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T h e

m a g a z i n e

VOL 08 ISSUE 04 may / june 2014

f o r

f r a n c h i s e e s

AUSTRALIA and NEW ZEALAND

boom time

for franchising are you the

perfect franchisee? tax time!

your questions answered

win your own business $4.95 (AUD), $6.95 (nz) inc. gst.

LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE


3733


busi n ess fr anch ise aust r a l i a an d n e w ze a l an d

From the

Editor As the financial year draws to a close, business and franchise owners begin to reflect on how the last year has gone and look towards the next financial year. In this edition of Business Franchise Australia and New Zealand we give you two articles to assist with your financial obligations. On page 16 Steve Vesperman, the Deputy Commissioner for Small Business/Individual Taxpayers at the Australian Tax Office took part in a Question and Answer session and offers tailored advice for both franchisees and franchisors. Also, would you like to minimise the tax you pay on the profits of your franchised business? If the answer is YES, see Tim Kilham’s Expert Advice on page 40 which gives you five tax saving tips on how to achieve this. From our regular contributors, we provide an array of expert advice to help you on your franchising journey whilst featuring some of the most popular franchise systems within Australia and New Zealand. Our feature this issue is Food and Beverage. A recent survey completed shows that 81 per cent of the population eating out at least once a month, more than half of those will visit fast food outlets or Quick Service

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 8 ISSUE 4, may / june 2014

Restaurants. McDonald’s tops the list as the most popular fast food brand among Australians, followed by Subway, KFC, Hungry Jack’s and Domino’s Pizza.** Make sure you read our Profile on Domino’s Pizza on page 52 to find out how you can become a part of Australia’s number one choice in pizza. It is cafes, however, that dominates as the most popular venues to eat out, with 50 per cent of Australians visiting cafes at least once a month.** If this is the franchise sector that interests you the most, then make sure you read our Zarraffa’s Coffee Profile on page 68. The survey also concludes that there are three key drivers of choice; health, taste alongside price and convenience. Luke Bayliss, co-founder of SumoSalad, an innovator in healthy fast food writes one of our Expert Advice articles, ‘What to expect in the first 90 days of opening a franchise’ situated on page 66. It’s an insightful look into the ups and downs you are like to face at the start of your franchising journey. So enjoy our Expert Advice articles and have a look at the numerous franchise systems featured throughout the magazine. Who knows? The next financial year could be the start of your own franchising success. Joanne Tuffy Editor **Source: emma™ industry report - Out of Home Dining Feb 2014

SUPPLIER FORUM

publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au SALES & marketing executive: Suzan Mustafa. suzan@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: Lenard’s 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.businessfranchisenz.co.nz EY have completed agreed upon procedures in relation to our net distribution for Jul/Aug 2013 edition of 6524 copies.

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

Business Franchise Australia and New Zealand 3


Contents may / june 2014 On the Cover 16 Tax Time! Your questions answered

Australian Tax Office

24 Win your own Business with Kwik Kerb 26 Are you the Perfect Franchisee?

David T. Banfield, The Interface Financial Group

28 Boom Time for Franchising

66

34

Robert Graham, CEO Consulting

26

In Every Issue

Profiles

6

44 Franchise Selection

What’s New!

Announcements from the industry

10 Cover story – Lenard’s

Creating a Multi-Store Network Opportunity

12 People behind growth in Franchising

Michael Paul, FCA Chairman

14 Conference 2014

Graham Billings, FANZ Executive Director

52 Domino’s Pizza 64 Cafe2U 68 Zarraffa’s Coffee 70 Franchise Fitouts Australia 76 Franchising Expo

47 Feature: Food and Beverage 95 Behind the Headlines

Jason Gehrke, Franchise Advisory Centre

97 Professional Services Listings 99 Franchise Listings

Have your say

101 A-Z Franchise Directory

36 Quest Serviced Apartments

4 Business Franchise Australia and New Zealand

47

busi n ess fr anch ise aust r a l i a an d n e w ze a l an d


Expert Advice

also in this issue: Appliance Tagging Services..........................101

Australian Drug Detection Agency.. 23, 101

these days? Samantha Roach, FC Business Solutions

40 Tax Saving Tips

Tim Kilham, Lanyon Partners

48 What you don’t know about Food and Franchising

Suzanne Jarzabkowska, DC Strategy

54

34 Why is branding so important

Battery World.....................................................2, 101

Bodiez 24/7 Fitness.............................................101 Brodies Mealmakers.................................. 57, 101 Bucking Bull.....................................................75, 102 Cashflow It.................................................................... 91 Crema Espresso................................................... 102

54 What’s a good excuse?

Ella Bache.................................................................. 102

Fastway Couriers....................................... IFC, 103

62 Why Franchise Agreements favour the Franchisor

Mark Sherry, Harmans Lawyers New Zealand

66 What to expect in the first 90 days of opening a Franchise

Luke Bayliss, SumoSalad

78 Keeping Franchisors on their Toes

Dr Michael Schaper, ACCC

82 Benefits of Bank Accreditation

Labrina Tsekouras, Westpac

FC Business Solutions. ....................................... 19 Fibrenew............................................................ 80, 103

92

David Creais and Carrie Peterson, Bartier Perry

First Class Accounts................................. 39, 103 Frog Rent.................................................................... 104

Gold’s Gym............................................................... 104 Hairhouse Warehouse........................OBC, 104

Harmans Lawyers................................................... 97 Hudsons Coffee............................................61, 104 Inspect My Home................................................. 104 Ivan Poole Lawyers................................................ 97

88 Pop Up into Retail

Jejak Graphics........................................................... 97

Just Cuts™............................................................... 105

Peter Buckingham, Spectrum Analysis Australia

92 A New Kind of Team

Katherine Grace, Graceful Marketing Solutions

Lava Carts. ................................................................ 105 Listen To Read........................................................ 105 Madgwicks................................................................... 97

Franchisor in Depth 20 Hairhouse Warehouse

84

Paraserve Cleaning Services.............. 43, 106

Primal Pantry. ................................................. 75, 106 Red Rooster............................................................. 106

RedCat............................................................................... 1 Revive Projects.......................................................... 98

58 Fasta Pasta

Seven Seas Seafood Café............................. 106

72 Aktiv Brands

Silver Chef..................................................................... 31

84 Sherpa Kids

Skewerz Kebabz................................................... 106 Snooze.............................................................. IBC, 107 Spray Pave Australia...........................................107 Taco Bill. .......................................................................107

Snapshots

The Concrete Cutter...........................................107

32 Vision Alliance

Top Snap........................................................... 39, 108

46 V.I.P. Australia 90 Smart OHS

The Interface Financial Group......................107 Trading, Property & Franchise Expo.......... 33 Unscratch the Surface...................................... 108 Wisewould Mahony. .............................................. 98 Xpresso Mobile Café.......................................... 108


what’snew! 7-ELEVEN TO EXPAND INTO WESTERN AUSTRALIA IN 2014

7-Eleven franchisees of Australia’s leading convenience retailer, to buy into the West Australian market. More than 10 stores are projected to open in Western Australia over the coming year, including standalone convenience stores and fuel stores, with plans for as many as 75 stores over the next five years. 7-Eleven Chief Executive Officer, Warren Wilmot, said that growth in Western Australia has led to this exciting opportunity. “Economic and population growth in Western Australia, and boosted demand for convenience stores in the state, has helped make this expansion a reality,” Warren said. “Since our first store opened in Victoria in 1977, we have been giving our franchisees the chance to work towards a prosperous future for themselves, and their families, by owning their own franchise. We are very excited to expand these opportunities into Western Australia.

7-Eleven has announced it will be expanding into Western Australia this year, marking the first time the company has entered a new market in 32 years.

With Western Australia’s convenience market valued at approximately $270 million, expansion into the state will provide an opportunity for new, and existing

“Consumers have been asking us for some time when we were coming to Perth, because they are desperate for a great fuel and convenience offer. I’m pleased to be able to tell our fans that we’ll see them in WA soon!”

FANZ LAUNCHES NEW WEB DIRECTORY The majority of Franchise Associations around the world own their commercial activities (directories, magazines, expos, etc.) that generate revenue as part of their funding streams. Some years ago, FANZ chose to provide an endorsement to a third party provider of a web directory, publishing franchises for sale and listing franchise advisors in return for a commission based on listings sold. That agreement was not renewed this year and FANZ decided to add its own web directory to form a third arm to its current main site www.franchiseassociation.org.nz and its free pre-entry on line training course for prospective franchisees http://mscpd.org.nz/ login/franchisee_training. Executive Director of FANZ, Graham Billings, said, “Not For Profit organisations are under pressure for sponsorship dollars

in most countries and whilst FANZ has

successfully brought new sponsors on board, the need to have alternative revenue sources

is vitally important to be able to continually develop our services to members.”

All members of FANZ, both franchise systems and supplier/advisor affiliate

members, automatically receive a Bronze

listing as part of their annual membership

fee as well as opportunities to upgrade their

listings at discounted rates to either Silver or Gold with incremental advertising benefits. Non-member advertising is also accepted. The new directory www.buyafranchise.

co.nz was launched to FANZ members at the end of March and received a very positive reaction prior to its going live on the 17th April.

6 Business Franchise Australia and New Zealand


Carl’s Jr. to Bring Iconic, Big and Juicy Californiastyle Burgers to Australia for First Time Global fast food chain Carl’s Jr. ® announced plans to launch its famous, premium-quality burgers in Australia. CKE Restaurants Holdings, Inc. (“CKE”), parent company of Carl’s Jr., has signed a development agreement with Australia’s BKG Group to develop, open and operate 10 new Carl’s Jr. restaurants in central, mid and northern New South Wales coasts. The deal is the first in Australia for the premium burger chain and kicks off an ambitious expansion plan to bring 300 Carl’s Jr. restaurants to the continent over the next 10-15 years. CKE’s partnership with BKG Group follows the record-breaking 2011 launch of Carl’s Jr. in New Zealand. Fifteen Carl’s Jr. restaurants are successfully operating now in New Zealand with an average unit volume of USD$2.2 million. Another five sites are currently in development there. “We are very pleased to welcome BKG Group to the Carl’s Jr. franchise team,” said Andy Puzder, CEO of CKE Restaurants Holdings, Inc. “BKG Group’s demonstrated entrepreneurial stewardship provides strong leadership to launch Carl’s Jr. into Australia. And, Australia is a highly relevant market for our renowned menu of premium-quality selections anchored by our signature 100 percent Angus beef Thickburgers.”

The new partnership leverages BKG Group subsidiary BYO Cellars’ vast customer experience and their ability to connect to Carl’s Jr.’s “Young, Hungry Guy” target audience. Known as retail innovators who understand Australian consumer lifestyles, BYO Cellars proprietors Brian George and Lindsay Brennan were the first to offer offlicense alcohol sales in New South Wales more than 30 years ago. “This is a hugely exciting opportunity for us. Carl’s Jr. meets a gap in the market for a gourmet burger experience at fast food pricing,” said Lindsay Brennan, General Manager, BKG Group. “With the backing of a successful international company that provides high-quality food, edgy marketing, and industry-leading service, we believe Carl’s Jr. will appeal to the Australian culture. “The Carl’s Jr. success in New Zealand demonstrates the potential for the brand in Australia,” said Ned Lyerly, EVP, International, CKE Restaurants. “In New Zealand, we’ve opened 15 restaurants in the past three years and have achieved sales above those seen in North America where the brand is well-loved among 18 to 30 year old young, hungry guys. This first agreement with BKG Group is welcomed as we gain momentum for additional development agreements across the country.”

CHANGES TO THE FRANCHISING CODE The Minister for Small Business, Bruce Billson MP, has announced changes to the Franchising Code of Conduct to come into effect from 1 January 2015. Public consultation closed on April 30, leaving the franchise sector just four weeks to respond to the new draft of the Code. Mr Billson announced the changes via a media statement entitled ‘The Future of Franchising’, stating that the changes to the Code followed the recommendations of the 2013 Wein Review, and further consultation with the franchise sector. Key changes to the Code include reducing red tape, introduction of an obligation to act in good faith into the Code, financial penalties of up to $51,000 for serious breaches, and new powers for the Australian Competition and Consumer Commission (ACCC) to issue infringement notices.

Business Franchise Australia and New Zealand 7


what’snew! New research on whether franchisees perform better A new study is providing fresh insights into the question of whether having franchisee operated businesses is a more effective retail strategy for franchisors than running company owned businesses. The research, conducted by the Franchise Relationships Institute (FRI), was aimed at testing a common belief in the franchising sector that franchised stores perform better than company operated stores under similar conditions. The research, which looked at what happens when businesses are converted from company to franchisee operated, or franchisee to company operated, included 19 established retail networks that control over 3,000 franchised and company owned stores. “Most franchisors enthusiastically talk of stores achieving an immediate lift in sales of over 20 per cent when they change from being managed by the company to being operated by a franchisee,” says Greg Nathan, Research Director of FRI. He says

franchisors and franchise consultants also regularly claim that franchisee operated stores outperform company stores due to the ‘skin in the game’ factor where franchisees invest their own money in a business and are responsible for its profits or losses. “Our hunch was many of these stories are exaggerated to suit the biases of people who want to push the franchising model,” he says. “So we decided to put the proposition to the test using longitudinal data of stores that were converted from one model to the other.” Nathan says the study did in fact find that when businesses convert from being company managed to franchisee operated, performance does improve, especially in the areas of sales growth and cost control. On the other hand performance generally dropped when stores went from franchisee operated to company managed, especially when the business had been performing well as a franchise.

Court finds Sensaslim misled franchisees about Peter Foster’s involvement The Federal Court has found SensaSlim Australia Pty Ltd (in liquidation) (SensaSlim) engaged in misleading or deceptive conduct by failing to disclose Peter Foster’s involvement in the SensaSlim franchise system in its franchise disclosure document. The Court also found that SensaSlim engaged in misleading or deceptive conduct by making false representations about the role of SensaSlim’s officers, namely Peter O’Brien and Michael Boyle, the ‘worldwide clinical trial’ of the SensaSlim Solution and the earning potential of SensaSlim franchises. Mr Foster, Mr O’Brien and Mr Boyle were found to be knowingly concerned in and party to some of SensaSlim’s contraventions. In his judgment, Justice Yates found that, ‘the evidence presents a convincing picture of Mr Foster as the puppeteer who pulled all

the strings [in SensaSlim]’ and ‘Mr Foster controlled and directed, in an executive capacity, the way in which the SensaSlim business was carried on.’ He said that ‘the failure to disclose Mr Foster in the Disclosure Document was deliberate’. His Honour also found that ‘the clinical study of the SensaSlim Solution … is a fabrication, intended to lead prospective franchisees into the false belief that the efficacy of the SensaSlim product as weight loss product had been established scientifically’. “This case was particularly significant because Mr Foster went to great lengths in order to hide his involvement in the SensaSlim business from franchisees and others. The disclosure of Mr Foster as an officer of SensaSlim would have been particularly important to any potential franchisee, given the court orders which

8 Business Franchise Australia and New Zealand

prevented Mr Foster from being knowingly concerned in the promotion or conduct of any business relating to weight loss, cosmetic or health industry products or services,” ACCC Deputy Chair Dr Schaper said. “Misleading representations about important aspects of a business opportunity such as the efficacy of the products and earning potential can cause significant harm to both small business investors and consumers. “People who decide to buy into a franchise system typically put much of their own savings on the line, and they must be able to make informed business decisions on the basis of full and accurate disclosures by the franchisor,” Dr Schaper said.


Master Franchise Rights Secured for Gold’s

It’s known around the world as ‘The Mecca’ of bodybuilding but the owners of Australia’s newest gym franchise opportunity say it will cater to all. Two new branches of Gold’s Gym opened in Canberra last year with a bang, the first one in Beaconsfield Street, Fyshwick, with the second one open shortly afterwards, in Gungahlin. Gold’s seeks to service the need for a lack of quality 24-hour gym options. “We are a multi-purpose facility offering Les Mills group fitness, top of the line Hammer Strength equipment, Ivanko free weights and state of the art cardio equipment. “We are

the plan for Gold’s is to extend its prestigious service in the fitness industry across the country!

here to cater to everyone, mums and dads, young people, older citizens, and people of all levels of fitness,” says Christos Kyrgios (head of legal and regional manager). First opened in 1965 in Venice Beach, California, Gold’s quickly became associated with the growing bodybuilding movement and celebrities including Arnold Schwarzenegger. Today, the company describes itself as the largest co-ed, multipurpose brand in the world, present in 30 countries and with more than 3 million clients, endeavoring to extend its iconic facilities to all of Australia. With the master franchise rights for Australia now secured,

Christos says, “When we came together to open the gym we decided to cater for everyone from competitive bodybuilders through to the casual, every day gym-goer who might want to improve their movement or flexibility through yoga. We differentiate our gyms through completeness and quality, not to mention customer service. Gold’s gyms will be a place for everyone to come and be supported in reaching their fitness targets.”

Dream Doors now franchising in australia Dream Doors the UK’s and New Zealand’s leading kitchen door replacement franchise has just launched their franchise business. The Dream Doors kitchen renovation model has proven to be a real hit with potential franchisees at the recent Sydney Franchising and Business Opportunities Expo with several enquiries from all over Australia. The Dream Doors service is becoming increasingly popular, not only for re-facing but also for the provision of complete new kitchens, bathrooms and bedrooms. In order to supply this service, Dream Doors is committed to recruiting and supporting a

national network of franchisees and agents committed to the Dream Doors concept of quality and cost-effective kitchen, bathroom and bedroom renovation. No longer can companies sustain massive overheads from large showrooms and over staffed premises. This is why Dream Doors has revamped and tweaked its business model for the Australian market to meet the needs of the changing world and Australian economy. Customers want more value for their money, they want eco-friendly products/ alternatives and they also want personal service, this is what the Dream Doors business model is all about.

Business Franchise Australia and New Zealand 9


COV ER STO RY

Lenard’s franchising innovation creates multi-store network opportunity Lenard’s new Hub & Spoke franchising model is a food franchising first – one franchise agreement, five store licences and an ingenious centralsupply operating system that enables Lenard’s franchise owners to build their own multi-store network from day one.

“Now we’re more in a position to compete with the Coles and the Woolies and get our product to the customers in more areas, in more shopping centres.” 10 Business Franchise Australia and New Zealand

Lenard’s Hub & Spoke model provides a system by which franchise owners produce their fresh chicken products in one central location (The Hub) to distribute for sale through a network of smaller, reduced-cost retail stores (The Spokes). The system delivers significant operational and cost efficiencies for multi-store operation both in establishment and operation.


Where Lenard’s products have traditionally been made in a back-of-store production area at each store, this is no longer required under the new Hub & Spoke model. This eliminates duplication of costly plant and equipment as well as reducing the required size of leases, removing a significant portion of the cost in establishing a multi-store network. “We’re not encouraging people anymore to just come in and buy one shop... Hub & Spoke gives our franchise owners enormous opportunity to get into the smaller areas and develop the growth of their business,” said founding director Len Poulter. Western Australian multi-store franchise owners Melanie Ellis and Teresa Davies successfully implemented the Hub & Spoke model to their Lenard’s business in order to grow their multi-store network. “Now we’re more in a position to compete with the Coles and the Woolies and get our product to the customers in more areas, in more shopping centres,” said Melanie. Reduced operating costs under the Hub & Spoke model further contributes to its advantage. Central production minimises stockholdings and potential wastage and, in addition to considerable labour efficiencies in production, a dedicated make-up team provides for improved quality control. And with no production required in the Spoke stores fewer staff are required, further reducing labour overheads. “We actually saw a dramatic jump in the sales [through the Spoke stores], because we found that the staff were totally focussed on the customer,” said Melanie.

Reduced-cost retail sites is another significant advantage arising from the Hub & Spoke franchise model - retail leases are smaller, site options more flexible, and fit out costs dramatically reduced. Lenard’s also released a modular 3.3m by 6.6m kiosk-style store design to further reduce store (Spoke) set up costs. “The modular store was a great complement to our Hub & Spoke offer. It can be as much as half the cost of setting up a traditional store. And because it’s modular, it’s transportable too – at the end of lease you could literally just set it up in the next location,” said Len. Lenard’s has also reinvented their Franchise Agreement in line with their Hub & Spoke innovation, now providing franchise owners with five store licences at the outset of their franchise agreement. “Hub & Spoke is just so logical that we’ve given all the franchise owners the opportunity to develop their businesses. And we think that providing them with those additional store licences from day one really is the best way to do that,” said Len. Lenard’s was established in Brisbane in 1987 by Master Butcher, Lenard Poulter, when he identified a gap in the market for valueadded chicken products. Today, Lenard’s is represented through 220 outlets nationally and is considered one of Australia’s leading fresh food retailers and a pioneer in the fresh ready meals market. In over 25 years in operation, the Lenard’s business has never stopped challenging itself to do better for its customers and

for its franchise owners. The launch in recent years of two of the most exciting innovations in the business’ history, through the new Hub & Spoke franchise model and also the introduction of Easy Cuts, Lenard’s revolutionary supply and production system, are a testament to this. Both systems represent industry-first innovation and enormous profit potential for Lenard’s franchise owners. Australian’s eat chicken on average three times per week (more than beef, lamb or any other meat) and over 44kg per capita annually. With the fresh chicken retail market worth over $6 billion a year, Len Poulter is confident of strong growth for the business over its next 25 years. “We’re in the business of feeding Australian families and delivering them new and fresh mealtime inspirations every day. I’m proud that even after 25 years we’re putting fresh new ideas in the window for our customers and supporting our franchise owners with new tools to grow their business. To me that’s a winning combination.” To find out more about joining the network of Lenard’s franchise owners contact: Phone: 1800 068 111 Email: Opportunities@lenards.com.au Web: www.franchise.lenards.com.au

Business Franchise Australia and New Zealand 11


fr anch ise cou nci l of aust r a l i a

People behind growth in Franchising Last year we beat the drum of consolidation and collaboration. 2014 is shaping up to be the year of growth.

Despite turbulence in the Australian aviation and automotive industries, news for small business coming out of Canberra and the corporate sector has been decidedly positive. The inaugural Westpac-Melbourne Institute Small Business Index released in March indicated small businesses are performing

12 Business Franchise Australia and New Zealand

better than they were three months earlier and owner operators are feeling positive about their current and future performance, despite tough competition and a challenging economy. The index showed that four out of five small businesses expected their sales to increase


“Passionate, motivated franchisees with the ability and readiness to invest are the driving force behind the continued growth in this sector.” Michael Paul | Chairman Franchise Council of Australia

and net employment is predicted to increase also. In February, Small Business Minister, Bruce Billson made an appeal to lenders at a G-20 conference in Sydney. Despite the recovery from the global financial crisis, the availability of finance for small business has not improved, and in the Minister’s view, is hindering Australians going into business. “This inability to obtain start-up finance is a strong disincentive to those looking to start a business. “The Government wants this to change. A lending environment where families do not have to put their home on the line to obtain finance would lead to more entrepreneurship in Australia,” Minister Billson said. Passionate, motivated franchisees with the ability and readiness to invest are the driving force behind the continued growth in this sector. The FCA fully supports Minister Billson in his plan to make running a small business in Australia more accessible and less burdensome. Along with the news coming out in mainstream media in the first couple of months of the year, this is also the message coming loud and clear from within our membership. Evidence from our member survey conducted at the close of 2013 highlighted two of the major challenges facing our members were finding suitable franchisees and access to finance to ensure the right people are becoming a part of their brand.

“If starting a business is your dream, there are a number of steps you can take to increase the chance of it being a successful reality. First and foremost, your own research and due diligence is paramount.” To this end, ‘people’ has become a key theme and focus for FCA this year. We will be working at various events to ensure the wider small business public have access to information, research and advice should they be interested in becoming part of the franchising sector. Along with the Franchising and Business Opportunities Expo, the Franchise Council will also have representation at the Food Service Australia show, the Regional Living Victoria show and various internal careers expos held by companies in the aviation and automotive industries. As always, our aim is to promote best practice in Australian franchising. A big part of that is ensuring prospective franchisees are as knowledgeable and prepared as possible for life with a franchise brand before signing up. Alongside this, we see our role as working with Government and other stakeholders to provide the best possible support for the sector. As well as a Small Business Minister who is working to lower the barrier to entry for everyday Australian’s who want to work for themselves, there are support services like the Office of the Franchising Mediation

Adviser and the Australian Competition and Consumer Commission, who have a hand in monitoring, supporting and enhancing the franchise sector. The Franchise Council of Australia works to maintain relationships with these bodies to provide the best representation of our members where their sector is concerned. If starting a business is your dream, there are a number of steps you can take to increase the chance of it being a successful reality. First and foremost, your own research and due diligence is paramount. However, it is reassuring to know the current Government, along with organisations like the Franchise Council of Australia, the Australian Competition and Consumer Commission (accc.gov.au) and the Office of the Franchising Mediation Adviser (franchisingmediationadviser.com.au) are all working together behind the scenes to ensure the best possible environment for franchisors and franchisees to do business. Start your research today! Web: www.franchise.org.au

Business Franchise Australia and New Zealand 13


Franchise Association of New Zealand

Conference 2014 10 - 13 July Millennium Hotel & Copthorne Hotel Queenstown This year’s Franchise Association Conference will be returning to Queenstown, the location for 2009’s highly acclaimed conference, ‘Strategies for Success’. Queenstown is one of New Zealand’s top visitor destinations and sits on the shore of the crystal clear Lake Wakatipu set among dramatic mountain ranges. If this becomes your first visit to the region you’ll soon understand its attraction. The Millennium is the main conference hotel and is set against the stunning alpine backdrop with the Copthorne, just across the road, providing some alternative accommodation and some conference functions, with many rooms overlooking the lake. The Franchise Association of New Zealand’s conference will bring together the franchise community over three days to: network, exchange ideas and interact with other systems and service providers; catch up on industry trends and hear what experts in the field of franchising have to say. Conference registration will include invitations to three social events where delegates can relax, recharge and enjoy their surroundings. An array of talented speakers will be led by the opening session presented by well-known television personality, clinical psychologist and author, Nigel Latta. Afternoon workshops provide delegates with an opportunity to drill down on some specific areas of interest. Smaller groups made up of likeminded individuals, facilitated by an industry expert; provide a valuable insight into the world of franchising. As an acknowledgement to the previous Queenstown Conference, this year’s theme will be ‘Pathways to Success’ and will take delegates on a journey through the opportunities and issues to be faced at the different stages of the development of a franchise – definitely one not to miss! The natural beauty, collegial environment, and inspirational speakers will combine to ensure a conference that is vital dynamic and must do for those in franchising and registrations will soon be available online at the FANZ website www.franchiseassociation.org.nz

14 Business Franchise Australia and New Zealand


“Conference registration will include invitations to three social events where delegates can relax, recharge and enjoy their surroundings.�

Millennium Hotel

Copthorne Hotel

Business Franchise Australia and New Zealand 15


e x pert a A dv ice

Got questions? We have the answers ! Here at Business Franchise magazine we were excited to be given the opportunity from the Australian Tax Office to participate in a question and answer session with the Deputy Commissioner for Small Business/ Individual Taxpayers, Steve Vesperman. As this is a rare opportunity, rather than keep it to ourselves we offered this out to the wider community and publish a selection of questions and the corresponding answers, relevant to franchisees and franchisors, for you below.

@BFranchiseAusNZ follower, via Twitter: Question: I’m looking into starting up a business for the first time. Does the ATO have any advice? Answer: You’re certainly on the right track. Starting a business is a big decision, and needs careful research and planning well before you start trading. The ATO will provide the necessary support to assist you to make your business a success and there are many ways you can access information to help you understand and comply with your tax and super obligations.

• Our website (ato.gov.au) is a valuable source of free information and tools you can access at any time to help you when starting a new business. • Our new ATO App also contains information for small business that’s accessible using mobile devices at any time. • The online Small Business Assist tool will also help you find answers to your tax and superannuation questions.

16 Business Franchise Australia and New Zealand

Getting started • Choose a business structure and develop an appropriate business plan. • Make sure you understand your obligations under PAYG, GST, Fringe Benefits and Capital Gains taxes, so you’ll need to know about applying for an Australian Business Number (ABN), and which taxes you need to register for. • Talk to people with similar businesses or industry bodies.


“Starting a business is a big decision, and needs careful research and planning well before you start trading.” Steve Vesperman | Deputy Commissioner, Small Business/Individual Taxpayers Australian Tax Office

Running your business • Take advantage of the record-keeping advice and tools on our website. Good record keeping is vital to meeting your tax and super obligations, managing cashflow and applying for credit and other assistance. • Make sure the way you bill your clients and pay your own bills and other expenses complies with the law especially when it comes to GST. • Make sure your business plan factors in growth or contraction in business revenue. • There are a range of tax credits, offsets and deductions which can reduce your costs. You need to be registered for some such as the fuel tax credits scheme. A tax professional or the ATO website has the information you will need to take advantage of these schemes and, where necessary, how to register for them. • You will need to fulfill reporting obligations including a regular Business Activity Statement (BAS) as well as Income, Fringe Benefits and Capital Gains tax where appropriate. A tax professional or information on the ATO website will assist ensure you meet these requirements. Employing people • Whether your workforce is made up of employees or contractors, there are tax and super obligations that apply to them. The employee or contractor decision tool on our website (ato.gov.au/Calculatorsand-tools/Employee-or-contractor/) will help you to figure out if your workers are employees or contractors. • Make sure you withhold the correct amount of tax for your employees or, where appropriate, contractors and, make

• advertising fees, and

sure you are across the superannuation obligations applying to them.

• training fees (specific to the franchise)

Wendy Atkinson, NSW, potential franchisee, via website: Question: Are my obligations to the ATO different if I’m a franchisee, rather than an independent business owner?

Answer: Starting and running a franchise

business is much like starting and running any other small business so, in general, the answer is no. There may however be some additional matters for you to consider if you’re a franchisee. Franchising and tax The right to use a business brand name or trademark and to produce or distribute products or services is granted by the franchisor to the franchisee who actually owns and/or runs the business.

Tax and superannuation law applying to franchisees is the same for any business owner/operator. You need an ABN to register for goods and services tax (GST) and other business tax and credits for which you may be eligible. Your ABN is a single identifier for all business tax dealings with us and, often, for dealings with other businesses and government agencies.

Depending on the circumstances, your franchise renewal fees may form part of your cost base. Any franchise renewal fees not included in your cost base may be deductible as a business expense and subject to the prepayment rules. An agreement to purchase a franchise often includes ongoing payments of royalties, interest payments or levies to the franchisor. These payments typically cover head office expenses, such as administration, advertising and technical support. Unlike the initial up-front fee, when you work out your annual income tax liability you can deduct payments of royalties, interest payments and levies in the year you incur them – this is because they are regarded as a continuing expense in carrying on your business. GST The payments you make to the franchisor will generally also include a goods and services tax (GST) component if the franchisor is registered for GST.

Income tax In most cases, earnings and payments you receive will be assessable income, which, for tax purposes, you treat like any other business income. You may be able to claim as business expenses: • franchise service fees or royalties

The initial franchise fee or transfer fee you pay to the franchisor forms part of the cost base for your franchise business as your capital asset. Because these fees are capitally invested in your business, you do not deduct them as business expenses from your annual income tax.

Jason Gehrke, Franchise Advisory Centre: Question: What is the ATO’s position on the amortisation of upfront franchisee fees paid by franchisees to franchisors?

Business Franchise Australia and New Zealand 17


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“If the business is simple to explain and simple to run then you will normally find franchisees will be attracted to the model.” Answer: The answer to this is a little

technical, but essentially the upfront fee is only that part of the initial investment attributed by the franchisor as the cost to access their intellectual property, brand and systems. This does not include training, shop fit-out, equipment, initial stock, and the like, which would also comprise the initial investment made by franchisees upon joining a franchise. Upfront fees, whether they are the initial franchise fee or transfer fee, paid to access the right to use systems and other intellectual property, would generally be of a capital nature. The upfront fee would form part of the cost base for your franchise business as a capital asset. Because the upfront fee is included in the cost base, it is not deductible expenditure or claimable as a depreciable asset. and

Question: In last year’s Review into

the Franchising Code of Conduct by Alan Wein, Recommendation 6b stated: “The Code be amended to ensure that franchisees can be made unsecured creditors of the franchisor by notionally apportioning the franchise fee across the term of the franchise agreement, so that any amount referrable to the unexpired portion of the franchise agreement would become a debt in the event the franchise agreement ended”. What is the ATO’s position on this?

Answer: Whether the upfront fee becomes

a debt or not does not change the nature of the fee for tax purposes – the principles outlined in the answer to the first question above on the franchisee fee will generally apply.

Marwan Kojok, Baybridge Lawyers: Question: Can a franchisor allocate the

initial franchise fee as income over the term of the franchise? Or must it be accounted for as income at the date it was received,

taking into account that the initial franchise fee is apportioned to the use of the brand, the system, and training in some cases?

Answer: Again, a good question, and the

answer is technically based. It relates to the derivation of income by the franchisor. The normal derivation rules will apply to this situation and generally income is derived when it is earned. In general, business income is earned when a recoverable debt is created, as indicated in our official tax ruling TR 98/1, paragraphs 9, 10, and 11.

Editors question: Question: What issues relevant to

franchisees will the ATO focus on this year?

Answer: Our role is to assist businesses understand and comply with their tax and super obligations. To ensure that there is a level playing field for small businesses we also need to take action where we identify that businesses are not doing the right thing and not complying with their obligations. For small business, particularly those getting started, we focus on helping ensure you get it right the first time. We understand getting on top of your tax obligations can be daunting. So, if you are unsure visit our website, use the ATO App or give us a call, and do it early. We’ll work with you to ensure you understand your obligations. Take the time to get it right at the start. Make tax part of your initial business planning. Studies have linked business success with the ability to stay on top of your obligations – so give yourself the best chance. The free information we provide for business owners to help them do the right thing is available online so you can access it any time. The support and assistance we provide for small business includes: • YouTube videos on a wide range of small

18 Business Franchise Australia and New Zealand

business topics including tips on GST. Go to the YouTube icon on our website. • the ‘ATO App’– it has been downloaded by over 100,000 people already, and includes tax tools, videos and frequently asked questions. • specific material on our website at ato.gov. au/franchise. • an after-hours call-back service available by phoning 13 28 66 and we’ll phone back at a time convenient to you. • assistance visits where we come to your premises and provide advice specific to your needs, and • the interactive Small Business Assist tool on our website. Type in a question and it searches all the information in the website to give you an answer.

ATO franchisee help & assistance Small business assist (ato.gov.au/sba) • Register for ABN, GST • Understand tax and super • Get BAS right Assistance visits to your business – no strings attached To arrange ring 13 28 66 during office hours. Advice on: • record keeping • managing cash flow and debt • BAS obligations • Fuel tax credits • superannuation After-hours call back • Information, help and assistance by phone after hours - to arrange, ring 13 28 66 during office hours You can keep up to date with your tax obligations at: Web: www.ato.gov.au.


Business Franchise Australia and New Zealand 19


FR A NCHISOR IN D EPTH : Ha i r h ouse Wa r eh ouse

Hairhouse Warehouse

continues to set new

benchmarks Hairhouse Warehouse has always been about looking good, since opening at Knox Shopping Centre, Victoria in 1992 to the latest store openings at Figtree in Wollongong, New South Wales and Craigieburn, Victoria.

With a focus on providing the ultimate customer experience and care, Peter Fiasco, Franchise Development Manager, explains why Hairhouse Warehouse is enjoying an amazing growth surge and looks forward to the 12 months ahead. “We are in a period of sustained growth; and have recently looked at new store openings in Australia where we can better meet the needs of our customers. These key areas include Hervey Bay, Gladstone in Queensland, Macquarie Centre North Ryde in New South

20 Business Franchise Australia and New Zealand


Wales through to Clarkson in Perth, Western Australia.” While the economy has been challenging for many businesses, the largest Australian retail hair care and beauty salon franchise is booming with almost 150 franchises around Australia. In these challenging times, now is the time to join an established franchise network.

“Hairhouse Warehouse has a model that works. There are not many businesses out there that have multiple revenue streams and are not affected by the growing threat of internet sales.” Lube Markovski, Franchisee Wollongong.

Why Hairhouse Warehouse? Peter explains why this successful model works so well. “We are committed to helping our franchisees get ahead. As a part of the Hairhouse Warehouse network, franchisees are able to take advantage of our great buying power. This means franchisees can offer their customers the best value on more brands and products, as well as access to our proven operating system that we’ve been successfully using for 20 years.” Peter also adds “Having a range of revenue streams is a core part of any healthy business. It helps you maintain a steady income year round. In addition to having a full service salon and an extensive range of professional products, franchisees can diversify their revenue streams by providing additional services including body piercing, eyelash bar, makeup application and waxing.” The franchise system has also seen success due to the product and service offer catering to a wide target market - both males and females between the ages of 16 and 50 and older! With a simple yet truly effective turnkey operation, the Hairhouse Warehouse network sets the benchmark in the industry. “It is an exciting time for the Hairhouse Warehouse network,” says Joseph Lattouf, co-founder of Hairhouse Warehouse. “We’re looking for people with a desire to run their own business and join our community of franchisees. “It is exciting to see franchisees coming from a diverse range of industries and bringing with them passion and drive to the

“With a simple yet truly effective turn-key operation, the Hairhouse Warehouse network sets the benchmark in the industry. hair and beauty industry, which has shown consistent growth in the Australian market. Our franchisees are ultimately the face of our brand and work on the front line in our stores to deliver the Hairhouse Warehouse experience to our customers.” Peter further adds that “Owning a business is challenging and time consuming. We see the new franchisees that are dedicated and have the drive and enthusiasm to prosper and be proud of their successful business.” Hairhouse Warehouse looks for franchisees that have a drive to succeed, to operate their own business and to be a part of a brand that supports their growth. An understanding of managing a team of people to achieve a common goal is a key attribute that will help a franchisee to run a prosperous store. Store location is also a key component to the success of the brand. As Hairhouse Warehouse CEO Arthur Mitroulous puts it “Looking for new opportunities and locations is crucial to the company’s continued growth and success.” Hairhouse Warehouse has developed a full retail website and was one of the first retail franchise systems to launch a ‘Click and Collect’ function, where the consumer is able to purchase stock online and pick it up from the store of their choice. David Lithcow, E-commerce Manager says “Our whole online strategy is to develop omni channel solutions for our customers, while also being focused on driving consumers to our stores while giving them the option of shopping how they want to shop, while supporting our franchise network.”

“What I love about Hairhouse Warehouse is that as a brand we continue to evolve and remain ever relevant to our customers’ needs.” Lube Markovski, Franchisee Wollongong.

Industry Leading Training and Development Every new franchisee benefits from a comprehensive induction program. This program covers a range of administrative skills and hands-on training topics that are the key to running a successful Hairhouse Warehouse franchise. Training is hosted in the most successful, best-practice stores, as well as at head office. Hairhouse Warehouse knows that training doesn’t stop when they hand over the keys. From day one, new franchisees benefit from one-on-one mentoring from a member of the operations team to ensure that they continue to receive assistance with the knowledge and tools to succeed as a franchisee, long term, with Hairhouse Warehouse. They take a multi-channel approach to training and have aligned themselves with multiple training providers who are all recognised as leaders in their areas of specialisation. They are there to impart as much knowledge, skills and information as possible to meet some of the more specific needs of the franchise business. The very best training is offered across the core areas of our business: salon services,

Business Franchise Australia and New Zealand 21


FR A NCHISOR IN D EPTH : Ha i r h ouse Wa r eh ouse

“Hairhouse Warehouse looks for franchisees that have a drive to succeed to operate their own business and to be a part of a brand that supports their growth.”

in the industry, further supporting our franchisees success. As a franchisee with Hairhouse Warehouse you work for yourself, not by yourself. The support of the franchise network ensures each franchisee has the opportunity to leverage off the experience of other franchisees. The network also benefits from the Hairhouse Warehouse National Marketing Fund which is administered by national office. The fund ensures franchisees enjoy national advertising exposure across broad mediums such as retail catalogues, TV, radio, magazines, press and online. Their advertising and marketing campaigns are coordinated to ensure maximum exposure during key retail trading periods with a calendar of marketing events through the period. Hairhouse Warehouse has sourced fully approved bank accreditation with a number of leading Australian banks including NAB, ANZ and Westpac, subject to individual application and approval. Hairhouse Warehouse provides many other benefits, including: • A very prestigious and valuable Hairhouse Warehouse trade mark and trading name; • Site analysis, selection, negotiation and acquisition assistance; • Operational support systems;

Lube Markovski, Franchisee Wollongong

retail, business management and leadership. Access to ongoing training and development programs is not dependent on store locations – they ensure that all training is available no matter where the franchisee is located.

Support Franchise success is built on the expertise of seasoned professionals at national office. Where required, franchisees can seek the advice and support of national office key personnel and their respective areas of expertise including marketing, operations, buying, leasing, store fitout, IT, legal, HR and finance.

Co-founders Tony and Joseph Lattouf

Hairhouse Warehouse works closely with its supply chain in order to ensure that the franchise network can access the best professional products at the highest margins

22 Business Franchise Australia and New Zealand

• Scheduling, construction and management of the total store-fit out; • Assistance with opening promotion planning; • Access to management and product systems developed by Hairhouse Warehouse; • Access to the largest professional hair care product range in Australia; • High level and ongoing training; and • Financial reporting systems. If you wish to share this vision and passion, then Hairhouse Warehouse may help you achieve the goal of owning your own business. For a confidential discussion please contact Peter Fiasco on: P: +61 451 370 060 E: peterf@hairhousewarehouse.com.au W: www.hairhousewarehouse.com.au


THERE’ S’ S AA LOT LOT OF OF THERE

MONEY IN IN DRUGS DRUGS MONEY

makesure sureyou youcontrol controlaaterritory territory make The Australian Drug Detection Agency wants highly motivated and independent people to join Thethe Australian wants highly motivated and independent people to join team, asDrug eitherDetection Master orAgency Regional Franchisees. the team, as either Master or Regional Franchisees. The ADDA is a proven business model that will provide excellent financial rewards for those Thewho ADDA a proventobusiness model willcriteria. provide excellent financial rewards for those areisprepared work hard andthat fit the who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals who have served, or are currently Thisinislaw a huge opportunity business-orientated individuals who have or are currently enforcement, the for emergency services or the armed forces, to getserved, in at the ground level in law enforcement, the emergency services or the armed forces, to get in at the ground level and grow their own enterprise. and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Our guess is Yes, you are! s Franchises selling fast s Franchises selling fast s Masters sold in QLD/NSW/VIC s Masters sold in QLD/NSW/VIC

Email: kirk.hardy@tadda.com.au Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au Website: www.tadda.com.au

Business Franchise Australia and New Zealand 23


profile : K w i k K er b

Kwik Kerb:

More Than A Franchise “You are never on your own, head office is only ever a phone call away.” For more than 25 years, Kwik Kerb have been the world leaders in domestic continuous concrete edging. With a strong market share, it would be easy to sit back and enjoy the success and reap the rewards; however, Kwik Kerb is always one step ahead, offering the very best to its business owners and customers. During the 1980’s various styles of plain and coloured kerbing were being produced by Kwik Kerb business owners. Kwik Kerb quickly began to innovate and develop new and previously untried processes which resulted in developing a one-day process for stamped and patterned kerbing - the famous Eurostyle® range. Unmatched by any other – Eurostyle® is the premier concrete edging product in the world. Kwik Kerb then added the brand new Eurobrick® range of kerbing, which creates an authentic brick and mortar appearance. Eurobrick® is currently the hottest kerbing product available and is even more profitable for Kwik Kerb business owners. Kwik Kerb business owners start their new business already well ahead of the game. All kerbing equipment comes in a bright red specially designed trailer, which acts as mobile advertising. Just being seen driving around creates Kwik Kerb business. A unique machine called the ‘Edgemaster’ is the cornerstone of this truly innovative business system. The Edgemaster can extrude concrete edging on site at up to 60 metres per hour, with experienced Kwik Kerb operators able to install 100m or more in a day. This

efficiency allows for an excellent earning potential for the business. Combining the unique Edgemaster machine along with a complete business system containing all the equipment, promotional materials plus training, you benefit from using the unique and proven system, all designed to make you, the business owner, successful from day one.

TRAINING AND ONGOING SERVICE The comprehensive training course has been successfully developed over the last 25 years and ensures that new owners are ready to lay kerbing from the first day, meeting the high standards that customers expect from the Kwik Kerb name. Some of the areas covered in the training include quoting, marketing and advertising techniques, hands-on operation of all machinery, service and maintenance of tools and machinery and presentation and customer service skills, You are never on your own, head office is only ever a phone call away. Plus, you also have access to an online Operator Forum where you can get technical advice from other Kwik Kerbers around the world and access exclusive marketing and technical documents. Kwik Kerb is a licensed business opportunity, not a franchise. What this means to the business owner, is that once the licence is purchased, the business is yours. There are no ongoing royalty fees and no restrictions on territories. You are free, without boundaries, to expand your business as you see fit and keep all the profits. Since its inception, Kwik Kerb has grown to more than 300 business operators in Australia and all Kwik Kerb equipment is

24 Business Franchise Australia and New Zealand

designed and manufactured here in Australia. This is then distributed internationally to the thousands of Kwik Kerb business owners established in countries around the world.

INTERESTED? Win your own Kwik Kerb business Kwik Kerb are giving one lucky reader the opportunity to own and run their own business and achieve their own financial success, AT NO COST. Marketing Manager, Alex Colls explains, “We are giving away, free of charge, a brand new fully equipped trailer, along with the same materials, training (plus accommodation if inter-state) and support that someone who purchases a Kwik Kerb business would receive.” If this sounds like your dream business, make sure you enter the competition by the closing date of Friday 19th September. To contact Kwik Kerb: Phone: 1800 773 231 Web: www.kwikkerb.com.au


WIN

b r e K k i w K w e N A Brand m e t s y S s Busines Kwik Kerb will be giving away a full new Business Package to one lucky reader of Business Franchise magazine. THE BUSINESS PACKAGE WILL INCLUDE: s All machinery s All tools s All marketing material s Sign-written box trailer s Comprehensive training s Flights to and from training* s Accommodation at training* s Ongoing service from Head Office To enter please email giveaway@kwikkerb.com.au with the subject line ‘Kwik Kerb Giveaway’. Please attach a one page presentation outlining why you would make a great Kwik Kerb operator and small business owner, including any relevant work history/ experience. Also tell us why you would be interested in owning a Kwik Kerb Business and how you plan to make it a success. To be eligible you will also need to include your:

s s s s

FULL NAME ADDRESS PHONE NUMBER EMAIL

We look forward to viewing your presentation.

Entries will close on Friday 19th September with the winner to be announced in the Nov/Dec edition of Business Franchise magazine. *Note: The flights and accommodation aspect of the Giveaway will be included only if the winner is from outside a reasonable distance to travel by car to training. This decision will be at the discretion of Edgetec International Pty Ltd.

Business Franchise Australia and New Zealand 25


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they do not need a lot of franchisor input and support. Unfortunately there are few people that are truly self-disciplined when it comes to running a business. This is in part because a business is a multi-faceted operation requiring multi-faceted skills and knowledge. It is unlikely that one person will be a provider of such a range of skills and, therefore, they will need help, guidance and support throughout their business life. The other problem with too much selfdiscipline is that it sometimes creates a lack of output - the franchisee is caught up in their own world of organisation and is not getting the big picture information. Selfdiscipline is good but is not the total picture - we need self-disciplined individuals that recognise they are part of a bigger system and, therefore, need the ability to work within that framework. We said that self-disciplined people could be trained and then left to get on running the business. That raises the issue of ‘are you trainable’? A franchise is a system, invariably one that is proven, written down and has been in existence for a long time. Because franchisees all work within the same system they all need to be trained in the same way. Most people will admit that they are trainable, especially at the point when they are seeking a franchise award.

The Perfect Franchisee As a franchisor I can confirm that we are looking for ‘the perfect franchisee’. It has also come to my attention that every other franchisor is also looking for the very same perfect franchisee. Analysing franchise websites, it soon becomes apparent that franchisors are really all looking for similar, if not the same, characteristics in their would-be ‘perfect franchisee’. If you are reading this article as a prospective franchisee you might want to dwell on some of the common traits that franchisors look for in their perfect match. If you are not already perfect, maybe this will help to get you there before the all-important qualifying interview for the franchise award!

A quality that comes up many times as a required attribute is that of being an excellent communicator. Most people see themselves in this category automatically. Franchise candidates invariably have the ability to talk about themselves and their accomplishments, their background, their ambitions, and so on without hesitation. Most individuals naturally fail to realise that this ability ‘to talk’ is not what classifies them as a good communicator. The ability to listen and absorb information is of equal, if not greater, importance to that of just speaking. Most franchisees will have some interaction with customers or clients as they run their business on a day-to-day basis, so their lack of ability to listen to the client is often the start of their downfall. When it comes to providing a service, it really is ‘all about the client’ and not about the franchisee. We need more listening in many cases, and less speaking - strike a balance to make it work. Franchisors like ‘self-disciplined’ individuals – why, because they can be trained and basically left to their own devices. By definition, if they are self-disciplined

26 Business Franchise Australia and New Zealand

Often, however, that proves not to be the case, and while they can sit through hours of training sessions and extensive PowerPoint presentations; one questions if the information is really taking root. Does there come a point in time when our ability to absorb slows down while we are being presented with new and unique ideas and methods? We hear the story; the facts seem logical but are they being absorbed to later be put into practice - maybe, maybe not. As a potential franchisee one should look at this aspect and determine if you are trainable and, if so, can you then put that training into practice. Maybe the question is also, do I want to be trained? Some franchisees enter a franchise system with little intention of absorbing the training sessions. The ability to sit through a few hours of PowerPoint presentations doesn’t create a trained franchisee. Maybe the topic of the ‘work ethic’ goes along with the self-discipline aspect. As with


“Maybe as a franchisor we are really looking for people that may have some entrepreneurial aspirations that have yet to come to maturity.” David T Banfield | President The Interface Financial Group

Maybe as a franchisor we are really looking for people that may have some entrepreneurial aspirations that have yet to come to maturity. Where does all of this leave us in our search for the perfect franchisee? Probably with knowledge that we already possessed there is no perfect franchisee. Therefore, if you are reading this article as a potential franchisee for any system, maybe you can relax knowing that the qualities you bring to the table will be more than acceptable.

many other traits, real or imagined, potential franchisees will all attest to their extensive work ethic and their ability to make things work. Hard work is second nature to many ‘corporate refugees’ transitioning from major corporate employment into the realm of self-employment and entrepreneurship. They are used to working a staggering number of hours every week. Now, in their new environment, they are probably not faced with the same challenge. Working ‘smart’ as opposed to working hard and long is the preferred way to go. Because, as we have stated, a franchise is a well-tested and proven system, the franchisee should expect to work smart rather than hard and needs to have the internal ability to make such a transition. That transition aspect often shows that some people are not perhaps as self-disciplined at they thought they were. Consider a senior executive working in a multi-national corporation with hundreds of employees, many of whom report to the individual - a very structured environment with many ‘safety nets’ and procedures for everything. Now take that same individual and place him or her in a franchise

environment - maybe even in a home-based one-person franchise. This represents not just a leap into entrepreneurship, but rather a quantum leap. The franchisee will indeed have to muster all of their self-discipline qualities to make things work. In our search for the perfect franchisee we often use terms such as entrepreneur, entrepreneurial outlook, etc. implying that we would like to recruit entrepreneurs as franchisees. I question if that is really the case. By definition an entrepreneur is a person who organises and manages a business usually with some capital involvement. On the face of it the definition seems to fit our search pattern. In reality, however, a true entrepreneur is unlikely to be satisfied with a franchise environment. Entrepreneurs by nature are creative individuals that constantly want to re-invent the wheel and find a better way to do everything. This is not a set of circumstances that a franchisor wishes to encounter - they need someone who will accept their already proven system and work within that, notwithstanding the occasional suggestion for minor improvement.

If we cannot recruit the perfect franchisee, maybe we can create a perfect franchisee from our existing franchisees? Maybe as franchisors we can take the raw material that we have and create that perfect individual. A franchise community is a complex microcosm of individuals that bring unique gifts, talents and experience to a franchise organisation. It’s when we see them as a group that we can say, “yes - we already have the perfect franchisee” - the sum of the parts is surely greater than the whole. David T. Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years. He is instrumental in taking Interface from a one franchise, one country situation to a multi-country international organisation with over 150 franchises and two distinct franchise offerings. The Interface Financial Group currently operates in eight countries serving the small business market in each location. In many countries Interface represents the largest small business capital provider to the SME community. Their latest innovation allows their franchisees to borrow from the franchisor to dramatically escalate the return they earn on their working capital. Contact David at: Email: ifg@interfacefinancial.com

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Job Losses are a Potential Boom for Franchising The franchise sector could be a beneficiary of the workforce contraction by Australian companies In recent months the media has been full of stories about the collapse or imminent shut down of major manufacturers in Australia – Toyota, Ford, GM, the reduction in workforce numbers by miners such as Alcoa and then there are major employers like Qantas saying they have to cut 5000 jobs. The list goes on. Headlines like “States face jobs crisis” and “up to 50,000 jobs could be lost in the next few years” have raised alarm bells with politicians, economists and employees.

28 Business Franchise Australia and New Zealand


“Franchisors will have greater choice between prospective franchisees and the human capital and financial capital that underpins the franchise models will be more abundant.” Robert Graham | Managing Director CEO Consulting

There is no doubt that the manufacturing sector and many companies in other sectors in Australia are now at a critical point. Companies and employees are having to think about the repercussions of such announcements. However not all repercussions are bad. In fact, it could be the beginning of a cyclical boom for the franchise sector as displaced employees look for new opportunities and more control over their future. In the recession of 1989 – 91 we saw unemployment spike but we also witnessed a golden period for growth of Australian franchise systems. Cashed up with retrenchment payouts and motivated to find a meaningful and more controllable work environment, many who lost their jobs purchased franchises. This recession affected both blue and white collar workers so the wave of prospective franchisees spread across most of the franchise sector. Likewise with the GFC in 2008 – 10, many workers had their hours cut or lost their jobs. However this time many did not get the big retrenchment payouts and so the spike in franchise enquiries was noticeable but not prolific. Now, between 2014 and 2017 as various companies wind down their operations in Australia, we should expect to see another spike in franchise enquiries and purchases. How big, we do not yet know because employers will be hoping that many workers jump before the expiry dates and hence do not collect redundancy payouts. However there will be a large portion that will leave cashed up and wanting to find a secure and enjoyable work alternative. Many of these people will be aged 30 – 55

and will have trouble finding another PAYG role due to age and competition for jobs. At this stage in their life, considerations about starting their own business or joining a franchise will be explored. Also, just because many of the job losses will be in manufacturing companies, doesn’t mean we should overlook people coming out of white collar or head office roles. Many of them will also be displaced and therefore looking for the next opportunity. All of this means that in the next few years there is likely to be a surge in franchise enquiries and sales across blue and white collar industries. Franchisors will have greater choice between prospective franchisees and the human capital and financial capital that underpins the franchise models will be more abundant. Existing franchisors should recognise and position for this next cycle and owners who are thinking of franchising or licensing their businesses should be encouraged to take those steps as a key factor in their growth and success – availability of motivated franchisees that can afford to buy – will be stronger than it has been for many years.

What should franchisors be doing? Clever franchisors will be developing plans to do three things: 1. Attract quality franchisees in geographic markets where they want to expand;

Attracting new franchisees in preferred geographic markets A long standing rule in franchisee recruitment is to recruit the person that is the right fit for your business, genuinely committed to it and has the hunger and energy to grow it and follow your systems. Retrenched or displaced employees will often meet this criteria but many will not. So stay true to your selection criteria and pick the best of what is available not the first that come along. Think about your strategic plans. Which geographic markets do you need more franchisees in? Rather than take a one size fits all approach to recruiting, customise or localise recruitment campaigns to those markets. Adverts in local newspapers, geo-targeted Adwords campaigns etc can put your brand in front of people who are looking for a business. If you seek franchisees in heavily affected markets like Adelaide, Geelong and many regional centres then opportunities exist right now to be marketing in those areas. Also consider events like local information evenings where you have open invitations or targeted guest lists to showcase your franchise and attract potential franchisees. Many local clubs, community groups (like Mens Shed, sports clubs etc) will happily post notices for you as a service or point of interest for their members.

2. Help existing franchisees expand their operation; and

Help your existing franchisees to expand their business

3. Create opportunities to replace selected franchisees with ‘new blood’.

Supply of labour into the workforce via job cuts means there are more people looking

Business Franchise Australia and New Zealand 29


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for work – many of these people will be open to offers of part time, subcontracted work or even just working for lower hourly rates. This can be an opportunity for your franchisees to expand their business by hiring cheap or flexible labour. Many franchise models can be scaled at the franchisee level. Often franchisees operating within a territory are not optimising the customer opportunity. They have enough work to keep themselves busy so they don’t bother putting on extra staff, vans or equipment to fully work the territory. This is a frustrating position for a franchisor so here you can be proactive with such franchisees and help them grow their business. The first step is simply to put the idea in their head. “What could it mean for your business if you were able to put on an extra staff member or casual worker?” From this conversation you can work up a plan to expand. Large franchise groups like Hire-A-Hubby have developed clever investment models where there is a structured approach to encouraging and supporting franchisees who take on extra staff. This can organically grow the franchise without having to recruit additional franchisees.

Replace selected franchisees with new blood This is an opportunity to benefit not just the franchisor but also the majority of franchisees. Every franchise group at some point has under-performers, recalcitrant or noncompliant franchisees or people who have gone off the boil – they have lost the passion or just got lazy. These franchisees often lock up valuable territories, create negative sentiment within the group or worse still, stop or reduce the value of business re-sales because their performance numbers are poor or they are frightening off potential new franchisees. It is the responsibility of the franchisor to identify and deal with this. A commercial alternative to legal action is to find them a buyer. This buyer may come

“Now, between 2014 and 2017 as various companies wind down their operations in Australia, we should expect to see another spike in franchise enquiries and purchases.” from the new pool of franchisees about to hit the market.

they will still be selective and still cherrypick the better businesses.

Such deals are not done overnight so franchisors should continue to enforce the franchise terms and values whilst encouraging the franchisee to seek a buyer. Usually some pre-work needs to be done to manage expectations about the sale price achievable but what this next job loss cycle means is there is likely to be more buyers in the market.

CEO Consulting specialises in developing, launching and growing franchise systems in Australia and international markets. Services include Strategy, Feasibility, Analysis, Franchise Model Design, Franchise Development, Marketing, Sale & Purchase negotiations, Franchisor and Franchisee Mentoring & Support.

Smart franchisors will be creatively planning and working towards discreetly exiting their bottom 10 per cent of franchisees and replacing with fresh franchisees. Similarly, franchisees who are considering selling their business should look to the next few years as an opportunity to find a buyer. If so, these franchisees should be ensuring they are ready and attractive for sale. Your books should be in order, your trading numbers strong and your customer base growing. Whilst there may be more buyers

30 Business Franchise Australia and New Zealand

Robert is one of Australia’s leading Franchise experts and an authority on Franchise start ups. Formerly the Australian Head of Franchising for both ANZ Bank and Westpac as well as CEO of RAMS Home Loans. For further information contact Robert Graham, Managing Director at CEO Consulting: Phone: 1300 764 484 Email: robert@ceoconsulting.com.au Web: www.ceoconsulting.com.au


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Business Franchise Australia and New Zealand 31


Sn a pshot: V isi on A l l i ance

committed to succesS Tania Allen, founder of Vision Alliance truly believes you deserve to get more out of your business and more out of life. “The core philosophy of Vision Alliance is to inspire, empower and to really make a difference to business owners by maximising their potential,“ says Tania. “When I think about success, for me it’s not about achieving success in business, it’s about fulfilment. How do we feel fulfilled and how do we actually build a business and a life that we love? “People tend to have an unbalanced focus and concentrate on growing top line revenue and bottom line profits and yes, we do help businesses do that but there is more to business then just top and bottom lines. It’s about taking a holistic viewpoint and strengthening strategy and key areas such as productivity & efficiency, systems, product innovation, sales & marketing and supporting with key challenges such as overwhelm and overload, team development, cash flow & revenue planning and training & system gaps.”

RE-IGNITE YOUR PASSION Vision Alliance starts where most others don’t, your vision. Finding out your core purpose and why. They’ll re-ignite the passion and get you back on track. Once your business has been reviewed, by looking at what it is, Vision Alliance works with you creating a solid action plan and will support you through one of their various business growth and franchise development programs in the implementation and execution of the plan to ensure desired

“When I think about success, for me it’s not about achieving success in business, it’s about fulfilment.” outcomes and targets are achieved. They have a number of business growth programs that cater to your different needs and budget and acknowledge that not every business owner is at the same phase in growing their business.

STRATEGIES SUITABLE FOR ANY SIZED BUSINESS Vision Alliance has a range of coaching, consulting, mentoring and training programs that support both franchisees and franchisors and in fact, independent businesses. All programs are tailored to the individual needs, wants and budget of the business, making all programs affordable for any type of business, in any industry and at any stage of growth. Business Growth support options include online programs, one-onone coaching, consulting & mentoring programs and high level business and franchise development programs including new franchise system development, business model reviews, franchise selection and franchisor & franchisee coaching and mentoring. The Vision Alliance Business Growth and Franchise Development programs aims to give you all the information and resources you need to achieve a competitive advantage and build the business you want. Focussing on helping you attract the ideal client, build a mindset for success and increase your productivity and income, Vision Alliance is the ultimate solution for small business owners who want to take their business to the next level.

32 Business Franchise Australia and New Zealand

Tania explains, “I believe in life there are two types of business people, those that are interested and those that are committed. There are a lot of people who are interested in success, and they do what is convenient for them. We’ve all said ‘Yes, I’m committed to success’ but then we do what’s convenient. A lot of franchisees and even franchisors don’t stretch themselves enough and just fall short of achieving their desired outcomes. “Often times, we say to ourselves, ‘We don’t want to go to that networking event because we’d rather be at home watching TV and drinking wine or, I can’t be bothered going to the gym because I’m just too busy’. To summarise, those that are interested do what’s convenient and those that are committed will do whatever it takes. “For me, success should be simple. It doesn’t have to be complicated. It’s about doing the right things, in the right order, at the right time.” Vision Alliance is the catalyst for transformation and growth in business and in life so that you can make more money, create more time and have more freedom to do the things you love. To gain access to this expertise, knowledge and support in order to build the business and the life you want contact Vision Alliance for a complimentary strategy session. Phone: 1300 46 49 20 Email: info@vision-alliance.com Web: www.vision-alliance.com


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For more information visit www.tpfexpo.com.au or call 1800 999 270 Business Franchise Australia and New Zealand 33


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Why is branding so important these days?

Branding vs. Marketing: What’s the difference? Simply put, your brand is what you are and your marketing is what you do. In successful franchise systems a strong brand will be the foundation of all public relations, advertising and local area marketing activities. Investing in your brand is essential as it has the power to become your greatest asset, not just another cost centre.

Pull vs. Push Your branding will pull your customers towards you whilst your marketing pushes your message out to them. Marketing is tactical and says, ‘Buy me!’ whereas branding is strategic and simply states, ‘This is who I am’. Your brand attracts the customers who align with what you stand for and allows them to partake in your offer and support you. A strong brand is captured in just one or two words: • Pizza Hut says, ‘Fun and fast’ • La Porchetta says, ‘Family dining’ • Crust Pizza says, ‘Gourmet quality’ The brand precedes any marketing activity

34 Business Franchise Australia and New Zealand


“Marketing is tactical and says, ‘Buy me!’ whereas branding is strategic and simply states, ‘This is who I am’.” Samantha Roach | General Manager - Marketing, Communications & PR FC Business Solutions

and will still be around after a particular campaign has been and gone. Marketing can convince a buyer into a one-off purchase, but branding will create loyal customers that preference you over your competitors time after time. “The art of marketing is the art of brand building. If you are not a brand, you are a commodity. Then price is everything and the low-cost producer is the only winner.” Professor Philip Kotler

Brand Equity Consistent and strategic branding creates strong brand equity for your franchise. Your brand can add value to your products and services, which allows you to charge more for your brand than an unbranded yet identical product can. Central to brand equity will be the customer’s perception of quality or emotional attachment inspired by your brand promise. Think about the world’s biggest brand: Coke. It represents fun, youth and beach parties creating an emotional connection that sells it in greater quantities at a greater price than a standard (and possibly better quality) unbranded cola. A customer’s loyalty to your brand will depend upon whether their lived experience was inline with the brand promise. This is where consistency is critical. Your brand needs to be reflected in all of your franchise communications from face to face interactions, to the look and feel of products and stores, to the largest scale marketing campaigns. Consistency must not however stop your franchise from responding to changing markets with innovative ideas and new approaches. “Branding demands commitment; commitment to continual re-invention; striking chords with people to stir their emotions; and commitment to imagination. It is easy to be cynical about such things, much harder to be successful.” - Sir Richard Branson, CEO Virgin

Branding Trends

Getting it Right

Franchise leaders in branding know what they stand for and what they must do to meet the customers’ expectations. This is no small task given the ongoing and significant changes faced by marketers in the areas of technology, society, the environment and more. For example, in today’s world of social media, your brand is being co-created by your customer in real time - control of your brand no longer lies solely with the franchisor and a team of marketing executives.

“A brand is nothing more than a story wrapped around a product or service ... the reason we consistently refer to a small handful of brands is because they’re the ones that have got their stories straight.” –

Several branding and marketing trends to watch for in 2014 highlight the significance of strategic branding: • Attention must be paid to branding: With increasing customer expectations it is no longer good enough to just be known. You need to be known for something meaningful to your customer. • Brands will get emotional: Customer values driving brand decisions will become more emotionally driven. You need to understand these emotional values and use them to create differentiation. • Real brand ‘engagement’ will be defined: This will be less about attention levels and more about how well your efforts affect brand perception. This will be correlated highly with loyalty, sales and profitability. • Digital done right: Digital channels will be less about where you should be and more about what you should do when there. Success will be linked to brand differentiation and emotional engagement, more so than simple outreach. • Integration intensification: Brand marketing and digital budgets will fuse as teams jointly work together. Multiplatform traditional and digital models will require social media integration into all marketing efforts, including customer experience, design, sales, and product development. (Source: www.forbes.com)

Richard Cordiner, Leo Burnett Developing a strong franchise brand requires the franchisor to clearly communicate the vision for the brand to the franchise network. Importantly, maintaining brand identity also calls for franchisees to buy into the brand and spread the message throughout their communities. Franchise systems that work together to establish a reliable, authentic brand experience generate customer growth, increased sales and larger market share. Remember, brand marketing is not just another cost centre, it is a solid investment in a franchise’s biggest asset - the brand! Many franchise systems execute brilliant marketing strategies but fail to capitalise on long-term benefits of such activity if they haven’t invested in creating a strong brand foundation. “The future of branding is marketing with people, not at them.” - John Michael Morgan, Brand Against the Machine. Samantha Roach is General Manager, Marketing Communications & PR at FC Business Solutions. Samantha has over 20 years’ experience in senior marketing management in the SME space through to large global players across multiple sectors including franchise. Samantha was also a sole Business Owner of a successful Dymock’s Retail Franchise in Melbourne CBD. Contact Samantha on: P: 03 9533 0028 E: samantha@fcbusinesssolutions.com.au W: www.fcbusinesssolutions.com.au

Business Franchise Australia and New Zealand 35


H ave your say: Qu est Serv iced A pa rt m en ts

Turning

passion into success Quest franchisee, Michael Hibberd shares 17 years of franchising experience Quest Serviced Apartment’s longest serving franchisee, Michael Hibberd still vividly recalls sleeping on the storeroom floor of his first Quest property.

passion during his early years of franchise ownership.

In those early days, Michael did whatever it took to build his franchise, including midnight drives to the property, which was located over an hour away from his home. Today, 17 years and five Quest properties later, Michael has never looked back. His immense passion, above all else, has been the driving force behind his hard earned success.

Michael recalls being a jack-of-all-trades when he first entered the franchising world.

And Michael certainly called upon this

“Living so far away from our first franchise property meant that I often slept overnight in the storeroom to ensure that someone was on site while my wife and business partner, Anne was at home with our two young children. Late night trips to the property were also a regular occurrence for guests who’d locked themselves out of the building.”

“Since it was just myself and Anne running the show, and money was tight, I found myself playing a number of roles in the business – from maintenance guy to housekeeper, cleaner and front of house manager. Sometime we even got the kids to help out.”

36 Business Franchise Australia and New Zealand

Despite these early challenges, the hardest decision Michael ever had to make was to sell his first franchise. “I remember it like today. I was speaking to Paul Constantinou [Quest’s Founder and Executive Chairman] about selling the franchise and he said to me ‘the hardest part is making the decision to let go; the rest will be easy’. I guess it’s the same with children – we have to let go of them some day!” Paul was right – everything just flowed on from there for Michael and Anne. They went on to purchase Quest William Street, before acquiring Quest Southbank, Quest Royal Gardens and Quest Docklands. With a background in business construction, Michael was not your typical franchisee. Though his father’s words have reverberated in his mind for over 17 years, and he believes they have shaped his success.


“My father always said to me that to build anything, you need passion and a great foundation.” Passion has indeed underpinned everything that Michael and Anne have achieved. “It doesn’t matter what type of business you own. Unless you have that ‘burning gut feel’ that makes you live and breathe your business, you shouldn’t be in it. Passion, above all else – above commercial nous, networks or industry knowledge – is what fuels success. The opposite of passion is complacency, and complacency will kill even the most successful business.” That’s not to say that basic business skills won’t help – it certainly did for Michael who entered the franchise industry after briefly owning a take-away store. Michael believes that his experience and knowledge of the food and beverage industry made the transition easier. “If you’re looking to buy a franchise, be sure to do your due diligence. Get a feel for the business and the industry it occupies. The same applies for franchisees looking to expand their existing portfolio. You must understand the systems and its people before placing it in the hands of someone else. When you own multiple franchises, you’re no longer working in your business – you’re working at your business.”

L - R: Thelma Constantinou, Michael Hibberd, Anne Hibberd and Paul Constantinou

“It sounds obvious, but to make it in this industry, you have to like people – dealing with all different types of personalities, interests and skill sets is instrumental to running a successful franchise.” give them space to make their own mark on the business. Otherwise you could end up jeopardising your other franchises if you put all your focus into the one you’re letting go of. It’s a balancing act, and one that’s not necessarily for everyone.” What initially drew Michael and Anne to the serviced apartment industry was the chance to work closely with people. “It sounds obvious, but to make it in this industry, you have to like people – dealing with all different types of personalities, interests and skill sets is instrumental to running a successful franchise.” And it’s not just the relationships you build within your franchise network that are important. Michael and Anne have cemented strong relationships with a host of corporate and industry partners over the years.

a hugely motivating factor for them both. “From day one, I was hungry to expand my business – for the love of the challenge and the desire to succeed. Buying new franchises and building them from scratch was very exciting for us. Anne and I really enjoyed this process. The great thing about Quest is that the opportunities are there, you just need to take them.” Being in the business for 17 of Quest’s 25 years, Michael and Anne have witnessed the Quest franchise evolve from being a small family owned business to Australasia’s most successful serviced apartment operator. One thing that’s remained constant in all these years is that Quest’s franchise model is inherently simple.

According to Michael, the ability to step back is essential for multiple franchise owners. This is something that Michael learnt the hard way.

“It’s vital that you establish relationships with stakeholders that support and surround your industry. Anne and I have gained incredible satisfaction from building these relationships, which have in turn, enhanced our own service offering.”

“We felt confident in taking the leap to franchise ownership because Quest’s model was clear and easy to follow. In addition, Paul Constantinou’s philosophy was – and still is today – founded on core values we believe in. He knew that in order to thrive, a business must work collaboratively to understand the needs of its customers.”

“Whilst it’s important to work closely with your manager to share with them all your knowledge and experience, you need to

Michael and Anne have always thrived on fostering meaningful connections. It’s what’s enabled them to grow – and growth has been

Despite all his career achievements, Michael acknowledges that the journey of franchise ownership can be trying.

Business Franchise Australia and New Zealand 37


H ave your say: Qu est Serv iced A pa rt m en ts

“The challenges I’ve faced have been many and varied, though the most trying times have always related to people. Learning to manage staff as you grow your business can be tricky. Mastering people management skills and dealing with different personalities is something that can’t be taught in books or by training – you just have to learn it on the job. As a multiple franchise owner, you’re also faced with the task of managing managers, which poses a whole new set of challenges.” Yet for Michael, these challenges have also led to his greatest rewards. “Over the years, I’ve been fortunate enough to manage six staff who have gone on to own their own franchises. That I’ve been able to mentor them, and watch as they’ve forged their own career successes is by far the most rewarding and humbling aspect of my job.” As Michael looks to the future, he is still as excited as he was 17 years ago. His daughter, Erin is now the assistant manager of one of his franchises, and he will continue to mentor her as she builds both the business, and her career. So, what does it take to make a successful

franchise owner? Much like the Quest model, Michael believes that the ingredients are few and simple. “You need passion above anything else – if you love what you do, you will always be successful.” Michael Hibberd is Quest Serviced Apartments’ longest serving franchisee. Boasting 17 years of franchising experience, Michael has owned five Quest properties in Victoria with his wife and business partner, Anne Hibberd. Three of Michael’s properties have won Quest franchise of the year. He and Anne have also been inducted into Quest’s Hall of Fame.

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Quest is the largest and fastest growing serviced apartment operator in Australasia with more than 150 properties located across Australia, New Zealand and Fiji. Established in Melbourne, Victoria in 1988, the growth of Quest has been achieved through its commitment to meeting the accommodation needs of the extended stay business traveller. Quest Serviced Apartment properties are managed by franchisees who follow a proven and successful franchise model. For more information on Quest Serviced Apartments visit: Web: www.questapartments.com.au


Love Photography. Love Real Estate. It’s time to own a Top Snap Franchise! Simon Draper, franchise owner in Geelong, says, “I was looking for a business that satisfied my interest in real estate and enabled me to work locally. The fact that the Top Snap business model is primarily B2B and in my opinion almost ‘recession-proof’ made the opportunity even more attractive. Whilst having my own company, I do feel a great deal of support from the Sydney office and indeed other franchise owners. Being part of a team allows me to focus on growing my business and learning from those who have experienced the same process in the past. Whilst new to the industry, I do feel that I have an advantage over much of my competition with the diverse product range Top Snap can offer its customers.” SPECIAL OFFER - Purchase a Top Snap franchise now and receive camera equipment worth $10,000 for FREE. Offer up for grabs for the first 3 franchise sales, so hurry! Also ask about special financing options.

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TAX SAVING TIPS Would you like to make sure you minimise the tax you pay on the profits of your franchise business? Here are some tips.

Tip # 1 Companies pay tax at a flat rate of 30 per cent of profit. Individuals pay tax at differing rates depending on their level of income – for example, for incomes up to about $18,000 no tax is payable and for incomes above $180,000 tax of 46.5 per cent

is payable (including medicare levy). Trusts do not usually pay tax as income is usually distributed to beneficiaries, but if they do pay tax it is at 46.5 per cent. Capital gains are taxed in individuals’ hands at rates between 0 per cent and 46.5 per cent, and in companies’ hands at 30 per cent. Why, you might ask, am I giving you all this detail? The reason is that the tax you pay will depend to some extent on the business structure you set up in the first place - so your ability to minimise tax is partly dependent on your business structure, and partly dependent on how you utilise your business structure. When you bought your franchise then you should have in conjunction with your

40 Business Franchise Australia and New Zealand

accountant or lawyer carefully chosen the appropriate business structure. If you are about to buy a franchise you should carefully choose the appropriate structure. A number of factors need to be taken into account in choosing a structure – including flexibility, simplicity, costs and asset protection - but often the major factor is the tax and capital gains tax that will be paid. In some cases, if your business structure is not appropriate (because of poor advice, because of not seeking advice, or because tax laws may have changed) it may be possible and financially worthwhile to change that structure. There will usually be costs to be incurred if you change your existing structure – including possibly tax, legal,


“A little planning and a little forethought can go a long way to ensuring that money ends up in your pocket rather than in the pocket of the Australian Government.” Tim Kilham | Director Lanyon Partners

accounting and other fees – but the benefits may outweigh the costs. Assuming you have the correct structure, it is still necessary to work out how to best utilise that structure each year to minimise income tax. For example, if you have a company running your franchise business, then the company will pay tax on profits at the rate of 30 per cent. As I have already indicated, individuals pay no tax at lower levels of income, so you would want to make sure that you pay yourself a salary up to the tax-free limit. Then consider whether the company should pay tax on the balance of the profits. Another example is when a discretionary trust is involved. Discretionary trusts are able to distribute different amounts of income to beneficiaries each year and this may well require some detailed planning to work out what income each beneficiary can receive at favourable tax rates. And if you fail to validly distribute the income to beneficiaries prior to the end of each tax year, you may find yourself in a situation where the trust that owns your franchise business pays tax on all of the income at 46.5 per cent – a highly undesirable outcome. You need therefore to ensure that your business is structured correctly to minimise tax, and then to ensure that the appropriate decisions are made to ensure that tax within the structure is minimised.

Tip # 2 Appropriate use of superannuation concessions and contributions is an important part of many taxpayers’ tax planning strategy. Superannuation guarantee contributions must be paid by employers for every employee to

whom they pay salaries and wages. However, compulsory superannuation guarantee contributions will for most people be far less than the maximum contributions they are allowed to make. The maximum amount that most individuals are allowed to contribute to superannuation this year is $25,000, and for many people over the age of 59 is $35,000. Superannuation contributions are taxed at the rate of 15 per cent. If you are earning more than $37,000 a year but less than $80,000, you are paying a tax rate of 34c on every dollar that you earn and you are keeping 66c. For every additional dollar you contribute to superannuation, the superannuation fund will pay 15c in tax leaving you with 85c. I am sure you would rather keep the extra 19c. There are always some ‘ifs and buts’ to superannuation contributions. • Your superannuation may not be able to be accessed until you reach the age of 65 (depending on circumstances some may be able to be accessed from the age of 55). • You have to be able to afford to put the extra money into superannuation. • If you are an employee, you have to be careful as to how the money goes into superannuation. For most employees, to get a deduction their contributions will need to be made through salary sacrificing, and this needs the co-operation of their employers. Superannuation generally, and maximising the deductions and benefits of superannuation, is complex. You will need to seek professional advice from a qualified person. However, it is an area that should be carefully examined because significant tax savings can be made, and those savings become more attractive the closer you get to retirement age.

Tip # 3 In some cases there may be the opportunity to bring forward your tax deductions by ensuring you incur expenses before 30 June (the end of the tax year) rather than after 30 June. Please do not interpret this tip as meaning that you should spend a dollar that you would not otherwise have spent. To do so will never make sense, because even if you are paying the maximum marginal rate of 46.5c, then after tax you are still left with 53.5c. So spending money unnecessarily will leave you out of pocket, no matter what the tax deduction. What I am suggesting here is that you should bring forward expenditure that would otherwise be incurred later. Do you have repairs to equipment or vehicles that need to be done? Then do them in June and not in July. Do you need to purchase consumables or pay membership fees? If you do, think of doing this in June and not in July. For some businesses, making pre-payments of items such as interest on loans or insurance may result in tax benefits, in that the full amount of the payment may be able to be deducted when you pay it, notwithstanding that much of the expenditure relates to the following period. However, there are different rules for different size businesses, so it is important that you seek professional advice from your accountant before making any prepayment, if you hope to gain a tax advantage from the prepayment.

Tip # 4 Make sure you maximise your deductions for motor vehicle expenses. This may seem obvious – who would not want to maximise

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their deductions? – but many taxpayers fail to keep adequate records and as a result do not maximise their deductions (or find themselves in trouble and not able to claim expenses when an audit is done by the Tax Office). For most people, a claim for motor vehicle expenses will be maximised if the deduction is based on logbook records. To be entitled to claim a deduction, a valid logbook must be kept. It may be that in practice the business use of your vehicle is 100 per cent, but in the absence of a valid logbook the maximum claim you will be able to make is 1/3 of the expenses incurred. I find that many, many people do not keep valid logbooks that comply with ATO requirements (even though they have kept logbooks of some sort) and do not prepare a new logbook when required to do so by law. If you are not already aware of the requirements for a logbook to be valid, you should make yourself aware of those requirements and if necessary prepare a new, valid, logbook. There are ways of claiming motor vehicle expenses other than using the logbook method, including methods based on a statutory formula and the cost of the car. As a taxpayer you are entitled to choose the method that gives you the maximum deduction. However, you will not be able to claim the maximum deduction unless you have maintained the necessary records. Another commonly used method of claiming motor vehicle expenses is to claim based on the number of business kilometres travelled during the year (up to a maximum claim of 5,000 kilometres). This method does not require the keeping of a valid logbook, but it does require the keeping of adequate records to prove that you have travelled the business kilometres claimed for.

Tip # 5 To be able to claim a tax deduction for expenses, you should keep adequate records of all business expenditure and ensure that in general you comply with record-keeping requirements. There are a number of points to consider here. • As a general rule, if you cannot produce a valid invoice for an expense you have incurred, then you will not be able to claim an income tax deduction for it. • If you are registered for GST, and you intend to claim back the GST paid on that

“To be able to claim a tax deduction for expenses, you should keep adequate records of all business expenditure and ensure that in general you comply with record-keeping requirements.” invoice, then you need to have a valid tax invoice. • If you are paying amounts to employees or contractors, then you need to ensure you keep adequate records. • If you are paying salaries and wages, then you need to ensure that employees complete Tax File Number Declarations so that you can deduct the correct tax (PAYG). If an employee does not give you a tax file number then you must deduct tax at the maximum marginal rate and if you do not then the ATO will not view that transgression lightly – you might end up paying the money out of your own pocket. • If you are paying a person as a contractor, then that contractor must have supplied you with a valid Australian Business Number. If a contractor does not, then once again you are obliged to deduct tax at the maximum marginal rate and pay that over to the Australian Taxation Office. • Do ensure that you keep adequate records of all business expenses that you incur using your personal funds or personal bank accounts. Expenditure incurred for business purposes is deductible no matter whether the expenditure is paid by the

business entity or by a person on behalf of the entity. However valid records need to be kept. I find many instances when business owners have paid expenses out of their own pocket but have not kept adequate records and therefore do not or cannot claim the amount as a business expense. We all want to pay as little tax as we legitimately can. A little planning and a little forethought can go a long way to ensuring that money ends up in your pocket rather than in the pocket of the Australian Government. Tim is a director of Lanyon Partners Chartered Accountants and heads up their franchising division. Tim has provided advice to, and acted for, many franchisees and franchisors, and is particularly active in advising on the purchase and set up of businesses. Contact Tim at Phone 03 9861 6140 Email: timk@lanyonpartners.com.au Web: www.lanyonpartners.com.au

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AU franchise mag V3a 24March 3778.indd 1

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forever Capital required - 220K - 410K Number of outlets - 13+ Opportunities available - nationally Capital required - $250K +

Capital required - 170K Number of outlets - 50+ Opportunities exist - -nationally Capital required $220K - 350K

Number of outlets - 13 Opportunities available - Nationally

Capital required - 400K - 600K Number of outlets - 80+ Opportunities available - nationally/NZ

Capital Required - 280K - 350K Number of outlets - 1 Opportunities available - nationally

Capital required - $400K + Number of outlets - 10+ Opportunities available - Nationally

visual identity and signage styleguide

Capital required - 400K - 600K Number of outlets - 25+ Opportunities available - nationally

Number of outlets - 13 Opportunities available - Nationally

Capital required - $300K - $650K Number of outlets - 165 Opportunities available - Nationally

Capital required - 300K - 350K Number of outlets - 6000+ worldwide Opportunities available - nationally

Capital required - 47K Number of vehicles - 50 Opportunities available - nationally

Capital required - 300K - 450K Number of outlets - 6 Opportunities available - nationally Capital required - $400K + Number of stores - 25 Available opportunities – Nationally

Capital required - 150K - 350K Number of outlets - 650 worldwide Opportunities available - nationally

HAND CARWASH

Capital required - $250K + Number of outlets - 45+ Opportunities available NSW, VIC, TAS, W.A. & S.A.

Capital Required - $600K + Number of outlets - 4 Opportunities available - Sydney

Capital required - 70K+ Capital Required - 250K 44 Business Franchise Number of outlets - 4 Australia and New Zealand Number of outlets - 100+ internationally Opportunities available - nationally Opportunities available - nationally

WWW.FRA PHONE 13

Capital required - from 90K Number of outlets - 12+ Opportunities available - nationally


Capital required - $400K – $600K Number of outlets - 25+ Opportunities available - Nationally

Capital required - $300K – $350K Number of outlets - 6000+ worldwide Opportunities available - Nationally

Capital required - $600K + Number of outlets - 8 Opportunities available - Nationally

Capital required - $350K - 650K Number of Outlets - 47 Opportunities - Nationally

Capital required - $250K + Number of outlets - 8 Opportunities available - Nationally (Except WA)

Connecting people to opportunities. Choose from Australia’s best selection.

WW.FRANCHISESELECTION.COM.AU Visit www.franchiseselection.com.au or ONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624) UA.MOC.NOBusiness ITCELFranchise ESESAustralia IHCNand A RNew F.WZealand W W 45 )426 273 0031( ESIHCNA RF 0031 ENOHP


I got my

family life back on track

“I’m finding it is the little things that really matter... and the flexibility also means that my wife can also help me out in the business whenever needed.”

Marcus Heilbronn of Townsville spent 10 years working in the mining industry. Flying in and out, and often working close to a 90 hour week, Marcus missed out on so much. Birthdays, Christmases and other special family occasions have all been missed through long hours and many weeks away. A long overdue change all started for Marcus when he was on leave from the mines. Whilst taking a walk with his daughters he noticed that there were so many lawns that were overgrown. “I know how busy people’s lives are; that they don’t have time to do their own gardens and it got me thinking.” Marcus started doing some research into the industry and called V.I.P. who flew out one of their Regional Managers to meet with him. “From that point on I knew it was V.I.P. for me. Spending the day with an experienced V.I.P. franchisee really confirmed this for me and I haven’t looked back since.” Despite knowing that it was a move he really had to make to get the work/life balance back, it was understandably a little daunting for Marcus who would be leaving behind a very well paid job. “I had every confidence in V.I.P. from the beginning and the leap of faith that I took has paid off massively. However, I must admit it was a little scary to begin with. With my bonuses I earned a good living working in the mining industry, but I can honestly say that joining V.I.P.

building & la ndscaping feature

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really is the best decision I have ever made. I feel like I have my family life back. I really couldn’t be happier with how things have turned out. I know my wife and three daughters are absolutely thrilled too as they have their husband and father back! “I’m finding it is the little things that really matter, like picking the kids up from school or being able to take a day off when I want to. The flexibility also means that my wife can also help me out in the business whenever needed.” With support from V.I.P. Marcus has quickly developed his business and has been successful in winning both residential and commercial customers. He has plans to expand even further and would like to take on another employee when the time is right.

46 Business Franchise Australia and New Zealand

But it isn’t just the blossoming business, or the working conditions, better hours and flexibility that has given Marcus a new lease of life; it’s also the feel good factor that he gets out of seeing a job well done. “It really gives me a real sense of satisfaction when I step back from a job and see the difference I have made. When I get good feedback from my customers it gives a sense of pride and achievement. I’m so glad that I have left my old life behind me and moved on.” concluded Marcus. If like Marcus you would like to change your life and wish to start your own business call V.I.P. to see how they can help on: Phone: 13 26 13 Web: www.viphomeservices.com


FE ATURE

FOOD AND BEVERaGE

Business Franchise Australia and New Zealand 47


FE ATURE

What you don’t know about Food and Franchising

Food and Franchising are almost as complementary a duo as Food and Beverage! And food and beverage businesses certainly dominate the franchising story as being some of the oldest, largest and most profitable in the world. Food franchising traces its recent roots back to German ale houses in the 1850s where brewers licenced access of their beer brands exclusively to certain merchants in exchange for fees we would now call royalties. The concept migrated to the US

with Coca Cola granting its first franchise in Georgia in 1901. Fast food followed with Kentucky Fried Chicken in 1930, Dairy Queen in 1940 and Dunkin Donuts in 1950, trailed closely by burger giants Carl’s Jnr, Burger King and McDonald’s all franchising by the mid-50s. Today food is the largest single sector of the franchise industry globally. Entrepreneur magazine ranks franchises in the US annually based on factors such the size and growth rate of the system, financial strength and stability, start-up costs and the number of years a company has been franchising. Every year fast food franchises including Subway, Pizza Hut, Denny’s and Dunkin Donuts are over 50 per cent of the top 10 and about a quarter of the top 500. Those figures are fairly consistent for Australia where BRW’s 25 fastest growing franchises in 2013 had eight food businesses among them. Although perhaps it says something about our concerns for just what this is doing to our health and

48 Business Franchise Australia and New Zealand

waistlines that we also had six healthrelated businesses on the list – four of which were gyms! However food franchises constitute almost half of all the franchise offers on the market. Additionally around half of all food outlets in Australia are franchised and I’d challenge anyone to name a successful food brand with multiple units that ISN’T franchised!

So why franchise? Businesses look to franchising as a growth strategy for two simple and compelling reasons: Capital – The capital a franchisee invests in one or more outlets is derived interest free to the network and does not involve providing collateral, giving equity or in any reduction of control. The unencumbered access to capital through franchising allows these networks to expand more quickly resulting in greater market share and brand penetration than corporate networks where


FE ATURE “Innovation keeps the best franchises ahead of their competitors because know their imitators are always hot on their heels.” Suzanne Jarzabkowska | CEO DC Strategy

enhanced by the franchisor’s potential to be both a providore and distributor of raw materials, fresh foods and dry goods, as well as the manufacturer and supplier of pre-prepared foods such as sauces, bakery goods, desserts, virtually the entire menu if required, from centralised commissaries and commercial kitchens. Not only does this ensure consistency in the quality and standard of the food, it reduces the need for franchisees and their employees to have high level food preparation expertise and training.

organic growth is constrained by access to capital. The Human Resource – Franchisees are owner operators whose motivation is driven by their personal investment. Dealing directly with their customers ensures not only better management of costs and employees, but higher sales and profit margins. Well recruited franchisees outperform company operated businesses on average by 15 per cent even after paying royalties.

So what is this curious chemistry – food and franchising? There are a number of reasons but key to it all is this simple maxim ‘Process is Profit’. A good product is not enough. What really determines success is the process of turning that product into profit! Scalability Successful franchises are big business and all big businesses must have scale to exploit the economic advantages of their buying power externally in terms of supply, advertising and marketing, leasing,

legal and other professional services and recruitment. Internally scale also benefits administration, management, training and support and accounting and reporting systems and processes. Franchising exploits the external benefits of scale as well as corporate networks. The real advantage of scalability in franchising however is internal because the franchisor’s administrative infrastructure is heavily reduced with much of the function and its cost pushed down the value chain to the franchisee. This is true of multipleunit franchisee networks where they too experience the economies of scale in consolidating their local area marketing, recruitment, administration, accounting, training and support. And successful food franchises protect their investment through well integrated supply chain relationships which is fundamental to building a valuable, saleable business for the franchisee and long term enterprise value for the franchisor. Maximising Revenue Streams In food franchises this scalability is further

Franchisors may also supplement this with branded goods for re-sale such as gourmet condiments, confectionary, bottled sauces and marinades in both their restaurants and other retail food outlets such as delis and supermarkets. This builds substantial enterprise value as the revenue from the franchisees, such as royalties is augmented by multiple revenue streams from the supply side of the value chain. These products are in turn an effective marketing strategy building the value of the brand through increased visibility and brand authority. Brand Really successful food franchises understand better than their competitors the value of their brand which is consolidated and protected by the highly prescriptive nature of their well-developed systems and processes and a high degree of compliance by their franchisees. Franchisees are directly invested in the genuine transmission of the brand values and culture. On the customer end this translates to consistently superior service and a personalised experience which creates long term, even life-time brand loyalty. Franchising allows these networks to build critical mass more quickly resulting in greater market share, more consistent brand penetration and building enterprise value much more quickly by removing the opportunity from their competitors.

Business Franchise Australia and New Zealand 49


FE ATURE Innovation Innovation keeps the best franchises ahead of their competitors because know their imitators are always hot on their heels. Market leaders understand that differentiation is vital in every aspect of their business. Successful food franchisors actively encourage and extract ideas from their franchisees and are more likely to utilise technology to drive infrastructure, cost efficiencies and scalability. The Fillet of Fish Burger, the McCafe and Ronald McDonald were all concepts from McDonald franchisees. Ongoing innovation may be seen by customers and competitors in new products, services or advertising and design but it’s the invisible innovation that really broadens market share. This is often related to staff training, more cost effective systems and direct customer communication via a range of on and off-line media that allow the franchisor to respond to changing markets, to anticipate customer trends and track performance.

Successful innovation comes from being flexible and adaptive, edging better franchisors even further ahead of competitors whilst continually re-engaging with customers who may otherwise waiver in their loyalty.

Challenges for the Franchised Food Sector Food Franchises and Labour Australia’s challenges in the food sector are driven primarily by human resourcing issues. High labour costs with growing scrutiny and enforcement and increasingly complex workplace relations compliance are compounded by low retention rates for food service personnel who find the long hours and late and weekend shifts undesirable. Couple this with the constant cost of training and often poor or inconsistent service levels because of high staff turnover and many independent food service operations simply lose viability. This is as true of fast food operations as

high end restaurants with celebrity chefs. The advantage for food franchises is that franchisees typically spend seven years working in their businesses compared to less than two years for employees. As owner operators they work full time often taking the Sundays, public holidays and late shifts that carry high wage costs. Because their franchise is a proven business model that comes with documented financial, operational and administrative systems, training and support and in most cases a guaranteed supply of all the food products and other service requisites, franchisees can be highly profitable. Market Factors Because of the largely discretionary nature of the spend, the food service industry (franchised and independent) is highly subject to fluctuations in the economy and consumer confidence. Increased competition from foreign food service franchises is also driving changes in the market. The choice of food franchises has dropped as a franchisee preference by 7 per cent in the last two years. However this is good for the industry as only the best devised and managed franchise systems will survive and flourish. Of about 1200 franchise systems in Australia, less than 200 have enterprise value of $10million and an exit of poor and unprofitable operators will ultimately deliver sound national growth. There will most likely be an increase in merger and acquisition activity to consolidate product and service offerings and enhance well differentiated brands. This will drive international interest in great Australian brands such Boost and Pie Face who have migrated across the globe, in Boost’s case to 18 countries. Ironically Jenny Craig is also a famous Australian export now headquartered in the US and franchising globally for 3 decades.

Trends in Food Franchising Specialty Products Specialty beverages such as the increasingly exotic coffee offerings and experiences and specialist teas and herbal

50 Business Franchise Australia and New Zealand


FE ATURE “Around half of all food outlets in Australia are franchised and I’d challenge anyone to name a successful food brand with multiple units that ISN’T franchised!”

blends will have a widening audience. Juices, smoothies, health and energy drinks and frozen yoghurt will retain market share although there will be some consolidation in the number of froyo players. Wine, craft beers and water delivery franchises will also prosper. Upmarket burgers such as Grill’d will build market share although again, there may be consolidation among some of the less differentiated small brands.

for healthy convenience food options has emerged in the last 10 years and been consolidated by a small but growing number of operators in the last five years. Additionally this growing constituency seeking an authentic food offering has a range of other concerns such as nutritional value, environmental sustainability, quality, provenance and ethical trade practices.

Healthy Fast Food (an oxymoron??)

Conclusion

Greater consumer awareness about the nutritional content of fast and other convenience foods and a need to eat a balanced diet has led a shift towards healthier options within the industry over the past decade. An added feature has been a growing number of people with specific dietary requirements. Gluten, dairy, nut, food colouring, preservatives and crustacean intolerances coupled with dietary preferences such as vegan, vegetarian, low carbohydrate and low GI diets now constitute an increasing section of the market. Traditionally, the QSR sector has not made any concessions to these requirements and although there is some movement in meeting the demand, it has been more of a gesture than a genuine shift. An opening

These trends in the QSR sector have been shored up by consistent revenue growth of 2.1 per cent from 2008-2013, even during the global economic downturn. Industry revenue posted an increase of 2.8 per cent in 2012-13, to reach $12.6 billion.* Consumer demand for value, convenience and nutritious food coupled with increases in real household disposable income and changes in the age distribution of the population are also expected to drive industry performance over the next five years with revenue expected to post annualised growth of 2.5 per cent to reach $14.2 billion in 2017-18.* Additionally the rise in disposable income will increase purchases of more expensive, specialist products such as organic, artisan and fair trade produce as well as demand

away from home such as in restaurants, fast food outlets and convenience stores. *Ibis World 2013

Suzanne Jarzabkowska, CEO of DC Strategy is a dedicated foodie who specialises in organisational behaviour, change management and business growth and transformation in the franchise sector. A dynamic speaker who presents widely in the media, commercial and educational communities she writes extensively about franchising in regular columns and specialist opinions in print and online business publications. For 30 years DC Strategy has been the region’s leading end-to-end franchise consulting, legal, recruitment and branding firm. Franchise programs developed by their highly experienced specialist teams have built over $1 billion in enterprise value for their clients in the last decade alone growing the networks and brands of the many of the most successful national franchises, many of which they’ve taken to the world. For more information contact: Phone: 02 8220 8700 Email growth@dcstrategy.com Web: www.dcstrategy.com

Business Franchise Australia and New Zealand 51


FE ATURE

Domino’s Piz za

No other company is better placed to comment on the world of franchising than Australia’s largest pizza maker, Domino’s Pizza and, with the innovative business focussing on expansion this year, it’s looking for people to join their leading team. From pizza driver to franchisee owner and now Group CEO of Domino’s Pizza Enterprises, Don Meij knows firsthand what it takes to succeed in the franchise world and recommends franchising to anyone that is determined, passionate and committed to success. “Growing a business through a franchise model is hard work but it’s also some of the most inspiring and rewarding work you will find,” Mr Meij said. “I really do recommend it to anyone who is looking for a long and rewarding career. “If you’re looking for a career change, the tried and tested franchise system is there for you. If you’re ready to work hard and are passionate about customer service, you are guaranteed success.”

Dynamic Domino’s … Domino’s Chief Development and Franchising Officer, Pat McMichael, said the business attracts people looking to enter the franchise business model for the first time. “A lot of our franchisees are multi-unit owners meaning once they get into the Domino’s brand they see value in growing their portfolio to include more than just the one Domino’s store,” Mr McMichael said. The past 12 months has seen the volume of high suitable franchisees improve and Mr McMichael said the timing couldn’t be better for both the prospective franchisee and Domino’s. “The key to success in our business is recruiting passionate and business-savvy franchisees that are willing to work hard to build a successful business with a recognised brand like Domino’s.” “Over the past few years Domino’s has maintained steady growth while focusing on the operations of the business, improving all aspects of our product, service and image. “This is great timing for prospective franchisees as they can reap the benefits of the investment we have made in the business. “At Domino’s we pride ourselves on being the market leader, not only in pizza but by being the most sophisticated digital retailer in Australia and New Zealand. With close 60 per cent of our sales now coming

52 Business 52 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand

from online, our competitive advantage is stronger than ever.”

Supportive network As you’d expect from Australia’s number one pizza company, the franchisee support systems are very highly developed. This support includes site selection, lease negotiation, store fit out, comprehensive pre-opening training, co-ordination of suppliers, group purchasing power, store appraisals, ongoing training and support, and marketing promotions. “Domino’s offers franchisees professional and comprehensive training covering every aspect of store operations, infrastructure and marketing support as well as ongoing training and support and a dedicated store territory – and then there’s the security of a globally recognised and successful brand.” Domino’s is Australia’s number one choice in pizza, selling over 60 million a year. Opening its first store in Australia in 1983 the business has grown to include a franchise network of over 600 stores across Australia and New Zealand. For more information on joining this market leading franchise, contact Jenna Rugers on: P: 1300 366 466 E: Jenna.Rugers@dominos.com.au W: www.dominos.com.au/franchising


SUCCESS?

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

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

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

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

Ongoing training and support for franchisees and their teams.

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

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

Call 1300 131 888 or visit: dominos.com.au/franchising Business Franchise Australia and New Zealand 53


FE ATURE

E x per t Advice

what’s a

good excuse? In the food and beverage industry, where recipes and the quality of the product can be crucial due to customer demand that any food or beverage taste the same no matter at which franchise store it is purchased, exclusive supply arrangements are common, and often necessary for the success of the franchise. In the last edition of Business Franchise Australia & New Zealand Dr Michael Schaper, Deputy Chairman of the ACCC discussed these exclusive supply arrangements and the ACCC’s role in granting protection from prosecution where the arrangements would otherwise breach the Competition & Consumer Act 2010 (‘the Act’). In this article we look at the process in a little more detail, and explore examples of arrangements that have been approved and rejected.

A brief recap In general, if a franchisor requires a franchisee to: • purchase goods or services from a particular third party (‘third line forcing’); or • purchase goods or services from the franchisor itself (‘full line forcing’); there will be a breach of the Act even if the conduct will not harm competition. However, if the franchisor formally ‘notifies’ the ACCC of the proposed restriction, it will enjoy immunity from legal action unless the ACCC opposes the notification, or revokes it at a later point in time. The ACCC has published a guide to help franchisors and franchisees understand the ACCC’s role in reviewing these supply arrangements. It can be found at http:// www.accc.gov.au/publications/competitionissues-in-franchising-supplier-arrangements The guide notes that whilst the ACCC may receive complaints from franchisees concerning exclusive arrangements (especially concerning the price of supply of goods), it is required to consider the public benefits of the supplier arrangements as a whole, and those public benefits will usually outweigh any detriment to the franchisee.

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The guide also provides a general overview of rebates, and how they are relevant to the ACCC consideration of any notification received. Given the ACCC is particularly concerned with supplier arrangements that lessen competition, any assessment of a notification involves a consideration of whether there has been a real effect on the competition in the market for a particular product, whether the particular goods or services can be provided by another party, and of course, the industry in which the franchise operates.

In respect to full line forcing in the food industry, it is rare that ACCC will challenge a notification received from the franchisor concerning a product involving an industry secret, such as a recipe. Disputes between franchisees and franchisors in those circumstances are also less likely given the general acceptance of trade secrets by franchisees.

The notification process A franchisor that wants to enter into a franchise agreement that contains terms that amount to full or third line forcing, and which may be prohibited by the Act, makes a notification by preparing and lodging with the ACCC a document ( a ‘notice’) in the form prescribed by the Act.


fe feature at u r e “The ACCC can revoke the protection given by a notification at any time if it is satisfied that the balance has changed.” David Creais | Executive Lawyer and Carrie Peterson | Senior Associate Bartier Perry

The notice: • describes the arrangements; • identifies the number of persons or classes of persons likely to be affected; • identifies the relevant market; and • sets out the public benefits and public detriments that are likely to arise from the conduct. Once a notice is lodged with the ACCC, statutory protection from legal action for engaging in first or third line forcing conduct will commence after 14 days unless the ACCC takes steps to oppose the protection of the conduct in the interim. The ACCC can only remove the protection from legal action if it is satisfied that the likely public benefits will not outweigh the likely public detriments from the conduct. The ACCC can revoke the protection given by a notification at any time if it is satisfied that the balance has changed. In 2013, there were no notifications revoked, and only 1 notification withdrawn. So far in 2014, there have been no notifications revoked and none withdrawn. These statistics clearly indicate that unless there is a severe imbalance between public detriment and benefit, the ACCC will not challenge a notification.

Examples Big Boy BBQ Franchising Pty Ltd Big Boy BBQ Franchising Pty Ltd is the franchisor of Big Boy BBQ takeaway and casual dining restaurants. The restaurants provide slow cooked American style BBQ

foods. Big Boy BBQ Franchising lodged a third line forcing notification with the ACCC in August 2013. As a condition of granting a franchise, Big Boy BBQ Franchising proposed to require franchisees to use and sell only products sourced from suppliers approved by Big Boy BBQ Franchising on terms and conditions negotiated between Big Boy BBQ Franchising and the approved suppliers. Big Boy BBQ Franchising argued in support of its notification that the proposed arrangements would enhance the capacity of franchisees, as small businesses, to compete with larger businesses and other competitors; maintain the quality and consistency of their product; promote costs savings and assist in maintaining competitive prices; promote business efficiency; and provide approved suppliers with certainty in terms of frequency and volume of supply thus leading to reduction in the cost price of the approved products. The ACCC resolved not to take any action to oppose the conferral of legal protection on the basis that Big Boy BBQ Franchising Pty Ltd would disclose all relevant terms and conditions to current and prospective franchisee in compliance with the Franchising Code of Conduct, including as to whether any rebate or other financial benefit would be received by the franchisor from approved suppliers.

ACCC in October 2013. One was in relation to beverages. As a condition of granting a franchise, Mad Mex required franchisees to purchase certain alcoholic beverages only from suppliers approved by Mad Mex, and prohibited franchisees from using alternative products in substitution for those alcoholic beverages. Mad Mex argued in support of its notification that the conduct would provide Mad Mex franchisees with consistency of quality of products across all the Mad Mex restaurants; there would be a consistent ‘look and feel’ across the restaurants; the buying power of the Mad Mex group to negotiate favourable arrangements would be consolidated; customers would benefit from consistency of quality between Mad Mex restaurants; customers would be able to purchase the products as advertised; and the Mad Mex franchise network would acquire competitive advantages enabling franchisees to compete with other food and beverage retail outlets, thereby increasing competition in the market.

Mad Mex Franchising Pty Ltd

The ACCC resolved not to take any action to oppose the conferral of legal protection on the basis that Mad Mex would disclose all relevant terms and conditions to current and prospective franchisees in compliance with the Franchising Code of Conduct, including in relation to rebates or other financial benefits that might be received by the franchisor from approved suppliers.

Mad Mex Franchising Pty Ltd is the franchisor of the Mad Mex Fresh Mexican Grill restaurant system. It lodged several third line forcing notifications with the

Seal-A-Fridge Pty Ltd lodged both full and third line notifications with the ACCC in 2006 in which Seal-A-Fridge proposed

Seal-A-Fridge Pty Ltd

Business Franchise Australia and New Zealand 55


FE ATURE

E x per t Advice

to require its franchisee to acquire PVC extrusion and flexible magnet products from either Seal-A-Fridge or approved suppliers. In support of its application, Seal-A-Fridge submitted that this arrangement would enable Seal-A-Fridge to obtain volume discounts on the cost price from suppliers which could be passed on to franchisees and the public; that warranty claims and product recalls could be better controlled; and consistency of quality across its franchise network could more easily be maintained, amongst other reasons. The ACCC rejected the notification, noting that the requirement was to be introduced after the relevant franchise agreements had been entered, and that the arrangements had not been supported by a significant number of franchisees. The ACCC also considered that the proposed arrangement might cause a decline in the quality and timeliness of supply of the products rather than promote a consistently high quality.

Conclusion Franchisees generally have little say in the consideration the ACCC gives to the notifications it receives, and revocations are rare. The ACCC will only remove protection if it believes that the public

“Franchisees generally have little say in the consideration the ACCC gives to the notifications it receives, and revocations are rare.” detriment arising from full or third line forcing arrangements outweighs the public benefit. Any decision is based on the impact of the exclusive dealing on the entire community, and not just on the franchisees. However, as we have seen in the examples given above, the ACCC’s decision not to revoke protection is always conditional on the franchisor complying with the provisions of the Franchising Code of Conduct as to disclosure of the arrangement in question. This is particularly relevant as the ACCC announced in October 2013, that it will be conducting an audit of the take-away food industry (and the fitness industry) to ensure that the franchisors have been complying with the Franchising Code of Conduct. The audit will include a review of franchisor’s franchise agreements, disclosure documents and other information given to current and future franchisees. Any franchisor that has not provided the disclosure on which an ACCC notification decision has been based may find that its notification is the subject of a revocation,

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and consequent legal action. Bartier Perry is an established and respected Sydney law firm, providing expert legal services for over 70 years. They work with clients in franchising and a range of other industry sectors. David Creais, Executive Lawyer at Bartier Perry is a commercial lawyer providing legal advice and support to clients that operate in franchising and other industries. Carrie Peterson is a Senior Associate with Bartier Perry specialising in commercial litigation and dispute resolution. Carrie is also an Associate Member of the Insolvency Practitioners of Australia. Contact: David Creais Phone: 02 8281 7823 Carrie Peterson Phone: 02 8281 7922 Web: www.bartier.com.au


FE ATURE feature

FASTA PASTA

A fresh future Italian restaurant franchise Fasta Pasta has always prided itself on putting its customers first. When it undertook a major national rebrand last year, a key priority was its commitment to customer service and satisfaction. While the rebranding exercise allowed restaurants around Australia to cater to the changing food industry, what didn’t change was the provision of fresh and tasty pasta at an affordable price. The company is still working hard to keep its customers satisfied, with the first quarter

of 2014 dedicated to a refresh of its menu in a bid to keep its well-known and muchloved recipes healthy and nutritious. Fasta Pasta was established in Adelaide in 1984 by a group of local restaurateurs looking to offer Australians fresh and tasty pasta at an affordable price. From this simple premise, the brand was born and has since expanded into 39 locations across the country. Chief Executive Frank Taddeo started his career as a chef before working his way up the ranks and taking the helm in 2005. His role is varied – he manages the central kitchen, and is also involved in product research and development, finance and store operations.

Frank was instrumental in last year’s rebrand and internal restructure through the engagement of franchising consultant Nicola Milne. The duo oversaw the development of a more current and contemporary branding to “meet the growing demands and expectations of our loyal customers”. “It was time,” Frank said. “It had been many years since the stores and the brand had been updated and we were concerned we were beginning to look dated.” Restaurants in South Australia were some of the first to implement the new branding and upgrade to a more polished, contemporary look. The old logo of the flying bowl with wings was also replaced with a simpler illustration of a spaghetti noodle. “It’s been very well received,” Frank said. “It’s a cleaner, more modern style, and we’re really pleased with how it’s come across.” Next on Frank’s list was to ensure the franchise’s focus for the future was firmly set on health and nutrition. “The Fasta Pasta menu is a favourite among

58 Business 58 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand


FE ATURE The 2013 rebrand saw Fasta Pasta introduce healthy choices in its menu that were at least 90 per cent fat free. Nutritional information was also displayed on their menus and website. The team also developed a more balanced range of children’s meals, including the grilled chicken wrap and chicken tenders with salad. “If we can get Australian children to make smart food choices now, we’re setting them up for a healthier future,” Frank said. Australian families,” Frank said. “Though some dishes have come and gone over the years, our standard menu has remained the same. “We won’t be losing those traditional favourites, those dishes that our customers know and love, but what will change is the overall composition of the menu. “We want it to be a true reflection of the wants and needs of our customers.” Frank said the research and product development team had carefully considered the importance of health and nutrition in the menu refresh. “We took into consideration market research, customer feedback and consumer trends,” Frank said. “We wanted each meal in the menu to be a carefully considered response to seasonal availability, a strong value position, market trends and healthy eating. “When people think about Italian food they often associate it with a high concentration of carbohydrates. We are hoping to challenge that presumption, and the stigma that quick service restaurant franchises don’t serve nutritionally balanced meals.”

“And it’s great for mum and dad. The whole family can head out for a tasty meal that is good for the pocket and the waistline.” This year they’re stepping it up a notch, with the new menu launched in April. “As food providers we have a responsibility to the community to inform them about good nutrition and provide them with balanced meals. The new menus will contain a full page detailing Fasta Pasta’s new focus on healthy eating,” Frank said. “While developing more nutritious meals we have not forgotten the importance of strong flavour and visual appeal. And we will keep delivering our customers the tried and true recipes the brand was originally built on. “Customers will still be able to order family favourites like our classic spaghetti bolognaise and fettuccine carbonara. But while the meals will remain the same size as they have always been, the ratio of pasta to protein and vegetable will be altered to reduce the overall kilojoules intake.

Frank Taddeo

and expanding and improving its range of salads with three new additions. Along with traditional favourites the Caesar salad and the warm chicken salad, new this year are the snapper fillet salad, caprese salad and a marinated beef and pancetta salad. “We’ve recognised how important health and nutrition is to everyday Australians,” Frank said. “With society more health conscious we’re making a considered effort to raise our standards to match our customers’. “Not only does this mean lowering the calorie and fat content in our dishes but also improving the standard of the products used in each meal, including using free range and organic where possible. “We’ve always had a focus on quality – now we are building on that.” Fasta Pasta is a distinctive franchise as it provides each of its 39 stores across Australia with fresh pasta and sauces made at the company’s commissary in Glynde in Adelaide’s northeast.

“We want to have options to suit everyone’s tastes and nutrition goals.”

“Everything is made fresh and from scratch using as many local ingredients as possible,” Frank said.

The most notable changes are to the starters – adding Tuscan breads to the list

“Our business started in South Australia and we’re passionate about supporting our

Business Franchise Australia and New Zealand 59


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FASTA PASTA

Fasta Pasta celebrates 30 years The year was 1984 and seven Adelaide restaurateurs had a dream... to create quality Italian food at an affordable price. The group opened a restaurant in Adelaide’s city centre, Pirie Street, in April of that year. It was a small pasta restaurant with big aspirations. They called their restaurant Fasta Pasta and promised their customers they would enjoy quality, hearty Italian food without long waiting times or hefty price tags.

fellow South Australians by buying as much local produce as we can. “We are involved in every stage of food preparation – we know where the produce is coming from, how it is being made and who is delivering it to the plate.” Also on the new menu is a protein increase for each chicken pasta dish and broadening of the seafood offering following customer feedback. The concept and visual aspect of the menu has also been changed to create a more modern, sleek and warm feel. Finally, the franchise’s wine list is undergoing a complete overhaul to complement the new menu and highlight well-known Australian brands and blends. “We’re really pleased with the work that’s been undertaken so far,” Frank said. “A lot of time, effort and consideration has gone into delivering a franchise model that is sustainable into the future.

has changed significantly. We know what works and what doesn’t, and we know that a strong organisation is vital.” As for the rest of the year? “We’ll be focussing on rolling out the rebrand across each of our stores in Australia as a means of reaching out to new customers and enticing potential new franchisees,” Frank said. “We’ve got an exciting new online ordering system and smartphone application in the works – it’s set to be a busy time. “We’ll also continue to build on our corporate social responsibility programs with charities The Smith Family and St Vincent de Paul.” For more information on joining this successful franchise contact: Phone: 08 8304 8600 Email: reception@fastapasta.com.au Web: www.fastapasta.com.au

“For a very long time Fasta Pasta has been run as a family business without a corporate structure. With a new corporate base in Norwood (east of Adelaide) and the rebrand last year, we’ve really been able to enhance our professionalism. “Fasta Pasta celebrates its 30th anniversary this April and I’m proud to say that in the past three decades our intimate knowledge and understanding of our business

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Their concept gained popularity quickly, becoming an almost overnight success. Within 10 years it had grown to become a national restaurant chain. Current Chief Executive Frank Taddeo joined the business in 1985 as a chef and two years later he was part of the management team, helping take the franchise interstate. Today, during the year of its 30th anniversary, Fasta Pasta boasts 39 stores Australia-wide, drawing upon its Italian heritage to create great value food using only the finest and freshest ingredients. At the heart of the Fasta Pasta promise is affordability – and it’s something the franchise has never faltered on. The unique element to Fasta Pasta’s success is its offering of fresh pasta made from the finest quality durum wheat and fresh eggs. Each restaurant across Australia sells fresh pasta and sauces made at the company’s commissary in the Italian heartland suburb of Glynde in Adelaide’s northeast. With a new corporate structure, a dynamic new headquarters, last year’s rebrand and a successful corporate social responsibility program in place, the next 30 years are looking bright for Fasta Pasta. “We are looking forward to growing the company, particularly in States where we have a small presence or none at all,” Frank said. “We’ll continue our unwavering commitment to quality, home-style cooking. It’s been the key to our success to date and will remain central to our growth going forward.” Fasta Pasta celebrated its 30th anniversary by hosting a gala dinner in Adelaide in May.


CHANGE YOUR

WORK/LIFE

BLEND

BECOME A FRANCHISEE WITH US Email: julia@hudsonscoffee.com.au Phone: (03) 8631 7700 www.hudsonscoffee.com.au/franchising Business Franchise Australia and New Zealand 61


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E x per t Advice

Why

Franchise Agreements Favour the Franchisor For anyone that has read a Franchise Agreement, they will know that the Agreement is often extremely one-sided. The Franchise Agreement has of course been drafted by the franchisor’s lawyers and consultants for the benefit of the franchisor. The rights of individual franchisees are often secondary. People who are looking at a Franchise Agreement for the first time often feel that this is unfair. However, if a prospective franchisee feels particularly aggrieved about the level and type of controls that a franchisor would wield over them then they would be best to re-evaluate at the outset whether buying into a franchise system is right for them, as the controls that a franchisor has are there for a very good reason. A review of issues faced by franchise systems that are focused on the food and beverage sectors provide prime examples of why franchisors draft agreements this way.

and branded restaurants. In each case a lot of advertising money, time and effort is spent in building the branding behind such systems. Further, a lot of money is spent fitting out premises, hiring staff and establishing each individual franchise. It is quite common for fit out amounts alone to be a seven figure sum and the cost of running each individual franchise is an extremely significant sum. It is not uncommon for franchisors in these industries to wear dual hats. They not only act as franchisors for operations being run independently by franchisees, but they also run ‘corporate stores’, a scenario that occurs when a franchisor is trying to get market saturation and it either consciously chooses

The food and beverage sectors contain many high profile franchise systems. Many of them are truly international brands. It is hard to think of any other sector that would compare in that regard. Many brands that are not internationally known are still highly successful household names throughout Australia and New Zealand. Examples include burger chains and other fast-food restaurants, various bars, cafes

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to retain some of the stores itself, or in other instances it has not yet found the right franchisees for those operations. Therefore, franchisors have a deep and vested interest in ensuring that the franchise system is run correctly and that the brand is perceived by the public in the best possible light. Because of the high profile nature of many of these franchise chains, a bad experience that is publicised within one store can have a significant impact on the brand, and therefore the profitability of every other franchisee and also the franchisor. The negative impact is not normally limited to the franchise outlet that the bad publicity originated from. It is absolutely critical that there are proper


fe feature at u r e “Franchisors have a deep and vested interest in ensuring that the franchise system is run correctly and that the brand is perceived by the public in the best possible light.” Mark Sherry | Partner Harmans Lawyers New Zealand

procedures in place within each franchise system to deal with customer complaints. There is an old adage, one that rings true in many instances, that a complaint from a customer can turn that customer into an advocate of your business if it is dealt with the right way. To ensure a positive customer experience, many franchise systems in the food and beverage industry have embedded at their very core a philosophy that ‘the customer is always right’. A franchisee is required to bend over backwards to please a customer when dealing with disputes and complaints. In addition to this requirement, franchisors often have robust mechanisms for receiving complaints from customers and dealing with customer feedback. There is often a requirement on franchisees to log complaints and to report them through to Head Office. This helps the franchisor track issues and the way that they are resolved to ensure that franchisees are acting appropriately. Franchise Agreements always contain terms that give the franchisor the power to deny rights of renewal on certain grounds. Examples often include when a franchisee receives too many complaints, or if a franchisee is not effectively resolving the complaints that they do receive. This allows a franchisor to hold a significant amount of control over a franchisee. The last thing a franchisee can afford to do is to lose the right to renew their franchise. That would result in the loss of the significant investment they have put into their business due to poor performance in an area that they have direct control over. Even though the food and beverage industries face many similar issues, they do have their own individual issues that franchisors must keep strict controls over too. Looking first at food based franchise

systems, the quality of the food produced is an absolute key. The franchisor must somehow maintain control over the suppliers of product so that quality is maintained within each franchise operation. This is not necessarily an easy thing to do, especially in relation to fresh meat and produce, which are generally locally supplied. Franchisors that are based in one geographical region often struggle to ensure that the produce sourced in other regions and supplied within the system meet minimum standards. However, failing to do this can have an adverse effect on businesses that are using suppliers that provide an inferior product. It is therefore incumbent on franchisors that want to maintain control within their franchise system to dedicate the resources necessary to ensure that the supply lines are providing product that meets the standards that they require. In the beverage side, the disruption to brand reputation that can occur if liquor laws are breached is extreme. A recent example in New Zealand had one store in a major supermarket chain banned from selling alcohol for a seven day period due to the sale of liquor by that store to an already intoxicated person. That organisation as a whole received a lot of bad press due to that sale and the lack of systems it had in place to train staff to appropriately recognise situations where a sale should not proceed. This can have a large impact on turnover. It has been estimated that it may affect the turnover of that supermarket by up to 10 per cent in the week that it is unable to sell alcohol. In the case of a bar or restaurant where the core business involves the sale of alcohol the ramifications can be even more disastrous. Repeated breaches of the liquor laws can lead to the revocation of liquor licences, the inability to obtain a renewal of a licence, or the re-issue of a new licence of

conditions that reduce the viability of the business, such as increased restrictions on trading hours. This can have a catastrophic affect for a franchisee who loses their business. It will also have an impact on the income earned by the franchisor through franchise fees and it will certainly also have a negative brand impact for the franchise chain as a whole. Innocent parties can be detrimentally effected through no fault of their own. All this means that franchisors can, and must, maintain strict controls over the critical standards that must be maintained within a franchise system. This is particularly so in the food and beverage industries, so as to ensure that quality and reputation are maintained at all times. If a person is looking to buy into a franchise in one of these industries then as part of their due diligence investigations they should be making enquiries of existing franchisees to ensure that franchisors have robust procedures for ensuring quality and control are maintained at all times. If a franchisor is seen to be ‘hands off’ then that is not necessarily a positive thing. Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: Phone: +64 3 352 2293 Mobile: +64 21 524 890 Email: mark.sherry@harmans.co.nz Web: www.harmans.co.nz

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Cafe 2U

One year into it & the WOW factor is bigger than ever. You too can be a part of the picture…

When asking Kay Omiros, owner of Cafe2U Redlands, QLD to describe her first year of being a Cafe2U Franchise Partner, she responded with a simple “WOW!”

“The Acceleration Package is a unique, comprehensive four week training and support program for new Cafe2U franchise partners,” said John Stanton, Australasian Franchise Recruitment Manager.

February 2014 marks the first birthday anniversary of Cafe2U Redlands, and things couldn’t get any better. “While it has obviously been a huge learning curve not only due to working in a totally different industry, but running a business for myself; I have reaped so much. I have had the opportunity to have my sea change, meet so many great people and most importantly, finally achieve my dream of my own coffee business!”

The first week of the Acceleration Package is formal training, the second is preparation week and weeks three and four are the business launch, with your personal launch specialist by your side, to guide you every step of the way.

Acceleration Package Like Kay, for many investing in a franchise is the fulfilment of a lifelong dream, which is often accompanied by fear and the risk of being a new business owner for the first time. Kay chose franchising to provide her with the infrastructure to be successful in her first business endeavour and states that “without the Acceleration Program exclusively offered by Cafe2U, my business would not be where it is now. My Franchisee Development Manager (FDM) gave me the confidence to be able to run the van and build on what was established during the two week launch phase,” says Kay. Cafe2U’s Acceleration Package is designed to take away those initial fears and the financial concerns that come with starting any new business.

“The Acceleration Package enables new franchise partners to be trained and in operation in only four weeks, with a guaranteed minimum turnover of $500 a day.”

Support The support from Cafe2U doesn’t stop here. Once settled in your new territory, you will receive a weekly phone call from your personal FDM accompanied by a quarterly visit to create and assess a Business Investment Protection Plan, which is designed to help you build your individual business. “Cafe2U have continued to provide me with the necessary training and monitoring since the launch of my business in February. Any issues or questions I have had, my FDM or Cafe2U Head Office have been there for me, walking me through what I have needed to do” says Kay. Kay loves her job and wouldn’t change it for the world. In fact, she would highly recommend becoming a Cafe2U franchise partner to anyone else. “Owning a franchise has given me the flexibility which I never had before, to put what is important in my life, first.”

64 Business Franchise Australia and New Zealand

Proven Business Model John Stanton attributes Cafe2U’s success to its proven business model, ability to provide franchisees with a guaranteed income and the work/life balance it affords them.

c t

“Many of our franchisees… enjoy the lifestyle element of being part of the Cafe2U business – it is a mobile operation and is often outdoors. Typically our franchisees will have an early start and early finish, allowing them more family and leisure time, which is often a very attractive prospect,” said Stanton. He adds the comprehensive ongoing support Cafe2U provides its franchisees, differentiates the brand from its competitors. The Cafe2U franchise package includes a Mercedes Benz van complete with state of the art commercial equipment, which allows franchisees to serve high quality coffee and a range of food without the added expense of fixed location premises. If you feel that you too would like to see yourself in the picture painted here, contact Cafe2U now to find out how. Contact John Stanton on: Phone: 1300 223 328 Email: franchises@cafe2u.com.au Web: www.cafe2u.com

CAF

Cafe


coffee, tea... and me! Put yourself in the picture. Get out of the rat race and into your own Cafe2U Mercedes Benz. Enjoy meeting people and making money with the proven techniques of the world’s largest mobile coffee franchise. Enjoy your work. Spend time with your family. Be your own boss!

1300 223 328 (AU) 0508 004 388 (NZ) www.cafe2u.com CAFE2U004

Cafe2U004_BusinessFranchiseMagazine_V1.indd 1

Business Franchise Australia and New Zealand 65 24/11/2013 10:12 pm


FE ATURE

E x per t Advice

What to expect in the first 90 days of opening a franchise

Opening a franchise is a very exciting time, and can be the start of a very rewarding career as a business owner. As a franchisee you have many advantages over other new start-up businesses, including a strong brand with a track record of success, assistance with equipment and site development, and access to established and proven standards and training procedures. While the support of a larger network will definitely help reduce many of the common pressures of starting a new business, it’s still important to make sure you expect challenges and are ready for them. Most, if not all, successful businesses have had start-up challenges. So, while this teething period may feel difficult at the

time, you will look back at it as the most valuable experience you have had as a business owner. Here are five things to expect in the first 90 days of opening your own franchise.

Expect to be overwhelmed: There is a lot to consume and learn when opening a franchise, and the initial 90 days will probably feel like information overload. One of the biggest advantages of entering into a franchise is that there is already a set business model that you know has worked. As a result, you are equipped with pages of information, designed to help you make the most of your business. However, while information is important, the most valuable experience you will ever have is on the shop floor. Make sure you spend plenty of time observing staff with customers, and interacting to ensure that the procedure standards you’ve read about are actually realised.


fe feature at u r e “While most comments should be positive over this period, expect some tough feedback in the midst. In fact, embrace it! You are in the learning phase of business, so these comments will only help you improve your offering. Don’t get bitter, get better!” Luke Baylis | Founder & CEO SumoSalad

Not all feedback will be positive: It’s interesting that when a franchise first opens, customers often feel more compelled to share their thoughts on the service and food. For a new franchisee, negative feedback during the start-up phase can be very difficult to hear. While most comments should be positive over this period, expect some tough feedback in the midst. In fact, embrace it! You are in the learning phase of business, so these comments will only help you improve your offering. Don’t get bitter, get better!

“Don’t be too proud to ask for help, and don’t be afraid to demand it. It’s part of what you have paid for, so use it!” Expect and seek support from the franchisor:

your staff are as motivated as you are will free you up down the track.

Another advantage of entering into a franchise is the support you are offered (and will most definitely need) in the first few months. Don’t be too proud to ask for help, and don’t be afraid to demand it. It’s part of what you have paid for, so use it!

A franchise won’t run itself:

The people in your business are just as important as you are: It’s great that you love the business, but your staff need to love it too. Service is what will drive customers back to your store, so expect to dedicate a lot of time in the first few months to making sure staff understand all products, as well as the expectations you have on service. This will be a challenge given all the hats you have to wear as a business owner, but making sure

It’s funny that many people still look at the franchising model as a license to print money. While owning a franchise with an established reputation helps drive traffic to the business, it can’t guarantee its success. Don’t just rely on customers directed to you as a result of national marketing, you too should be driving traffic to your business, as well as maintaining food and cleanliness standards that will drive them back. The first few months are a great time to get involved in community events or develop community based marketing plans that lead people in store. As part of a franchise you should have access to a marketing team employed by head office - ask the experts for advice and tips on how to best engage your local community.

Luke Baylis’ passion for creating a healthy alternative to fast food was sparked during his time as an IT consultant in New York where supersized portions and fried foods are the norm for many people Upon his return to Australia, Luke could see Australians were rapidly heading down the same path and the idea for SumoSalad was born. Realising that ‘fast food’ didn’t have to mean sacrificing healthy eating for convenience, Luke and SumoSalad co-founder, James Miller, conceived of a fast food outlet that sold made-to-order salads that were nutritious, delicious, fast to prepare and offered value-for-money. The first store opened in 2003 on Liverpool Street in Sydney’s CBD and was an instant hit. This demand for fresh, healthy fast food saw SumoSalad undergo rapid expansion and stores can now be found in over 80 locations around Australia and in New Zealand, London, Dubai and Singapore. For further information contact the Business Development Manager: Phone: 02 9569 7866 Email: franchisee@sumosalad.com

Business Franchise Australia and New Zealand 67


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Z a r r affa’s Coffee

Zarraffa’s

Drives Coffee Convenience The Australian-owned company is championing convenient coffee via its popular drive thru stores, opening across regional Queensland and WA. Zarraffa’s Coffee CEO, Kenton Campbell said that the most rewarding part of introducing the drive thru stores, in addition to being able to service customers better, has been the high interest, especially from franchisees and staff. “We pride ourselves on the fact that so many of our existing ‘Zees’ are multistore owners,” a sign says Kenton that the company is doing something right. “But it has been the overwhelming interest in drive thru sites, especially in our regional areas, that has helped shape our strategic planning for new sites and expansion.” “Our company was built on delivering customisable, or ‘perfectly individual’ coffee, every time and the reason our drive thrus are so successful is that we are still able to provide this to our customers from the convenience of their car.” The latest drive thru store opening is in Townsville, and is the second for Zarraffa’s Coffee and the town in just under six months. Owned and operated by the Blakemore family who opened the company’s very first drive thru store in 2009 at Worongary on the Gold Coast, the move sees two generations of the family running their multi-stores in two separate Queensland locations. “Our experience with Worongary - the first ever Zarraffa’s drive thru - has shown that our customers appreciate the convenience and efficiency of this type of store,” said Corey Blakemore, who relocated his young family to open the company’s northernmost store and drive thru in Fairfield, Townsville late last year.

“Our company was built on delivering customisable, or ‘perfectly individual’ coffee, every time and the reason our drive thrus are so successful.” “We haven’t looked back, and now as we open our second store in Townsville we are glad that we took the plunge and relocated, affording us the opportunity to grow with a brand we know and love,” said Corey. Franchisee Ralph Fioretti is another champion of the brand and the drive thru model. Along with wife Denise, Ralph is the owner of the Carseldine store in Brisbane, and has been a part of the successful franchise system for the past five years, recently opening the company’s only drive thru in Brisbane at Boondall. “We liked the idea of serving great coffee on-the-go and the challenge of offering exceptional service through a faster paced drive thru system,” said Ralph. Ralph said the benefits of opening a Zarraffa’s Coffee store are the opportunities to follow a proven system, one that values exceptional customer service through its commitment to ongoing training. “Our daughter Candice will manage the new drive thru, and she has benefited from

68 Business Franchise Australia and New Zealand

the support of training for her staff to ensure the whole team is ready for the high demands of a drive thru.” Over eighty per cent of new Zarraffa’s stores are now opened as drive thrus that also include a dining area and traditional storefront, except in WA, where all but one of the stores are stand-alone drive thru structures. “Drive thrus have definitely enhanced our business but the fundamentals still guide our day-to-day…you just can’t beat exceptional service and great coffee,” said Kenton. “It’s ensuring that each of our stores is able to deliver a quality coffee experience, for every customer, each and every time. Our whole company is geared toward consistency and exceptional product and service, no matter whether you have your coffee served to you across a counter or in your car.” For more information on a Zarraffa’s Coffee franchise and available opportunities visit: Web: www.zarraffas.com


Over 65 stores and growing fast Serving serious coffee in QLD, NSW & WA

Zarraffa’s Coffee offers prime locations, turn key operation, complete training and a dedicated field support team! Opportunities are now available in Australia’s fastest growing coffee franchise. WINN 11

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zarraffas.com

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ZARRAFFA'S Franchising

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© Intellectual Plus Pty Ltd. All Rights Reserved, 2014. Trade marks used under licence.

Business Franchise Australia and New Zealand 69


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Fr anch ise Fi tou ts Aust r a l i a

Saving you time AND money Franchise Fitouts Australia CEO and Founder Zoran Kolimackovski has brought together a team that can save you thousands of dollars as well as open your store up to two weeks earlier than the competition. With a background in shop fitting and joinery, and over the years building a series of successful relationships with franchisors and franchisees, it was a natural progression to move into franchising and Franchise Fitouts Australia was formed. Zoran is excited at the direction he has taken, “I realised that by specialising in franchising, particularly the retail and hospitality industries, there was great scope for a business as streamlined as our own. “We have become known as the fastest growing shop and kiosk fit out company in Australia as we can get clients trading up to 30 per cent faster than the industry standard. We’ve achieved this by working with a tight team of experienced Project Managers plus trades people who all work together as a team and not individually.”

The Complete Package Not just a fitout company, Franchise Fitouts Australia can offer a full design service. With consultations and innovative design solutions, they work with you every step of the way. If you have existing designs already they can re-engineer these to add value and reduce costs by utilising the most efficient techniques and materials. Taking 100 per cent control of the shop fitting process, Franchise Fitouts Australia will manage the project, delivering on time

“By offering the complete package as we do, we remove the stress from the franchisor.” and within budget, ensuring your opening day goes ahead as planned. By assigning a Personal Project Manager to work closely with you, you’ll only need one point of contact. They’ll ensure all project timelines and OHS compliances are adhered to, building applications and permits are completed whilst offering the total turnkey solution and keeping you informed every step of the way. Zoran continues, “By offering the complete package as we do, we remove the stress from the franchisor. Removing these frustrations and delays allows the franchisor to focus on what they do best, by doing what we do best. “Every delay has a knock on effect, usually resulting in costing the franchisor money. A four week delay can cost up to $80,000 with lost weekly earnings, rent and interest being charged and by working 30 per cent faster than our competitors we ensure you open on time.”

Seamless By offering this complete package, Franchise Fitouts Australia are well

70 Business Franchise Australia and New Zealand

placed to assist international franchise systems expand into Australia. Their experienced Project Managers and qualified and licensed Contractors are positioned nationally to ensure your franchise gets the kick start it needs to grow at a rapid rate. Current clients include Starbucks, Walkers Doughnuts, Degani, Bella Cosi and South Melbourne Dim Sims. Jim Stoupas, Chief Executive of Walkers Doughnuts says, “The team that Zoran has built is a testament to his work ethic, business integrity and can-do attitude. At Walker’s we cannot speak highly enough of Franchise Fitouts Australia (FFA) - they made difficult seem easy.... FFA is to be our sole Fit-out contractor when we roll out the next 5 retail stores.” If you too would like to save time and money during your franchise fit out, contact Franchise Fitouts Australia on: P: 1300 FIT OUT (348 688) E: Enquiries@franchisefitoutsaustralia. com.au W: www.franchisefitoutsaustralia.com.au


Business Franchise Australia and New Zealand 71


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A k tiv B ra nds

GET AKTIV

ABOUT YOUR FUTURE An investment in an Aktiv Brands franchise provides you with the freedom of running your own business and the security of working within an industry awarded franchise system. Leading Australian franchise group, Aktiv Brands is on the cusp of celebrating 15 years in the retail food industry. Since 1999 the group has dominated food courts around the country including Australia’s

largest and most successful carvery chain, Bucking Bull and more recently, Skewerz Kebabz. In the last 12 months the franchise group has significantly enhanced its portfolio of brands with brand repositioning and refinement, currently creating substantial growth in 2014.

Bucking Bull With close to 40 stores and a presence in nearly every major food court in Brisbane and Perth, Bucking Bull is now expanding into New South Wales and Victoria. “Over the last couple of months we’ve opened Bucking Bull stores in Melbourne, Illawarra and Perth,” said Aktiv Brands

“Wholesome, traditional and hearty, the Bucking Bull menu satisfies the hunger of nearly 3 million customers a year.”

Executive Director, Dean Vella. “The brand has come a long way since the first store opening in 1999, so it’s exciting to see such great demand for the concept 15 years later,” he said. Bucking Bull is currently in the stages of restating its position in the market, a process which includes a new logo and rejuvenated menu. This is a reflection of a more knowledgeable and discerning consumer. “Retail trends are constantly evolving, as are the tastes of our consumers,” says Dean. “There’s been a real shift in the market towards artisan foods and flavours and that’s been great for us and our franchisees, but a brand evolution was necessary to ensure we remain relevant to our customers. “Thanks to the increasing presence of reality cooking programs, customers have a new found appreciation for the skill and cooking methods behind preparing a classic roast meal, which is something we’ve been refining since the very beginning.” At the heart of the Bucking Bull menu are its signature range of slow roasted meats, and delicious roast vegetable selection. Wholesome, traditional and hearty, the Bucking Bull menu satisfies the hunger of nearly 3 million customers a year. After an extensive career in the franchise sector, including two years as a franchisee and three as a master franchisee, Dean recognises the secret to a successful franchise business. “Whether we’re talking about Bucking Bull or one of our other brands, what our franchisees have in common is a motivated and positive attitude - people really are our secret ingredient,” he said. Aktiv Brands franchisees come from all walks of life, and don’t necessarily have food retail experience. “Whilst some of our franchisees have restaurant experience, it is certainly not the majority,” he said. “Some of our franchisees are even qualified

72 Business Franchise Australia and New Zealand


The newest addition to the Aktiv Brands portfolio is Paleo eatery, Primal Pantry. Primal Pantry is a new healthy eating café concept based on the Paleo lifestyle and way of eating. Much more than a diet, the Paleo lifestyle focuses on whole and simple foods, similar to those consumed as humans were evolving thousands of years ago - lean meats, vegetables and seeds. Following the opening of the pilot store in 2013, the brand has already established a loyal fan following throughout Brisbane, serving over 50,000 meals since doors first opened. IT professionals- it’s a mixed bag.” Dean said. The comprehensive theoretical and practical training and support programs at Aktiv Brands ensure franchisees are able to turn their passion into a profitable and sustainable business. With strong brand awareness, unique positioning and a proven business model, Bucking Bull is actively growing with franchise opportunities available nationwide.

Skewerz Kebabz Founded in 2010 in Western Australia but inspired by the flavours of the Mediterranean, Skewerz Kebabz is becoming the nation’s fastest growing kebab franchise. Whilst kebab stores have always had a notable presence in food courts, Aktiv

Brands has developed a retail kebab concept that is not only sustainable but distinct in the market. “We’ve spent a significant amount of time and money developing a brand that has a unique menu offering filled with flavour, style and authenticity,” said Dean. Because of its operational simplicity, the traditional kebab is arguably one of the most streamlined and efficient forms of fast food. “The kebab is definitely the backbone of the Skewerz model, but the menu has been strategically designed to appeal to a much wider customer base.” The menu also includes a product range inspired by the Mediterranean including Gyroz, Grillerz, Skewerz, Salads and Dips. Skewerz franchisees benefit from a carefully created, strong brand image, comprehensive marketing support and the security of working within a proven franchise system. The Aktiv Brands support team is there to provide operational support on everything from menus to kitchen assistance. As with all brands in the Aktiv portfolio, Skewerz Kebabz is 100 per cent Australian owned and grown.

The café is quickly establishing itself as one of the strongest, most successful names in the healthy dining category. The Primal Pantry concept was founded by Mark Rockley, who is an avid campaigner of the clean-eating lifestyle. “Paleo is growing in acceptance and popularity. Primal Pantry is successful because we’ve taken a nutritional philosophy and turned it into an appealing lifestyle that everyone can enjoy,” Mark said. “We’ve worked hard on developing a menu and café concept that appeals to all people – not just the hard-core fitness set.” Mark was first introduced to the Paleo lifestyle two years ago and experienced a more balanced lifestyle, more energy and improved overall health as a result. The primal way of eating has been linked to improved health outcomes such as reduction in blood pressure, lowered blood sugar, lowered body fats and increased energy. Late last year Aktiv Brands announced plans to begin franchising the Primal Pantry concept and is currently looking to recruit passionate people who live and breathe the clean-eating lifestyle. “Passion has always been a key ingredient for a successful franchise,” said Dean Vella.

“The kebab is definitely the backbone of the Skewerz model, but the menu has been strategically designed to appeal to a much wider customer base.”

Business Franchise Australia and New Zealand 73

fe at u r e

Primal Pantry - An Aktiv Addition


FE ATURE

A k tiv B ra nds

“Primal Pantry is successful because we’ve taken a nutritional philosophy and turned it into an appealing lifestyle that everyone can enjoy.”

“Primal Pantry has gone beyond just creating a successful business – it has become a hub for its own clean-eating, healthy lifestyle community.” The Brisbane restaurant recently opened its doors to prospective franchisees for a franchise information night. The evening featured a series of presentations from founder Mark Rockley, Paleo campaigner Shannon Cooper and also a cooking demonstration from Primal Pantry’s Head Chef, Tracy Hirst. The engaging and interactive format of the evening was a first for Aktiv Brands. “This is really the first time we’ve structured a franchise information session in this style,” said Dean. “The night provided key insight into the Primal Pantry strategy and operation for potential franchise partners whilst giving them a real taste for the brand - quite literally.” The information evening was promoted exclusively on Primal Pantry’s Facebook page and received a great response. “What we’ve noticed with the enquiries

for Primal Pantry is that the interest is predominantly from people already living a clean-eating lifestyle, such as nutritionists, and personal trainers. “Our goal is to have a franchise network consisting of people who have an underlying interest in nutrition and healthy eating, and a passion for introducing a healthier lifestyle to their customers,” said Dean.

Invest In Something You Believe In If you are looking for a business opportunity you believe in, and are

74 Business Franchise Australia and New Zealand

genuinely passionate about the positive difference that a clean-eating diet can make, then your very own Primal Pantry could be the business opportunity that you’ve been waiting for. Aktiv Brands are currently seeking expressions of interest for key territories for Primal Pantry around Australia. To discover more about the Aktiv Brands portfolio including Primal Pantry, please contact Dean Vella: Phone: 07 3175 0640 Email: dean.vella@aktivbrands.com Web: www.aktivbrands.com


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Franchising fever hits Sydney The Royal Hall of Industries at Moore Park came alive for the Sydney Franchising & Business Opportunities Expo, with more than 3,500 people attending over the show’s three days, 28-30 March. “We were very pleased with the number of visitors, but more importantly it was good to see so many people who were genuinely keen to find out more about buying or expanding a franchise,” says Exhibition Manager Fiona Stacey. Exhibitors agreed. “I thought this one was brilliant!” says Neil McMillan, Brand Development Manager at Fifo Capital. “In my opinion the quality of the visitors was much higher than prior years, and I’m sure we will progress with a number of applicants.” Stephanie Wells from the Franchise Council of Australia (FCA) adds she found the visitors were knowledgeable, had done their homework and were genuinely interested in franchising; while first-time exhibitor Kelvin Wiles from Findit Smart, says the show exceeded all his expectations. The Sydney Franchising & Business Opportunities Expo is the first in a series of three expos held annually around Australia. The next show is in Brisbane 19-20 July, followed by Melbourne 22-24 August. According to Fiona Stacey, a highlight of the Sydney show was the Malaysian Pavilion – 18 companies from a range of industries seeking Australian investors. “The Malaysians gave it a real international feel, with an exciting showcase of business opportunities, available in this country for the first time,” she says. “There were other first-time exhibitors from Australia and overseas who were keen to start a conversation with potential

See many business opportunities all under one roof at the Franchising & Business Opportunities Expo.

franchisees, along with more established names in the marketplace such as McDonalds and The Cheesecake Shop.” As in previous years, the free daily seminar sessions were a popular feature, with many visitors taking advantage of the chance to hear presentations from franchisees, franchisors, consultants, and other business experts. The Expo’s new venue at The Royal Hall of Industries proved to be popular among visitors and exhibitors. “It’s a great location and the space worked well,” says Jonathan Payne from Xpresso Mobile Coffee. “It was also easy to get to and easy to set up.” Fiona Stacey says the new venue provided a great ambience, but what really made the show stand out was the quality of the exhibitor’s stands. “The stands this year were truly impressive,” she says. “They were colourful, professional, and you could see how much effort and energy went into their design.” Stacey and her team are now gearing up for an exciting two-day show in Brisbane this July. It will feature a mix of local Queensland franchisors and advisors, as well as Australian household names.

76 Business Franchise Australia and New Zealand

Pre-registration is available online for the Brisbane and Melbourne shows, and Stacey advises companies that wish to exhibit will need to contact her soon to secure the best stands. “The Franchising and Business Opportunities Expo is the best place to take the first steps 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.” Free pre-registration is available at www. franchisingexpo.com.au. For information about participating in the 2014 Franchising & Business Opportunities Expo contact Fiona Stacey on 03 9999 5464 or email Fiona@ specialisedevents.com.au Diary dates: Brisbane 19-20 July 2014 at Brisbane Convention & Exhibition Centre Melbourne 22-24 August 2014 at Melbourne Exhibition Centre Sydney 27-29 March 2015 at Royal Hall of Industries, Moore Park


Business Franchise Australia and New Zealand 77


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“The good news – both for franchise systems “Franchisees often question why they are required to and would-be franchisees – is that most audited purchase a product from an approved supplier when systems to date show they are complying with they can buy the same product cheaper elsewhere.” the Code.” Dr Michael Schaper | Deputy Chairman ACCC

KEEPING FRANCHISORS ON THEIR TOES The Australian Competition and Consumer Commission is using its audit power to check whether franchisors are complying with the Franchising Code of Conduct. The audit (or information-checking) power, which took effect on 1 January 2011, enables the ACCC to compel a franchisor to provide any information or documents it is required to keep, generate or publish under the Franchising Code. This includes disclosure

documents, marketing fund statements and franchise agreements. Importantly, the audit power allows the ACCC to investigate anonymous complaints against franchisors. This assists the ACCC in situations where franchisees may be hesitant to report contraventions due to fear of retaliatory action by their franchisor. In the past, the ACCC has focused primarily on franchisors of concern. For example, franchisors that we’ve had previous dealings with, or that have been the subject of a significant number of complaints. The ACCC has audited more than 50 franchisors and most have been found to be complying with the Franchising Code. The ACCC is now shifting its attention to industries that generate a disproportionate number of complaints. We’re currently

78 Business Franchise Australia and New Zealand

looking at franchisors from the fast food and health and fitness industries, although our audits are not restricted to these two industries. How does an audit work? First, the ACCC sends the franchisor a notice to produce documents, which clearly sets out the paper work that the franchisor will need to provide. We are likely to ask for a copy of disclosure documents issued by the franchisor within a certain period. Copies of franchise agreements, certain lease documents and marketing fund statements may also be requested. We might also want to see any termination notices issued by the franchisor. The franchisor has 21 days to respond. If the records are in order, there shouldn’t be any problems. Franchisors may apply for an extension and we are happy to grant one if there are good reasons for not being able to


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“So the message for franchisors is simple: keep your books in order!” the documents with what we already have on file. If there are discrepancies, we’ll raise these with the franchisor. The good news – both for franchise systems and would-be franchisees – is that most audited systems to date show they are complying with the Code.

comply within the timeframe. The ACCC will do an initial scan of the documents to see that everything we asked for has been provided. If something is missing, we’ll contact the franchisor and find out why. The next step involves comparing what’s in

Where an audit reveals shortcomings, the ACCC has a range of tools to bring about compliance. If our review of the documents reveals severe, deliberate breaches of the Franchising Code (or the Competition and Consumer Act) by a franchisor, enforcement action may be necessary. If our review reveals very minor breaches, we’ll seek to resolve our concerns directly with the business (a so-called ‘administrative resolution’ that is often the end of the matter).

U O Y AREDY TO REA NGE CHAR LIFE? YOU

80 Business Franchise Australia and New Zealand

The audit power helps strengthen franchisor compliance with the Franchising Code by giving us a window into franchise systems that did not exist before. The very exercise of conducting rolling audits means that where there has been non-compliance with the code, there is a good chance we will pick it up. So the message for franchisors is simple: keep your books in order! For more information on the ACCC’s audit power, click on the ‘Industry code audits’ link at www.accc.gov.au/industrycodes or contact the Small Business Helpline on 1300 302 021. For franchising information, visit www.accc.gov.au/franchising. Dr Michael Schaper is Deputy Chairman of the Australian Competition and Consumer Commission.

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e x pert a A dv ice

benefits of bank accreditation The two biggest impediments to franchise expansion since the global financial crisis has been the recruitment of quality franchisees and the ability for franchisees to access finance from banks.

• The opportunity to grow your franchise system faster with bank finance offered against the business without in some instances having to provide a home or other collateral security for the loan.

These two stumbling blocks are related, in simple terms franchisors will in the main be able to recruit more franchisees if it is easier for franchisees to access finance. This is where a bank accreditation can help.

• It provides access to funding for existing franchisees that may require additional finance for refurbishments.

A bank accreditation enables a potential franchisee looking to buy a franchise to borrow 40 to 70 per cent of the total set up costs of a new franchise, or purchase costs of an existing franchise business. A bank accreditation supports the growth of a franchise system by providing streamlined processes for lending and access to other cost-effective transaction solutions for the systems franchisees.

What are the benefits of becoming accredited with a bank? A bank accreditation creates many opportunities and benefits for franchisors and franchisees, including the following:

• The ability to choose and recruit from a larger number of potential franchisees as a result of easier access to finance. • It makes it easier for the franchisee to approach a bank that understands franchising and the specific accredited franchise business.

• The benefit of dealing with accredited franchise specialist bankers who have the experience, capability and understanding of your franchise system and franchise transactions.

What is the process to obtain bank accreditation? The bank accreditation process differs slightly from bank to bank but generally entails: • A franchise specialist banker will meet with you to seek an understanding of your franchise system, structure, operating processes, expansion plans and ongoing strategy. • The bank will request to review the franchise systems legal documents such as the disclosure document and franchise agreement and financial documents

82 Business Franchise Australia and New Zealand

including the franchisors financials and franchisees benchmarks and set up costs. • The bank will work with you to structure a reciprocally agreed package to be delivered to all your franchisees nationally. This will normally include a tailored and complete financial solution specific to your franchise system including a merchant group deal. • The bank will provide supporting marketing material detailing the banks offer tailored specifically for your franchisees.

What do banks consider important when assessing a franchise system for accreditation? Banks consider potential new accreditations using their own individual criteria; however, as a rule of thumb banks choose to partner with franchise systems that are: • Established system usually with a minimum number of established franchise outlets. • Owned, operated and tested the franchise system for a minimum of at least three years. • Strong with proven profitability and trading history for a minimum of at least three years. • Growth oriented with a clear and achievable vision for the future. • A market leader or a strong emerging


“A bank accreditation supports the growth of a franchise system by providing streamlined processes for lending and access to other costeffective transaction solutions for the systems franchisees.” Labrina Tsekouras | Senior Business Development Manager - VIC & TAS Franchise Sector, Westpac

player in a growing innovative industry with strong business expertise. • A system with exceptional brand reputation, which is often demonstrated through superior recruitments processes, successful marketing programs, ongoing operational support and training. • A brand that demonstrates exceptional behaviours among existing franchisees, the bank and other stakeholders. • Able to provide timely and detailed financial information, i.e. benchmarks, and provide financial support to the franchisee network as required. • A brand with a strong national footprint (or forecasting same). • A brand with appropriate size and scale, measured using criteria such as average set up costs, industry benchmarks and historical business sales.

Franchisees needs are different Franchisees have different needs to an independent small business. Westpac has dedicated Senior Business Development Managers who work with prospective franchisees to assist in: • Securing funds for initial set up costs, purchases or business growth. • Greater financial visibility and control by streamlining finances. • Helping franchisees to meet their financial obligations without restricting their cash flow. • Sharpening franchisees financial management skills through workshops that complement the training provided by franchisors.

• A Tripartite Agreement to be executed by the franchisor, franchisee and Bank.

Westpac has supported the franchise sector in Australia for over 20 years. The growth of a specific franchise system is supported by providing streamlined processes for lending, as well as access to other leading transactional solutions. The bank also has a national network of franchise specialist business bankers who are able to deal with the specific day to day needs of the franchise customer.

Initial Information you should expect to provide to your bank for an accreditation application

Labrina Tsekouras is the Westpac Senior Business Development Manager for Victoria and Tasmania and specialises in the franchising sector.

• A copy of the Disclosure Document.

Contact Labrina at:

• Major cash flow source is from royalties (e.g. % of gross sales) as opposed to selling franchises (e.g. franchising or licensing fees).

• A copy of the standard Franchise Agreement. • The last two years franchisors financial statement. • Franchisee set up costs and key benchmarks. • 12 months actual franchisee profit and loss statements to support benchmarks provided.

Phone: 0418 246 903 Email: ltsekouras@westpac.com.au Web: www.westpac.com.au

Franchisee Application Checklist Once a franchise accreditation is in place the next step for the prospective franchisee is to submit a formal loan application to the bank. Information generally required for a franchise loan application is as follows:

q Copy of the proposed Franchise Agreement.

q Detailed list of set up costs – for greenfield sites only.

q The applicants Curriculum Vitae

detailing their background, experience and qualifications.

q A detailed Business Plan, which must

include 12 month’s cash flow and profit and loss projections.

q Copy of the proposed Lease Agreement.

q An executed Business Loan

Application – provided by the bank.

q The applicant’s personal tax returns for the last two years.

q The last two years Tax Return and ATO assessment – for existing businesses.

q Tax portal printouts (1 year) – for existing businesses.

q A copy of the sale contract – for existing businesses.

q The last 12 months bank loan and

transaction account statements – for refinance applications.

q Client contribution details and evidence of any savings.

Business Franchise Australia and New Zealand 83


FR A NCHISOR IN D EPTH : Sh er pa K i ds

International Expansion

with Local Engagement team s Kid a a p ic Sher h Afr t Sou

As Chief Sherpa at Sherpa Group, Vicki Prout is well placed to spot a great franchise model when she sees one. Vicki’s background and subsequent rise in the world of global franchising is a unique story. After joining the Navy and with over a decade of serving the Navy and her country, Vicki decided she would enter the small business arena. Starting with a pet food delivery company, buying a local promotional products business, then taking the step of developing that in the UK for four years, and then moving on to become the International Development and Marketing Director for Cartridge World. It was in this position that Vicki gained invaluable insight into the world of franchising, growing the Cartridge World franchise from 436 stores to over 1600 stores in 42 countries. Building from principles learnt in the defence force and over 15 years’ experience in the franchising sector, Vicki established Sherpa Group in 2009. The company draws on Vicki’s in-depth understanding of relationship building, team orientation, franchise recruitment marketing, brand development, strategic development and implementation, and has seen her earn accolades including as FCA National Chair for Women in Franchising as well as being voted SA Franchise Woman of the Year for a record four years. With hands on experience and a wealth of knowledge to draw upon, Vicki has experienced franchising at all levels and

84 Business Franchise Australia and New Zealand


is well versed to the challenges faced in business expansion. Sherpa Group were appointed the role of completing an Australian market entry analysis for New Zealand based franchise, sKids – Safe Kids in Daily Supervision to ascertain the feasibility and viability of bringing this well-known Kiwi company to Australian shores. With the knowledge that she gained from this analysis about sKids and knowing its growth potential, using the famous ad slogan from Remington back in the 1970’s, Vicki says, “I liked it so much I bought the company.” In reality Vicki became the major shareholder AU, and has since become equal director with Dawn Engelbrecht from sKids NZ for the international rights – operated, staffed and resourced from her local offices in Adelaide.

Sherpa Kids Australia Vicki explains, “I proudly became the Master Franchisor for Australia in July 2011 and worked part time building the model and completing all required documentation, whilst at the same time ensuring that Sherpa Group continued to thrive. “It was hard work combining and juggling the two roles but also exciting and extremely valuable to my consulting work as I was living through the advice that is given to my clients, every day. This has made me a stronger consultant as I experienced the ebbs and tides of the franchise journey every day.” Twelve months after combining the role of consultant and franchisor, the first Sherpa Kids franchisee was on board and the business has since grown. Vicki continues, “Numbers tell half the story of what we’ve achieved in our first two and half years in a market with entrenched competitors in both the commercial and community sectors. “We have representation in eight countries and support 22 Australian franchisees, three Area Developers and 25 on-site outside school hours care service (OSHC).

Customers from over 600 families currently send 1000 children to us for 2600 sessions per month. “Between 2012 - 2013 the business doubled in size and will double again by the end of 2014. “The other half of our story is showing you how we achieved this success so quickly. We chose the business model of franchising to make change in the OSHC landscape. After preparatory research we could see the Australian market was stale and unprepared for the launch of the National Quality Framework reforms in January 2012. Franchising was the answer.” Sherpa Kids is values driven. If you love the business and you agree to do your best to follow the tried and tested rules for running an OSHC business, they: • grant you the right to run a copy of the business • show you what you need to do • give you the tools to do the job • support you in your efforts to do it. In return franchisees pay a fair price for the brand, goodwill, extensive training and operational support and should aim for a healthy return on their investment from as little as $35,000 plus GST for a greenfields territory. The franchisee purchases an area known as a cluster - approximately 8 - 10 primary schools. “Choosing local people as our franchisees is part of our success and ultimately their success. Our group is extremely multicultural and all diverse with their own attributes.” Sherpa Kids have working mums who’ve experienced or witnessed firsthand the problems associated with a lack of quality after school care through to ex-lawyers, practising accountants and recently teachers have joined the network. “Many take an interest in the business that is larger than the balance sheet. We are, after all, working with children and families. Local franchisees are best placed

to engage with local stakeholders, from the school principal to the fresh fruit merchant. Local franchisees empower the brand at a local level, where their customers live. They develop trust, which grows market share. They are the true community citizen” says Vicki. Vicki had the realisation during her research that many people were receiving their Certificate III in Childcare and then some growing bored in the industry. “Sherpa Group has coined the phrase ‘HUMAN AGRICULTURE’ by this we mean WE GROW PEOPLE . We constantly adapt this adage and ethos with Sherpa Kids via our business model. We are providing people the opportunity to potentially grow and enhance their own personal development and if they wish own a business in an industry they are extremely passionate about. Our staff, our franchisees staff can work within the business day to day but at the same time are trained in elements such as marketing, finance and business skills they can utilise throughout their working career.” We wish to be known for the service that serves its community. Not be known for the number of services we have! Our brand has a massive heartbeat this is underpinned by local heartbeats and little people heartbeats!

Worldwide Focus Over the next 12 months, Vicki and business partner Dawn Engelbrecht will be building on the development of Sherpa Kids International as this adds value to the existing business partners by strengthening the global brand. With Master Franchisors already in place in the UK, Ireland, and South Africa alongside Australia and New Zealand, Business Franchise magazine was able to speak with each Franchisor to discover why Sherpa Kids is so unique.

John Geers, Sherpa Kids England “Sherpa Kids England was incorporated in October 2012, operating two After School

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FR A NCHISOR IN D EPTH : Sh er pa K i ds

Clubs in the London Boroughs of Barnet and Redbridge and opening a third in the London Borough of Harrow in April, after a recommendation received from the Head Teacher of one of the original two, just six weeks into operation.

“Local franchisees empower the brand at a local level, where their customers live. They develop trust, which grows market share.”

“There are millions of working parents in England who do not have the flexibility in their working hours to drop their children off and collect them from school at the times when schools open and close. During the school holiday period they are either forced to take time off work or pay for expensive child-minders. Breakfast, After School and Holiday Clubs provide a cost effective solution for parents because of the economies of scale that come with looking after children in a group setting. “Sherpa Kids England has an offering unique due the fact that our operating model is a combination of best practice from several countries under the Sherpa Kids banner. In practice this means that the standards of care and the experiences planned for the children by Sherpa Kids greatly exceeds that required by law in the UK. Furthermore, 2014 will see UK legislation relax standards even more – thus making the Sherpa Kids model a clear leader when it comes to quality out of ours school care.”

Dawn Engelbrecht, sKids – Safe Kids in Daily Supervision NZ “Safe Kids in Daily Supervision (sKids) started in 1996 and I took over with my business partner Bev in 2006. We were originally franchisees in the system (Bev since 1998, myself since 2000) so we had a clear vision of what the brand could do and where we wanted to take it. As of today we have 55 franchisees operating at 118 locations in New Zealand. “There is an increasing need for both parents to bring in an income and most working hours do not accommodate school hours which tend to be a shorter day (i.e. 9-3) and parents want to know that the people looking after their children are well trained professionals who put their child’s needs first. “Our strength is that we are local providers offering a local service on-site at their local schools supported by a National Support office. “We ensure that there are a variety of planned activities each day for the children to participate in as well as healthy afternoon tea and homework time and have

John Miles, Sherpa Kids Ireland with Co-Directors Dawn Engelbrecht and Vicki Prout

recently launched two new services; sKids Active which is a sports based life skills programme and iHub which is out of school care designed for tweens so our focus over the coming months will be to grow these services across the country.”

Genevieve Allen - Sherpa Kids South Africa “As one of only a few female franchisors in South Africa, I want to lead and inspire other women to take up the challenge of running their own businesses. After working in the education industry for 20 years, I have a passionate commitment to learning in South Africa. “As such, I was keen to join this tried and tested franchise business and offer an out of school hours programme that works. Sherpa Kids aims to establish quality onsite OSHC programmes throughout Southern African primary schools. These programmes are structured, engaging, fun and educational with an emphasis being on stimulating child care and not passive child minding. Sherpa Kids brings South African parents internationally benchmarked, structured and standardised offerings for before school care, after school care and care during school holidays. Sherpa Kids has licenced, fully accredited sites in Australia, New Zealand and the United Kingdom that are successful stimulating child care systems that have been running for over 15 years.”

John Miles – Sherpa Kids Ireland “Following months of research I quickly came to the conclusion that the Out of Hours School Care market in Ireland was at best fragmented and at worst non-existent.

86 Business Franchise Australia and New Zealand

This definitely, for me, was the business opportunity I had been looking for – the chance to be the first mover in a fragmented market offered the challenge and potential rewards that I craved. “My first hurdle to jump was to answer the question of branding – how was I to take full advantage of this situation in the shortest possible time frame? It would take years to build up a recognised brand and the processes and procedures of running a business involving childcare looked onerous. I searched instead for a proven provider operating in another country and that is when I came across Sherpa Kids. It provided me with everything I required – a recognised international brand, set up support, business support and a whole set of rigorous process and procedure guidelines. “On my return to Ireland after meeting with the team in Adelaide I was good to go and feel extremely confident at this early stage of development that I have been provided with the tools and ongoing support that will be the cornerstone of a brand new service in the Irish market place.” To be a part of this exciting franchise opportunity locally in Australia or overseas contact Vicki Prout at: Phone: 08 8354 4886 / 0439 803 078 Email: vicki@sherpa-kids.com.au Web: www.sherpa-kids.com.au or if you have a business looking for international expansion call Vicki Prout at: Phone: 0439 803 078 Web: www.sherpagroup.com.au


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Pop Up into Retail Pop ups are a phenomena that is now becoming a regular part of the retail landscape.

clothes racks and trestle tables, to properly engineered marketing furniture that is light and easily removable, and in some cases even recyclable. If the cost of fit out is greatly reduced, or can be removed and reused, then a pop up becomes much more palatable.

Overseas and locally we are seeing pop ups in many places, and maybe an after effect of the recent global financial crisis (GFC) has been that it gives Lessors with closed retail space another option to at least have a short term tenant.

I was in Hong Kong, and the classic was Shanghai Tang – a very famous retailer who was displaced from their traditional store in Central on Hong Kong Island. They had resorted to a series of pop ups in Hong Kong until they could secure a new long term arrangement. Even their staff wore tee shirts describing them as ‘The Nomads of Hong Kong’.

Many franchisors are encouraging their franchisees to consider pop ups, often as a second short term outlet, as a lead generator or to cover a certain period in the market. The idea of the pop up comes from a low set up or entry cost. New ideas are constantly being put forward, changing from a few

Pop ups can be used in many different ways within a marketing landscape: 1. The very seasonal store that has a few months of life. Examples of this can be

88 Business Franchise Australia and New Zealand

Christmas cards, Easter eggs or ice cream through the summer period at a beach resort. 2. A special sale to put out reduced price stock. 3. A new product launch. 4. A trial for an area, or in a shopping centre or strip that you want to see the take up. 5. Use of the window as purely a display, or even for use with the web and QR codes. In Australia, a short term lease falls outside of the Retail Leasing Act, so a short term commitment can be made, with possibly if successful, a longer term commitment to come. From a landlord’s view, if they have a shop sitting vacant for two years, and are offered a three month tenancy, that may lead onto a longer term arrangement, it could be quite attractive.


“Many franchisors are encouraging their franchisees to consider pop ups, often as a second short term outlet, as a lead generator or to cover a certain period in the market.” Peter Buckingham | Managing Director Spectrum Analysis Australia

Short term leasing is something shopping centres have been using for some years. Whilst the long term tenants may not be all that happy, we have seen wide spaces that were originally built for good aesthetics or other purposes, turned into short term book sales, Chinese massage areas and small kiosks for mortgage brokers amongst others, where the cost of set up is very minimal. All that may be needed is a desk, a few trestle tables and partitions. Shopping centres now see this as an attractive revenue source, with some setting up short term leasing divisions accordingly. Zambrero’s CEO, Stuart Cook told the Franchise Council of Australia’s breakfast in Melbourne last year how they are rolling out a new modular fit out that can be installed (or removed) overnight! This will give them the flexibility to undertake pop up type concepts, as well as not be held to ransom on future rentals due to their sunk fit out costs. It will be very interesting to see if other franchise systems follow Stuart’s thinking, and also give them this flexibility.

Pop ups need the link to make it happen, as whilst most real estate agents will have seen it or thought about it, and many retailers will also have looked at the concept, most people cannot see where to start. Pop Union (popunion.com) ‘popped up’ late last year as a company that services and supports pop up as an industry. According to Director Bec McHenry, Pop Union is set to become the “permanent part of pop up” – “here to industrialise and strengthen the growing pop up movement and transform it from a ‘trend’ to a ‘trade’.” Pop ups could serve as a powerful way to reinvigorate main street shopping strips. Bec has been engaged to work on a reactivation project in collaboration with the Bridge Road Traders Association and the City of Yarra, taking place on Bridge Road in Richmond, VIC. This project combines pop ups with creative marketing strategies, and aims to kick start the Bridge Road shopping strip, which has suffered quite a deal due to all the reasons retail is hurting. For those who haven’t visited in a while

(which safe to say is a fair few of you), Bridge Road has, in the past, been a celebrated discount and sale area. The shift to online shopping, the emergence of DFO outlets, and the GFC broadly, all had a grave impact on the strip. The reactivation project sees this project as an opportunity for Bridge Road to explore new opportunities and test new identities.

A store sitting vacant, or using its window space to draw attention to products for sale, either physically or via the net is much better for a frustrated landlord, who has had a vacant shop for a couple of years! Think of pop up as a way to test an area, test the market, or sell items that are very seasonal without you committing to a long term lease for 12 months or more. Pop ups are becoming part of the new retail landscape. Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Melbourne based mapping and statistics consultancy, a Certified Management Consultant, and Victorian Chapter President of the Institute of Management Consultants. Spectrum specialises in assisting clients with decisions relating to retail location, using various statistical techniques.

Peter Buckingham - Managing Director, Spectrum Analysis Australia Pty Ltd

P: 03 9882 6488 E: peterb@spectrumanalysis.com.au

Business Franchise Australia and New Zealand 89


Spotlight: sm a rt o hs

SIMPLIFY WORK HEALTH & SAFETY

FOR YOUR FRANCHISE GROUP Making workplace health and safety pain free for franchise groups and their franchisees. “Unlike our competitors, we have the flexibility to be able to offer franchise groups the economies of scale they are used to in delivering the highest quality, lowest cost technology to allow work health and safety to be managed easily and without a commitment of resources by the franchisor.”

With over 3,000 Australian workplaces using its simple but state of the art work health and safety system technology, and another year of working with Australia’s leading franchise groups as clients, Smart OHS is quickly being recognised as the leader in franchise work health and safety. “Simplify. Engage. Comply. Those three words sum up perfectly who we are and we do with respect to work health and safety for our clients,” said National Sales Director, Michael Kim. “There are so many misconceptions surrounding the concept of work health and safety (WHS/OHS). One of them is that the creation of some documents such as procedures manuals and standard checklists means you’re ‘covered’. It certainly does

not. Another misconception is that work health and safety will mean a considerable commitment in financial cost and time. Smart OHS is about expunging those common myths,” said Michael. Smart OHS started nine years ago with the founders, OHS consultants, finding that for the most part, small businesses neither had the time nor money to engage the services of a consultant to implement a health and safety management system. Smart OHS was built as an online system to make ongoing work health and safety compliance much easier and far more cost effective for small business. Smart OHS works by creating the business a WHSMS Plan, linked to a series of ongoing instructions for the business to login to their ‘Member Area’ within the system and use the online forms to records such items as: workplace inspections, hazardous substance registers and inductions. Businesses only need to login to the system after they’ve received an email reminder to do so and can track their performance over time via a ‘Risk Rating’ score. For most small businesses, after the initial 30-minute phone call set up with a Systems Administrator, undertaking the ongoing tasks is about 15 minutes per week of work only. “We’ve spent the last nine years evolving our system in response to the feedback of our clients to the stage where we are undoubtedly now the leader in what we do,” said Michael Kim.

“In the past two years in particular, we’ve been inundated with enquiries from franchise groups, who are essentially a large collection of small businesses with a common goal and product. The franchisor recognises a responsibility to provide a safe system of work and want to implement that hassle free. The franchisees understand they too have obligations, but want the solution to be endorsed and rolled out by the franchisor. That’s where we come in.” Michael Kim came aboard on 2011 with a brief to focus on working with franchise groups, much of the time offering the product as a managed service to alleviate the need for a commitment of resources from head office. In the past year alone, business growth has been exponential; Smart OHS has signed an ASX listed organisation with 135 locations, Australia’s second largest franchise group, and a community organisation specialising in aid projects, disaster relief and with a retail component of Op Shops. “Simplify. Engage. Comply. It’s what we help franchise groups do,” said Michael Kim. For more information about Smart OHS please contact Michael Kim. Mobile: 0416 210 818 Phone: 1300 858 818 Email: michael.kim@smartohs.com.au Web: www.smartohs.com.au

90 Business Franchise Australia and New Zealand

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e x pert a A dv ice

A NEW KIND OF TEAM:

WORKING WITH OTHER BUSINESSES TO GROW YOUR OWN Franchisees are already luckier than most in small business. For one thing, you have a ready-built group of peers with whom you can celebrate, commiserate and talk shop with, and who you can compare yourself against and copy the best ideas from the performers in each area (best practice) to increase everyone’s chance for success. 92 Business Franchise Australia and New Zealand


“Start simple. If you each think well of the other’s business why not encourage your own customers to use them?” Katherine Grace | Director Graceful Solutions Marketing

But there is no reason why franchisees can’t also use another Low Cost / No Cost marketing method to grow their business – one that is sadly underused by franchisees and independents alike. It is, quite simply, working with other businesses to the benefit of all. Creating an ‘unofficial team’ in your local community gives you another avenue of support, and considering that resilience is one of the driving factors in any small business success, the more support and ideas you have to ‘keep at it’ the better your chances become. Beyond that however, like-minded business owners can pool ideas and resources and get far more done (and be far more of a concern for competitors) than they ever could alone.

FINDING LIKE MINDED BUSINESS OWNERS Leveraged local marketing all hinges on finding other business owners that think like you do. Many people is small business are – or have unfortunately become – negative, jaded or despondent about business, or have decided to blame the market/economy/ customer rather than their lack of activity as the reason that they are quiet. To work with others and only pull a fair share of the load, you need to seek out business owners that have a positive attitude and are open to trying new things. Other than some small restrictions such as getting approval on local area marketing, it doesn’t matter whether you work with other franchisees or independent businesses. It also doesn’t matter if the other owners are new to business or well established, as long as they have get up and go. In finding some partners in crime, the most important traits that you are looking for are: • A positive, ‘can-do’ attitude; • People open to trying new ideas – no

saying ‘that won’t work’ without trying; • The same business values as you (hopefully honesty, quality, service, etc); • A business reputation you are happy – if not proud - to be associated with; • A good business culture that people dealing with them can ‘feel’; • A team who are also engaged and invested in the business; • Some alignment with your target market (for example, you both sell to families); and • Someone who you ‘mesh’ with personally. Preferably, also try to work with businesses that can or do maintain a database of past clients (this can be almost anyone however - we have successfully set up databases with everything from fish and chip shops to toy stores). Once you know who you are looking for, a simple stroll down the street, through your local paper or around your shopping centre (depending on your type of business) and a minute to introduce yourself should be more than enough to find like-minded business owners. If not, try your local traders association, business networking event, BNI meeting or facebook forum, or ask your customers who else they patron. Once you find one or two businesses who would like to work with you, it is a good idea to try something small before you recruit others – otherwise you may find yourself heading up a ‘committee’ that never does anything (or if it does, you end up doing all the work).

WAYS TO WORK TOGETHER For a marketing strategist like me, a group of eager business owners wanting to work together provides an endless list of opportunities for simple, low cost and effective marketing. However if you find you

are stumped for ideas, below are the bare bones of the low cost strategies that work well with pairs and groups, as well as some ‘real life’ examples which you are welcome to copy (we call that market research) and make your own. As always, seek your franchisor’s permission before launching any local area marketing, especially if you are planning on using your logo or branding.

SWAPPING CLIENTS Start simple. If you each think well of the other’s business why not encourage your own customers to use them? You can include an incentive or ‘bonus’ to your clients for visiting the other business, but don’t have to in order to both enjoy an increase in sales. This is easy, fair and pretty much free so a great way to start a relationship with nearby businesses without a great deal of risk. Examples of this strategy in action include: 1. An appliance repairman and plumber who each left fridge magnets for the other’s service (as well as their own) with the client. 2. A café and toy store leaving their respective loyalty cards on each other’s front counters. 3. A hotel and a local restaurant leaving brochures in each other’s foyers (both included a 10 per cent discount to the others patrons). 4. Two retailers including their ‘friends’ brochure (as well as their own) in the clients purchase bag. 5. A traders group with ‘showbags’ full of offers from several businesses in the locality (customers were given one after purchasing from any of the traders). 6. A cleaning company who had a ‘free trial’ voucher delivered with every pizza from a local pizza store, and in return left a menu at each home they cleaned!

Business Franchise Australia and New Zealand 93


e x pert a dv ice

“A group of eager business owners wanting to work together provides an endless list of opportunities for simple, low cost and effective marketing.”

SWAPPING DATABASES This is the same idea but much more wide reaching as it cross refers all of your clients instead of just a few. If you both have a database, you can easily each help one another by introducing the second business to your clients. It is important though that you a) have the opt-in permission of your customers to contact them from time to time (this is fairly easy to gain but an important step for your marketing) and b) that you do the introducing and don’t just hand over your database to a third party. If you can also include a special offer or privilege for the other businesses clients (called a host beneficiary) this sets up a win/ win/win scenario - you gain new business, the customer gets a special deal and the other business looks good for securing a reward for their clients. Some examples of cross referring include: 1. A hairdressing salon and massage therapist who each sent $20 gift vouchers for the other’s business to their clients. 2. A car detailer who mailed all his customers to thank them for their business and included a discount voucher both for his service and for a home improvement company he was working with. 3. A local gym and medical clinic who each offered their client base a free session with a personal trainer or nutritionist respectively.

JOINT MARKETING Having friends in businesses with the same target market but who aren’t competitors can also come in handy for sharing the costs of advertising, as well as bumping up the impact of your marketing. Consider joining forces with other businesses to market together and get twice as much bang for your buck. Examples we have put into place recently include: 1. Several home services companies producing one flyer which is left by all the tradespeople after each job (this effectively x5 their marketing efforts). 2. A builder and interior designer pooling funds and staffing to exhibit at a home show. 3. Four local businesses who can dominate one section of the local paper for a third

of what it would have cost them all individually. 4. Two retail/personal service neighbours who created a double sided flyer (one side each) and shared the distribution costs.

JOINT EVENTS Not for the faint hearted (or unorganised), joint events are often the first thing people think of trying to work together and thus the one that most often ends with disappointing results. A group event such as a fete, open day, VIP night or shopping tour can be amazing for the businesses involved but it needs strong leadership, tight organisation, planning, plenty of lead time and a group of people all pulling their weight (and prepared to invest some money to promote the event properly). Some that we have run to great success in the past include: 1. A traders ‘fete’ including stalls and talks from each business plus attractions such as an animal farm, kid’s activities, giveaways and an MC. 2. A VIP Night held at one business (a toy store and a mattress store have both run very good ones) including sample services from other businesses such as massage therapists, beauticians and a local caterer. 3. A business networking event (with speakers) for several B2B service providers.

94 Business Franchise Australia and New Zealand

NOW…OVER TO YOU. More small and family businesses in Australia working together would be a great thing. Hopefully, one of the examples given sparks something in you for your own business. It if does, hopefully you will go out and find a ‘friend’ in business to share your idea with and in doing so create much more for both of you. And in addition to this being cheaper, more far reaching and more effective than most marketing you could do, the side effect is that business becomes a bit more fun and a bit less lonely too. A former CEO for the Jim’s Group, Katherine has over 17 years’ experience in franchising. She has worked with many brands, been a successful ActionCOACH franchisee (#14 in the world) and was runner-up Franchise Woman of the Year in 2010. Graceful Solutions is a marketing company specialising in no-cost, low-cost and local area marketing. Their team of 12 offer services including websites, online advertising, marketing plans & low-cost strategies to engage existing customers and find new ones. Phone: 0400 865 277 Email: Katherine@gracefulsolutions.com.au Web: www.gracefulsolutions.com.au


h ot topics

Behind the

headlines Competitive Foods finalises sale of KFC outlets Competive Foods, the parent company of Hungry Jacks, has completed the sale of its 42 KFC outlets in Western Australia and the Northern Territory to listed Queenslandbased KFC operator Collins Foods in a deal reported to be worth $55.6 million. The sale brings an end to the involvement with KFC of Hungry Jack’s founder and franchise pioneer Jack Cowin, who made his start in Australian franchising by securing the rights to KFC for WA and the NT in 1969. The deal also ends a long-running dispute between Competitive Foods and KFC parent Yum! Brands. Collins Foods operates 127 KFC outlets mainly in Queensland, and listed two years ago. The company also owns 27 Sizzler restaurants and plans to open another 25 to 30 KFC stores in WA over the next 10 years.

Cupcake Bakery collapses as franchisees debadge Specialty retailer The Cupcake Bakery has collapsed into administration, with a media report indicating that existing franchised outlets have already debadged and continue to trade as independents. The chain launched in 2006 and had outlets in Brisbane, Sydney and Melbourne, however

the company website now lists only outlets in Sydney and Melbourne following the appointment of administrators from Hall Chadwick in March.

Bank of QLD claims win in franchisee class action The Bank of Queensland has successfully defended a class action claim for misleading representation by 10 former franchisees in the New South Wales Supreme Court. The case relates to representations about the likely business and profitability of franchises opened in metropolitan and regional NSW during a period of rapid expansion in 2005. The 913-page judgement bank was handeddown on February 13, and while it dismissed the franchisee’s claims, was critical of the support provided by the bank to the franchisees at the time.

Australian specialty franchise sells to international retailer Australian specialty franchise Wild Cards & Gifts has been acquired for an undisclosed sum by 222 year old British-based multinational retailer WH Smith. The Melbourne-based 40-store chain will continue to operate under the same brand under the new owner, with outgoing owners Lawrence Wild and Susan Boyle announcing their retirement from the business.

Jason Gehrke | Director Franchise Advisory Centre

Australia Post drops franchising strategy, flags profit drop Australia Post has announced that it will discontinue its franchising strategy, and will not renew the agreements of its 29 franchisees when they fall due, according to a report in The Australian. The government-owned entity acknowledged that its franchising strategy, announced in 1999 and expected to deliver 150 new outlets, could not be achieved in the face of declining mail volumes. The franchisees will be converted back to licensees instead. Australia Post has fielded speculation early this year that it could be included in any selloff of government assets. It has also recently been the subject of a federal Senate inquiry. It has also flagged to the Federal Government via a Senate Estimates committee briefing that it will be unable to continue to pay a dividend to the Australian Government of losses on its letter delivery services continue to climb.

Shell sells Australian refineries and petrol stations Petrol refiner and retailer Shell has sold its 900 Australian petrol stations and Geelong refinery to a Dutch-owned oil trader and Middle Eastern investment business for around $2.4 billion, according to a media report.

Business Franchise Australia and New Zealand 95


h ot topics

ACCC warns against pyramid scheme franchise scams

Dumb Starbucks hoax store revealed as comedian parody

The Australian Competition and Consumer Commission (ACCC) has issued a public warning against pyramid scheme franchise scams to help prevent potential franchisees falling victim to fraudsters.

A lookalike Starbucks store in Los Angeles that captured the look and feel of a real Starbucks, but which featured the word ‘Dumb’ in the logo and brand name, has been revealed to be a hoax set up by popular Canadian comedian Nathan Fielder.

The ACCC has warned that typical franchise scams may appear very professional, particularly those promoted online, but despite much rhetoric about the benefits of franchising, will often fail to provide much, if any, detail about the products or services actually sold. After a rushed sales process and paying a large upfront fee (without of course, receiving a disclosure document), the scam then requires its ‘franchisees’ to recuit others to the scheme.

The store was opened for several days before the ruse was revealed, but not before hundreds of customers had lined up for hours for free coffee and drinks, and Starbucks executives had urgently attempted to trace the owner of the store. The joke ended prematurely when Los Angeles health officials shut down the outlet for operating without a valid permit, prompting Fielder to reveal his hand. He dismissed claims of infringing Starbuck’s trademark, by claiming fair use for the

96 Business Franchise Australia and New Zealand

purpose of making a parody. Footage of the Dumb Starbucks store is likely to be included in Fielder’s television show ‘Nathan for You’.

Fast food worker celebrates 1 00th birthday on the job A 25-year veteran worker at a McDonald’s outlet in the United States has celebrated his 100th birthday, and vows to continue orking for as long as he can. Morris Miller starting working for the Needham, Massachussetts outlet at the age of 75. He has since moved from general duties, and currently works a few hours three days a week as an ambassador for the store to simply greet and talk with customers.


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FCA & FANZ

$10K

$10K

LEATHER, PLASTIC & VINYL RESTORATION

225

IFA

Please contact

Please contact

AUSTRALIA’S LARGEST BOOKKEEPING FRANCHISE

150+

FCA, AAT, ICB

$36,000 + gst

$36,000 + gst

RESIDENTIAL PROPERTY MANAGEMENT

1

-

$35,000 (GST inc)

$110,000

24 HOUR FITNESS AND HEALTH

2

-

$149,000

Finance available

HAIR & BEAUTY – RETAIL & SERVICE

140

FCA

$66,000 plus GST

$400,000 plus SAV for Greenfield sites

CAFÉ FRANCHISE

68

FCA

$60,000

$300,000 $400,000

PROPERTY INSPECTION SERVICES

1 Franchisee/ 2 Company Owned

FCA

-

$25,000

HAIRDRESSING

180 across Australia & New Zealand

FCA

$38.5K

$160K-$240K

DOMESTIC & COMMERCIAL CONCRETE EDGING

300+

-

POA

POA

CAFE2U Building 7, 81 Frenchs Forest Road, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchises@cafe2u.com.au Website: www.cafe2u.com

CREMA ESPRESSO 16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

DOMINOS PIZZA ENTERPRISES LTD

Level 5 KSD1 485 Kingsford Smith Drive, Hamilton QLD 4007 Ph: 07 3633 3393 Fax: 07 3633 3399 Email: Franchise.Recruiting@dominos.com.au Website: www.dominos.com.au

ELLA BACHÉ 2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: michelle@ellabache.com.au Website: www.franchise.ellabache.com.au

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

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

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

FIBRENEW 1/47 Sunnyside Rd, Scarborough, Brisbane QLD 4020 Ph: 1300 362 994 Fax: 07 3203 4178 Email: info@fibrenew.com.au Website: www.fibrenew-franchising.com.au

FIRST CLASS ACCOUNTS Suite 8, 34-36 Glenferrie Drive, Robina QLD 4226 Ph: 1800 118 611 Fax: 07 5578 9028 Email: info@firstclassaccounts.com Website: www.firstclassaccounts.com

FROG RENT 4/68 Jessica Blvd Minyama QLD 4575 Ph: 1300 783 658 Fax: 07 5444 6916 Email: admin@frogrent.com.au Website: www.frogrent.com.au

GOLD’S GYM 81 Gozzard St Gungahlin ACT 2913 Ph: 02 6280 4987 Email: ckyrgios@goldsaustralia.com.au Website: www.goldsgym.com/australia/

HAIRHOUSE WAREHOUSE

Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: franchising@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au

HUDSONS COFFEE Level 6, 257 Collins Street, Melbourne VIC Ph: 03 8631 7700 Fax: 03 8631 7799 Email: franchise@hudsonscoffee.com.au Website: www.hudsonscoffee.com.au

INSPECT MY HOME 4/9 Millenium Circuit, Helensvale, Gold Coast QLD 4212 Ph: 1300 337 447 Email: info@inspectmyhome.com.au Website: www.inspectmyhome.com.au

JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 0439 130 499 Fax: AUS 02 9527 5144 Email: bdm@justcuts.com Website: www.justcuts.com

KWIK KERB PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: kkinfo@kwikkerb.com.au Website: www.kwikkerb.com.au

Business Franchise Australia and New Zealand 99


FRANCHISE LISTINGS FRANCHISE LAVA CARTS PTY LTD

PO Box 3, Mooloolaba QLD 4557 Ph: 0458 202 649 Email: manager@lavacarts.com.au Website: www.lavacarts.com.au

LENARD’S CHICKEN

Level1 / 225 Montague Rd, West End QLD 4101 Ph: 1800 068 111 Email: opportunities@lenards.com.au Website: www.franchise.lenards.com.au

LISTEN TO READ 2 Flagstaff St Engadine NSW 2233 Ph: 1300 473 234 / 0410 618 472 Email: hello@ListenToRead.com.au Website: www.ListenToRead.com.au

PARASERVE (VIC) PTY LTD

3/16 Turbo Drive, Bayswater North, VIC 3153 Ph: 1800 041 876 Fax: 03 9729 7722 Email: csc@paraserve.com Website: www.paraserve.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

COFFEE SPECIALISTS

7

-

-

$180,000 min + GST

FRESH CHICKEN RETAILERS

210

FCA

$75,000 incl five store licences

Approx $350k

TUTORING AND MULTISENSORY READING INSTRUCTION

3

Franchise Council of Australia

$12,000

-

COMMERCIAL & EDUCATION CLEANING SERVICES

4

FCA

From $15,000

$35,000 Including franchise fee

HEALTHY EATING CAFÉ

1

-

$60,000 + gst

$200,000

FAST FOOD OVEN ROASTED CHICKEN

370+

FCA

$50K

$450K+

MODERN SEAFOOD CAFÉ

2

Franchise Council of Australia

$60,000 + gst

$200,000

MEDITERRANEAN FAST FOOD CONCEPT

10

Franchise Council of Australia

$60,000 + gst

$200,000

BEDDING RETAILER

71

Franchise Council of Australia

$50,000

$450,000+

SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE

80

-

$15,000 (Licence Only)

$75 P/W

MEXICAN RESTAURANT, BAR AND TAKEAWAY

35

Restaurant Catering Victoria

$50,000

$450.000

MOBILE CONCRETE SAWING

9

FCA Member

$45,000

Initial fee + vehicle

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

150+ worldwide

FCA, IFA, CFA, Irish FA

$24,500

$50,000+

REAL ESTATE PHOTOGRAPHY

N/A

FCA

$39,950 plus GST

$39,950 - $60,000

GLASS RESTORATION AND PROTECTION

8

-

$35,000 + GST

$55,000 + GST

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$17,500

$25,000

DI BELLA COFFEE MOBILE ESPRESSO VAN

28

FCA (pending)

$110,000 + GST (in total)

$110,000 + GST

SPECIALTY COFFEE PROVIDER AND FRANCHISOR

62

FCA

$50,000-$75,000 depending on store

$400,000 $600,000

PRIMAL PANTRY 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.primalpantry.com.au

RED ROOSTER FOODS PTY LTD Level 1, Unit 17, 202 Ferntree Gully Road Notting Hill VIC 3168 Ph: 03 9582 8716 Fax: 03 9582 8744 Email: gary.glen@red-rooster.com.au Website: www.redrooster.com.au

SEVEN SEAS SEAFOOD CAFÉ 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: dean.vella@aktivbrands.com Website: www.aktivbrands.com

SKEWERZ KEBABZ 5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: franchise@skewerz.net.au Website: www.skewerz.net.au

SNOOZE SLEEP WELL PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au

SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com

TACO BILL MEXICAN RESTAURANTS 375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: amigo@tacobill.com.au Website: www.tacobill.com.au

THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0499 399 355 Email: bruce@theconcretecutter.com.au

THE INTERFACE FINANCIAL GROUP Suite 38, Level 3, 2 Brandon Park Drive, Wheelers Hill VIC 3150 Ph: 1300 940 908 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au

TOP SNAP PROPERTY PHOTOGRAPHY Suite 3, Gunshot Alley, Suakin Drive, Mosman NSW 2088 Ph: 1300 TOP SNAP (867 762) Email: sales@topsnap.com Website: www.topsnap.com

UNSCRATCH THE SURFACE Level 10, 50 Market Street, Melbourne VIC 3000 Ph: 1300 500 408 Fax: 03 8677 6962 Email: unscratchthesurface.com.au www.unscratchthesurface.com.au

V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au

XPRESSO MOBILE CAFÉ 35 Railway Terrace, Milton QLD 4064 Ph: 1300 655 559 Fax: 1300 655 569 Email: jonathan@xpresso.com.au Website: www.xpresso.com.au

ZARRAFFA’S COFFEE 1/54 Siganto Drive, Helensvale QLD Ph: 07 5500 0800 Fax: 07 5500 0900 Email: franchise@zarraffas.com Website: www.zarraffas.com

A-Z Listings are a great way to promote your business 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

100 Business Franchise Australia and New Zealand


A-Z FRANCHISE DIRECTORY APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 10 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.

AUSTRALIAN DRUG DETECTION AGENCY The Australian Drug Detection Agency PTY Ltd (ADDA) wants highly motivated and independent people to join our dedicated and ever expanding group as either Master or Regional Franchisees. ADDA is part of a trans-tasman franchise business that provides the very best of drug and alcohol detection services to both commercial clients and the general public. The services offered by ADDA include drug and alcohol policy development, management and employee drug and alcohol education and training, workplace drug and alcohol testing as well as pre-

BATTERY WORLD AUSTRALIA Count the number of households in Australia? (Currently 9,117,033 private households in Australia - 2011 Census Data). Now count how many batteries each household will need over the next year? That’s the potential of a Battery World Franchise. Offering a world of batteries for everyone, the Battery World network is national and sells a range of portable power products and accessories throughout Australia. Battery World Australia Pty Ltd, as franchisor, provides

BODIEZ 24/7 FITNESS Bodiez 24/7 Fitness is all about making health and fitness fun, enjoyable and affordable to all walks of life by delivering a 24/7 concept combined with an exclusive interactive personal training system. Bodiez has a low overhead business structure which enables it to meet the market demand and offer no lock in contracts or hidden extras. Bodiez uses the traditional personal trainer system

Brodies Mealmakers Brodies is all about Chicken and Burgers that taste good and have a quality that others do not offer. We strive to be different – to stand out from the crowd. We have crafted a menu based foremost around flavour. We offer a meal because it tastes good not because it’s cheap. We source our own special ingredients and use fresh ingredients prepared in store. When people say things like “Homestyle” and “Real

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

purchase/pre-occupancy property drug inspections. Our aim is to make Australia a safer place to work, live and play. ADDA is a proven business model that will provide excellent financial rewards for those who are prepared to work hard and fit the criteria. We are looking for individuals who have strong business-oriented skills and the best news is that no previous knowledge of the drug environment is required. A full and comprehensive training package is included as part of the initial franchise fee. Are you ready to join our experienced group and secure a lucrative future? Our guess is YES, you are! Email: glenn.dobson@tadda.com.au or visit www.tadda.com.au

the marketing and operations support to assist franchisees and strong brand recognition. Battery World is committed to helping franchisees build a successful business supported by experienced support office professionals. 80 stores Australia-wide and growing! After 15 years of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises. For more information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/ franchising

just like all other Gyms and fitness centres, however where they stand out from the crowd is in the use of their state of the art technology whereby every client has their own virtual personal trainer that communicates with the Gym equipment meaning they can get personal training at all hours of the day or night. For more information contact James or Nick at Franchise Recruitment Solutions on 1300 642 575.

Food” we say thank you. We’ve been selling quality meals for over twenty-five years, some others are only just catching up. We want each and every one of our stores to be successful, and run by people who believe in the same core principles that we do. Owning a Brodies store means you are part of an exclusive club. For more information contact the owner and General Manager, Paul Ryan paul.ryan@brodies.com.au or 07 3392 7133.

Business Franchise Australia and New Zealand 101


A-Z FRANCHISE DIRECTORY BUCKING BULL Bucking Bull is Australia’s largest and most successful carvery franchise with nearly 40 store locations around the country. Australian owned and operated, Bucking Bull first opened in Perth in 1999 and has since expanded throughout Queensland, New South Wales and most recently, Victoria. Bucking Bull has built its success on a very simple recipe- providing great value ‘home cooked’ style food that people love to eat, serving nearly 3 million customers each year. Bucking Bull commands

CAFE2U Cafe2U is Australia’s first and most successful mobile café system. With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo.

Crema Espresso The Crema Espresso coffee franchise provides premium coffee and light meals with a focus on personalised service. Established on the Gold Coast, Crema brings together community life with a bright sophisticated shop design. Our extensive training and systems are in place to ensure the best support for Franchisees. Crema Espresso provides a business with supervision and consulting readily available. This includes everything from full operation manuals, point

DOMINO’S Domino’s Pizza Enterprises Limited (Domino’s) is Australia and New Zealand’s number one choice in pizza, selling over 60 million a year. Opening its first store in Australia in 1983, the business has grown to include a franchise network of over 600 stores across the two markets.

strong brand awareness, a unique positioning and a proven business model. As part of the Aktiv Brands portfolio, Bucking Bull franchisees benefit from comprehensive training, detailed operational procedures and marketing tools and assistance to assist in reaching their business goals. For more information regarding Bucking Bull franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: franchise@buckingbull.net W: www.buckingbull.net

The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator. If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny. Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: jstanton@cafe2u.com www.cafe2u.com

of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising. “As coffee lovers we were tired of the same old coffee in dark gloomy cafes. Premium coffee and light meals, like we have in our stores, should be enjoyed in a bright sophisticated café with an atmosphere that creates a laid back, enjoyable meeting place for customers”. Contact: antony@cremaespresso.com.au www.cremaespresso.com.au

purchasing power, store appraisals, ongoing training and support, and marketing promotions. The dynamic business offers new franchisees the security of a globally recognised and successful brand that puts their people and their passion for pizza first. For more information on joining this market leading franchise, contact the Domino’s team today

Domino’s has an extremely impressive and highly developed franchisee support system including site selection, lease negotiation, store fit out, comprehensive pre-opening training, co-ordination of suppliers, group

P: E: W:

Ella Baché

We pride ourselves on being the “Skincare Experts” and attribute our success to our people, knowledge and understanding of tailored skincare Solutions.

Our Success is your Success! Join the Ella Baché network of loyal and profitable salons and enjoy the success and support of a premium established brand. Our franchise model is unique, with no royalties and no marketing fees. Ella Baché was established in 1954 and is the largest family owned skincare company in Australia with over 150 salons nationally. Our company’s mission is that “Ella Baché will inspire you to be the best that you can be.”

102 Business Franchise Australia and New Zealand

1300 366 466 Franchise.Recruiting@dominos.com.au www.dominos.com.au/franchising www.dominospizza.co.nz/franchising

We are committed to providing support through training, business planning, marketing, sales initiatives, salon designs and investing in our brand. Please contact our Franchise Department for more information. E: franchise@ellabache.com.au P: 02 9432 5000 W: www.franchise.ellabache.com.au


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

FASTWAY COURIERS AUSTRALIA

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

• Low start up costs

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

• No weekend work

*Conditions apply

FASTWAY COURIERS New Zealand

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

Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy • Guaranteed income package*

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

FIBRENEW Since 1987, Fibrenew has grown to 225 locations around the world. Now, we are growing in Australia. Fibrenew is the industry leader in the restoration of leather, plastic and vinyl. We are a mobile service that caters to the aviation, automobile, commercial, insurance, marine, medical and residential markets. With the diversity of all these opportunities across so

FIRST CLASS ACCOUNTS First Class Accounts is Australia’s leading bookkeeping franchise with over 150 franchisees nationally. We are looking for motivated individuals who wish to develop their own business while being part of a supportive nationwide network. First Class Accounts operators take pride in delivering a range of services to help small and mediumsized businesses work smarter through delivery of accurate bookkeeping services, timely management reporting, compliant tax and statutory returns, set-up of accounting software and cash flow management.

*Conditions apply

many markets, our company and franchisees have grown and thrived through every rise and fall of the economy. That really speaks to the fact that there is always a need for our services. Right now, there are franchise territories available throughout Australia. This is your chance at an exceptional business opportunity with potential for great income. To find out more about joining our franchise team, visit: www.fibrenew-franchising.com.au

We provide nine weeks extensive training via both correspondence and live-in training, after which you will be licensed to commence business as a First Class Accounts business owner. The training is conducted under the supervision of a registered training organisation and upon successful completion, you will receive a Certificate IV in Financial Services (Bookkeeping). You will be able to provide BAS services under supervision while you work toward gaining your own accreditation as a BAS agent. For further details call 1800 118 611 or email info@firstclassaccounts.com

Business Franchise Australia and New Zealand 103


A-Z FRANCHISE DIRECTORY FROG RENT Frog Rent take managing residential property seriously. Serious enough, that it’s all that we do. Frog Rent is unique in that we are a Property Management franchise. We do not sell property, but specialise in managing property for owners of residential real estate. Frog Rent was founded by two successful builders with franchise operations in Australia and overseas, two property investors and a real estate agent. All five have long and successful business careers, with

Gold’s Gym The substantial difference at Gold’s Gym is the blend of industry leading quality, value and sustainability. The business model we offer provides a structured, calculated and tested blueprint to success. All components will be provided to achieve a harmonic balance between work and living, all the while feeding your passion for the industry. Franchise owners have the ability to leverage off the most recognised and reputable names in the industry, at an affordable price. Sustainability and perseverance are proven through

HAIRHOUSE WAREHOUSE Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built through the passion and creativity of all our people. • Extensive and ongoing training programs • A proven turnkey operation • A focus on world class service

hudsons coffee Looking for a better work/life blend? Whether it’s the sound of milk frothing, the lingering coffee aroma, or the taste of a perfect espresso, there are fewer pleasures than the perfect coffee. At Hudsons Coffee, we’re looking for business partners that share our passion.

four of the five having established and run successful national and international franchise systems. Frog Rent recruit franchisees, based on their personal qualities and abilities. We have the software, processes, skills, manuals, materials and extensive and ongoing training in place, so we believe we can teach and oversee excellence, with the recruitment of the right people. For more information please email admin@frogrent.com.au or phone 1300 783 658 or visit www.frogrent.com.au

the history of the brand over the years all the while the Gold’s Australia support team will be behind you every step of the journey, enriching your business venture with knowledge and experience. Gold’s offers you the opportunity to feed your passion, join a team of passionate entrepreneurs, all the while creating wealth and success. Become a part of fitness prestige, take your piece of Gold. Contact Scotty (0400 500 755) or Christos (0422 500 002) to commence the application process. http://www.goldsgym.com/australia/ https://www.facebook.com/goldsgymaustralia

• Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockist of world leading brands with the most lucrative merchandise trading terms worldwide A belief in your ability to change your life and courage to do it is all you need. Work for yourself, not by yourself. Come and join our community of leaders and start your new future today. We’d love to hear from you. For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hairhousewarehouse.com.au/franchising

matching the right franchisee to the right site is imperative. This has resulted in a dynamic, satisfied team of franchisees that share like-minded business goals, and are a great support network for one another. Looking for the top job? Take the Espress route.

Tired of counting someone else’s beans?

Our property team will work with you in selecting sites in a range of areas including central business districts, hospitals and regional areas.

We believe that behind every great coffee is a great person with a real passion for real coffee, just like us! We place great importance on franchise selection,

So, if you’re interested in becoming your own boss, contact our Franchise Department on 03 8631 7700 to find out more.

Inspect My Home As a leader in the property inspection industry inspectmyhome is fast becoming a recognisable brand across Australia and is now franchising its business model and systems. We Offer - A generous exclusive territory area - Computerised booking system and database - Electronic reporting systems - Full onsite training to obtain Pest Inspectors License - Telephone Support/IT Support/Marketing Assistance - Personalised web pages linked to

104 Business Franchise Australia and New Zealand

www.inspectmyhome.com.au - National 1300 number Inspectmyhome is looking for current property inspectors to join our team as we grow our network of professionals across Australia. Or If you are a Licensed Builder looking to join the industry this franchise opportunity is ideal for an enthusiastic and motivated person looking to grow a successful property inspection business. For further information call 1300 337 447, email info@inspectmyhome.com.au or visit www.inspectmyhome.com.au


JUST CUTS™ Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you.

KWIK KERB Kwik Kerb® is the world leader in continuous concrete edging and can now be found in over 20 countries. We are looking for motivated people right around Australia who want to improve their lifestyle and take control of their financial future. As a Kwik Kerb® business owner you will be supported every step of the way with our knowledge and experience in marketing, a full training program and on-going product development.

LAVA CARTS Lava Carts offers specialty Espresso coffee and freshly made accompaniments. Our vision is to position the finest coffee possible into strategic locations delighting the customer and retailer in terms of satisfaction and success. A coffee cart strategically placed at the front entrance of a busy regional hospital proved a winning formula for the original Lava Cart and founder Simon O’Brien. Today the latest in design innovation has upgraded the cart to a modern and functional shopping centre kiosk whilst maintaining the grass roots cart like qualities of

LENARD’S Lenard’s is Australia’s favourite chicken retailer with over 150 fresh ready-to-cook meals. Franchising for over 25 years, we still take up the challenge every day to deliver greater value, not just for our customers, but for our Franchise Owners. Recently introducing our industry-first Hub & Spoke franchising model, together with the innovative Easy

Listen to Read A home tutoring system for reading with proven results. Using a unique curriculum plus multi-sensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study. The program has been developed by a literacy expert and a team of specialists in multi-sensory learning. Co-founder

At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ cuts a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere. Contact: Luke Manning 1800 334 498 Website: www.justcuts.com

Kwik Kerb® business owners work for themselves, building their own business from strength to strength and determine their own income level. With Kwik Kerb® YOU keep all the profits! We have Kwik Kerbers earning $500 to $1000+ in a day. If they can do it, so can you! Owning a Kwik Kerb® proven system is all about creating a lifestyle that suits you. You choose the hours of work that match your financial and lifestyle goals. For more information freecall 1800 773 231 or visit www.kwikkerb.com.au

cost consideration and position. Our winning formula means our turnkey franchise package is a fraction of the cost of our competitors with no compromises on quality. We currently have excellent high profile opportunities in super and major regional shopping centres, particularly in Qld, Victoria and WA. Having already experienced proven national growth Lava Carts has erupted onto the stage with a vibrant difference. Discover the substance behind our brand. Visit our website www.lavacarts.com.au ph 0458 202 649 or email manager@lavacarts.com.au

Cuts operating system, it’s never been easier to grow your own multi-store network with Lenard’s. Today we have over 200 outlets Australia wide, in a growing market for both chicken and fresh readymeals. Lenard’s is a business set for growth, and we’d love to discuss local opportunities with you. Phone 1800 068 111 or email opportunities@ lenards.com.au for further information or site enquiries.

and Director Catherine McLennan has 26 years of teaching experience specialising in teaching reading. Individual training with Catherine ensures success for all franchisees. Early trials show students making gains in their reading age of up to two years, in just 12 weeks. A proven system combining a unique reading curriculum with Sound Therapy and multi-sensory programs for I-pad or computer. Email: hello@listentoread.com.au Phone enquiries: 1300 473 234 / 0410 618 472 Website: www.ListenToRead.com.au

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A-Z FRANCHISE DIRECTORY PARASERVE Paraserve – excellence in franchising If you are keen to own a franchise business, Paraserve is an excellent option. Our franchises are safe, affordable and rewarding businesses. Paraserve is the largest cleaner of public schools in Victoria, cleaning over 75 schools plus major recreational facilities and commercial offices. Through our owner-operated franchisees we deliver high quality school and commercial cleaning plus specialist services including carpet cleaning, window cleaning and floor polishing.

PRIMAL PANTRY Primal Pantry is a new healthy eating café concept based on the Paleo lifestyle and way of eating. Since opening the pilot store in Brisbane in 2013, Primal Pantry has become a phenomenon, gathering a loyal and passionate fan following. Ranked in Brisbane’s Top Ten Favorite Restaurants, Primal Pantry is fast becoming the undisputed leader in Paleo fare in the marketplace. Following increasing demand for additional outlets, Primal Pantry have thrown open their doors and will

RED ROOSTER Red Rooster is an Australian owned icon brand. The Red Rooster franchise mission is “Be in business for yourself, but not by yourself”. Red Rooster supports each franchisee with proven commercial, promotional and operating systems, all designed to minimise risk and maximise potential for success. Specifically, you will get: • An Australian Icon brand • Proven systems and comprehensive operating manuals • Assistance in finding a location, negotiating contracts

SEVEN SEAS SEAFOOD CAFE Seven Seas Seafood Café is a re-invigoration of the classic Aussie Takeaway Shop with a whole lot more style, sophistication and value. Seven Seas offers a casual dining experience that meets the continually shifting tastes and rising expectations of today’s consumers, serving a refreshing and modern selection of seafood with a contemporary flair. Seven Seas is 100% Australian owned and

SKEWERZ KABABZ Skewerz Kebabz is an exciting and innovative retail fast food concept offering authentic Mediterranean cuisine combined with fresh and exciting flavour profiles for the Australian market. Spicing up food courts in shopping centres around Australia, Skewerz is becoming the nation’s fastest growing kebab franchise. Providing an exciting alternative to the traditional kebab, Skewerz serves up a truly satisfying menu supported by a friendly and fun casual dining environment. The unique menu caters for all three primary trading periods and has

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Our franchisees are independent business owners supported by a successful, award-winning company established in 1979. We train and guide new franchisees in efficient service delivery, financial and staff management, client service, marketing and new business development. Successful applicants start with a base income which suits your budget, typically from $75,000 per annum and we help you to win new clients. You will be able to earn a comfortable living and may even add new business contracts which can be traded for capital gain. To find out more call Bill Wu or Ray Liew on 1800 041 876.

begin franchising in 2014. Backed by the awardwinning Aktiv Brands franchise system, all aspects of the Primal Pantry business and operation are supported by the category leading marketing, training and operational systems that Aktiv Brands provides. If you are genuinely passionate about the positive difference that clean-eating can make, then please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.primalpantry.com.au

and lease arrangements • Full structured training programs • Planning assistance for the opening and operating of your store • A full suite of merchandising and point-of-sale material Red Rooster is Australia’s most successful Australian owned Quick Service Restaurant chain. Its success has been built on great tasting, high quality, freshly prepared food, delivered using proven systems. Email: gary.glen@red-rooster.com.au Phone: 03 9582 8716

operated and benefits from the award winning franchise support at Aktiv Brands. As a Seven Seas franchisee, you can enjoy the advantages of being associated with a well-known and successful franchise group, supplying you with the tools to help your business grow and prosper. For more information about Seven Seas franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.aktivbrands.com

been strategically designed to ensure the concept will thrive in the competitive food court environment. Skewerz Kebabz is part of the Aktiv Brands group of franchise brands, which means that the model has been developed based on years of experience in the retail fast food franchising sector. For more information regarding Skewerz Kebabz franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.skewerz.net


SNOOZE™

• NAB & ANZ accreditation

As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.

• Sales and product training

With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.

• Business management support • A national marketing program • IT services

Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including:

To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.

• Vendor finance assistance

Email: alistairb@snooze.com.au

SPRAY PAVE AUSTRALIA Pty Ltd

• Learn a range of new lifelong trades.

Earn up to $3,300 per week. That’s right, up to $170,000 per year! Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside. Customers are domestic, commercial and Government. Our license structure allows you to choose when, where and how you want to work! This is a sincere “Be Your Own Boss” system. You genuinely keep all the profits!

Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment. The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos. Thirty brands of tequila are on offer at the various

THE CONCRETE CUTTER The Concrete Cutter makes sound business sense. Established in Melbourne in 2001, The Concrete Cutter has nine long running franchises in operation. We now seek to expand in Melbourne and duplicate the Melbourne success interstate. If you are a smart ‘hands on’ person with good health and you are easily understood on the telephone we welcome your enquiry.

THE INTERFACE FINANCIAL GROUP - IFG 50/50 The Interface Financial Group franchisees provide shortterm working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for

• Guaranteed work available anytime after training. • Head office training plus follow-up on your own job. • Customers contract and interest free finance. • Lifelong support from 6 Head Office trainers. • Low deposit + Support Payment Plan (SPP) Established in 1991, Security with Australia’s largest and oldest network. The name of the industry. Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com

restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity! With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au

The purchase price of $45,000 + gst covers equipment, sign writing, uniforms, stationary, training and initial book-keeping set-up and early accounting support. You will need to provide a suitable white vehicle such as a ‘one tonner’, a van , or a small truck, it need not be new. Most established franchisees are regularly taking over $2,500 per week. Ring Bruce Miskin on 0499 399 355 for an information pack.

small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, and Mexico. The new 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. For more information: ifg@interfacefinancial.com www.interfacefinancial.com.au

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A-Z FRANCHISE DIRECTORY TOP SNAP MARKETING Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are a professional real estate photography franchise, with territories available across Australia and New Zealand. We are renowned for the outstanding quality of our photographs, which thanks to powerful custom-built technology, are professionally retouched and delivered direct to our clients by next day.

As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for professional property photography and marketing tools. Our franchise start-up costs are competitive, and no photography experience is needed, as comprehensive training and ongoing support will be provided, along with ongoing marketing and technical support.

We are currently looking for positive, enthusiastic, customerfocused individuals to build their own professional photography business, with the support of an established franchise system behind them.

Contact Top Snap on: 1300 TOP SNAP (1300 867 762) or Rob Watkin on 0414 217 019 or email sales@topsnap.com www.topsnap.com

Unscratch the Surface

Franchisees will receive:

Don’t replace damaged glass. Unscratch The Surface franchises are the solution that all commercial, construction and residential industries have been without. saving them $1000’s in replacement costs and critical time wastage. Great environmental advantages by preventing glass being broken up into landfill. Key benefits: • Low entry costs • Low running costs • Low on-going fees • Full training & unlimited support

• Extensive advertising • Leads supplied by head office • Professional sales website • Powerful CRM website • High-grade trade tools & supplies • Uniforms • Complete corporate branding We are looking for people with a positive attitude and are dedicated to providing great customer service. For more information on this franchise opportunity, you should call us on 1300 500 408 or go to our website: www.UnscratchTheSurface.com.au

V.I.P. Home Services australia

In 2009 and 2010 V.I.P. Home Services was ranked number one Best Value Franchise under $50,000 by Financial Review Smart Investor.

V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand.  V.I.P. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance. 

V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work.

XPRESSO MOBILE CAFE Starting a new café is daunting especially with overheads and expensive shop leases etc. A fixed cost and great value alternative is an Xpresso Mobile Café franchise. Xpresso Mobile Cafés have exclusive licensing to use the Di Bella Coffee products and branding. Our Mercedes Benz vans are fitted with quality custom fit-outs and commercial high grade espresso coffee making equipment. An Xpresso Mobile Café is also fitted with a coffee

ZARRAFFA’S COFFEE Award winning Zarraffa’s Coffee is a specialty coffee company that roasts and delivers the freshest coffee to its 62 stores across south east Queensland, northern New South Wales and Western Australia. The business is founded on the mantra ‘to create an individually perfect cup of coffee – every time!’ and, just like the giraffe on the logo, aspires to be ‘head and shoulders above the rest.’ Great service is the practice and fresh, quality

108 Business Franchise Australia and New Zealand

For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au

bean display showcase where a franchisee can display, custom grind, bag, heat seal and retail. Franchise partners primary income is earned Monday to Friday in an exclusive territory and they may choose to earn secondary (considerable) income from various events and markets on weekends. Franchisees are supported by our fully integrated website and social media and Internet presence coupled with our national call centre. Contact Jonathan Payne at jonathan@xpresso.com.au to register your interest and be part of our success story.

coffee the business. Since the opening of the first store in 1996, the Zarraffa’s Coffee experience has become something of an icon to many Queenslanders and since late 2012 has served coffee drinkers in Western Australia. The business has maintained a steady pattern of growth, as is evident both in gross turnover figures and a consistent increase in profile. Applications are open now for various locations in South East QLD, NSW and WA. Visit www.zarraffas.com to register your interest.


JOIN THE

DREAM TEAM

Vendor finance now available* *Available to approved applicants.

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

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

It’s amazing what a little snooze can do. snooze.com.au

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YOUR KEY TO FUTURE SUCCESS

JOIN A COMMUNITY THAT WILL GET YOU THERE IN STYLE.

Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built on passion and creativity. t&YUFOTJWFBOEPOHPJOHUSBJOJOHQSPHSBNTt"QSPWFOUVSOLFZPQFSBUJPOt"GPDVTPOXPSMEDMBTTTFSWJDF t.VMUJQMFSFWFOVFTUSFBNT JODMVEJOHSFUBJM TBMPO QJFSDJOHBOECFBVUZTFSWJDFT t&YDMVTJWFTUPDLJTUTPGXPSMEMFBEJOHCSBOETXJUIUIFNPTUMVDSBUJWFNFSDIBOEJTFUSBEJOHUFSNTXPSMEXJEF Come and join our community of leaders and start your new future today. We’d love to hear from you.

With opportunities currently available in: WA: Perth and metropolitan QLD: Brisbane metropolitan and regional NSW: Sydney metropolitan and region SA: Adelaide metropolitan VIC: Melbourne metropolitan Contact Peter Fiasco for a confidential discussion on 0451 370 060

hairhousewarehouse.com.au/franchising

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Business Franchise AUS & NZ - May-June 2014  

Business Franchise is a bi-monthly consumer and trade publication bringing you all the latest news, expert advice, and information from the...

Business Franchise AUS & NZ - May-June 2014  

Business Franchise is a bi-monthly consumer and trade publication bringing you all the latest news, expert advice, and information from the...