats, JBL, Diesel, Kate Spade and Bodyguardz.

ECOMIST AUSTRALIA Established in 1994, Ecomist Australia is a leading provider of premium quality hygiene products and services, specialising in Odour Control and Insect Control. Our core product is an innovative programmable aerosol dispensing system that won an award for the Best New Product from The Aerosol Association of Australia and New Zealand. Our aerosol products are manufactured in New Zealand and we offer a natural insect killer and over 50 fragrance options with French perfume.

FASTA PASTA With our authentic Italian background and 30 year success story, Fasta Pasta is now Australia’s largest, independently owned group of ‘fresh pasta’ Italian restaurants. An innovative ever-changing menu, with healthy options and a commitment to outstanding service, have all contributed to Fasta Pasta being voted Roy Morgan’s ‘Quick Service Restaurant of the Year’ in 2012. Loved for our affordable, fresh, family meals in relaxed fully licensed surroundings, this is a great

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

FASTWAY COURIERS AUSTRALIA

Our category leading marketing and promotional activities and an innovative vending program across the east coast continues to set the standard. Join the Boom! To find out why, go to: https://youtu.be/VYo_3NVpMdI

Our ultimate aim is to enhance the environments of our customers through our high quality products and excellent after-sales service. Over the last 23 years we have developed a secure and proven franchising business model. Each Ecomist franchise has its own exclusive territory based on post codes and purchase price is generally 2x the net income of the existing business. If you are interested in finding out more, please contact Gary Vandoros on 0447 743 157, email gary.vandoros@ecomist.com.au or visit www.ecomist.com.au

opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks of training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8304 8600, email franchise@fastapasta.com.au, or visit our website, www.fastapasta.com.au

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

• Low start up costs

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au

• No weekend work

*Conditions apply

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 • Revenue support packages*

92 Business Franchise Australia and New Zealand


FASTWAY COURIERS New Zealand Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Revenue support packages* • Low start up costs • No weekend work

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change we’d love to hear from you. Call 0800 4FASTWAY, or visit us at www.fastway.co.nz *Conditions apply

GeckoSports

Reasons to invest in a GeckoSports Franchise...

Own a GeckoSports Franchise today!

• Low level investment • Low overheads • Multiple channels of revenue • Excellent margins & profitability • Non-seasonal -> operate all year round • Weekly and monthly cashflow • Accredited Government funded programs • Website referral system • Supportive operating system & environment • Sports & Fitness fun programs • Diversity -> no day is the same • FUN + ACTIVE + REWARDING!

*KIDS SPORTS & FUN FITNESS* Do you find the traditional 9-5 job stuck indoors all day unappealing... you’re not alone! A GeckoSports franchise instantly gives you the work/life balance you’ve only ever dreamed of. Become your own boss where you have the autonomy to work within your local community engage with kids, families, schools, sports clubs, councils and more delivering fun active kids sports and fitness programs! Imagine being able to follow your life’s passion and desire to keep kids active while improving their health and wellbeing!

Hog’s Australia’s Steakhouse Hog’s Australia’s Steakhouse is home to the famous 18-hour slow cooked prime rib and curly fries. A much loved family restaurant, Hog’s will celebrate 30 years of operation next year and boasts 80 restaurants across Australia and New Zealand. Last year, Hog’s Australia launched it’s quick service model, Hog’s Express, a smaller

For more information contact our Franchise Director Kim O’Donnell at 0417 159 807 or 1300 432 565 Email: franchise@geckosports.com.au

footprint proposition that complements the fullservice restaurants. It takes the form of both a static offering in shopping centres and service stations, as well as mobile food trucks, and specialises in burgers. Hog’s has also begun expanding its Mexican restaurant franchise, Funky Mexican Cantina. Funky’s offers authentic Mexican food with the freshest ingredients at a reasonable price, as well as a vibrant and lively atmosphere. Contact: geoffhargreaves@hbca.com.au

HAIRHOUSE WAREHOUSE

Hairhouse Warehouse has become a household

Hairhouse Warehouse, Australia’s leading hair & beauty brand, has huge plans for the next few years to expand with 20 new stores planned to be opened around the country.

name in Australia, with a proven business model

We are looking for passionate people who want to own their own business, work for themselves and take control of their own destiny.

business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

that continues to evolve and generate strong returns for franchisees. For more information call 0451 370 060, email franchising@hairhousewarehouse.com.au or visit www.hhwhfranchising.com.au.

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

AUSTRALIA AND NEW ZEALAND

Business Franchise Australia and New Zealand 93


a-z d i r ecto ry

InXpress Do you want to join one of Australia’s fastest-growing franchise businesses? As an InXpress franchisee you have the rare opportunity to capitalise on one of Australia’s fastest growing industry sectors: freight and logistics! Utilising global super brands like DHL,TNT, TOLL and Startrack, InXpress Franchisees consult small/medium business on their freight and logistics ensuring they receive world-class service and extra mile customer service. InXpress is not your average franchise. Benefits: • Low entry costs • Low risk • No inventory and no warehousing,

JIM’S POOL CARE MOBILE POOL SHOPS Join our team and Australia’s largest franchise system to build a business that suits your goals and lifestyle. Owning a Jim’s mobile pool shop means you can earn money from multiple streams. You charge for your time and charge for the lucrative pool items such as chemicals, pool equipment and pool accessories. This means your income is not limited by how many hours you can work and gives you

JUST CUTS™ australia Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 100,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

JUST CUTS™ new zealand Join the largest, most successful hairdressing network in the Southern Hemisphere, servicing over 100,000 clients each week! Just Cuts™ offers a fixed franchising fee, with flexible finance options and ongoing business and marketing coaching, guidance and support. Did you know that most Just Cuts™ Franchise Owners are not hairdressers and just over half own more than one salon? Why? Because our proven systems, support and training allows your Stylists to easily run the business for you.

94 Business Franchise Australia and New Zealand

• No vans or trucks • High passive income What It takes to succeed: • High energy individuals who enjoy a fast paced environment • A passion to build a successful business • No previous experience in freight & logistics is required Locations currently available: • Newcastle,NSW • Perth.WA • Adelaide,SA • Brisbane,QLD

• Wolloongong.NSW • Melbourne.VIC • Sydney,NSW • Hobart,TAS • Geelong,VIC For more information, visit http://inxpressfranchises.com/ Contact our franchise development team on 0412 692 052 or sales.au@inxpress.

scope to grow the business to a level that suits you. Another great bonus is our FLAT franchise fee. Yes, our fee is a flat franchise fee system so you can work hard and earn as much as you like and pay the same at fee with all training and ongoing support included. If you are ready for a change then you need to put us on your list. We have selected opportunities around Australia so give us a call and come for a ride along. For more information ph: 131546 or visit www.jimspoolcare.com.au

Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or 1800 334 498 Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

Just Cuts™ are also excited to announce our kiosk option! With only 49 sites available Australia wide, you can buy yourself a new lifestyle from just $80,000! Just Cuts™ Franchisees also have exclusive access to our professional retail range made in Europe; JUSTICE Professional™. Contact: Luke Manning 0439 130 499 or 0800 100 114 (toll free) Email: bdm@justcuts.com Website: justcuts.com/franchising LinkedIn: Just Cuts™ Franchising


Laser Clinics Australia At Laser Clinics Australia, our vision is to provide affordable, effective and safe non-invasive cosmetic treatments to all Australians. Since 2008, Laser Clinics Australia has grown to be the largest provider globally of laser hair removal, cosmetic injections and skin treatments. Laser Clinics Australia is an award-winning business with over 100 clinics in Australia and still growing. Laser Clinics Australia offers every franchisee partner a unique franchise business opportunity. Each location we open is a 50/50 partnership between the franchisee partner and Laser Clinics Australia. Our unique business

LISTEN TO YOUR BODY (LTYB) In fitness, one size doesn’t fit all. LTYB sessions are individually programmed to drive 90%+ retention rates across all studios and build a strong local fitness community. Established in 2004, LTYB has proven progressive systems, high level franchisee support and strong goals of member results and Franchisee Profitability. LTYB look for motivated people who have a passion to make a difference to member’s lives. To be successful in the fitness industry, you need to walk the talk and continue to grow as a business leader and fitness leader.

MAGNETITE WINDOWS Do you have a trade license or are you hands-on? Do you want to become your own boss? Your WINDOW of opportunity is now. As noise and energy efficiency are prominent issues plaguing home owners, now is the perfect time to become part of an expert team who solve these issues every day. Magnetite specialises in double glazing existing windows, as the core offering in a product range that includes seals, tint and other complementary window treatments. Our

MAIL BOXES ETC. (MBE) With Australian SME’s employing over half of the working population together with the increase in numbers of home and internet based businesses, the need for basic business services like packing and freight services, printing, mailboxes and virtual office facilities are all in high demand.

partnership model reduces start up and ongoing operational costs. We seek out the most motivated individuals who will be empowered to take on the day-to-day responsibilities of running a successful clinic. Franchise partners receive a $100,000 salary from day one. We are looking for franchisees for new clinic locations in Victoria, Queensland, Western Australia, Tasmania and are now launching into the New Zealand market. Visit: www.laserclinics.com.au/franchise-opportunities Email: franchiseopportunities@laserclinics.com.au Call Liz Seeto +61 402 171 399 or Fiona Harcourt +61 400 303 272

LTYB currently have 12 Studios in Victoria and Queensland with expansion plans Australia Wide. We offer our franchise partners an exclusive territory, full marketing support, IT and Software support, Online Operations Manual access and training, Studio business coach, Franchisee Induction program, supplier discounts, professional development opportunities and everything required to open your studio. We are currently recruiting Franchise partners Australia wide. For further enquiries, feel free to contact: Ph: 03 9331 5673 Email ben@listentoyourbody.com.au Website: www.listentoyourbody.com.au

solutions provide all the benefits of double glazing without the hassle of replacement windows. At Magnetite, we aim to exceed our customer’s expectation of comfort. We believe this starts with the first contact and continues through an assessment, installation and after sales service. Join the team that has: • 18+ years technical and practical experience • #1 place in a niche market, with a unique product range • Comprehensive, hands-on training, with ongoing business and technical support • Average franchisee tenure now over 15 years. To learn more, visit www.magnetite.com.au

with 36 of those here in Australia that offer these in-demand services all under the one roof. Having these 3 in-demand services sets MBE apart from other franchises too. It means that owning a MBE is like owning 3 franchises in one; print, freight and mail boxes giving our franchisees 3 strong revenue streams.

Established in 1980 Mail Boxes ETC. (MBE) is one of the world’s largest Business Service Franchise with more than 2,600 service centres worldwide

For more information please contact our franchise department on franchising@mbe.com.au or phone 1800 556 245.

business franchise australia and new zealand

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

AUSTRALIA AND NEW ZEALAND

Business Franchise Australia and New Zealand 95


a-z d i r ecto ry

MIDAS Midas is a trusted household name with over 40 years of experience in the Australian market. Initially establishing itself as an exhaust and muffler specialist, we’ve now become the auto service experts specialising in car service for all makes and models, SUV & 4WD’s, brakes, suspension and, yes of course, we still do exhausts.

an ambitious plan to grow our network across Australia. We are always looking for new franchisees who have a passion for all things automotive. Midas franchisees are comprehensively supported in all areas of business, including workshop operation, national & local marketing, a segment leading fully integrated point-of-sale system and ongoing local field management expertise.

There are currently over 80 Midas Auto Service Expert centres across Australia and we have

(03) 8878 1122 franchiseenquiries@midas.com.au

Mobile Skips

their businesses and prosper within an authentic partnership.

Since 2006 Mobile Skips has been giving Australians a simpler, better and cheaper alternative to old fashioned skip bins.

Mobile Skips are seeking enthusiastic self-starters who are passionate about customer service and would love the opportunity of growing their own business.

During 2013 we began our successful partnership with Bunnings and since then have been introducing Mobile Skips to our happy customers all around Australia.

As a Mobile Skips franchisee, you will be supported by proven systems, cutting edge IT and a support team that are invested in your success.

Mobile Skips is a simple, unique offering with great systems that allows our franchisees to grow

For more info go to: https://mobileskips.com.au/ franchising or call 1300 675 477

NANOSHIELD New & Exclusive in Australia Unique and exclusive to NanoShield Australia, Cosy 24/7 has finally reached Australia after strong international success in over 30 countries. Share in this opportunity as we couple a great product with an effective business system to provide a cost-effective solution to a rapidly growing market with minimal competition in its class. Australia’s increasing energy problems, harsh climate and the impacts of climate change is predicted to create rising demand. The superiority and affordability of Cosy 24/7 makes it well poised to sustainably service this demand.

ProteinXpress

Franchises currently available for discerning and passionate individuals to help improve the quality of life for Australians through the sales and installation of Cosy 24/7! Currently, there are no direct competitors in the energy saving window nanotechnology coatings market in Australia! Seize the opportunity! For more information please contact NanoShield at: www.nanoshield.com.au 1800 COSY 247 (1800 267 924) info@nanoshield.com.au

that will not only make your taste buds jump for joy but also look after your nutritional needs with a healthy personalised flavour.

Be part of the smoothie revolution with ProteinXpress. We are talking about the next generation in blended drinks providing a balance of quality nutrients containing at least 20g of protein and only real fruit. No ice creams, yoghurts, purees or concentrates and never any refined sugars added.

So, if you’re thinking protein, think ProteinXpress – from smoothies to pastries; who thought protein could taste so good? Whether you need a quick meal on the go or just finished a massive workout, ProteinXpress is the choice for any healthy lifestyle.

Our philosophy is that a busy lifestyle doesn’t have to mean an unhealthy lifestyle. ProteinXpress embraces new advancements in the supplement industry. We produce high quality flavourful beverages and snacks

For more information or franchise enquiries: Visit: www.proteinxpress.com.au Email: info@proteinexpress.com.au Call: 0498 980 071

SNAP-ON TOOLS

technicians, with an established network of franchise operations across the globe.

Snap-on Tools Australia & New Zealand is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers, and other professional tool users across the country. Snap-on Tools is a subsidiary of Snap-on Incorporated, a leading global innovator, manufacturer of tools, diagnostics and equipment solutions for professional

96 Business Franchise Australia and New Zealand

After 30 years in the Australian market, Snap-on continues to perform, providing robust financial results for its network of over 175 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.


spudbar We started Spudbar back in 2000 to honour the potato. We wanted to pay respect to the vegetable that has changed the planet. This underrated culinary delight is incredible. It’s healthy, nutritious, great value and the perfect complement to any meal. SpudBAR is a great choice for many people considering a franchise because:

• With no deep fryers or grilling SpudBAR is an easy transition into hospitality/retail • SpudBAR provides an intensive 3 week training course prior to opening • Support for your start in-store and ongoing training for both the franchisee and staff • Ongoing operational support helps franchisees grow their business • Turn key stores starting at $270K + GST.

• Setup costs are low due to small space requirements and minimal cooking equipment

Email: franchising@spudbar.com.au Website: www.spudbar.com.au

THE INTERFACE FINANCIAL GROUP - IFG 50/50

franchise network in Australia, New Zealand, Canada, the Republic of Ireland, the United Kingdom, the United States, Mexico and South Africa.

The Interface Financial Group franchisees provide shortterm working capital for businesses by purchasing their invoices at a discount. In the current economic climate SMEs need working capital but banks are unwilling or unable to provide it. Many of these businesses are turning to Interface for a solution. Interface has been in the alternative finance market business since 1972. It is the leading alternative funding source for business, and distributes its service through its

The IFG 50/50 franchise offers the opportunity to get started quickly and with a more modest capital base. Why? Because we syndicate all transactions with our franchisees 50/50. Franchisees do the ‘people work’ - we do the ‘paperwork’ – a great combination to achieve an aboveaverage return.

Theobroma, Chocolate Lounges, Pavilions, Bars

Our franchise offers: • Innovative and unique concept that includes all of life’s pleasures- chocolate, coffee, food, alcohol and retail. • Highest quality chocolate products. • Full training provided. • Professional support team with a range of skills to assist you.

The earliest record of chocolate was over two thousand years ago in the central American rainforest where the tropics is the ideal climate for the cultivation of the plant from which chocolate is derived, the Cacao Tree, Latin name “Theobroma Cacao” or “Food of the Gods”. The concept was developed in response to the spiraling demand of high quality chocolate and chocolate beverages with the added enhancement of a full food menu, with some stores even offering a licensed venue.

For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au/franchise

With new stores opening in countries across the globe, be part of something special. Contact Ben on +61 431 727 004 E: ben@theobroma.com.au www.theobroma.com.au

Thermawood

Become part of the success story with:

Thermawood Retro-Fit Double Glazing System is designed to retro-fit double glazing into existing wooden windows. Proven systems and processes with the Thermawood Patented drainage system.

• Full Training and ongoing support • Strong industry Growth • Full Advertising & Marketing • Patented product new to the Australian Building industry. We are looking for passionate self-motivated people to join the Thermawood team.

Retro-Fitting fitting double glazing into existing wooden windows allows the home owner to retain the character of their windows, be more energy efficient, reduce energy costs and reduce noise.

Please contact Thermawood Retro-Fit Double Glazing for more information.

Along with installing double glazing Thermawood installers also fit draft/sound seals to all types of windows including double hung windows, casement windows and doors.

Info@thermawood.com.au www.thermawood.com.au 0455 555 330

business franchise australia and new zealand

For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz

A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.

AUSTRALIA AND NEW ZEALAND

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Own three businesses in one with an MBE franchise

Postal Services

Print

Pack & Ship

The need for MBEâ&#x20AC;&#x2122;s business services are in high demand and on the rise. With over 35 service centres across Australia, MBE is the only nationwide provider that offer all of these in-demand services and more, under the one roof. We are looking for savvy business minded people to become our next franchise partners and part of our well established, successful global franchise network. By becoming an MBE franchise business owner, youâ&#x20AC;&#x2122;ll benefit from a 35+ year proven business model, Monday to Friday trading hours, multiple income streams plus extensive training. If you feel you have the level of passion and enthusiasm required to run your own An MBE offers income from not just business, thenfranchise this opportunity mightabesolid for you... join onestream of the worldâ&#x20AC;&#x2122;s largest international mail boxfranchises rentalstoday! but also packing/shipping and printing.

franchising@mbe.com.au 1800 556 245 www.mbebusinessfranchise.com.au

USTRALIA

M

For further information about franchise opportunities in Australia please contact the Franchise Department

1993

A BE

2018

YEARS


KICK SOME GOALS FOR YOURSELF Contact our development team about FRANCHISING OPPORTUNITIES AVAILABLE in your area. Ongoing support & training provided.

ENQUIRE TODAY (03) 9234 2200 franchising@hairhousewarehouse.com.au www.hairhousefranchising.com.au

Business Franchise AUS & NZ Sept/Oct 2018  
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