T h e
m a g a z i n e
f o r
VOL 08 ISSUE 05 july / august 2014
f r a n c h i s e e s
AUSTRALIA and NEW ZEALAND
from franchisee to
business leader NFIB
deliver training with
a force to be reckoned with
$4.95 (AUD), $6.95 (nz) inc. gst.
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERSâ€™ ADVICE
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
25/03/14 2:39 PM
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 8 ISSUE 5, july / august 2014
The franchising community is currently experiencing a period of great change, the likes of which haven’t been seen in many years. Following on from the independent review by Alan Wein last year and the recommendations taken from the subsequent report, Federal Small Business Minister, Bruce Billson announced on April 2 changes to the Code, to become effective from 1 January 2015. These will apply to new or renewed franchise agreements from that date and not applied to existing agreements. As franchisees and potential franchisees, it’s important that you understand how these changes will impact you and your franchisor and over the coming issues, we will keep you up to date as we are provided more insight. In this issue, on page 12 Michael Paul, the Chairman of the Franchise Council of Australia (FCA) reports on the continued consultive role they have taken with the Government since the changes were first announced. Also, on page 26, Jason Gehrke from the Franchise Advisory Centre asks if there’s more to the new Franchising Code than meets the eye. Our feature topic in this issue is ‘Business Services and IT’ franchises. These are franchises that provide a service
to other businesses within a wide range of categories and can include training, insurance, accounting, courier and printing services. One thing they all have in common and in their favour is the need within the wider business community to outsource these particular functions. On page 72, Michael Paul, as well as being the Chairman of the FCA, is also the Chief Executive Officer of PACK & SEND. Establishing the business in 1993, he has over 20 years’ experience within the business service industry and has written a great editorial about being an effective business service provider. Alongside this we have established business service franchise systems, The Australian Drug Detection Agency on page 68 and cleaning company Paraserve on page 74 showcasing their franchise systems. If you are in the early stages of researching a franchise system to buy, a great place to start is to meet face-to-face with the franchisors themselves. With two Franchise Expo’s taking place over the next couple of months, in Brisbane and Melbourne there’s a great opportunity to do this, as well as meeting plenty of experts from the franchising industry to help you on your way. Make sure you stop by the Business Franchise stand to pick up more invaluable advice and information Joanne Tuffy Editor
publisher: Colin Bradbury. email@example.com EDITOR: Joanne Tuffy. firstname.lastname@example.org SALES DIRECTOR: Vikki Bradbury. email@example.com SALES & marketing manager: Kathleen Lennox. firstname.lastname@example.org PRODUCTION: email@example.com ACCOUNTS: Samantha Klimecki. firstname.lastname@example.org DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: National Franchise Insurance Brokers 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: email@example.com 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
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
Contents july / august 2014 On the Cover 16 From Franchisee to Business Leader
Nigel O’Neil, hockingstewart
So You Think You Can Train?
Rob Camm, Franchise Relationships Institute
In Every Issue
24 30 36 46 54 58 60 78 84 96
Announcements from the industry
10 Cover story – A force to be reckoned with
National Franchise Insurance Brokers
12 A little certainty allows business to thrive
Michael Paul, FCA Chairman
15 FANZ free online training celebrates first birthday
Graham Billings, FANZ Executive Director
63 Feature: Business Services & IT 103 Behind the Headlines
Jason Gehrke, Franchise Advisory Centre
Allphones 9D Action Cinemas Dream Doors The Franchise Institute Franchise Fitouts Australia Evolve Entertainment Franchise Selection Franchising Expo Snap-on Tools Cafe2U
105 Professional Services Listings 106 Franchise Listings
Have your say
108 A-Z Franchise Directory
50 Noodle Box
4 Business Franchise Australia and New Zealand
Franchisee in Action 20 City Farmers Dogwash 86 Hairhouse Warehouse
Snapshots 14 Harmans Lawyers 48 Scrooz 62 Ivan Poole Lawyers 80 Spray Pave Australia 93 FC Business Solutions 102 V.I.P. Australia
68 The Australian Drug Detection Agency
Appliance Tagging Services......................... 108 Australian Drug Detection Agency... 41, 108
Battery World............................................. 108,OBC Bodiez 24/7 Fitness............................................ 109 Bucking Bull............................................................. 109 Cashflow It.................................................................... 35 Crema Espresso................................................... 109 Domino’s Pizza............................................... 29, 110 Ella Bache................................................................... 110 Fasta Pasta................................................................ 110 Fastway Couriers........................................ IFC, 111 FC Business Solutions. ....................................... 19
Franchisor in Depth
also in this issue:
Fibrenew............................................................. 49, 111
Frog Rent..................................................................... 111 Gold’s Gym................................................................ 112
Hairhouse Warehouse................................. 2, 112
Harmans Lawyers................................................ 105 HiDow Australia. .............................................77, 112
Inspect My Home.................................................. 112
26 More to the new Franchising Code than meets the eye
InXpress. ...................................................................... 112
Ivan Poole Lawyers............................................. 105
Jason Gehrke, Franchise Advisory Centre
32 The Australian Consumer Law and Franchisees’ Obligations
Jejak Graphics........................................................... 89
Kwik Kerb.................................................................... 113
Bianca Sevastos, Baybridge Lawyers
38 Starting a Franchise before Proof of Concept
Lava Carts. ................................................................. 113
Madgwicks Lawyers.......................................... 105
42 The importance of Local Area Marketing
Samantha Roach, FC Business Solutions
56 Sound Financial Foundations for your Franchise
Peter Knight & Kate Groom, Smart Franchise
72 Observations on the Business Services industry
Michael Paul, PACK & SEND
82 To Validate or not to Validate
David Banfield, The Interface Financial Group
94 Advertising and Selling: The Golden Rules
Dr Michael Schaper, ACCC
98 Minimise Risk and Maximise your Outcomes
Geoff Watson, Wollermann & Associates
100 Important Considerations for Applying
and Gaining Finance from a Bank Ian Watt, Westpac
Primal Pantry. ........................................................... 113 Red Rooster.............................................................. 113 RedCat............................................................................... 1
Robert Graham, CEO Consulting
Seven Seas Seafood Café.............................. 114 Silver Chef..................................................................... 81 Skewerz Kebabz.................................................... 114 Snooze.............................................................. 114, IBC Spudbar. ............................................................. 23, 115
Taco Bill. ....................................................................... 115 The Concrete Cutter........................................... 115 The Interface Financial Group...................... 115 Top Snap............................................................ 49, 116 Unscratch the Surface....................................... 116 Wisewould Mahony Lawyers....................... 105 Xpresso Mobile Café........................................... 116
what’snew! PIE FACE SIGNS 50 STORE DEAL FOR SINGAPORE/MALAYSIA
also considering other regions in SE Asia as potential future markets for Pie Face. In commenting on the partnership, Mr. Goh said: “We are very excited to be in business with Pie Face. They have a unique brand and an exceptional product that we believe will be well received by our markets in Singapore and Malaysia. We believe the hub and bespoke business model run by Pie Face, where the product is made from scratch in a local commissary, is the right business model for this type of activity and we look forward to building scale in our store network in conjunction with the central commissary itself.” Andrew Lyme, Commercial Manager for Pie Face added: “Mr. Goh and the team at VL Development are highly experienced in the F&B space and can tap into a vast pool of human resource and financial capital – they are ideal partners for us in the region.”
Pie Face recently announced that it has entered into formal agreements to open a minimum 50 stores in the next five years in Singapore and Malaysia with VL Development Sdn. Bhd., a syndicate of experienced operators in Malaysia backed by prominent businessman, Mr. Lim Beng Hian.
VL Development, which has business interest in property development, hotels and trading, is headed up by Mr. S.H. Goh, previously the Executive Director/Chief Operating Office with the Genting Group of Companies. VL Development will build a modern CKF in Malaysia that will supply all food to their stores in the region. VL Development is
Franchising Expo comes to Brisbane and Melbourne It may seem that the business world is full of bad news stories, however the franchising sector is far more upbeat about success, as demonstrated by the buzz surrounding the upcoming Franchising & Business Opportunities Expo – being held in Brisbane 19-20 July and in Melbourne 22-24 August. Both Expos will showcase a wide range of franchises, and will also host a variety of business experts and support organisations to assist people who may be pondering the ins
and outs of becoming their own boss. “Franchising really suits people who are customer-focused and able to follow systems and processes, which covers many people coming out of a corporate environment,” explains Andy Reeves, Recruitment Manager at Franchise Selection. “It has the benefits of a proven brand and a comprehensive support system, which is far less daunting than going out on your own.” For more information and free registration go to www.franchisingexpo.com.au
6 Business Franchise Australia and New Zealand
Pie Face currently operates 89 stores in three countries. This deal marks the 4th and 5th market Pie Face will enter outside Australia. Currently the company is operating 4 stores in New Zealand with a partner, 8 company owned stores in Manhattan in the United States and more recently, the Middle East, where it recently signed a 100 store, 7 year deal with Foodmark, a division of the Landmark Group out of Dubai. Landmark is due to open 4 stores in Dubai/Abu Dhabi by the end of 2014.
Win your own business with Kwik Kerb 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. The competition is exclusive to Business Franchise magazine and you’ll find the terms and conditions of entry on our website: www.businessfranchiseaustralia.com.au. The closing date of the competition is Friday 19th September with the winner announced in the November/December 2014 issue.
Anytime Fitness Australia Celebrates 6th Birthday with 350th Club Opening! Anytime Fitness, Australia’s number one health club, celebrated both its 6th birthday and 350th club opening last month! With over 2500 clubs and 2 million members’ worldwide, since Anytime Fitness launched into Australia in 2008 it has become the quickest growing segment of the world’s fastest growing fitness chain. This growth has spanned across the whole of Australia nationally, starting from humble beginnings with the first club in the small country town of Gunnedah, NSW, to the 350th club in Alice Springs, NT. The Alice Springs club belongs to franchisee Jarrad Boffo, and is his 11th Anytime Fitness club in three years, with another 5 planned to open before the end of 2014! A real estate agent by profession Jarrad Boffo teamed up with 3 great friends to become an Anytime Fitness Franchisee. Boffo comments “My business partners and I have always taken a keen interest in researching different business opportunities, our Director of operations Ben Germein had previously achieved great success in the fitness industry with a Personal training business, so the natural progression was to investigate the 24/7 model that was disrupting the mature fitness industry”. Like Jarrad, Anytime Fitness credits its fast expansion to its members, who are the company’s number one priority. Anytime Fitness Australia Chairman & Co-Founder Justin McDonell says, “Our members mean a lot to us. They’ll always be what matters most and are the secret to our success”. Anytime Fitness want their members to feel like they belong, and feel something better every time they visit their club. McDonell says, “When designing our clubs, we look at what our members will want in their club and the services they will expect. We have world class equipment, a functional
layout, online health resources, clean bathrooms, top of the range security systems, Fitness On Request group training facilities and knowledgeable staff who take an interest in all their members – and all of this available for members 24hours 7days a week.” The company plans to keep on growing with 400 clubs forecasted to open by December 2014.
Business Franchise Australia and New Zealand 7
what’snew! Esteemed Board Addition for Zarraffa’s Coffee contribution to the company over his four year tenure. “I wish to acknowledge Terry’s involvement in growing the brand into Western Australia among other achievements, and express our thanks for his time and leadership.” Mr Campbell went on to say that he believed Mr Edwards would herald a new chapter for the company’s governance.
The President of the Queensland chapter of the Franchise Council of Australia (FCA) and Director of the FCA’s national board, Ralph Edwards, joined the Zarraffa’s Coffee Board recently. Mr Edwards’ confirmation replaced outgoing Chairman Terry Wimberley, who recently retired from his position as Chair and Director of Leasing with the Australianowned franchise chain. Company CEO and founder Kenton Campbell acknowledged Mr Wimberley’s
“The addition of Mr Edwards will bring a strong hands-on franchising, retail and supply chain background with a track record of success in guiding growing businesses, including the Bright Eyes Sunglasses chain,” said Mr Campbell. “This, combined with his wide ranging experience on a number of boards and significant franchise industry involvement, will provide a balanced perspective of where the company should be heading now and into the future.” Mr Edwards, who has had a long-standing business relationship with Mr Campbell, said he was attracted to the strength of the Zarraffa’s brand and the fact that the business is experiencing solid growth. “I have held a keen interest in the Zarraffa’s
business over many years and have closely watched and admired the success and growth of the company,” he said. “It is a brand that has withstood the test of a difficult retail environment and economic conditions and still continues to outperform its competitors.” Mr Campbell agreed by saying that the retail environment is still quite volatile and Mr Edwards’ extensive retail and industry knowledge and specialist experience in property leasing and tenant advocacy, has arrived at an opportune time. “It’s an exciting new era for the company as we consolidate our systems and look internally at improving our major business tenants of product and service. Experienced leadership and management will be critical to our operation as we edge closer to reaching the one hundred store milestone. “With 17 years of retail history behind us and the recent recruitment of key management and board level experience to ‘steer the ship’, Zarraffa’s is equipped to drive the brand in a positive and profitable direction for the betterment of our franchisees and customers, now and in the future.”
Harvey Norman franchisees to pay $243,000 in penalties The ACCC instituted proceedings in the Federal Court against a number of Harvey Norman franchisees for misleading and deceptive conduct. Each franchisee was found to have made a number of false or misleading representations to consumers about their consumer guarantee rights. The allegations against each of the franchisees differed, however examples of the misrepresentations included representations that: • The franchisees had no obligations to provide remedies for damaged goods unless notified within a short specified time, such as 14 days;
• The franchisees had no obligation to provide an exchange or refund for faulty goods supplied; • The consumer had to pay a fee for the repair or return of faulty goods; and • The franchisees had no obligation to provide a remedy independently of the relevant product manufacturer. The representations were made orally by staff located inside the franchised stores and one franchisee stated on its receipts that “no claims will be honoured on damaged goods unless notified within 24 hours of delivery or pick-up.” The Court ordered nine of the Harvey
8 Business Franchise Australia and New Zealand
Norman franchisees to pay a total of $243,000 in civil pecuniary penalties for making such misleading representations to customers regarding consumer guarantee rights, with a further decision to be made later in the year in relation to a tenth franchisee. “These penalties send a strong message to all businesses, including franchisees, that they must not mislead consumers about their rights to repair, replacement or refund for faulty goods under the Australian Consumer Law,” ACCC Chairman Rod Sims said.
Riverside’s 100th Exit Goes ‘Smoothie’ The Riverside Company has exited Retail Zoo, an Australian owner of four quick service restaurant concepts – Boost Juice, Salsa’s, Cibo Espresso and Hatch. Riverside invested in Retail Zoo in 2010 and helped the company grow its earnings by more than 150 per cent over the next four years. The exit marks Riverside’s 100th since its 1988 founding. Retail Zoo has 294 stores across all brands in Australia, with an additional 100 Boost stores in nine international markets. Boost is a clear leader in its home market of Australia, where it has 218 juice and smoothie stores. Salsa’s is a growing chain of 51 fresh Mexican restaurants. Cibo Espresso is a network of 23 gourmet Italian coffee bars located primarily in South Australia. Hatch, Retail Zoo’s latest offering,
is a modernised concept for quick service chicken-based restaurants. “We’re very pleased with how we were able to grow Retail Zoo,” said Riverside Managing Partner Stu Baxter. “It was a dynamic company with great managers when we made the investment, and our franchising expertise and international experience allowed us to partner with that team and guide them along their journey to becoming an even more successful enterprise.” Riverside’s global presence and transacting expertise helped Retail Zoo successfully expand its total network of stores from 240 at investment to more than 390 by exit, including almost 50 new international stores and 22 acquired stores with the add-on of Cibo Espresso in 2012.
“Retail Zoo is the vision of Janine and Jeff Allis” said Baxter. “We partnered with them and together we invested heavily in systems, processes and talent to further accelerate the company and position it for an exciting future beyond our exit.” “Riverside’s greatest strength is its ability to recognize great businesses and allow those businesses to grow under their high quality guidance,” said Retail Zoo Founder and Director Janine Allis. “I’ve thoroughly enjoyed interacting with the Riverside team, and I’m grateful for all their support.”
CHANGES TO THE FRANCHISING CODE The Franchise Council of Australia has continued in its consultative role with Government since the release of the Exposure Draft in April this year and can now provide a little more clarity as to the likely changes to the Franchising Code of Conduct following the Wein Review, which began in January 2013. Alongside key changes to the Code including reducing red tape, introducing an obligation to act in good faith, 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, it has also been clarified that these will only apply to new or renewed franchise agreements from that date. They will not be applied to existing agreements retrospectively which means that during a transition period, franchise companies will be operating with two sets of agreements.
Business Franchise Australia and New Zealand 9
COV ER STO RY
A force to be reckoned with Formed in 2010, National Franchise Insurance Brokers (NFIB) has fast become an insurance force to be reckoned with. Owned and operated by broker firm LTM Risk Partners, in existence since the early 1970’s, in just four years they have realised their early business goals, been a finalist in the 2013 Telstra Small Business Awards
and successfully launched an international brand called Worldwide Franchise Insurance Brokers (WFIB). Darryl Morris, Founder and Director of both NFIB and WFIB has spent 32 years within the insurance industry and is using that experience to ensure that the service offered is the fastest, and most affordable way to get the most appropriate level of cover needed by businesses within the franchise sector. Darryl says, “The driving force behind starting NFIB was recognising that there was a significant gap in the market for franchise
10 Business Franchise Australia and New Zealand
systems. After spending 12 months in discussion with industry groups, franchise groups, franchisors and franchisees we realised there was a way to offer a complete service to the franchisor, providing a compliant product whilst providing a leading edge cover. “It was a big gap to fill and the presentations that we make have a high uptake rate as we provide the service and technology solutions the franchisees and franchisors have been looking for.”
“The driving force behind starting NFIB was recognising that there was a significant gap in the market for franchise systems.” “Component one is a management and claims review system for the franchisor, this enables the franchisor to go online and see what’s happening with his insurance. The online system allows the franchisor to make sure that all of their individual franchisee’s businesses have adequate insurance cover. “Component two is that the franchisees are able to go online and arrange their insurance very simply, usually through the franchisors intranet. We build the technology to sit within the franchisors business. Our ability to ‘bulk buy’ insurance means costs are significantly reduced when compared to what they may have paid for insurance in the past.” Whilst this IT based technology sits via the Internet, NFIB also provide a personal service so franchisors and franchisees can pick up the phone and speak to us, 24 hours a day, seven days a week.” With the authority of the insurer, NFIB have an in-house claims department. A file is opened immediately and acted upon straight away. Depending on the nature of the claim, it may not be necessary to appoint a claims assessor. However, should this be the case, one will be appointed by NFIB who will contact you to make a time to discuss your claim. This cuts out the involvement of the insurer, which expedites the process to ensure a satisfactory and speedy settlement. What’s central to NFIB’s success is two-fold: cost effective insurance premiums regardless of the franchised business being insured, and the ease at which franchise business can insure their business.
Compliance Requirements This is a very laborious and time consuming process and the franchisor is happy to allow NFIB to look after all their insurance compliance requirements. This also includes ensuring coverage is always adequate, providing documentation to third parties such as landlords, keeping the franchisor up to date with necessary documentation and proof that they have the appropriate cover. By doing this in-house, Darryl explains how NFIB do things differently, by offering technology that has two distinct components.
And this has convinced us to investigate App based technologies in order to broaden interactions with our customer base,” says Darryl Morris. The NFIB business model has been so successful that the group has now ventured abroad with the recent launch of Worldwide Franchise Insurance Brokers (WFIB). WFIB New Zealand is the first of many partnerships to be formed offshore and is able to obtain the same benefits and technology support services that are enjoyed in Australia. WFIB is currently negotiating with upwards of 12 countries within Europe, the UK, and both North and South America to duplicate the Australian model around the world. Darryl finishes by saying he strongly believes that the future of the business lies in his group’s ability to provide costeffective insurance. “We all hate getting insurance premium renewals. That’s a fact of life. People want the most adequate cover for the most affordable or most competitive price – it’s as simple as that. What we’ve focused on from the beginning and what is still central to everything we do today is to make sure our customers save money on their business insurance.” For more information about National Franchise Insurance Brokers please contact Darryl Morris or Brad Dixon (National Development Manager). P: 1800 776 747 E: info@MYNFIB.com.au W: www.MYNFIB.com.au
Focussing on the future As insurance consumers, people are buying insurances more and more online and in response to this, over the next 12 months, NFIB will be releasing a wide range of online solutions to franchisees and franchisors in order to give them every opportunity to arrange different types of insurance through the programme. “We are conscious of the constant changes in technologies, and understand that customers should be able to access services, products or information anywhere at any time.
NFIB Executive Director Darryl Morris
Business Franchise Australia and New Zealand 11
fr anch ise cou nci l of aust r a l i a
A little certainty allows business to thrive
12 Business Franchise Australia and New Zealand
“At the FCA we advocate for as much research and due diligence on a brand as possible.” Michael Paul | Chairman Franchise Council of Australia
At the time of writing, the dust is still settling around the Coalition’s first budget. While much can be argued from an ideological perspective, the one major outcome that always follows a budget is certainty. Though most of the measures still need to navigate their way through the Senate it is now clear where the current Government stands in terms of its economic viewpoint. Prime Minister Abbott has drawn a line in the sand. For the rest of us, this means we can get back to what we do best. We now have a clear understanding of where policy and regulation sit and we can get on with business. While small business is not for the faint of heart and never a completely sure bet, a level of certainty provides owner operators with the tools to move forward. In franchising, this is true of the budget, and it is also true of the Franchising Code of Conduct update. I am pleased to report the FCA has continued in its consultative role with Government since the release of the Exposure Draft in April this year. Representatives of the Council have met with the Department of Treasury and representatives of the Minister for Small Business, Bruce Billson on multiple occasions. We are now in a position to provide a little more clarity as to the likely changes to the Franchising Code of
Conduct following the Wein Review, which began in January 2013.
Are you thinking about entering a franchise in 2014? For anyone planning to invest in a franchise business between now and the end of the 2014, there are two major things to note. First; the changes to the Code will be implemented on 1 January 2015. Second; those changes will only apply to new or renewed franchise agreements from that date. They will not be applied to existing agreements retrospectively. This means during a transition period, franchise brands will be operating with two sets of agreements. It’s important you understand exactly what your obligations – and more importantly – your rights are under the agreement you plan to sign. Not only is it important to understand the business model itself, but to understand your rights during and at the end of your agreement. Contractual understanding is paramount in any business relationship. It is essential you seek professional advice before signing. If you’ve reached a point in your research where you understand the business model, you fully grasp your own financial situation including working capital and you’ve found and performed extensive due diligence on a brand you’re comfortable with, you now need to ensure you understand what a second term with the brand will look like under the new Code regulations. Armed with this certainty you can move forward with a brand and embark on the dream and the challenge of building your own business.
What should you do before signing? At the FCA we advocate for as much research and due diligence on a brand as possible. Along with the considerations mentioned above and the copious amounts of information available online, you should also spend a solid amount of time familiarising yourself with a brand directly. This includes speaking with and meeting the franchisor and contacting several current and perhaps past franchisees to learn about their experience with the brand. If you are close to Brisbane or Melbourne, you are in luck. In the coming months, you can also do some of your earlier research face to face. The Franchising and Business Opportunities Expo will be held at the Brisbane Convention and Exhibition Centre from 19 – 20 July and in Melbourne at the Melbourne Exhibition Centre from 22 – 24 August. Events like this enable potential franchisees to speak directly with brands they may be interested in. Along with this, there are a number of experts available to give preliminary advice as you move through your research. The Franchise Council of Australia always has a busy stand manned with staff and franchise professionals to help you get the most out of the exhibition also. For more information on exhibitors and how to register go to: www.franchisingexpo.com.au
More detailed information on the likely changes to the Code can be found at
Business Franchise Australia and New Zealand 13
sn a pshot: Ha r mans Law y ers N e w Ze a l an d
moving forwards The New Zealand economy is currently extremely buoyant and all business indicators suggest that it should remain strong for some time. Nowhere is this more evident than in Christchurch where Harmans Lawyers are based. “With the earthquake recovery now well under way, billions of dollars are moving through the economy in the form of money spent on repairs and rebuilds and the flow on effect of this has seen the Canterbury economy boom in many respects. That in turn has had a positive impact for the rest of the country,” says Harmans partner Mark Sherry. As the city is re-established, there are growing opportunities for new franchise businesses and Harmans are available to help new franchisees every step of the way. Harmans franchise team is led by two partners, Mark Sherry and Alan Prescott, who both specialise in franchising. They are assisted by four other partners and lawyers in the firm who also have franchising work as part of their core business. Mark says that the best advice he can give to those thinking of entering franchising is to ensure they conduct thorough research. “Make proper investigations into a system before you commit to it and take advice from appropriately skilled professionals, both accountants and lawyers,” he says.
“If you’re considering buying into an existing franchise system, you need to be confident that the documentation for that system is robust but fair.” “One of the best ways to find out about a system and its strengths and weaknesses is to talk to a good number of existing franchisees, not just the ones that the franchisor may direct you to. Remember too that it is a business decision being made, so try not to get too emotionally attached to a franchise before the due diligence has been completed,” Mark advises. “If you’re considering buying into an existing franchise system, you need to be confident that the documentation for that system is robust but fair,” says Mark. “Since every franchise system is different and every franchise agreement is tailored to meet particular circumstances, you need to gain an understanding of your rights and obligations under the franchise agreement. Getting the right legal advice early is essential and that’s where the experienced Harmans team of franchising experts can help. Mark continues, “Importantly, we can assist with all other aspects of the legal and business arrangements that you will need to address when buying a franchise. Harmans Lawyers’ extensive experience in all aspects of franchising across a wide range of industries will provide you with the technical know-how and the advice you need to move forward with confidence.” Members of the Franchise Association of New Zealand (FANZ), Harmans Lawyers supports its vision of ‘best practice’ franchising in New Zealand. Mark is also on the local Christchurch committee for FANZ and is involved with organising events for
14 Business Franchise Australia and New Zealand
people interested in franchise related matters in the city. Harmans Lawyers also help many franchisees that have had issues arise during the course of their franchising experience and they find that their experience helps to narrow down the issues and find pragmatic solutions. They also habitually assist franchisees at the time they put their businesses up for sale.
Christchurch Harmans Lawyers provides a full range of services, including: • Advice on legal rights and obligations under franchise documentation • Financing issues
• Leasing of premises
• Employment and health and safety issues • Ownership structures and their tax implications
• Asset protection, both for your business assets and lifestyle assets • Dispute resolution.
Established in 1888, Harmans Lawyers last year celebrated its 125th anniversary. With the fitout of its new premises in Christchurch finalised in June, Harmans Lawyers look forward to welcoming its existing clients, as well as new ones, to them. Contact Mark Sherry at: P: (NZ) 03 352 2293 E: firstname.lastname@example.org W: www.harmans.co.nz
fr anch ise associ at i on of n e w ze a l an d
fanz free online training
celebrates first birthday The Franchise Association of New Zealand (FANZ) celebrates the first birthday of its free online training course for prospective franchisees. More than 200 people are now better informed about franchising and their possible entry into the sector having registered for the free online training course, developed in association with Massey University that can be accessed through the FANZ website www.franchiseassociation.org.nz since it was launched in July 2013. Although there are almost 24,000 independently owned New Zealand businesses operating in a franchised format, there had been no NZ based pre-entry education programme for people considering buying a franchise before the FANZ course. The availability of relevant information is part of the total solution for greater informed decision making by prospective franchisees. In recognition of the benefits of such a course, some funding was provided by
â€œThe availability of relevant information is part of the total solution for greater informed decision making by prospective franchisees.â€? the Ministry of Innovation, Business and Employment towards the initial production costs. Franchising research in Australia had previously found that improved pre-entry education is likely to have significant positive impact on the franchise sector. One key study found that 71.3 per cent of respondents felt completion of pre-entry education should be a mandatory requirement before entering a franchise agreement. Principal author of the five module course is FANZ Affiliate Member, Franchize Consultants, with contributions from other key FANZ Member experts from the banking, legal, accounting and property leasing sectors. Each module incorporates a mixture of downloadable text and short videos followed by a self-assessment questionnaire. Completion of a module allows access to the next in the series, with Massey University
providing a Certificate of Participation to individuals who complete all five segments. Potential Australian franchisees have had the benefit of a similar course for some years produced by Griffith University of Queensland. Several franchise systems have already taken the opportunity to improve the quality of their potential franchisees by insisting that anyone wishing to discuss the purchase of a franchise first proves their seriousness by bringing their Certificate of Completion with them for their initial discussion. With the launch of the FANZ Official Directory, www.buyafranchise.co.nz in April this year, FANZ now has a trio of websites providing all the information about the Association and self-regulation, through to the learning site for prospective franchisees and then on to the directory where they can research franchises for sale and make contact with advisors.
FREE ONLINE COURSE Learn at your own pace. Improve your decision making. Know what & who to ask.
Business Franchise Australia and New Zealand 15
e x pert a A dv ice
From fr anchisee
to business leader The decision to become a franchisee as opposed to a starting a private company often boils down to one key differentiator – that as a franchisee you gain access to training and resources to help you get started and navigate your way through the challenges of running a business. After all, running a business is a tough gig - particularly when tackling it on your own. As many small business owners would know, the title of business owner often translates to ‘jack of all trades’ – manager, bookkeeper,
salesperson, marketer - all rolled into one. With so many balls to juggle, it comes as no surprise that 30 per cent of Australian small businesses failed between 2008 and early 2013, according to the Australian Bureau of Statistics. It’s clear that having the talent and potential to manage a successful business is just one part of the puzzle. Gaining the knowledge and support to achieve it is another challenge entirely. And that’s what makes a franchise so appealing - it is up to the franchisor to bolster your chances of success by optimising the benefits of the system.
Short term training – a band-aid solution As not all franchisees are experienced business operators or natural leaders when entering into a franchise group, it has
16 Business Franchise Australia and New Zealand
become common practice for franchisors to invest in short term training to help them gain business acumen. A 2012 Franchising Australia report undertaken by Griffith University’s AsiaPacific Centre for Franchising Excellence showed that 90 per cent of local franchisors offer internal training programmes, with 40 per cent drawing on external trainers or programmes to assist franchisees. However, most franchisees will appreciate that it’s not possible to learn everything in a one-day workshop. It takes time, tailoring and investment. As franchisees, you may have come across the trap that many franchisors fall into - the assumption that the franchise they offer works perfectly for every individual and every environment. This is generally never the case. Franchisees know too well that each territory comes with its own set of
“As franchisees, you may have come across the trap that many franchisors fall into - the assumption that the franchise they offer works perfectly for every individual and every environment.” Nigel O’Neil | CEO hockingstewart
challenges, whether that is competition, demographics or any other quirk of the area in which they operate. It doesn’t always make sense to receive short term, cookiecutter training solutions to very specific business challenges and expect results. This form of training also encourages you to become reliant on the franchisor as it’s the franchisor assuming responsibility for training and development. Likewise, every individual who buys into a franchise will be at a different stage in their development. In real estate, outstanding sales agents often look to open their own business after several years of success in the field. In theory, this is the ideal scenario as the franchisee is an experienced salesperson familiar with the ‘ins-and-outs’ of the industry. In practice, running a successful business is a very different scenario to simply listing and selling property. So how should training be structured? How can franchisees and franchisors work together to maximise their chance of success?
Training true leaders – slow harvest style To support its franchisees to develop the leadership and management skills need to run a business, hockingstuart recently overhauled its leadership training. Late last year we launched a new three-year programme simply called the Leadership Development Programme. The Leadership Development Programme was designed to: • Drive growth for individual franchises by improving the performance of Directors (franchisees) and subsequently their salespeople and property managers. • Increase financial turnover and profitability of existing franchisees.
• Demonstrate a long term commitment to franchisee success by going over and above the standard ‘stand and deliver’ type training. • Link all programmes into one overall business strategy to give franchisees improved visibility of the bigger franchise picture and develop a sense of camaraderie among franchisees. • Initiate industry leading development programmes to support franchisee development and place the hockingstuart brand at the forefront of the industry. Public management and leadership skills training organisation, performancedevelopment.com.au, claims a lack of long-term planning, inadequate financial planning and underestimating operational expenses are among the most common small business pitfalls. Unlike traditional training sessions, the hockingstuart programme is a long term commitment that aims to familiarise franchisees with the nuts and bolts of their businesses to stop these issues in their tracks - before they become major problems. We require all hockingstuart franchisees to regularly attend small workshops and report back every quarter on financial, personal and organisational development. Each franchisee works with trainers to develop business plans that reflect their personal goals and local business needs, with specific actions and delivery dates. From there they are coached in methods to achieve their objectives. Franchisees are also monitored to assist them to stay on track, undertaking quarterly accountability calls and recharge days to ensure the techniques taught in training are gradually implemented across each business. In the eight months since the programme began, the progress among franchisees has been remarkable.
For many the Leadership Development Programme has been a challenge. We have asked franchisees to step away from their day to day activities of working in the business and instead work on the business. Despite the challenge, the programme has been met with great acceptance by our franchisees. One claimed it is the best initiative our franchise group has ever offered, expressing “it’s exactly what we need to take our business to the next level”. Others have noted the significant impact it has had on the rest of the franchisee’s team. We are seeing leaders who are more switched on and responsive to team dynamics, which is helping to improve staff morale. Similarly, setting concrete local business goals with regular health checks is helping franchisees to direct and communicate with staff on what to prioritise and develop, and why. No ‘one size fits all’ training programme could achieve the same results.
Changing your training tune For other franchise groups making a similar adjustment to their training style, this requires a shift in the mindset and expectation of franchisees. The difference is the equivalent of being mentored versus being managed. A mentor is there to help and protect, but won’t do the disciplining. One-off training workshops are a nice addon, but they won’t help much over the long term without any follow up. A supervisor, on the other hand, can be nurturing and supportive, but they won’t hold your hand through every task and will expect results. Franchisees who’ve been in business for a long time will know the only way to realise true success is by learning from your own experiences and mistakes. Running a successful business can be hard work, and a franchisor can’t offer the answer to every question or scenario. In saying this, the franchisor must provide the tools, training
Business Franchise Australia and New Zealand 17
e x pert a A dv ice
and support that assist with developing you as a business operator, and teaches you how to run a profitable business. As franchisees, it’s important to recognise that effective business development is a twoway street. While your business objectives must align with the broader goals of the group, you should also be communicating with your franchisor to ensure they understand your individual challenges and how they can help. If a franchisor is investing quick fix training solutions which you feel aren’t making a difference to your ability to run your business, this should ring alarm bells - it may be time to suggest they take a new approach. Increased performance doesn’t come from quick fixes. It’s about looking for long term development to improve the business, increase productivity, reduce burnout of staff and keep staff morale high. That’s not to say there’s no place for short training workshops, but there must be synergy with the needs of the individual franchisee. Franchisees who are in control, have clear goals and are motivated to succeed will perform better than those lacking accountability or a localised plan. Ultimately, training should empower you to be better leaders, and not be treated as a token ‘add-on’ that’s simply expected from a franchise group. Nigel O’Neil is CEO of hockingstuart, one of Victoria’s largest and most established real estate franchises. Nigel is a qualified Chartered Accountant and has successfully built and grown large successful businesses by leveraging his strategic business acumen and leadership experience. He is now applying the same principles to his role leading hockingstuart and as a leader across the broader real estate community. Contact details: P: 03 9690 4388 E: email@example.com W: www.hockingstuart.com.au/ corporate/
18 Business Franchise Australia and New Zealand
“One-off training workshops are a nice add-on, but they won’t help much over the long term without any follow up.”
TALK TO US
We are a fully integrated consultancy firm, specialising in developing and growing franchise businesses. FC Business Solutions is the only integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years. System Development FC Business Solutions provides a range of business services for new, emerging and mature franchisors. Health Check The FC Business Solutions Business Health Check delivers a comprehensive review of the franchise system. Business Operations FC Business Solutions provides operational direction and solutions
to help you grow your business to the next level. Manual & Documentation FC Business Solutions offer expertise and resources to franchise systems in the documentation of standards and procedures. Marketing, Communications & PR FC Business Solutions provide dedicated, fully integrated marketing, communications and PR services for franchise networks. Human Resource Solutions FC Business Solutions focuses on helping franchises maximise exceptional engagement and professional development of their Human Resources.
Training Solutions FC Business Solutions provides professional and relevant training programs for franchisors, their teams and the franchise network to improve the performance of the brand. MEET THE TEAM Contact the FC Business :VS\[PVUZ[LHT[VKH`[VÄUKV\[ how we can help your business. ISO 9001:2008 *LY[PÄJH[PVU Our management system OHZILLUJLY[PÄLK[VTLL[ ISO 9001:2008 standards.
FC Business Solutions Pty Ltd (03) 9533 0028
Business Franchise Australia and New Zealand 19
FRA NCHISee in action : Ci t y Fa r m ers Dogwash
want to be
the top dog?
The City Farmers Dogwash story began back in 1993 with a husband and wife team and two team members operating four vans in Perth, trading under the name Flea-Stoppers. Twenty years later, and with 5 company owned vans and 28 franchisees across Western Australia, Queensland and New South Wales, they continue to provide the same highly personal, reliable and friendly dog wash service they are known for.
20 Business Franchise Australia and New Zealand
Scott McIntosh, with 20 yearsâ€™ experience working within the franchising sector has recently joined City Farmers Dogwash as their Services Manager, working closely with the franchisees. Scott explains why City Farmers Dogwash is recognised as the dog wash experts and why joining the dog wash franchise gives you a very valuable advantage. â€œAs part of the City Farmers Group, by becoming a franchisee you are joining an established brand. With pet insurance available and retail stores across the country, we provide our customers with a complete service and become actively involved in the welfare of their pets.
“As well as the money you make, you see the dogs and their families grow up, it’s very rewarding and you do get close to your customers.”
“Our mobile units can carry a wide range of pet care essentials that can be ordered and delivered as part of the routine wash so you’re not just washing dogs but giving your clients all they could possibly need to look after their dogs. “You also have access to a massive retail customer base, increased buying power and exclusive products and suppliers previously only available to the large retail networks. “We see the potential in this business so much we also establish company operated rounds which we commence in various suburbs that we grow and happily pass on to new franchisees if they want that territory. This can get you on the ground running!”
DO IT! This is exactly how Nicole Ettridge became a City Farmers Dogwash franchisee. Nicole worked within a company owned territory, purchased it and became a franchisee in December 2012. Nicole says, “The franchise buying process was easy. When I first worked within the territory as an employee, there were a few customers and I built it up for the company to sell, and then decided to buy it myself! “Building up the client base took a lot of word of mouth, recommendations and hard work, with a lot of letter drops and footwork. It can be long hours but you reap the rewards for the hard work you put in.”
“The support and assistance from the head office is amazing and the local store are brilliant. They make recommendations, and give out my business cards whilst also holding open days which I attend.” Nicole goes on to say that she would definitely recommend City Farmers Dogwash to anyone wanting to buy a franchise. “I used to be Bank Manager and have done a lot of different things in my life. Although this is not a nine to five job, you get a lot of reward out of it and great job satisfaction. As well as the money you make, you see the dogs and their families grow up, it’s very rewarding and you do get close to your customers. “The customers place an enormous amount of trust in the dog washers. While the majority of the owners are there, you do have
access to gates and security systems so the owners have to place a large amount of trust on you. They are trusting you with their property as well as their dogs.” With the support Nicole receives from Head Office way beyond her expectations, plus the great satisfaction of working with the dogs and their owners daily, when asked what she would say to anyone interested in joining the franchise system, she simply said, ‘Do it, buy one!” James Read and his wife, Sharon purchased their franchise 11 years ago. James was a panel beater by trade and working as a Foreman at a large firm. Working around their family needs was a priority and they started looking for opportunities that would reduce their stress levels and allow James more time at home.
Business Franchise Australia and New Zealand 21
FRA NCHISee in action : Ci t y Fa r m ers Dogwash
James says, “We were an existing client of City Farmers Dogwash and the person that used to come to our house to look after the dog mentioned one day that he was thinking of selling the franchise territory. “Once we had made the decision to buy it from him, it was very simple. We were lucky in a sense that the original franchisee was very conscious that all of his clients at that time knew who I was, making sure that each one was aware I was taking over so we lost very few customers “You have to take what the previous person has done well and then build on that, turn up on time and always be consistent. “You don’t want it to be a surprise when you turn up. The dogs need to get to know you as sometimes they are guard dogs and clients aren’t always around, leaving you security codes and remotes. You have to earn the trust of the dogs and the owners, making sure that you keep to your schedule.” Again, James also praises the support and ongoing training available from the City Farmers Dogwash Head Office.
“Ongoing training and support from head office is excellent. Originally Flea Stoppers when we bought the franchise, City Farmers took over in 2009 and changed all the branding over. Because they are bigger, they have more of a corporate head office, Scott looks after us and two way communication is always there, with lots of marketing support, training with vets who attend our meetings plus the people that produce the products sold come and see us, such as when they change shampoos etc,. This helps a lot, it enables any questions we may have to be answered directly by the manufacturer or specialist.” Because of the reputation and branding, James knows that if he wanted to sell his franchise, the re-sale value is excellent and goes on to say, “If you have good people skills and understanding and are able to maintain a good schedule, you’ll be a great success.”
“You have to take what the previous person has done well and then build on that, turn up on time and always be consistent.”
LOVE DOGS? JOIN THE TEAM City Farmers Dogwash have a low initial franchise fee of only $20,000 which includes all equipment, hydrobath, business cards, sign-writing, uniforms, legal fees for Franchise Agreement, wash products and the initial marketing launch. Franchisees will then need to invest in a good quality Vehicle (Van) which can range from $10,000 to $35,000 for a brand new van, depending on choice. A new feature established for new incoming franchisees is their Variable Franchise Service Fee of only $2 Per Dog until you reach the Standard Fixed Fee of $552 (incl GST) per month. That means that until your business reaches 12+ dogs per day you do not have to pay the full Franchise Service Fee, helping you to focus on growth. Only when the business reaches a sustainable income level will the fixed fee apply, giving you peace of mind in that all important start-up phase. Then as the business continues to grow the Franchise Fee is fixed at $552 (incl GST) per month, so your efforts do not get penalised by continued growth. If you’re a go-getting type of person who loves dogs, and doesn’t mind people either, you could be just the person they are looking for. As a City Farmers Dogwash franchisee, you’ll get to take the lead in your own business, and have a lot of fun in the process. For more information on joining this booming business model, contact Scott McIntosh on: P: 08 9345 7200 E: firstname.lastname@example.org W: www.cityfarmers.com.au/dogwash
22 Business Franchise Australia and New Zealand
Spudbar is a leading brand in the fast growth category of health-focussed QSR.
• A food institution loved by a diverse, loyal & growing customer base • 100% gluten free menu & food system designed by celebrated chef Matt Wilkinson • A powerful & distinctive brand & store fit out
We welcome great people who want to join a network of high performing outlets. If you love the idea of bringing ‘fresh & healthy’ to the fast casual world and are excited by the idea of owning your own business, we’d love to hear from you.
email email@example.com or visit spudbar.com.au/franchise
Spudbar chef & co-owner Matt Wilkinson
Business Franchise Australia and New Zealand 23
profile : A l l ph on es
It’s a family affair! Multi-unit franchisee Stuart Schade bought his first Allphones franchise just four years ago and after achieving great success went on to purchase his second just 12 months ago. With his daughter managing the first store in Casuarina, one of the top ten stores in the Allphones family, Stuart is now focussing on achieving the same success with his new store in Capalaba, Queensland. After working as a telecommunications engineer with the Australian Air Force for 15 years, Stuart had always had outside business interests and when the opportunity arose to buy into the Allphones brand, he jumped at the chance. “I had always been interested in mobile phones and telecommunications, which was a developing technology during my time in the Air Force. It seemed a logical step for me and I haven’t looked back. “Once I contacted Allphones to express my interest, the process was very simple and easy to follow. An information pack was sent from the Head Office, I created a business plan and once the pre-qualifying and police checks were completed, it progressed from there.”
Franchise opportunities Allphones has been established in Australia for over 20 years and with over 100 stores, and growing, is Australia’s largest independent Mobile Phone Retailer. Around 10,000 people visit Allphones outlets each day to access a wide range of services that include Post Paid (contracts), Pre-paid and Broadband from a wide range of network providers. Allphones also sells an extensive range of accessories and outright handsets. Over 60 per cent of the stores are operated by franchisees who have always played a
“Allphones are offering an exciting opportunity for people with excellent customer service and communications skills to become part of its network of franchisees.” major role in the success of the business and Allphones are offering an exciting opportunity for people with excellent customer service and communications skills to become part of its network of franchisees. With a start-up investment required of $55,000 plus working capital and no initial capital outlay for stock, you get: • A fully equipped outlet with stock provided on consignment • Use of Allphones well established brand • Access to point-of-sale and marketing programs • Ongoing professional training and support.
Training and support Stuart says that the training and support available is second to none. “Ongoing training and support is always available, our in-house intranet, Green Turtle is our main training platform, with training modules, covering everything from Occupational Health & Safety, techniques on how to sell and the changing products and new plans from the carriers.
24 Business Franchise Australia and New Zealand
“We also receive training from the carriers who hold training nights in the capital cities and Allphones send out staff to the stores to help with any issues and provide training and incentives. As the telecommunications industry is fast moving, this helps to keep everything moving forward.” Although Stuart works with his daughter, he also says, “Allphones is like a family, and we all help each other out.” Stuart finishes by saying, “Come and join the family, there’s always plenty of support from the company and from the other franchisees and licensees and with the training and methodology in place, it’s a true and tested system. This is a chance for highly motivated, dynamic people to invest in a business with an established customer base, proven product and service offering, strong market position and a well recognised, highly valued brand. For further information contact: W: www.allphones.com.au/company/ franchise-opportunities.asp
BE YOUR OWN BOSS DO YOU HAVE A PASSION FOR TELECOMMUNICATIONS? LOVE THE LATEST HANDSETS AND THE LATEST TECHNOLOGY? If you are a natural at understanding customer needs and have that special edge to sell compelling products and services to meet those needsâ€Ś Allphones is the place to be. Not only do we offer the latest and greatest from all of the major handset brands, we help customers connect to a mobile network of their choice with some of the best deals in the market. Be the master of your own destiny in an industry that is ever evolving and shaping the way we live our daily lives. If you have the ability to connect with people and want to be your own boss, Allphones has some amazing franchise opportunities to become part of the mobile revolution and we want to hear from you.
For more information and to register your interest, visit allphones.com.au/franchise or phone 13 8000.
Business Franchise Australia and New Zealand 25
e x pert a A dv ice
More to the ne w Fr anchising Code
than meets the eye A new Franchising Code of Conduct announced in April this year is the most significant regulatory change to the $132 billion Australian franchise sector since it was first regulated in 1998, and will come into effect from January 1 next year. However in contrast to the extended implementation timeframe, the consultation period for the new Code was opened and closed in the same month, allowing just 17 business days for the franchise sector to provide input into the most sweeping changes to franchise regulation in nearly 16 years. Announcing the new Code on April 2, Federal Small Business Minister, Bruce Billson said that the new Code followed the recommendations of the 2013 Wein Review, and subsequent consultation with the franchise sector. In a six-page media statement titled â€˜The Future of Franchisingâ€™, the Minister announced key elements of the new Code included the introduction of an obligation to act in good faith, financial penalties of
26 Business Franchise Australia and New Zealand
“Key elements of the new Code included the introduction of an obligation to act in good faith, financial penalties of up to $51,000 for major breaches, and new powers for the ACCC.” Jason Gehrke | Director Franchise Advisory Centre
up to $51,000 for major breaches, and new powers for the Australian Competition and Consumer Commission (ACCC) to issue infringement notices up to $8,500 without having to seek a court order. It should be noted that this will be a new Franchising Code of Conduct to apply to franchise agreements entered into on or after 1 January 2015, and is not just a series of changes to the existing Code. The government contends that the new Code will be good for the sector because it will: 1. Reduce red tape; 2. Improve information available to franchisees; 3. Strengthen the balance in franchise agreements; and 4. Improve conduct in the sector and the overall effectiveness of the Code.
Two Codes instead of one? The government’s statement claims that red tape will be reduced by the elimination of short-form Annexure 2 disclosure, socalled ‘double-disclosure’ for international franchisors operating in Australia; removing the need to summarise agreement provisions in the disclosure document, and other changes to the Code to reduce ambiguity. The Regulatory Impact Statement (RIS) prepared by government suggests that this will save the sector several million dollars per year in legal costs, however for the first few years this will most likely be negated by the very real prospect that the franchise sector will be subject to two simultaneous Franchising Codes – the current version, and the new Code to commence in 2015. This two-Code scenario was not flagged in the Minister’s original statement or RIS, and appears to be an unexpected complication in legal implementation that risks actually causing greater confusion and red tape for the franchise sector, not less. Operating two simultaneous Codes would
be at odds with the government’s claim of reducing red tape and defies common sense. Further clarity on the need for a two-Code environment is expected later this year as the government looks at this development in more detail.
More information for franchisees In improving information available to franchisees, the new Code will require franchisors to provide potential franchisees upfront with a risk statement about franchising and to disclose how the proceeds from online sales are dealt. Additionally, franchisors will also need to be more transparent with marketing funds, including holding funds in a separate bank account, and disclosing types of expenses to allocate to the fund, as well as giving franchisees an option to vote for an annual audit. Franchisors will also be compelled to contribute equally to marketing and other co-operative funds for any company-owned outlets.
Changing the balance Changes to the balance of power in franchise agreements prevent franchisors from attributing their costs in dispute resolution to franchisees, and require dispute resolution to be conducted in the state where the franchisee is based, not where the franchisor is based. Additionally, capital expenditure requirements must be disclosed in the franchise agreement and justified to franchisees by a statement outlining the rationale, costs and expected benefits or otherwise agreed by a majority of franchisees in the system. Restraint of trade provisions have also been targeted, potentially allowing ex-franchisees the freedom to continue operating as independents after the end of their franchise agreement if they are willing to be renewed but the franchisor does not offer a renewal.
Regulating franchise conduct To improve conduct in the sector, penalties of up to $51,000 for major breaches of the Code will be introduced, as well as powers for the ACCC to apply fines of up to $8,500 per breach. The ACCC will also be given expanded power to compel franchisors to provide a wider range of documentation in response to its existing audit powers. Penalties of up to $51,000 will be based on a penalty units system applied to 10 broad areas of conduct under the new Code, and will be reinforced by changes to the Competition and Consumer Act (CCA) which will enable similar penalties to potentially apply to all mandatory industry codes of conduct, including the Oil Code, the Horticulture Code, and the Unit Pricing Code in addition to the Franchising Code of Conduct. The changes to the Competition and Consumer Act create and recognise penalty units for breaches of an industry code. The number of penalty units that apply to a breach are listed in the draft new Franchising Code itself. Breaches worth 300 points accrue a penalty of up to $51,000. The Treasury website which has announced the changes to the Code notes that the ACCC can issue infringment notices of up to $8,500 without seeking a court order. Based on 300 units equalling a financial penalty of $51,000, this would mean that an infringement notice of $8,500 would be equal to 50 penalty units. There are 10 broad areas for which breaches of the draft Code will attract a penalty of 300 points, and consequently incur a financial penalty of $51,000. These are listed in the table following. A key element of the new Code requires both parties to an agreement to act in good faith toward one another before, during and at the end of an agreement.
Business Franchise Australia and New Zealand 27
e x pert a A dv ice
Clause ref. General nature of Code breach in draft Code Failing to act in good faith
Failing to provide a disclosure document, or maintain it in the form prescribed
9(3), 9(10) and 17(1)
Failing to provide a copy of a lease or other agreements required under the Code
Clauses 14(1 -4) incl. & 15(1)
Failing to provide financial statements relating to the franchisor
Failing to disclose materially relevant facts
Failing to indicate the franchisor’s intention to renew a franchisee within the required timeframe, and failing to provide a disclosure document when providing such notice
19(2) and 19(3)
Failing to repay monies to franchisees who have terminated agreements during the cooling-off period
Terminating a franchisee without providing a breach notice, the remedy and a reasonable timeframe, or otherwise terminating a franchisee not in breach unless otherwise permitted by the Code
28(2) and 29(3);
Failing to disclose details of former franchisees, or failing to remove a franchisee from the list of former franchisees when requested
33(2) and 33(3)
Inducing franchisees not to associate, or hindering franchisees’ freedom of association
Failing to attend mediation (applies to both parties to a mediation)
Table 1: A summary of draft Code breaches that attract maximum penalties.
“A key element of the new Code requires both parties to an agreement to act in good faith toward one another before, during and at the end of an agreement.”
28 Business Franchise Australia and New Zealand
Good faith is partly defined in the Code, requiring parties to act honestly and not arbitrarily and to cooperate to achieve the purposes of the agreement. If an agreement does not include a clause allowing a franchisee to renew, this does not mean that the franchisor has acted in bad faith. The inclusion of a partial definition of good faith is at odds with the recommendation from the 2013 Wein Review, which said that good faith should be recognised in the Code, but not defined and instead left to the interpretation of the courts as required. With the public consultation period now closed, the government will be taking feedback provided by key stakeholders such as the Franchise Council of Australia and others into consideration prior to issuing a final draft of the new Franchising Code of Conduct later this year. Once that is released, the sector will have a much clearer understanding of its obligations and red tape burden for 2015 and beyond. Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for 20 years at franchisee, franchisor and advisor level. He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia, and publishes Franchise News & Events, a fortnightly email news bulletin on franchising issues and trends. Contact Jason at: P: 07 3716 0400 E: firstname.lastname@example.org W: www.franchiseadvice.com.au
Domino's is not just Australia and New Zealand's leading pizza brand â€“ 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 29
profile : 9 D ACTIO N CI N EM AS
IN 9D ACTION CINEMAS
YOU DON’T WATCH A MOVIE… YOU BECOME PART OF IT! 9D Action Cinemas is an Australian owned company founded in 2012 when opportunities for multidimensional small cinemas were identified in Australia and New Zealand. After a considerable amount of time spent researching the best systems and equipment around the world to ensure reliability, safety and cost-effectiveness, a team of professionals was established to manage the corporate and operational structure. The Managing Director, Nigel Corne has a substantial background in establishing and managing franchise businesses. Utilising his engineering degree, he is also personally involved in providing the technical specifications to the manufacturers of the equipment, ensuring the machinery is designed to suit all Australian conditions.
Explode your senses “9D Action Cinemas is the latest generation in dynamic, multi-dimensional, visual entertainment rides suitable for both children and adults,” explains Nigel. “Your senses are overwhelmed with the stimulating and exciting 3D animated movies with surround sound, coupled with ‘active motion’ luxury chairs and dramatic effects such as rain, fog, lightning, wind, snow, touch and bubbles. Never before has such an action adventure been experienced on an amusement ride,” he continued. All cinemas have either six or twelve seats with external television monitors that promote the cinema and also allow the public to view the fun people are having inside the cinema. This has the benefit of promoting the cinema and also gives parents the opportunity to watch their children enjoying themselves, knowing they are in a safe environment. The parents love this facility!
Movies run for between four and nine minutes allowing many sessions each day, generating constant income. Bookings are not necessary unless you are planning a birthday party or event.
Time for a change? 9D Action Cinemas offers something very different from the usual juice making, lawn mowing and fast food franchises. It’s an exciting franchise to operate! The latest Household Survey showed the average Australian spent $1,236 on goods and services, an increase of 38 per cent since 2004. One of the largest increases highlighted was recreation, up 41 per cent. This emphasises the growing opportunity for 9D Action Cinemas franchises, whose sole focus is recreation, with cinemas located in major regional shopping centres or tourism precincts.
the future. All businesses need to remain innovative and react to changing times or new competition. 9D Action Cinemas has the ability to grow into the future, as exciting movies are released often and new effects are easily introduced to ensure customers keep returning.
Turn-key business With each new site, franchise training is conducted before and after the opening to ensure each franchisee is competent operating the business. 9D Action Cinemas provides a turn-key business solution, fully established and functioning, ready to start trading. The support includes marketing, maintenance and most importantly, an ongoing movie supply so there is always a new experience to encourage people to return.
Operated by just one person, 9D Action Cinemas has low overheads and is supported by an experienced franchisor. There is also an income guarantee for a period of time to give franchisees confidence in the expected revenues.
If you can imagine owning a business which gives you MORE TIME to do the things you want to do, more CONTROL over your FUTURE and provides you with a GREAT INCOME at the same time, contact:
With no competitors in Australia that offer these extensive services and support through a franchise structure, 9D Action Cinemas understands the importance of the sustainability of this business concept into
P: AUS 1300 855 435 NZ +61 2 844 88121 E: email@example.com W: www.9dactioncinemas.com.au
30 Business Franchise Australia and New Zealand
Simple to operate z Low Overheads z Income Guarantee
Are you looking for a simple business that is easy ƚŽ ŽƉĞƌĂƚĞ͕ ŚĂƐ ůŽǁ ŽǀĞƌŚĞĂĚƐ ĂŶĚ ŽīĞƌƐ ŐŽŽĚ returns supported by an income guarantee? If so, ǇŽƵŵƵƐƚůŽŽŬĂƚƚŚĞϵĐƟŽŶŝŶĞŵĂƐĨƌĂŶĐŚŝƐĞ opportunity. dŚĞϵĐƟŽŶŝŶĞŵĂƐĨƌĂŶĐŚŝƐĞŝƐĂĐŽŵƉůĞƚĞƚƵƌŶͲ ŬĞǇďƵƐŝŶĞƐƐƚŚĂƚŝƐĨƵůůǇŽƉĞƌĂƟŽŶĂů͕ƐƵƉƉŽƌƚĞĚďǇ an experienced franchisor and operated by just one person.
Each cinema has 6 or 12 luxury seats with animated movies that run for around 8 minutes. The movies are created especially for 9D, featuring many ĚŝƐƟŶĐƟǀĞ ǀŝƐƵĂů ŚŝŐŚůŝŐŚƚƐ ƚŚĂƚ ĂƌĞ ƐǇŶĐŚƌŽŶŝƐĞĚ ǁŝƚŚ ĚƌĂŵĂƟĐ ƐĞĂƚ ŵŽǀĞŵĞŶƚƐ ƚŽ ĐƌĞĂƚĞ Ă ƐĞŶƐĂƟŽŶĂůĞǆƉĞƌŝĞŶĐĞ͊ The total cost of the investment starts from ΨϭϳϬ͕ϬϬϬ ĨŽƌ Ă ϲ ƐĞĂƚ ƐƚĂŶĚͲĂůŽŶĞ ŵŽĚĞů ĂŶĚ ĨƌŽŵΨϮϯϬ͕ϬϬϬĨŽƌĂĮƩĞĚŽƵƚƉƌĞŵŝƐĞƐ͘
1300 855 435 New Zealand +61 2 844 88121
Business Franchise Australia and New Zealand 31
e x pert a dv ice
THE AUSTRALIAN CONSUMER LAW AND FRANCHISEES’ OBLIGATIONS
Much has been written about franchisees’ obligations under the franchise agreement, but franchisees should also remember that they must comply with all other relevant laws and regulations governing franchising and the conduct of their franchise business. The key pieces of legislation and legal principles that relate to franchising in Australia are: • the Franchising Code of Conduct (the Code); • laws relating to fair trading and business operations, primarily the Competition and Consumer Act 2010 (Cth) (the CCA), the Australian Consumer Law (ACL); the Australian Securities and Investment Commission Act 2001 and the Corporations Act 2001; and • the Common Law.
AUSTRALIAN CONSUMER LAW The Australian Consumer Law (ACL) was designed to protect consumers and ensure fair trading in Australia. Consumers have the same rights across Australia, regardless
32 Business Franchise Australia and New Zealand
“Franchisees must be as vigilant as any other business owner to ensure that they comply with the ACL.” Bianca Sevastos | Senior Associate BAYBRIDGE LAWYERS
of where they live, where they buy goods or services or where a supplier is located. The ACL prohibits misleading and deceptive conduct in trade or commerce. The basic principle is that businesses are not allowed to make statements that are misleading or deceptive, or which are likely to mislead or deceive. This rule applies to their advertising, their product packaging, and any information provided by the business owner or its staff. It also applies to any statements made online or in social media, such as testimonials.
HARVEY NORMAN CASE Recent action by the Australian Competition and Consumer Commission (ACCC) provides a reminder that such laws also apply to franchisees. It is particularly important for franchisees operating in a retail environment to be vigilant in respect to their obligations under consumer law. The ACCC instituted proceedings in the Federal Court against a number of Harvey Norman franchisees for misleading and deceptive conduct. The Court found that each franchisee had made a number of false or misleading representations to consumers about their consumer guarantee rights. The allegations against each of the franchisees differed, however examples of the misrepresentations included representations that: • the franchisees had no obligations to provide remedies for damaged goods unless notified within a short specified time, such as 14 days; • the franchisees had no obligation to provide an exchange or refund for faulty goods supplied; • the consumer had to pay a fee for the repair or return of faulty goods; and • the franchisees had no obligation to provide a remedy independently of the relevant product manufacturer.
The representations were made orally by staff located inside the franchised stores and one franchisee stated on its receipts that “no claims will be honoured on damaged goods unless notified within 24 hours of delivery or pick-up.” The Court ordered nine of the Harvey Norman franchisees to pay a total of $243,000 in civil pecuniary penalties for making such misleading representations to customers regarding consumer guarantee rights, with a further decision to be made later in the year in relation to a tenth franchisee. “These penalties send a strong message to all businesses, including franchisees, that they must not mislead consumers about their rights to repair, replacement or refund for faulty goods under the Australian Consumer Law,” ACCC Chairman Rod Sims said. “Complaints about consumer guarantees represent a quarter of the consumer protection complaints that the ACCC receives each year. The ACCC has moved from raising awareness of law to taking enforcement action where it believes consumers have been misled about their rights under the consumer guarantee provisions of the ACL.”
CONSUMER GUARANTEES The ACL prescribes nine consumer guarantees which apply to goods. They are, in summary: 1. that goods will be of acceptable quality; 2. that goods will be reasonably fit for any purpose the consumer or supplier specifies; 3. that the description of the goods is accurate; 4. that goods will match any sample or demonstration model and any description provided; 5. that the goods will satisfy any express warranties;
6. that the supplier has clear title to sell the goods, unless the supplier alerted the consumer before the sale that they had ‘limited title’; 7. that the supplier has undisturbed possession of the goods; 8. that the goods are free from any hidden securities or charges; and 9. manufacturers or importers guarantee that they will take reasonable steps to provide spare parts and repair facilities for a reasonable time after purchase.
CONSUMER RIGHTS For goods purchased on or after 1 January 2011, where a good develops a major fault, consumers have a right to a replacement or refund from the supplier of the good. For goods that develop a minor fault, a consumer has the right to have the good remedied (at the suppliers’ discretion) within a reasonable time. If the supplier fails to do so, the consumer can either reject the goods and get a refund or have the problem fixed and recover reasonable costs of doing so from the supplier.
ADVERTISING AND SOCIAL MEDIA There are no specific laws that govern social media and franchisees that advertise using social media platforms need to ensure that their online practices comply with the ACL. The laws which prohibit businesses from advertising claims which are false or are likely to mislead or deceive consumers apply to social media in the same way as they would apply to traditional advertising channels. Franchisees should not make any claims on Facebook, Twitter, Instagram or any other social media page or site that they would not ordinarily make in other forms of advertising. Example: Black Coffee franchisee tweets that
Business Franchise Australia and New Zealand 33
e x pert a dv ice
“The laws which prohibit businesses from advertising claims which are false or are likely to mislead or deceive consumers apply to social media in the same way as they would apply to traditional advertising channels.” • the conduct is particularly blatant; or • other claims in respect to that business have previously been brought to its attention. The ACCC recommends that you offer a refund to any customer who has made a decision to purchase your product or service based on a false, misleading or deceptive claim they saw on your social media page or site.
WHAT DOES THIS MEAN FOR YOU AS A FRANCHISEE?
their franchise network is the first Australian network to sell 100 per cent organic coffee when they have done no research to support this claim. It is established that White Coffee franchise network had been selling 100 per cent organic coffee well before Black Coffee. The tweet is likely to be false, misleading or deceptive. Additionally, recent case law suggests that businesses are responsible for the content displayed on their social media pages or sites in relation to the businesses regardless of whether the content was posted by someone employed by the business or by a consumer. Example: A customer posts on ABC’s Facebook page that ABC’s products are cheaper and of a better quality than DEF’s products. ABC is unsure if this statement is accurate, but leaves the post on its Facebook page. ABC may be responsible for the misleading claim made by its customer. To minimise your risk it is recommended that you routinely monitor your social media pages and sites and remove any posts which may be false, misleading or deceptive as soon as you become aware of them. The ACCC has identified two key factors to
determine the amount of time you need to spend monitoring your social media: the size of your company and the number of your followers. The ACCC assumes that larger companies with a large number of followers will have the resources and systems to be made aware of false, misleading or deceptive posts or tweets and would expect that they would act promptly to remove them. Small companies, such as most franchisees, with fewer followers are unlikely to have the same resources to monitor their social media as larger companies. Given the small number of followers, there is less potential for widespread public detriment from public posts and the ACCC would not hold smaller companies to the same standard. Notwithstanding, the ACCC can require companies to substantiate any claim on their social media pages and can take court action where it identifies a breach of the law. The ACCC is likely to pursue cases of false, misleading or deceptive conduct if: • there is the potential for widespread public detriment if the claim was relied on;
Franchisees must be as vigilant as any other business owner to ensure that they comply with the ACL. As the Harvey Norman case shows, franchisees must also educate their employees on the rights of consumers and consumer guarantees. Franchisees should also check their receipts or refunds policies to ensure compliance with the ACL, even if these have been prepared by the franchisor, and should be particularly attentive with regard to claims made over social media and content left by customers and third parties. Bianca Sevastos is a Senior Associate at Baybridge Lawyers where she specialises in franchising and licensing, advising on all aspects of franchising industry compliance with the Code, day-to-day management of franchise systems and relationships with suppliers and franchisees. Bianca has extensive experience and advises on a range of national and international transactions, industry master and area development rights and advises both franchisors and franchisees in dispute, obligations under the Franchising Code of Conduct and the Competition and Consumer Act. P: 02 9232 3511 E: firstname.lastname@example.org W: www.baybridge.com.au
34 Business Franchise Australia and New Zealand
Buying a new or existing franchise? Refurbishing your store? Need new equipment? Cashflow It速 has a range of flexible funding solutions for your franchised business. With terms starting from just 12 months, you have the option to: Purchase the equipment at any time. Return your equipment at the end of the term. Own your equipment over 48 months with a simple $1 payout.
Why spend your hard earned capital when you can simply... Cashflow It!速
Apply online now at www.cashflowit.com.au or call our customer service team on 1300 659 676. Business Franchise Australia and New Zealand 35 Advertisement_A4_20120913 1
18/09/12 10:23 AM
profile : Dr e am Do o rs Aust r al i a
Dream of a brighter future Dream Doors Australia is Australiaâ€™s trusted kitchen company, providing a kitchen design service, installing new kitchens and undertaking kitchen renovations throughout Australia. Their kitchen renovation service can save thousands of dollars compared to a new kitchen and results in an amazing kitchen facelift. Often, it is possible to renovate a kitchen, adding modern surfaces, doors, drawer fronts etc to produce a fabulous
36 Business Franchise Australia and New Zealand
“The latest innovative products can be seamlessly integrated with new bench tops and the latest kitchen appliances, using quality materials and experienced craftsmen.” new kitchen, without needlessly discarding items such as the units, plumbing, gas and electric connections, thereby saving $1,000’s compared to re-designing and installing everything from scratch. It’s sometimes necessary to install an entirely new kitchen, either because the old one is beyond renovation or because the client requires something that is completely different. The latest innovative products can be seamlessly integrated with new bench tops and the latest kitchen appliances, using quality materials and experienced craftsmen. Derek Lilly, Managing Director of Dream Doors New Zealand and Australia founded the company in the United Kingdom in 2000 before bringing the successful business model to New Zealand in 2006 and on to Australia, launching at the Sydney Franchising Expo in March 2014. Derek says, “Launching Dream Doors Australia at the Sydney Franchising Expo has been a great success. Selling two franchises at the Expo is a testament to the success of Dream Doors internationally, with a fourteen year international trading history of success.” Since its inception in 2000, sales in the United Kingdom have increased every year without exception, with franchise sales turnover of £22,000,000 and the same with New Zealand, suffering through the Global Financial Crisis has not dented franchise sales and has seen exponential growth of 295 per cent in the last financial year. With a fourteen year track record of this calibre, there is no better time to join Dream Doors Australia.
Open the door to your dream future Recruiting Franchisees throughout various parts of Australia, this business is ideal for partnerships or husband/wife teams or entrepreneurs looking for a middle-market retail opportunity providing a bespoke service to a growing market. Derek says, “We’re searching for entrepreneurs and people with managerial, organisational and communication skills, people who feel comfortable meeting and talking to people in their own homes and
who possess drive, ambition, enthusiasm and the ability to sell. “Kitchen fitting experience is not necessary as we are committed to providing as much in-territory and head office support as you need, although it’s favourable if you have some kitchen or design experience in the past.” Adrian and Tammy Kay, Dream Door franchisees in Christchurch were New Zealand’s first Dream Doors million dollar sales franchise and are looking forward to many successful years, “As first time business owners and brand new to the kitchen industry, a franchise arrangement was ideal for us. It meant that we were buying into an established system and brand and we could focus all our energy into growing the business rather than trying to establish things like the supply chain and creating a brand from nothing. “During our due diligence, we found Derek very approachable and honest and informative and never applied any pressure, with a very thorough understanding of the industry and the process of getting the franchise up and running as pretty much every aspect of the process has happened just the way we were told it would. The training provided as part of the franchise arrangement was excellent and at just the right pace so as not to overwhelm us.” Derek continues, “Dream Doors are looking for go-getters. Motivated individuals who will do all it takes to make their business work. Our existing franchisees are
entrepreneurs and business minded people whilst at the same time being able to screw a kitchen cabinet together. It’s not necessarily a kitchen fitters business as the ability to sell and run a business is key to the success of the franchise and the franchisees.”
Full business package Dream Doors provide a full business format franchise package with extended training, support structure and a marketing launch to maximise lead flow and exposure. Alongside this you also receive a comprehensive head office training programme, national franchise manager supplying in-territory support, on-site launch programme, national advertising & localised lead generation (where applicable), a vast range of sample vinyl doors, European 3D full kitchen, bedroom and bathroom design software package, corporate uniforms, stationery & detailed Operations Manual plus licensing rights to operate under the Dream Doors corporate identity. “We have definitive and well-documented reasons as to why we’ve been able to achieve the success that we have,” says Derek. If you would like to join this successful international franchise system and are an entrepreneur at heart with strong sales skills, call Derek and he’ll share the secrets of his success with you. P: NZ + 64 3 443 5133 E: email@example.com W: www.dreamdoorskitchenfranchise.com
Business Franchise Australia and New Zealand 37
e x pert a A dv ice
Starting a Franchise before Proof of Concept Many business owners seek to franchise their business before the concept has been fully proven. This presents opportunities for buyers and sellers. Our firm specialises in helping business owners get ready to franchise and helping launch start up franchises. As such we see a steady stream of entrepreneurs looking to take their concept to market using franchising as the expansion mechanism. Traditional approach dictates you should develop the proposition and test it in the market via company owned or privately funded units and only when successful with a solid trading history to then offer franchise opportunities. This is still a prudent approach and the recommended course of action for many startups. However, using
franchising to test and refine the concept is also common practice and whilst it brings with it more risks for both parties it can also have significant benefits for both parties as well.
THE FRANCHISOR/ ENTREPRENEUR PERSPECTIVE So you have a great business idea or you have a small number of stores or operators trading successfully but you lack the capital, manpower or know-how to turn your early success into a larger network. Franchising may be a business model that can solve these challenges and facilitate faster market entry or faster growth than trying to do it all yourself or waiting for organic growth to fund your expansion. Letâ€™s explore some advantages and disadvantages firstly for the franchisor.
Early mover advantage In competitive markets where there is constant innovation by existing players and where there are always investors or
38 Business Franchise Australia and New Zealand
commercial pirates looking to copy good ideas, gaining early mover advantage, rapid rollout or some quick scale of operations is a legitimate strategic play. The injection of external funding and human capital from franchisees can fast track your brand and footprint growth enabling you to claim your place in the market or take a category leadership position.
Accelerated testing and refinement of the concept Franchising can provide more immediate points of representation to test or refine your concept in different customer segments or geographic markets enabling your customer proposition to be quickly fine-tuned. It can also enable your stores, your pricing and your marketing methods to be quickly modified to learn from customer feedback or buying patterns.
Smart use of limited resources Even if you had sufficient capital to fund the full development and growth of your brand
“Entrepreneurs take risks but the successful entrepreneurs are distinguished by the process, planning and people they put around them to systematically refine and grow their business.” Robert Graham | Managing Director CEO Consulting
and network, diversifying your financial risk by taking on franchisee investors spreads the risk and enables you to use your money and human resources in priority areas.
Greater intellectual input Often franchisees come up with the best ideas as they are fully committed to your business and they are working at the coalface with customers. So bringing some franchisees into your early stage growth phase can inject broader thinking and refinement of best practice.
Allows focus on being a good franchisor Operating a company owned unit is often a smart way to test and refine the concept yourself. You have skin in the game and direct access to customers. However, if you do not have a large team or budget, focus on being a good franchisor is often the best approach. Let franchisees run the customer facing side of your business while you focus on developing the brand and network. So as you can see, there are many positive reasons why a business growth plan may include early stage participation by franchisees. Let’s now explore some downsides:
Startup x2 Not only are you starting up your business in your industry (food, business services, fitness etc) you are also taking an early leap into starting a second layer in your business – the franchise. Here you are learning to operate a franchise and be a compliant and successful franchisor, which just adds to your duties and mind space. You are effectively starting two things at once. Some people can cope with this, others can’t.
Greater risk of failure
Failure is more public
Put franchising aside for one moment – your business is either a concept or an early stage start up. Both are not fully proven so there is always underlying risk of failure. This risk is more about start up risk rather than franchising risk, but just because you launch some franchised units does not mean you have a proven concept or business model.
When it is your own company then mistakes or failure can be dealt with privately. When you operate a franchise you have relationships and contracts with third party franchisees, people who have invested time and money in supporting your vision and business. So when there are problems, your franchisees will usually know about it and often insist on remedial action or compensation. In the modern world of social media a disgruntled franchisee can easily make public things they are concerned about or issues they have with you.
Need to give greater concessions and discounts There is a buyer’s market for startup franchises but the prices and terms negotiated usually reflect the added risk the buyer is taking by joining early and helping you prove your concept. Many franchisors will give away the first couple of franchises for free or offer heavily discounted terms in order to attract buyers with the right attributes and risk appetite. Then, once the concept is been proven, market rated prices apply to the next round of buyers.
Risk of taking on the wrong franchisees Long term success of a franchise is heavily dependent on the quality of franchisees. One trap start-up franchisors often fall into is they take the first person who comes along with money or who is prepared to give it a go. Just because they are willing doesn’t mean they are the right long term franchisees.
Learning on the job Mistakes will be made because you are heading into unchartered territory and learning as you go. Some mistakes can prove very costly from a strategic and financial perspective, so you should try to identify and anticipate many of these issues to minimise these risks.
Starting a franchise at such an early stage is not for everyone but if you are considering it, here are some practical tips: • Undertake proper research, analysis, planning and paperwork – do not do this ‘on the cheap’ or cut corners. • Get professional help to test your concept, test your financial model, develop the commercial and practical aspects of your franchise and also properly prepare the operational and legal documentation. • Like any start-up enterprise, have a clear plan with deliverables, milestones, review processes, budgets and contingency allowances. • Have a mentor or honest advisor to challenge you and provide reality checks. • Don’t blow all your money upfront on fancy offices, vehicles or overheads. • Bias your initial spending to customer and marketing related activities – things that test your concept with customers and generate cashflow. • Gear everything to the success of your initial franchisees – if they are not happy and successful your franchise will not grow.
Business Franchise Australia and New Zealand 39
e x pert a dv ice
“Long term success of a franchise is heavily dependent on the quality of franchisees.” The flipside is to think about “what happens when the group is successful?” Plan ahead, possibly consider negotiating an option to purchase additional franchise units on concessional terms (a reward for being a foundation franchisee) or think about the timing of when you may sell your franchise in order to maximise the capital gain.
FINAL COMMENTS There have been many win/win scenarios where entrepreneurs have used franchising as the way of growing their brand and network before they have fully tested it themselves and in return many franchisees have made significant capital gains by joining groups at early stages then riding the growth wave in the market. Equally there are many who have not succeeded because they franchised too early or did not go about it the right way. Both buyers and entrepreneurs should carefully assess the advantages and disadvantages and make informed decisions. If in doubt, seek professional assistance. Entrepreneurs take risks but the successful entrepreneurs are distinguished by the process, planning and people they put around them to systematically refine and grow their business. • Make clear disclosures to your initial investors (franchisees) and do not pretend you are not a start-up. • Ensure purchasers do their own due diligence and obtain independent legal and business advice. • Ensure purchasers have sufficient money to ride out any delays or small failures. • Don’t get caught up in disputes as they will distract you and bleed your cashflow – be commercial and solve disputes. • Don’t be afraid to change things as you go – this is the refinement and proof stage of your business growth cycle.
THE FRANCHISE/BUYER PERSPECTIVE Many of the advantages for a franchisor are disadvantages for the franchisee and many
of the disadvantages for the franchisor are advantages for the franchisee. However, in general, if you are considering buying into a start-up franchise you need to understand the risks and weigh them against the rewards or premiums you may earn by getting in early and growing with the new group. Make sure you do your own research on the industry, the business concept, the competitors, the people behind the franchise and the package of inclusions and exclusions you get under your franchise agreement. You may be buying a bargain and you may be able to negotiate other favourable terms but you need to think about “what happens if this doesn’t work” or “what happens if this takes longer to grow than you and/or everyone expects?” Do you have a fallback position, a second income or an ability to stick with it and ride out the bumps?
40 Business Franchise Australia and New Zealand
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. 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: P: 1300 764 484 E: firstname.lastname@example.org W: www.ceoconsulting.com.au
THEREâ€™ Sâ€™ 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: email@example.com Email: firstname.lastname@example.org Website: www.tadda.com.au Website: www.tadda.com.au
Business Franchise Australia and New Zealand 41
e x pert a A dv ice
The importance of
Local Area Marketing One of the greatest advantages you have being part of a franchise is the support of a recognisable brand. Successful franchisees understand marketing and know how to leverage off the brand awareness that comes with the franchise, and are able to turn this into successful marketing, at least at a local level.
42 Business Franchise Australia and New Zealand
Local Area Marketing (LAM) involves identifying and implementing marketing opportunities in local communities by engaging positively with individuals, groups, organisations, businesses and local media. A pro-active and sustained LAM program will increase the individual franchiseeâ€™s own profile as a dynamic member of their community and will increase overall brand awareness of the franchise system and its role in the community.
“The success of a franchise is the brand, how that brand is promoted, how that brand engages and how that brand drives sales.” Samantha Roach | General Manager - Marketing, Communications & PR FC Business Solutions
Far too often, franchisees believe their marketing finishes when they contribute to the national fund. The national fund is certainly utilised to promote the brand, however, there are many marketing costs that are taken from that marketing fund, including creative design, website, online media, national sponsorships, print and electronic media, etc.
How far can a franchisee go? The large majority of Franchise Agreements stipulate that no local area marketing can be conducted by franchisees without the approval of the franchisor. This should be standard across all agreements. A lot of money is invested by the franchisor to develop, promote and maintain the integrity of their brand. Your franchisor may provide you with some guidelines and recommendations for conducting your own local area marketing. A lot of the good franchises have local area marketing portals, which allow all franchisees to utilise artwork, ideas and campaigns that have been created and have worked successfully for other franchisees. If rogue franchisees want to alter logos, create different themes and colours, change tag lines and USPs, then they should ask themselves whether they want to be part of a franchise or create their own business. The success of a franchise is the brand, how that brand is promoted, how that brand engages and how that brand drives sales. The LAM program must complement the system’s national marketing plan and all LAM activities should be consistent with the system’s over-riding marketing plan. However, it is also vital that the individual franchisee forms a distinct relationship with their local community and local media to
help generate local loyalty to their business. By actively and consistently engaging in your local community and with your local media outlets, you will help drive the success of your own business, but will also contribute to the overall success of the brand.
Build a clear picture of your customer When developing a local area marketing plan, your first step is to get to know your community. If you’re lucky, you will already know the local area quite well, you may even live nearby. If this is the case you will be well prepared to develop your local area marketing plan. However, if your franchise is located in an unfamiliar area, it’s important that you do your research and find out more about the community your business serves. You will need to consider the nature of your business. Do you need to target your marketing towards businesses, or does your business service customers walking in off the street? What are the traits of your customers? Are they tradies? Are they mothers? Are they home-owners? Are they familiar with new technology? Do they play sport? Importantly, you will need to consider the age group of your core target market. The answers to all of these questions will allow you to build a profile of your customer base. There may be one or two, or more, distinct groups to which you need to target your local area marketing. Once you have clearly established your customer profile you will be able to more easily recognise the best locations and methods through which to communicate with your customers. There are many ways you can communicate with your target audience; here are just a
few ideas which could be applied to most business types.
Communicate Build a customer database. Communicating directly with your existing customer base is a fantastic way to encourage repeat business; encourages word of mouth; and ensures your business remains in the minds of your target audience. Do you collect your customer’s email addresses? If so, you may like to consider developing a regular e-newsletter to your customers. An example of this may be a handyman business, which produces a newsletter for each season reminding customers about the appropriate household maintenance required for the season (cleaning gutters, checking smoke alarm batteries etc.). It’s a great way to provide customers with added value from your services, and may even serve as a call to action to customers to re-employ your services. Newsletters are a great way to communicate special offers, new products or services, and are also a fantastic way to encourage click through visitation to your website.
Be seen Support your local community by saying ‘Yes’ to offers of sponsorship, or donations of prizes. Most organisations will reward your contribution by displaying your business name in promotional activities for their event or club, and your business is likely to gain a better reputation as one that cares about the local community. Look out for opportunities in your community where you can donate goods or services to those less fortunate than you. The local paper is a good source of potential opportunities. Word will soon get around
Business Franchise Australia and New Zealand 43
e x pert a A dv ice
about your community mindedness. Offer to present a talk to your local community group/chamber of commerce/ local radio – you can talk about small business, your particular industry, the challenges you’ve overcome to get where you are – by doing so you will be engaging with your local community and informing people about yourself and your business whilst building the franchise brand.
Join forces Does your business provide goods or services which go hand-in-hand with other businesses in your area? These businesses are likely to share a similar customer base with yours. There may be an opportunity to create a joint venture with these businesses, which aims to provide a benefit to both parties. For example a tanning salon may have an opportunity to partner with a gym, as these customers are likely to share the similar trait of taking care of and enhancing their appearance.
“Does your business provide goods or services which go hand-in-hand with other businesses in your area? There may be an opportunity to create a joint venture with these businesses.” Don’t forget about PR! If your business is doing great things in your community then don’t forget to tell them about it! Get to know your local newspapers and media outlets; they are always looking for great stories to tell. Have you had any interesting customers lately? Done any unusual jobs? Does your business support any major events currently happening in your area or beyond? Do you have a heartfelt story of success or have you overcome a battle to get where you are? The possibilities are endless. Try to capitalise on any opportunity to positively promote your business, to support your local community and communicate with your customers, and you are more likely to be
44 Business Franchise Australia and New Zealand
rewarded with a community that will support your business in return. Samantha Roach is General Manager Marketing, Communications and PR at FC Business Solutions. FC Business Solutions is the only integrated consultancy focussing on executive recruitment, coaching and support, manuals, training, distribution and public relations-communications, exclusively for the franchise community and other industry sectors. Contact Samantha on: P: 03 9533 0028 E: email@example.com W: www.fcbusinesssolutions.com.au
AU S TR A LI A A N D N E W Z E A L A N D
DO YOU WANT TO STAY INFORMED ABOUT WHAT’S HAPPENING AT THE FOREFRONT OF FRANCHISING?
WANT TO STAY ON TOP OF THE LATEST NEWS? SUBSCRIBE TO Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week!
To subscribe visit www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 45
profile : T h e Fr anch ise Inst i t u t e
Franchise pioneer brings
low cost franchising to Australian business owners When James Corne originally started in the franchising industry 15 years ago he found getting franchise advice was costly and complicated. At the time there were no consultants around who specialised in franchising small and SME sized businesses. Identifying a niche in the market place James gathered a team of specialists and created the first Australian made franchise program ‘Franchise For Success’. In it James was able to combine his own first-hand experience of building three franchise systems from the ground up and then expanding them into New Zealand and Asia. Fast forward 12 years and The Franchise Institute has helped more than 200 Australian business owners to franchise. James says, “At The Franchise Institute we help these small businesses reach a new level by putting together robust, sustainable,
franchise systems which they can confidently use to expand their business. James is a pioneer in the franchising industry. He did for franchising what Virgin did for air travel, he made it affordable for the small and SME business owner. Back in the late 1990’s when James was a franchisor the average price of franchising a business was around $150,000 plus. Even today this price point is simply not viable for most small and SME business owners. Which is why James and his team decided 12 years ago to focus their efforts on this size of business and create a program that could achieve the same outcome with a much lower cost base. Today, because of The Franchise Institute, there are now a number of franchise consultants who will franchise a business from $25,000 plus which is much more manageable for small and SME business owners. While James is all in favour of low cost franchising he does offer this piece of advice: “Work to keep costs low, but don’t cut corners. Know where to spend and where to save and don’t skimp on the legal documents.” He says that “when comparing price make sure that you compare ‘apples with apples’. I have heard of quotes for as little as
$9,000 and anyone who is offering complete franchising services for that price must be cutting many corners, and I say ‘buyer beware’.” Where The Franchise Institute differs from some of its low cost competitors is in the area of Code Compliant Documents. As these are key to a franchise system, James ensures all of The Franchise Institutes clients have their legal documents prepared by specialised franchise lawyers. There’s no cutting and pasting from pre-existing legal templates. The Franchise Institute works hand in hand with business operators, to make the franchising process easier to understand and to achieve. “Not only do we work with them and create the franchise process, we teach them new skills, maybe not familiar to a new franchisor. This enables them to understand the process, what to expect, the kind of franchisees they should aim for and how to operate as a successful franchised business,” James says. Making the decision to franchise a business is not a simple one but the overall appeal of franchising a business is the capital it brings to enable a business owner to expand into other locations along with a network of motivated owners operators, and these are attractive attributes to most business owners. However once making the decision to franchise your business, it won’t happen overnight and while it can be cost effective it won’t be free. Franchising is not a panacea. It won’t turn a failing business into a gold mine. But if you have a good business or a business concept that you are able to competently take to market, then you should definitely take the time to examine the viability of franchising your business. For further information contact The Franchise Institute at: P: 1300 855 435 E: firstname.lastname@example.org W: www.thefranchiseinstitute.com.au
46 Business Franchise Australia and New Zealand
SUCCESSFULLY FRANCHISE YOUR BUSINESS AT THE BEST AVAILABLE PRICE U Established 2002 U We’ve helped 200+ Australian businesses franchise U We use a practical, hands-on approach
“If you’d like to grow your business through franchising but don’t know where to start contact The Franchise Institute, with the right help, it’s easier than you think.”
U We offer a Fixed Fee guarantee
SPECIAL OFFER Right now we are offering a FREE 30 minute consult for you to see where you can take your business, to book simply contact us today! Phone: 1300 855 435
Business Franchise Australia and New Zealand 47
sn a pshot: Scrooz
never loose with scrooz At Australia’s biggest online and multi-channel retailer of fasteners and fixings for tradies and serious DIY’ers, things are done differently. Scrooz are proving to be a forward thinking company, using technology and proven sales techniques based on a successful European business model, to offer customers a unique and convenient way to shop, ensuring that busy tradesmen can access their high performance range at massive discounts. With over 20 years international experience in the fixings and fasteners industry, Sean Siddall, Founder and Director of Scrooz has developed the franchise expansion plan after achieving great success with the Scrooz e-commerce site and store in Redlands Queensland and recognising the potential and demand by offering retail stores nationwide. Scrooz are the first company to offer a franchise system in the fasteners and fixings industry and the business model is completely unique. Sean says, “We have identified a niche market, which is not being serviced by other trade related retailers. As we received more and more enquiries from our customers wanting to shop and collect in-store, and based upon research completed, we realised that the franchising route is the perfect
“We have identified a niche market, which is not being serviced by other trade related retailers.” platform to grow the brand. “We are looking for people with a retail background but also with practical knowledge. Ideally somebody that already has fastener experience, or other bolt shops and hardware stores looking to rebrand. To be honest though, anyone can learn the fastener business and ex trades people are perfect, we can teach them the retail part.”
Why Scrooz? The home improvement market is worth an estimated $42 billion annually along with a construction industry worth $305 billion, adding in the equally sized engineering, manufacturing and maintenance sectors and you can see just how big the market is. With a predicted explosion in population to over 30 million by 2030, along with the demand for construction of new housing and renovations, schools and hospitals, Scrooz will be ready for it. As a high volume, maximum profit business, the tailored Scrooz franchise model is well proven overseas where a branch roll out, commencing 8 years ago now generates over $950 million in sales across the network. Running a Scrooz trade centre, you’ll be selling high performance premium quality products and you’ll also receive all website driven sales from within your territory which combined with sales in store plus full support
48 Business Franchise Australia and New Zealand
and training, will ensure you become the most profitable fastener and fixings business in your generous territory area. Training is initially at the Head Office and will cover all aspects of running your own branch, whilst completing a week long fixings and fasteners course. Scrooz will also offer onsite training and attend your Trade Centre opening to make sure the launch runs smoothly, whilst also offering ongoing support for day to day sales and technical enquiries, with a personal account manager on hand anytime during the day. Dependent on the territory size, there are two store options available, a smaller store at 150sq. and larger at 300sq. metres. A low franchise fee of just $75,000 is required and the pricing structure is the same for both the smaller and larger store with the only variance being the cost of the fitout and the amount of stock required for the store, giving you every opportunity for early success. With a hugely successful future ahead of Scrooz, now is the perfect time to join this innovative franchise system. For more details contact Franchising Manager, Bob Ozdemir at: T: 0404 888 068 E: franchising @scrooz.com.au W: www.scrooz.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.
1300 TOP SNAP email@example.com www.topsnap.com
Feb 14_TS_Half_Page Ad_185x135.indd 1
U O Y AREDY TO REA NGE CHAR LIFE? YOU
Find us on:
14/02/2014 9:42:33 AM
The Experts in Leather & Plastic Restoration
Business Franchise Australia and New Zealand 49
H ave your say: N oo d l e Box
It’s a Noodle Evolution Established in 1996, Noodle Box is a midweight quick service restaurant network with more than 70 restaurants across Australia. The business prides itself on delivering authentic, highquality, fresh and healthy noodle-based dishes for the Australian palate. Serving more than 900 tonnes of noodles across the country every year to over 2.5 million guests and turning over in excess of $45 million, Noodle Box has established itself with a solid reputation and dependable results. Seventeen years is a long time to be in business, especially in the franchised QSR environment in Australia. Competition is fierce, operators come and go, and there comes a time when self-aware business owners, founders and operators need to take a close look at what life-stage their organisation is at, and make some hard decisions to ensure business evolution and growth continue. This is the journey that Noodle Box has started – and it’s yielding some promising results. It’s true that many entrepreneurial people try to start restaurants. Some are very successful with establishing restaurant number one, and others do quite well in setting up restaurants two and three. But the retail world is riddled with failures after that. So how it is possible to create, let alone grow, a successful franchised QSR? The founders of Noodle Box, Josh James and David Milne, hit upon the idea of capturing the tastes of Asian Street food, giving the guest control in making their own creations
50 Business Franchise Australia and New Zealand
“The noodle revolution we are experiencing is delivering a reinvigorated sense of belonging and is driving true sales growth.” and combining it with the iconic noodle box. They successfully took this concept and not only built a business but built a franchiseable proposition. Within the QSR market this is often where most people fail. When one, or even two or three, restaurants are a success, many entrepreneurs think they have a goldmine. But they may fail to appreciate the bank of core competencies that are required to open restaurants and keep them trading successfully. Josh and Dave are among the very few business owners who have taken a homegrown brand and turned it into a chain of 70 + restaurants. To do this they recognised that the journey is not linear; it’s a series of discrete steps. At every growth stage you need to add additional core competencies to your business. To run five restaurants you need certain competencies, to run 10 - 25 you need specialised competencies, and when you get to 50 you need yet more competencies. The steps get deeper, but they are still distinct steps. What Josh and Dave did exceptionally well, and what many small business owners don’t recognise, is that they may not have had the skill set to take their business to the next level. Josh and Dave consciously made a decision that this was the time they needed to step back. It’s a real advantage when the founders have such a strong sense of selfawareness, as it means the business’s health is placed first and foremost. Small-business managers and entrepreneurs are notorious for damaging the growth potential of their businesses because they hold on too tightly, and this excessive control can smother the future of any organisation. Today Josh and Dave have no day-to-day involvement in the business, however they and their families remain directors and shareholders. We view their continued involvement as a vote of confidence in the future we are working towards. We know that Josh and Dave support the evolution of the business they originally imagined. There has been a range of strategic decisions to make about how to take the business model forward. As a business manager you have to ask several hard questions – is our statement of Vision, Mission and Values well articulated and understood? Are the
Ian Martin, Chief Executive, Noodle Box
current strategies consistent with and making progress towards achieving the vision? To answer these questions you need to challenge some core principals, such as assessing whether you are going to run a fully corporate operation or operate a franchise. Or maybe you are going to manage a hybrid. Every business the size of Noodle Box has to make this decision, which will dictate your strategy and organisation structure for years to come. Upon my arrival we had the hybrid model; 20 per cent company restaurants and 80 per cent franchised. Today, with the exception of our training restaurant at Chirnside Park, we are 100 per cent franchised, which is totally aligned with our mission of being a world class franchised restaurant chain. The question is often asked why we shifted to a franchised model. There are multiple reasons but the key was removing the real or perceived conflict of interest with your franchise partners when you’re running a hybrid model. Are you operating with the interests of your franchise partners in mind, or the company? This perception of a conflict of interest can cause unnecessary tensions across the network. For instance, when you are evaluating a potential new restaurant site you might find a great location and choose to franchise the site – the question within the network quickly becomes “well, if this is such a great site, why doesn’t the company use it?” There could be a number of valid reasons but this can quickly become a divisive conversation, and takes the focus away from what we all should be
concentrating on. We need to always be focusing on providing authentic, high quality, fresh and healthy noodle based meals, served by well trained and friendly team members in an inviting and relaxed environment. One of the reasons we decided to refranchise our company portfolio is that we want to be 100 per cent focussed on building a world-class franchise chain. Over the past 14 months we’ve franchised our entire suite of company restaurants, retaining only a training restaurant where we develop and test new products as well as operationally validate different tools for providing our guests with a better dining experience. The past 14 months have also been a time of reflection and re-invention. This journey started with a significant investment in training, with massive emphasis on providing our network of franchise partners with the skills, systems and procedures to run a successful Noodle Box franchise. Over $250,000 has been invested in our online training and communications platform and a training centre in Richmond, Melbourne – right in the heart of the business’s Franchise Support Centre. Every successful QSR franchise understands that their success rests, in part, on the fact that guests who visit their network of restaurants expect the same quality of service and the same high level of efficiency and speed in every restaurant, regardless of location or operator. From the guest’s point of view, whether the restaurant is corporate or franchise partner operated, it needs to
Business Franchise Australia and New Zealand 51
H ave your say: N oo dl e Box
be seamless. To maintain that standard, Noodle Box has developed innovative online educational tools for our franchise partners and their team members. We use ‘gameification’ to test knowledge and speed, so that learning about our menus is fun and interactive. We have found this is a far more effective way of ensuring consistent training results, leading to improved consistency and a better experience for our guests. Our evolution has also included looking closely at our menus. We know that Australian tastebuds are maturing to Asian flavours, so without losing sight of our heritage we are developing and maturing our own menu items. Our menu innovation, and our innovation-led calendar, means that we are providing authentic, high-quality, fresh and healthy noodle-based meal options. Regular guests will note our latest offerings of yum cha, as well as the broadening of our lunchtime options into Vietnamese salads. It is crucial we keep our connection to Asian street food flavours, but we also give our guests the wide range they expect. After all of this introspection and streamlining of our strategies, have we noticed any change? One of the biggest signs of success for us
“The business prides itself on delivering authentic, high-quality, fresh and healthy noodle-based dishes for the Australian palate.” was the response from the team when we undertook to franchise the restaurants. Team members who know the system, who are working within the system, saw the opportunity to have a piece of the action. Record numbers of our team members have taken up the chance to become Franchise Partners, and we take this as a strong message of support and endorsement. Unsurprisingly, one of the other big signs of success for us has been the increase of sales in our restaurants. The numbers of guests in our restaurants is increasing and the expenditure made is getting bigger – a sure sign we’re doing something right. People are voting with their feet. The evolution of the Noodle Box business has also meant a close examination of our roots. After being in business for more than 17 years, it can be easy to forget the Mission and Values that helped forge the business’s strength in the first instance. This has meant clearly articulating our Mission and Values, helping provide the guiding principles for the business. The words of our Mission and Values are consistently referred to and
52 Business Franchise Australia and New Zealand
run beneath everything we do. In every presentation – whether to a bank, a franchise partner or the Franchise Support Centre team – we highlight our mission. It drives everything we do. The noodle revolution we are experiencing is delivering a reinvigorated sense of belonging and is driving true sales growth. Noodle Box strives to be the brand of choice for all the people who are involved in, or touched by, our business. We will judge the success of our journey by assessing when potential franchise partners say they want to open a QSR, and they want it to be Noodle Box; when team members state they want to work in a QSR, and they choose Noodle Box; and when our support team, who choose Noodle Box, view us as their preferred employer. For further information contact Micheal Standley, Noodle Box Network Development Manager at: P: 0416 256 238 W: www.noodlebox.com.au/franchise
Business Franchise Australia & New Zealand is part of the global network of CGB Publishing
With 30 years experience in providing high quality business information, with a particularly strong focus on franchising, our global presence allows opportunity
T H E
I N E M A G A Z
F O R
H I S E E S F R A N C
AUS TRA LIA 2014 04 MAY / JUNE VOL 08 ISSUE
TIME BOOM ANCHISING
ARE YOU THE
PERFECT FRANCHISEE? TAX TIME!
YOUR QUESTIONS ANSWERED
WIN YOUR OWN BUSINESS $4.95 (AUD), $6.95
S LATE ST NEW
THE BANK S ADVI CE FROM FINA NCIA L
Franchising U S A THE MAGAZ INE
LAN D and NEW ZEA
(NZ) inc. GST.
ADVI CE TOP LAWY ERS’
FOR FRANC HISE
VOL 02, ISSUE 08,
T H E
M A G A Z I N E
FINANCING YOUR FRANCHISE
M A I N F E AT U RE
F O R
E S F R A N C H I S E
w w w. c a n a d i a n f r a n
VOLUM E 2 ISSUE 1
for international franchise marketing solutions.
RE AL IZI NG TH E DR EA M
MAXIMIZE Y OUR
NCH ISE WOR LD PINK PAINTING THE FRA
THE GROW T H COACH BUS INESS AND SALES COACHING
SERIOUS ABOUT CHANGING THE WORLD!
LATES T NEWS
FINAN CIAL ADVIC E FROM THE BANKS
TOP LAWYE RS’ ADVIC E
FROM THE BANKS FINANCI AL ADVICE
TOP LAWYER S’ ADVICE
Visit www.businessfranchiseaustralia.com.au to find out more
profile : Fr anch ise Fi tou ts Aust r a l i a
get trading faster As the premier retailer centre in Melbourne, Emporium Melbourne delivers a world class retail experience, integrating a fusion of fashion, culture, food and art. With high expectations from the developer, Franchise Fitouts Australia have certainly delivered with their recent fitout of South Melbourne Market Dim Sims and left the centre only too happy to recommend them in the future. Daniel Marshall, the Food Tenancy Project Manager says, “Franchise Fitouts Australia more than exceeded our expectations on the delivery of the South Melbourne Dim Sim fitout on the new Emporium Shopping Centre. Their ‘can do’ attitude and proactive approach in assisting their client not only in the fitout but in the preconstruction front end process was commendable. The six week fitout was completed in three weeks, with a resulting product that the centre was extremely happy with.”
Saving you time and money With a background in shop fitting and joinery, CEO and Founder Zoran Kolimackovski has over the years built a series of successful relationships with franchisors and franchisees, and it was a natural progression to move into franchising and Franchise Fitouts Australia was formed. Zoran says, “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.”
Delivering on Time Not just a fitout company, Franchise Fitouts Australia can offer a full design service. With consultations and innovative design
“We have become known as the fastest growing shop and kiosk fit out company in Australia.” 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 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.”
54 Business Franchise Australia and New Zealand
Seamless By offering this complete package, Franchise Fitouts Australia are well 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. Recent clients Edward and Phillip Cheng from South Melbourne Dim Sims say, “We cannot thank the team at Franchise Fitouts Australia (FFA) enough for their outstanding and professional work on our latest store in Emporium. “They managed the whole project in an impressive speed and also assisted us with getting finance! “We are extremely happy with both the fitouts FFA have done for us, particularly the Emporium fitout and couldn’t recommend them highly enough!” 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 55
e x pert a A dv ice
Sound financial foundations for your franchise Have you ever played the game Snakes and Ladders? Landing on a snake when you’re almost at the finish is such a disappointment as it sends you backwards just as you’re anticipating your win.
As a franchisee, your income depends on the financial results of your business. Also, you will be investing your own money – and will probably borrow from a bank. So it’s important to get an indication of how the bills can be paid, the loans repaid, and how much you might make.
The financial side of buying a franchise can sometimes feel a bit like this. You’ve heard lots of positive things, you like the franchise concept, and are keen to go ahead … and then you’re advised to consult an accountant. What if they cast doubt on your plans?
Three financial questions to ask
Do you really need to do the numbers, and get advice, even if you’re very confident of the business? We think you do. Let us explain.
Money matters when you’re buying a franchise A franchise is a business with money involved, so it’s important to think carefully about the financial implications. In fact, the Franchising Code of Conduct states prospective franchisees must be advised to obtain independent accounting and business advice. But many experts have noted that people tend to neglect the financial side of franchise research. Some choose not to consult an accountant, or instead seek advice from a family friend rather than an independent expert. We think it’s a mistake to assume the financial side will work out okay because you’re buying a franchise. You’re investing in a business don’t just hope for the best!
56 Business Franchise Australia and New Zealand
If you’ve never bought a business before you might wonder what questions to ask and what’s the role of an accountant. Here are some pointers to help you.
Here are three financial questions to ask when you investigate a franchise opportunity. The answers will help you assess whether you can afford to start the business and what profit it might make. You can then consider if it’s enough income to live on. 1. How much will it cost to start the business? This includes franchise and training fees, equipment and fitout. You’ll also need enough money to cover expenses until the business is profitable. 2. What will it cost to run the business dayto-day? For instance, rent, wages, materials costs, advertising, royalties, leases, phones, electricity, accounting and bookkeeping. 3. What sales are needed to cover the costs? You can then assess whether there’s a reasonable chance of achieving this target, and how long it will take to reach it.
Where to find financial information The information to assess the financial side of a franchise will come from a variety of sources, so be prepared to do some digging around to get the answers. A good place to start is the Disclosure
“You’re investing in a business - don’t just hope for the best!” Peter Knight and Kate Groom, Smart Franchise.
Document. Franchisors are required by law to provide this. The Disclosure Document should include details of set up costs and expenses to run the business. Some franchisors also include information about the past sales and expenses of current franchisees, which can be very helpful. You can also ask existing franchisees about their sales and costs, as well as their start up costs. With this information, you should be able to get a rough idea of the start-up costs for the business, and also get a sense of how much you might be able to make.
Dig deeper into the numbers If your initial assessment looks promising the next step is to dig deeper into the numbers. This is where you prepare detailed financial projections based on information about the sales and each of the operating costs of the business. You’ll also want to get a clearer indication of the startup costs. It’s important to take into account your specific costs, such as rent, wages, loan payments and other financial commitments. With regard to sales, be sure to allow for realistic growth and seasonal sales patterns. Now take a step back and consider whether the projections show this business can make a healthy profit. Based on your research of the franchise, are the projections achievable? Will this franchise give you the income you need?
Consult a ‘Franchise Friendly Accountant’ When you’re buying a franchise it’s a good idea to get advice from an accountant who understands franchising. In fact, the Franchising Code of Conduct recommends it! The accountant can help you put together
financial projections. But there’s more to it that just completing a spreadsheet. You see, with all your enthusiasm for the franchise, a reality check will be very helpful. That’s where an accountant can help.
attention. Take the time to do the numbers and consult professional advisers to give you a good start in business.
Climb the ladder whilst avoiding the snakes!
Accountants tend to be conservative in their approach which means they can help you see what might happen in the worst-case scenario. But they can also help you with the best-case scenario as well. They can highlight the risks that can increase your costs or reduce your profit, so you can then work out how to reduce them.
When considering a franchise, you’ll need to know how the bills can be paid, loans repaid, and how much you might make.
When choosing an accountant, it’s important to understand there are different types of accountant. Some focus on personal income tax - you might have used one to do your own tax return. Others mainly work mainly with established businesses, while others specialise in franchising.
Always prepare detailed financial projections that take account of your specific costs.
So, when you’re starting a franchise, it’s best to consult an accountant who understands franchising and is used to working with small business.
Set sound financial foundations It’s easy to feel confident about an opportunity when you see franchises up and running. But even with the most well established brands, we believe it’s a mistake to assume the financial side will automatically be okay. Your income will depend on the business results, you’ll be investing money in it, and probably taking on debt. We have found, even experienced business owners mostly obtain business advice before making their purchase. The right accountant won’t be a roadblock in the way of your dreams. Instead they will help you get a more complete financial picture, so you have the best chance of achieving the outcomes you desire. The financial side of running a business is really important and needs to have your
Key questions are: How much will it cost to start the business? What will it cost to run the business day-to-day? What sales are needed to cover the costs?
Assess the projections against your income needs. How confident are you of the results? Before you buy, consult an accountant who can help you assess the opportunity. Peter Knight, FCPA and Kate Groom are co-founders of Smart Franchise and the Franchise Accountants Network. Peter is an accountant with over 25 years in professional practice. Kate has worked with franchise businesses for almost 20 years, focusing on strategy, planning and business improvement. Franchise Accountants Network members are qualified accountants with experience advising franchise owners on business and financial matters. You can find members in Sydney, Newcastle, Melbourne, Brisbane, Perth, Adelaide, AlburyWodonga and Dubbo. Visit us at: W: www.franchiseaccountantsnetwork.com
Business Franchise Australia and New Zealand 57
profile : E vo lv e Ent erta i nm ent
An evolving franchise opportunity Established by Franchise Entertainment Group in 2011, Evolve Entertainment has quickly established itself as a major force in the Kiosk Vending business. Already on par with its only competitor after just three years, Evolve Entertainment has grown to over 50 franchisees, operating over 560 kiosks, with a vision of rolling out 4,000 kiosks over the coming years. Spearheading this expansion plan are founders Ed Nedelko and Paul Uniacke. Starting as franchisees with VideoEzy and accumulating 18 stores between them, Ed and Paul bought the VideoEzy brand in 2005 followed with the purchase of Blockbuster in 2007. Ed and Paul recognised that there was an ongoing evolution of not just the home entertainment industry, but lifestyle in general. Self-service was becoming more and more common and accepted across many areas of retail. This, along with the evolution of the movie rental industry, has seen consumers needing more choice in how they rent from their favourite iconic Australian brands. Evolve Entertainment offers prospective franchisees the only franchised Home Entertainment Kiosk Rental business in Australia. The low start-up and operating costs of kiosks give franchisees the opportunity to take advantage of this growing sector of the Home Entertainment Industry.
“As the kiosk is a mini store in its own right, it doesn’t have the overheads that you would associate with a store such as rent and payroll etc.” Paul says, “With 350 VideoEzy and Blockbuster stores in Australia, we created the concept in late 2010 of a hub and spoke model, the store is the main hub and the kiosks, located in and around the territory, the spoke. Although the majority of our kiosk franchisees also have a store, we recognised that franchisees can also achieve great success with kiosks only. “As the kiosk is a mini store in its own right, it doesn’t have the overheads that you would associate with a store such as rent and payroll etc. This allows the kiosks to be placed in areas that traditionally do not have a VideoEzy or Blockbuster store, such as the CBD’s in Melbourne, Sydney and Brisbane or major shopping centres. This allows Evolve Entertainment to service these high traffic areas for very little cost.” Evolve are looking for franchisees with a positive outlook and an aspiration to set up a successful franchise business either in conjunction with what they are currently doing or with a view to growing their kiosk business to become their main source of income. No previous experience in running a business is required due to a franchise support team working with you. Over 60 staff Australia wide and developed franchising systems built over the last 30 years means franchisees are free to learn and develop their business to their full potential. On a day-to-day basis, in the background, Evolve operations staff manage approximately 80 per cent of the Evolve kiosk business, leaving the franchisee to
58 Business Franchise Australia and New Zealand
focus on maintaining and building the customer base for their particular kiosk sites. All franchisees have access to field based Business Managers and new franchisees are provided with induction training at Evolve’s head office. Assistance with finance, leasing, kiosk site evaluation, landlord negotiations and initial local marketing of the kiosk are part of the support offered in the set up phase alongside an Australian based telephone customer care team that operates seven days a week, providing support to customers, franchisees and site contacts. Alongside the initial 1,000 kiosks already purchased by Evolve, Evolve have recently taken delivery of a substantial number of outdoor units, which means that franchisees will no longer be limited to indoor sites with defined hours but can offer customers the convenience of 24 hour access to their vending kiosks. With the roll out of these outdoor kiosks, commencing in the latter half of 2014 there’s no better time to join Australia’s most iconic home entertainment brands and participate in the success of the fastest growing DVD vending operator. Evolve Entertainment will be holding a series of franchise information nights. To be notified of when these will be happening in your area, register your interest now. For further details contact: P: 02 8833 2100 E: firstname.lastname@example.org W: www.fegroup.com.au/Franchising/
BUSINESS MADE SIMPLE Video Ezy & Blockbuster Australia offer you this low cost entry into the movie rental kiosk industry which comes with 30 plus years of experience in franchising, brand recognition and marketing. With over 50 franchisees and 560 kiosks since May 2012 this makes us Australiaâ€™s fastest growing DVD vending franchise. Our future vision sees 4000 of our kiosks in the marketplace over the coming years.
Video Ezy and Blockbuster offer franchisees support that matters: t Experience with identifying the best kiosk sites tVital national property portfolios with first right of refusal tKiosk Installations tTechnical support t7 day customer care support team tNational and Local Marketing service and support As a long running franchise operation we can appreciate the risks associated with a new business venture, which is why we are proud to be able to offer you a low cost entry into our kiosk business. By partnering with Australiaâ€™s most trusted brands, our 60+ dedicated support team will help guide you on your journey to becoming a successful small business owner. For a free copy of our FRANCHISING OPPORTUNITY BOOKLET or to REGISTER YOUR INTEREST, go to:
Business Franchise Australia and New Zealand 59
Capital required - 220K - 410K forever Number of outlets - 13+ Opportunities available - nationally
Capital required - 170K Number of outlets - 50+ Opportunities exist - nationally
Capital required - $250K + Number of outlets - 13 Opportunities available - Nationally
Capital required - 400K - 600K Number of outlets - 80+ Opportunities available - nationally/NZ
Capital required - $220K - 350K Number of outlets - 13 Opportunities available - Nationally
Capital Required - 280K - 350K Number of outlets - 1 Opportunities available - nationally
Capital required - $400K + Number of outlets - 10+ Opportunities available - Nationally
Capital required - 400K - 600K Number of outlets - 25+ Opportunities available - nationally
Capital required - 47K Number of vehicles - 50 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 - 300K - 450K Number of outlets - 6 Opportunities available - nationally
Capital required - $400K + Number of stores - 25 Available opportunities â€“ Nationally
Capital required - 150K - 350K Number of outlets - 650 worldwide Opportunities available - nationally
Connecting people to opportunities. Choose from Australiaâ€™s best selection.
60 Business Franchise Australia and New Zealand
Capital required - 70K+
Capital Required - 250K
Capital required - from 90K
WWW.FRA PHONE 13
Capital required - $400K â€“ $600K Number of outlets - 25+ Opportunities available - Nationally
Capital required - $300K â€“ $350K Number of outlets - 6000+ worldwide Opportunities available - Nationally
Capital required - $600K + Number of outlets - 8 Opportunities available - Nationally
Capital required - $250K + Number of outlets - 8 Opportunities available - Nationally (Except WA)
Capital required - $250K + Number of outlets - 45+ Opportunities available - Nationally
Capital required - $250K - $450K Number of outlets - 63 Opportunities available - VIC only
WW.FRANCHISESELECTION.COM.AU Visit www.franchiseselection.com.au or ONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624) Business Franchise Australia and New Zealand 61
sn a pshot: I van P oo l e Lawy ers
Specialists in Franchising, Mediation and Intellectual Property Ivan Poole Lawyers, a specialist Franchising and Intellectual Property firm based on the Gold Coast, currently acts for more than 60 National Franchisor and Licensor companies and has had exposure to over 200 franchise systems, acting for Franchisors, Licensors and Franchisees for over 25 years. Ivan Poole Lawyers takes great pride in assisting clients looking to expand their business by advising them from initially considering Franchising to the completion of documents and launching of the Franchise System to extensive development of the Franchise System and sometimes to the sale of the business. This commitment to the development of long-term commercial relationships with Clients is a key element of Ivan Poole Lawyers and of great benefit to Clients looking for consistency and continuity in their legal and commercial advice. Franchising in Australia is heavily regulated by the Franchising Code of Conduct and strict compliance is of paramount importance as there are severe penalties for breach of the Code by Franchisors. In addition, Ivan Poole Lawyers provides proactive commercial advice to Clients to allow them to focus on the running of their business whilst being assured that they are compliant with the Franchising Code of Conduct and taking proactive steps to avoid disputes and use ‘best practice’ operational policies. Ivan Poole Lawyers ensures that it is at the forefront of the development of Franchise
“Franchising in Australia is heavily regulated by the Franchising Code of Conduct and strict compliance is of paramount importance.” Law and is committed to providing the highest possible standards of professional conduct and knowledge. Ivan Poole Lawyers are Corporate Advisor Members of the Franchising Council of Australia and take an active role in various events which provide education to various stakeholders in the Franchising community. The Solicitors at Ivan Poole Lawyers are also active in speaking at workshops and seminars to other professionals and potential Franchisors to provide up to date education about Franchising. Ivan Poole Lawyers act for Franchisors and Licensors transacting business overseas and prepare documentation for those clients whether Franchise, Licence, Joint Venture and/or other arrangements. In the past four years documentation has been completed for clients to expand to India, U.K., Thailand, Gulf States, Papua New Guinea, USA, Netherlands and New Zealand. Ivan Poole Lawyers also act in Australia for off-shore Franchisors based in the U.K. and in New Zealand. Ivan Poole Lawyers is also vastly experienced in all elements of Trade Mark protection and other leveraging of Intellectual Property both in Australia and overseas and the commercial approach of Ivan Poole Lawyers has enabled many Clients to achieve their Intellectual Property goals despite significant obstacles. Ivan Poole Lawyers is centrally located in South East Queensland and as the Franchising Code is Federal law and applies throughout Australia, many Clients are situated outside this area. Ivan Poole Lawyers ensures that its technology and the
62 Business Franchise Australia and New Zealand
availability of its Solicitors allow Clients to receive the range of services irrespective of their location. Ivan Poole Lawyers is committed to a speedy turnaround of documentation and/or advice to ensure that there are no lengthy delays in issuing documents or reviewing Disclosure Documents, Franchise Agreements, Leases and similar material. Ivan Poole Lawyers also provides a full range of services to prospective and current Franchisees, not only in reviewing documents for intending Franchisees but also in various circumstances where disputes or problems have arisen. This may be dealing with defaults, a termination notice, debadging and a release from the Franchise, or more serious matters such as dealing with a Creditor’s Statutory Demand or Court action by the Franchisor. Ivan Poole Lawyers also understands that legal costs are a significant concern for all Clients and maintains excellent transparency of pricing. In most instances Ivan Poole Lawyers works on a fixed fee basis and openly invites potential or current Clients to enquire about timing and fees. Ivan Poole Lawyers offers a no fee, no obligation consultation to anyone considering Franchising and welcomes enquiries from anyone looking to grow their business by that process. Contact: P: 07 5591 2522 E: email@example.com W: www.ivanpoolelawyers.com.au
FE AT URE
business services and itfeature
Business Franchise Australia and New Zealand 63
FE AT U R E Our feature topic in this issue of Business Franchise Australia and New Zealand is ‘Business Services and IT’ franchises. These are franchises that provide a service to other businesses within a wide range of categories and can include training, insurance, accounting, courier and printing services. One thing they all have in common and in their favour is the need within the wider business community to outsource these particular functions. There are many reasons for this outsourcing and can include such things as businesses that may not be able to keep fully up to date with the current trends and technology
Most B2B franchises are servicebased, rather than based on the sale of goods alone. or may be small and seek assistance from experts within a particular field to provide that service to them or even that by outsourcing particular services, it will allow the company to fully focus on growing their customer base and increase sales. Whatever the reason for this outsourcing, you are in the enviable position to not only enjoy great success with your franchise but also assist in the success of another business. Jason Gehrke from the Franchise Advisory Centre writes for Business Franchise magazine ‘What you should know before buying a Business to Business (B2B) franchise’. Within it he highlights a few things to consider that may be different from franchises that operate a business to consumer model. Firstly, there’s very few dedicated B2B franchises that actually sell goods to other businesses. Franchised retailers such as Harvey Norman may sell office equipment to small
64 Business Franchise Australia and New Zealand
FE AT URE businesses, but this is not their only market. Those B2B franchises that cater only to a business market may sell highly specialised equipment that may be manufactured or exclusively distributed by the franchisor. If this is the case, you should explore what (if any) inventory you are required to hold, and how much of your available capital this will consume, and what the stock turn on this inventory will need to be to justify the investment level required. Alternatively, if you are not required to hold inventory of the equipment you are selling, you should research the franchisor’s inventory management and delivery systems to ensure that your sales and reputation are enhanced by rapid and efficient delivery. Most B2B franchises however are servicebased, rather than based on the sale of goods alone. Typically, these service franchises will fall into two categories – white or blue collar.
White or blue collar? White collar B2B franchises will generally provide some kind of expertise that can augment a business’ existing management capabilities, such as in bookkeeping, expense management, HR, business coaching and performance management, finance broking, insurance and other services. Blue collar franchises will be more technically-oriented on the specific execution of certain business activities, such as the provision of security services and the installation and maintenance of alarm and monitoring systems, or the maintenance of facilities or assets owned or managed by the business (eg. cleaning franchises, and pool, air-conditioning or vehicle repair franchises). Arguably, there are also hybrid B2B service franchises, such as in IT (information technology) where operators offer a mix of white collar services (eg. reviewing business processes to recommend appropriate software solutions) as well as blue collar services (eg. building networks, repairing computers, etc). Irrespective of whether your B2B franchise sells goods or services, your business’ customers will be fundamentally different from B2C customers in three key ways: they will be harder to acquire, expect more, and take longer to pay.
Understand client acquisition processes and time-frames Almost every business faces competition at some level, and chances are that your B2B franchise will be no different. This means that for you to get clients, you might have to take them off someone else, or find them before someone else does. Taking clients away from a competitor can be a long and tiring process. Firstly, you have to find the right person to deal with in your target business, which is often easier said than done as large organisations become increasingly cautious about giving out names of key personnel (although for small business clients, the key contact could in fact be the person who answers the phone). Researching online directories, business websites and cold-calling (by phone and in person) are the best ways to build a database of key contacts to start the client acquisition process. Next you will need to gain an interview, or create an opportunity to make a presentation, demonstration or similar, to start building the relationship with the business. Maybe the value proposition of what you have to offer will be so great that your business prospects
will drop any existing suppliers and give you sales orders straight away. More often than not however, you will have to wait for a triggering event, such as the replacement of a decision-maker with someone more open-minded to your offer, or the inability of an existing supplier to deliver in the time, quantity, quality or price required. Opportunities created by the inability of an existing supplier to deliver are golden, rare and must be acted on immediately and comprehensively. One slip-up by a competitor can open the door for you, and it’s your job to open it as wide as possible, then slam it on the competitor afterwards. This process of collecting data, making presentations, responding to RFP’s (requests for proposals) and building relationships with decision-makers who might ultimately elevate you from their fourth, third or second choice to first choice takes time. Weeks, often months, and sometimes years are required to acquire business clients. The best operators are not always the most successful in a B2B environment. Those with the nerve, patience and capital to go the distance are the ones who make it.
Business Franchise Australia and New Zealand 65
FE AT URE
Those with the nerve, patience and capital to go the distance are the ones who make it
sufficient working capital to keep them going in the meantime. Strategies to improve on-time payment include charging deposits and progress payments, keeping payment terms to the shortest possible timeframe, and to offer a variety of payment methods that make it as easy as possible for a client to pay their bills. The measure of the length of time it takes for a client to pay their bill is known as debtor days (ie. the number of days). This is a key performance indicator for any B2B business, and a high number of debtor days (eg. 90+) means that a business is offering too much credit to too many clients, and may well face a serious cash flow squeeze. Those businesses with low debtor days (eg. 15 days) tend to have much better cash flow and clients who can be relied to pay regularly and in full.
Continue your journey of learning By investing in a B2B franchise, you are not planning to undertake your business journey alone, and you should look to your franchisor for guidance where possible. If at least you have an understanding of the B2B environment beforehand, you can better assess the franchisor’s ability to help you manage key performance areas such as debtors, client acquisition, and service delivery, in addition to the technical expertise you will need to sell, advise, install, maintain or otherwise do what the business does.
Manage client expectations The potentially long, slow and painful process of acquiring clients, particularly against an entrenched competitor, can provide an incentive to create the perception that your products or services are not just the equal of your competitors’, but vastly superior in every way, if only you could be given the chance to demonstrate. It is only natural to be passionate about the products or services offered by the franchise in which you have invested, but overselling them creates a level of client expectations you may not be able to live up to when the time comes. Underselling and over-delivering is a hallmark of successful B2B operators, and while it is desirable for your clients to think that you can perform miracles and walk on
water, you’d better be sure you can do so whenever required.
Get paid on time While a B2B franchise can generate much higher sales volumes per customer than a B2C business, B2C businesses are generally paid upfront for their products or services, whereas B2B businesses are paid after the sale, service or installation is complete. Businesses will expect to be invoiced, and depending on their relative size and the industry in which they operate, may expect to be given seven day trading terms, 30 days, or even longer. Coupled with potentially long client acquisition timeframes, a long payment cycle could potentially be the kiss of death for a B2B franchise if the operator doesn’t hit critical mass quickly enough, or have
66 Business Franchise Australia and New Zealand
When you have a basic understanding of these generic B2B issues, you are better placed to identify the best franchise that suits your interests and the market it will service. Finally, you should recognise that you will need to embark on a continuous journey of learning to ensure that you are up to date with the latest information, technology, practices and skills to maintain your relevance and usefulness to your B2B customers. Your franchisor should provide this development pathway for you, but you might also consider what association memberships, courses and programs of formal study can also help you maintain your competitive edge, and to help you master these key challenges of operating a B2B franchise. Take a look at the other articles within this feature and good luck on your journey to building a rewarding business within this exciting sector.
DONâ€™T MISS OUR NEXT ISSUE!
cleaning & landscaping FRANCHISES
Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.
Find out more about cleaning & landscaping franchises in the september / october edition of Business Franchise Australia and New Zealand. On sale 5th September 2014.
Business Franchise Australia and New Zealand 67
FE AT URE feature
T h e Aust r a l i an Drug De t ect i o n Ag ency
WHY WE WILL BE ONE OF THE FASTEST GROWING FRANCHISES “Finding a job that you enjoy, means you never have to work again.”
Kirk Hardy, CEO and Founder of The Drug Detection Agency (TDDA) and its Australian operation, The Australia Drug Detection Agency (ADDA), has a simple goal, “Our aim is to build a company passionate about delivering quality services, training and support.” Kirk’s undertaking began when he saw firsthand the negative effect of drugs in the workplace; “They destroy businesses and rip families apart. By starting and growing TDDA I saw an opportunity to both help organisations and individuals within them to reduce unnecessary lost moments in life and revenue. We really enjoy our work, making a difference and seeing changed lives as a result.”
Kirk Hardy - Founder and CEO of The Drug Detection Agency (franchisor to ADDA)
68 Business Franchise Australia and New Zealand
It’s this passion and job satisfaction that drives TDDA’s goal of being one of the fastest growing franchises in the southern hemisphere, and the statistics make it even more compelling.
FE AT URE Glenn Dobson - International Franchise Manager with one of the drug testing devices used by TDDA
In 2013, the Australian Drug Foundation said they believed alcohol and drug use was costing Australian businesses $5.2 billion a year in lost productivity and absenteeism. Nine years earlier Kirk Hardy had recognised this and started The Drug Detection Agency in New Zealand (NZDDA) as a way to make a positive difference to society and to help address safety and other challenges employers were faced when dealing with matters of drug use in the workplace. Natural expansion into nearby Australia led to the formation of the ADDA, which was officially established in 2011 with its first State master franchisee in Queensland starting in 2012. Since then, Queensland now have eight regional franchisees; as well
as both the New South Wales and Victoria master franchisee’s recently establishing regional franchisees within their States. Glenn Dobson, the International Franchise and Business Development Manager, says the challenge is to identify and develop franchisees who have integrity, are passionate about what they do, and follow best practice in this fast growing and vital area of health and safety. He adds, “We are committed to delivering a professional and consistent service to our clients and this comes from realising that what we do affects peoples lives and we need to ensure we do it right every time.” To ensure they ‘do it right every time’
TDDA have developed a comprehensive 100-day training package that is delivered to all new franchisees. Kirk says, “For us it’s been a journey recognising that theory learning is not good enough as a component on its own. We want to make sure our people have all the tools at their disposal and know what they are and how to use them most effectively. At TDDA we need them to not only know the business and its services, but to be competent to deliver every part of it to our clients. The more support that we can be offering to ensure our franchisees success, for themselves, for the brand and our clients; that is the ultimate goal. We are dealing with peoples lives every day, and it’s important for us to make sure they have the best people to help them make a positive change.” The 100-day course is delivered both by internal staff along with several external international experts in their field, once again ensuring the franchisees are getting the best possible advice and processes. It starts with a 4-week induction program in Auckland, New Zealand; which is broken up into two 2-week blocks. “We’ve done this,” says Glenn, “so that our franchisees can minimise time away from home and family, but also so they can digest the material and come back with any further questions they may have.” The course starts with the usual induction elements – introduction to the company and background to the business, the inherent organisational values and ‘our story’. This is then expanded to operational training in a busy franchise office that covers all aspects of drug testing and the tools and equipment available to TDDA franchisees. Kirk explains further, “From here it gets even better for the franchisee as we cover wider subjects like strategic business planning and sales processes, individualised business skills and public speaking, best practice for client interaction and logistical requirements for the set up of the business.
Every day is different with TDDA
“Basically the concept of our 100-day program stems from the findings of a favourite business book of mine – Good to Great by Jim Collins – particularly in relation to getting the right people involved in an organisation. The book identified a key sentiment that resonated with me when it stated ‘good to great companies know people aren’t their most important asset, the right people are. Good to great companies
Business Franchise Australia and New Zealand 69
FE AT URE
T h e Aust r a l i an Drug De t ect i o n Ag ency
“Our aim is to build a company passionate about delivering quality services, training and support.” placed greater weight on character rather than education, skills, or experience when recruiting. The reason: you can teach skills, but character, basic intelligence, work ethic and dedication to fulfilling commitments are values that are ingrained in a person’.” As well as gaining skills that can be transferred to other areas of a franchisees life, they also receive an Australian Quality Training Framework (AQTF) qualification. (The AQTF is the national set of standards which assures nationally consistent, highquality training and assessment services for the clients of Australia’s vocational education and training system). Following on from the ‘classroom’ setting, the Master Franchisee then provides oneon-one training with the new franchisee in their own home territory. Kirk explains, “We feel this initial one-on-one training is really important to starting a new franchisee off on the best possible footing. Not only does it help build a relationship with a mentor, it gives them invaluable assistance in setting the business up and local area marketing to drive those all important initial sales.” The Master Franchisee also assists in onthe-job coaching. Glenn takes over, “In the first instance the master franchisee will coach by delivering the services with the new franchisee observing, and this quickly progresses to a role-reversal with the master franchisee observing and offering
assistance as and where necessary. The goal is to set the new franchisee up as quickly as possible and instil confidence in the product and the individual.” Every part of the 100-day program is also recorded in a shared booklet. The purpose, according to Kirk, is to “ensure a tracked record is kept for both parties to refer to in future meetings and for helping quantify future business development goals and challenges.” TDDA also put a strong emphasis on research and development. Kirk explains, “With laws constantly being changed, we want to make sure they are the global authority on testing standards so it’s all about continuous improvement and ensuring we are always ahead of the game and delivering the best services and products to our clients and our franchisees.” Glenn sites as a prime example the fact TDDA were the first to offer synthetic cannabis testing in Australasia; he adds “we’ve also put considerable effort into development of our two new, world first mobile app’s; one designed as a workplace management tool and the other designed to better inform and educate parents and home owners in the community about drugs, their effects and how to identify their use. We’re also looking to improve our own internal work environment through the beginnings
70 Business Franchise Australia and New Zealand
of a paperless process to make life easier for our team. “It also helps that our global CEO is on the board of DATIA, the American based Drug and Alcohol Testing Industry Association which allows the business to keep abreast of trends and changes in the drug testing forum.” An element Glenn says they’re most proud of is that a percentage of the proceeds from the use of the app are donated to children’s hospitals in both New Zealand and Australia; again highlighting the organisational focus on not only workplace drug testing, but also on doing good for families and the community as a whole. They really do enjoy their work. For more information on franchise opportunities with TDDA please contact Glenn Dobson: E: firstname.lastname@example.org W: www.tdda.com
Resources at your fingertips!
CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGBâ€™s website also provides an additional advertising and information format and complements our publications.
www.businessfranchiseaustralia.com.au Business Franchise Australia and New Zealand 71
FE AT URE
E x per t Advice
the business services industry ‘Business services’ is a somewhat allencompassing term for a range of industries helping businesses to achieve their goals by providing them with assistance outside of their core areas of expertise. Being an effective business service provider should come from a place of passion in your work and wanting to assist other businesses in achieving their goals. Within the couriering and logistics industry, a large portion of our effort and energy is in providing a tailored service to our customers – acting as the crucial logistics arm of their business. Without us, our customers just wouldn’t be able to deliver on their own business promises.
As a service provider via a franchise, you have the comfort in knowing that you will be associated with a brand that has already built a reputation in the marketplace. Further, there is a network of businesses all working under the same brand that you can learn from and share experiences with. You also have a franchisor that provides training, support and tested business processes that they know work. Nonfranchise businesses are usually going it alone, so you already have an advantage as a franchise. So how do you go about building that trust? There are a number of management skills and techniques which assist in ensuring that you can deliver the best service possible to your business customers and improve the reputation of your franchise and the brand in the process.
A lot of trust is put in service providers – and trust isn’t something that comes from clever marketing campaigns – you have to prove yourself over and over again.
72 Business Franchise Australia and New Zealand
Communication Twenty years of working toward the future of couriering and logistics with PACK & SEND has opened up the world of business services and what can be achieved through effective service provision and management, particularly at a franchisee level. Effecting change in a franchise to deliver a better service proposition to clients is all about maintaining open and fluid lines of communication with head office and management teams, both regional and national. It’s important to ensure that ideas and feedback are fed to the rest of the network as the service afforded to one customer at one franchise can easily effect the reputation of an entire franchise business through social media. Change often starts with franchisees coming up with excellent, innovative ideas comes from their on-theground experience with customers that opens up doors in terms of client service. The service we provide our customers at PACK & SEND breaks the mould – every customer who phones or comes into a service centre is speaking to an employee who helps to pick up and deliver parcels. There’s a level of care and attention to each customer’s needs and providing them with an end-to-end service which is simply not possible when you pop a package in a post box.
Know your competitors All businesses face competition. Knowing what your competitors are offering and the quality of service they are delivering is an important part of maintaining your reputation and market share. In most circumstances, healthy competition is good competition, and as long as you’re aware of what’s happening outside your four walls,
fe feature at u r e “Change often starts with franchisees coming up with excellent, innovative ideas comes from their on-the-ground experience with customers.” Michael Paul | CEO PACK & SEND
you should be in a position to differentiate your brand from the rest of the pack and ensure your service delivery is a beacon to others searching for a quality provider. At PACK & SEND we recognise that our success relies on the support of our customers and that they always have a choice to use us – or the services of an alternative logistics company. That’s why we always aim to ensure we are doing things differently with a unique service proposition – in fact that’s really how PACK & SEND started. We have been the driver in our industry for the introduction of flexible features including a packaging service and multiple sales channels such as online bookings, phone and in-store bookings. Few companies in the logistics space offer a holistic packaging, couriering and logistics service that can service such a wide range of clients, from one-off parcels for small businesses to complete couriering and logistics solutions for larger companies requiring import and export options – you might say we’re like the Flight Centre of our industry, ensuring our clients can get their goods from A to B to meet deadlines and without breaking the budget.
Innovation Business is always evolving and adapting to service the changing needs of clients. The advantage that smaller companies and franchises collectively have is that they can be nimble and need to think more innovatively to compete – another advantage for your customers. Larger companies take much longer to process and enact change, and innovative thinking can often be more difficult to convert into new processes and offerings. Innovation of convenient couriering options is a big factor when looking at the success of PACK & SEND as business. Online shopping is constantly boosting demand for innovative parcel delivery services, challenging businesses in our industry to
develop sustainable alternatives to home delivery services and product return solutions. When people shop online, they want their parcels fast with minimum fuss. Consumers want parcels delivered to work, home, or somewhere close by to pick up later. Businesses with regular accounts want large quantities of parcels picked up, packed and sent off to clients, and in some situations, they want containers of goods imported and a full logistics and warehousing solution to ship packages around the country whenever they’re required. Our innovative advantage is that we’ll find a way to send anything, anywhere. Innovation doesn’t just have to be a nifty new app for your business or a creative iPad cash register – innovation can be geared toward responding to a growing customer need and adapting your services accordingly without changing the endgame.
Managing expectations Delivering an effective service to clients in many cases is about managing their expectations. This is integral to maintaining your client base and developing strong and consistent word of mouth about the services you deliver. Being transparent with clients about what they can expect from your business is a more effective business strategy than wooing a client and then not being able to deliver what you’ve promised. Underpromising and over-delivering is often touted as the best way to maintain the business of your clients, but in some ways delivering the service exactly as you said you would is the best policy. This is how trust is built. For PACK & SEND, that means collecting and delivering the freight on time, packing it safely as possible, taking care of the freight throughout the delivery process and dealing with the client on either end of the
delivery spectrum with care and respect. People want their couriering and logistics handled efficiently and carefully with little fuss – a trusted pair of hands to leave their business in.
Summary Business services can be an excellent and rewarding field to be involved in. There is a great feeling that comes from helping a business to be at its best and provide a solution to a problem they might have, that’s why there are so many business service franchises in a range of industries. The most important things you learn from providing services to other businesses is that they all have the same end in mind – do a fantastic job at whatever it is they might do, making money in the process. If you can help your clients achieve their goals with little fuss and within their budget, changing and adapting to meet their growing needs, you’re on the path to having a successful franchise business. Michael Paul is the CEO and founder of Australian company Pack & Send. He established the business in 1993 after noticing that businesses and consumers were looking for one-stop-shop solutions for sending anything, anywhere – that also included a convenient packaging service (especially for items that were fragile, large, awkward and valuable). Michael has over 20 years experience in the franchising and retail industries. PACK & SEND opened its first Service Centre in Parramatta, New South Wales in 1993 and has since grown to a $37.4 million international business with 300 people employed under the brand and a network of more than 130 Retail Service Centres in Australia, New Zealand and the United Kingdom. Contact: P: W:
1300 668 000 www.packsend.com.au
Business Franchise Australia and New Zealand 73
FE AT URE feature
Pa r aserv e
an award winning franchise exceeding expectations With an award winning parent company and a franchise system that has grown and evolved alongside its franchisees, there couldn’t be a better time to clean up with Paraserve Cleaning Services. Paraserve is the Australian offshoot of Paramount Services, a long established New Zealand franchise company. With 140 staff and 140+ franchise owners with a further 900 staff servicing approximately 1250 clients nationwide, Paramount is the leading commercial cleaning franchise across both islands. Winners of the 2013/2014 Business Services Franchise System of the Year and the Business Services Franchisee of the Year, at the Westpac New Zealand Franchise Awards. Paramount was also named Business Services Franchise System of the Year in 2011/2012 and 2009/2010 and Supreme Franchise System in 2008. This award winning system pride themselves
“The Paraserve model fully supports franchisees in our quest to over-deliver and exceed the expectations of our customers.” on delivering a high level of customer service that has resulted in one the best client retention records in the commercial cleaning industry.
cleaning supplies including their very own range, made from organic-based ingredients and carrying the Environmental Choice tick of Approval.
Franchisees are trained to meet the specific needs of different cleaning environments and include:
Now forging their way through other states, Paraserve, born from Paramount New Zealand and Aero Property Services, has long been Victoria’s largest public school cleaning contractor, whilst also cleaning offices, warehouses and industrial buildings, office parks, retail shops and malls, theatres, entertainment and sporting facilities, hotels and motels, and healthcare providers such as rest-homes. With a wide range of services offered, Paraserve are not restricted to offices and business can be found anywhere that commercial cleaning is required. Commercial cleaning ensures that premises are clean and tidy, providing a safe and clean environment for the staff and visitors, but alongside this Paraserve also specialise in floor cleaning and polishing, carpet and window cleaning, all using a wide range of
74 Business Franchise Australia and New Zealand
Accommodation: Paraserve has a number of franchisees servicing the accommodation sector including university halls of residence. The key to success in this demanding sector has been having good staff that do a quick turn around on room cleans and are able to respond to client requirements seven days a week. Commercial: Commercial office cleaning in cities and towns is Paraserve’s core business. Customers range from single site companies to multi-storey office blocks, to international accounting firms including Deloitte and PriceWaterhouseCoopers to 320+ branches (CBD, suburban and provincial) of three leading banks. Education: Satisfied clients include leading universities and schools. Cleaning up after young people requires a calm and
FE AT URE collected approach – and our franchisees that specialise in the education sector are experienced at selecting the right staff for this type of work. Government: Paraserve has many central government, local government and government department clients. Increasingly these organisations are requiring sustainable cleaning approaches and Paraserve welcome the opportunity to introduce our recycling and energy and water efficiency programmes, which can also reduce overall operating costs. Healthcare: Paraserve has many years of experience in the healthcare sector – particularly in residential aged care including rest homes and hospices. From their regular contact with residents, franchisees’ staff members become a valued part of clients’ healthcare teams and are highly regarded for their friendliness and compassion. Industrial: Paraserve has held long term cleaning contracts in demanding industrial environments including a number of ports companies as well as building products and electronics manufacturers to give just a few examples. Leisure: Leisure industry clients include national chains of cinema multiplexes, gymnasiums and other sports facilities. As with the retail sector, immaculate cleanliness of both the main leisure and
its utility areas is vital to attract and retain customers. Retail: Cleanliness is a critical success factor for retailers and shopping malls and precincts. Shoppers are not attracted to shops or facilities that are dirty, dusty or littered. Franchisees operating in this sector understand exactly what is required and are highly commended by clients for their service, responsiveness and attention to detail.
Seeking franchisees Paul Brown, general manager and director of Paramount New Zealand explains why franchisees don’t need to have cleaning experience, “To be a successful franchisee with Paraserve, we are looking for people with ambition.
“You must have the ambition to grow your business and the attitude and willingness to adhere to a proven system while focussing on customer service. “Paraserve offers a great lifestyle choice and gives you the opportunity to own your own business within the franchise model, rewarding you by being able to achieve the financial and lifestyle goals you have set.” The Paraserve franchise business units start at $20,000 plus a percentage of turnover and you will need a white vehicle that can be sign written. The full amount of the franchise value will depend on the amount of business turnover you buy. Paraserve, although not a finance company, can make funds available to approved purchases, to assist with the purchase of the business although each franchisee is expected to
Business Franchise Australia and New Zealand 75
FEAT U RE feature
Pa r aserv e
“Paraserve offers a great lifestyle choice and gives you the opportunity to own your own business within the franchise model.”
turn their venture into a total success. Your field advisor will help develop your non-exclusive territory then help you to streamline your business operation to increase your efficiency and profit.
Over-deliver and exceed expectations Paul says, “The Paraserve model fully supports franchisees in our quest to over-deliver and exceed the expectations of our customers. By supporting our franchisees, who have grown and evolved with the system over the years, with most administration functions, including invoicing, marketing, quoting, technical support, training and quality assurance, we are delivering the highest level of customer service possible to our clients.”
have at least 40 per cent equity in the business and you must meet normal lending criteria. The process of purchasing your franchise, from your initial enquiry to commencing work with your clients can take anywhere from one to three months. During this time you will receive a minimum of four weeks training which covers everything from business management to equipment maintenance. Once you are up and running, you can rest assured as Paraserve are with you every step of the way. At the beginning, a Paraserve field advisor will assist you to quote for work. However, you will learn this technique as you develop your business skills. The sign-writing on
your vehicle will attract plenty of attention and bring customers to you plus you’ll also get word-of-mouth referrals from satisfied customers. Paraserve recognises that as an entry level business you may want assurance that the business will be there for some time. Paraserve provides a turnover guarantee for 12 months. This means that if you buy a group of contracts to the level of $100,000 per annum and one of the jobs relocates and as a result you can no longer service that client, Paraserve will provide a new client to bring the revenue back up to $100,000 per annum. Experience has taught Paraserve that franchisees need a large territory to
76 Business Franchise Australia and New Zealand
Focussed, and with a quality control policy in place, Paraserve strives to maintain a consistently high level of cleaning service, which conforms with contract, mandatory, health and environmental requirements and with this in mind, allocate adequate resources and facilities to ensure quality of product and service compliance with agreed specifications and also the comfort and safety of staff. Add to this an environmental policy which aims to reduce their environmental impact and continually improve their environmental performance for future generations, Paraserve are committed to being an industry leader, delivering quality service. If you would like to join this award winning proven system, contact: P: 1800 041 876 E: email@example.com W: www.paraserve.com.au/promo
WANT A PAIN FREE BUSINESS? HUGE PROFITS! NO FRANCHISE FEES! TENS/EMS painPod treats pain from: Dtrauma Dsurgery Dlabour/delivery
Djoint inflammation Dmusculoskeletal injuries Dbursitis
Fast pain relief. Drug free. Anytime. Anywhere. Be a Distributor As seen on Today Tonight and A Current Affair, HiDow Australia is the exclusive national Distributor of the painPod devices and accessories, providing fast acting, drug-free pain relief to patients anytime and anywhere. The painPod combines the latest TENS and EMS (Electrical Muscle Stimulation) technology, a non-invasive stimulation intended to reduce pain. HiDow Australia is improving mobility and quality of life for Australian silent sufferers! The painPod is a TGA listed medical device, itâ€™s compact, portable and easy to use, making it ideal to provide therapeutic treatments at home or at work. This is a great business structure and all training provided. Donâ€™t miss your chance to secure a FREE business opportunity in your area.
t No experience necessary. t Minimum setup costs. t Increase your business potential without increasing costs. t 2 in 5 Australians suffer from persistent pain. t Proven success across Australia, as seen on a current affair programs nationwide.
t t t t
Fastest growing health industry. Huge profit potential. Huge market potential. Ongoing support and training provided. t Work your own hours. t Health rebates may apply. t State of the art products!
at Visit o u for ur bo s tre a FR oth atm EE en t!
Call 1300 911 442 or email firstname.lastname@example.org direct for more information. Business Franchise Australia and New Zealand 77
fr a nch ising e x po
comes to Brisbane and Melbourne It may seem that the business world is full of bad news stories, however the franchising sector is far more upbeat about success, as demonstrated by the buzz surrounding the upcoming Franchising & Business Opportunities Expo – being held in Brisbane 19-20 July and in Melbourne 22-24 August. Both Expos will showcase a wide range of franchises, and will also host a variety of business experts and support organisations to assist people who may be pondering the ins and outs of becoming their own boss. “Franchising really suits people who are customer-focused and able to follow systems and processes, which covers many people coming out of a corporate environment,” explains Andy Reeves, Recruitment Manager at Franchise Selection. “It has the benefits of a proven brand and a comprehensive support system, which is far less daunting than going out on your own.” Reeves says the appeal of the franchising industry for him is the positive energy and collaborative nature of franchisors. “At the Expo you’ll see competitors side by side, all getting on and helping each other,” he says. “They all have a real can-do attitude and that entrepreneurial spirit is very energising for someone who has spent years in a corporate environment that may not have been very positive.” At Franchise Selection, Reeves assists franchisors to find the best franchisees to suit their business model. He will be speaking as part of the free seminar program at the Expo, on the topic ‘What to look for when buying a franchise’. “It’s important for anyone considering a
See many business opportunities all under one roof at the Franchising & Business Opportunities Expo.
franchise to look at their expectations and their motivations,” he says. “I’ll also be giving people some practical tips on how they can assess if a franchise is the right fit for themselves.” According to the Franchise Council of Australia, also exhibiting at both shows, franchising has been remarkably successful in this region with Australia/NZ having the world’s highest per capita penetration of franchised systems in the world. Robin Lau is CEO of PostNet Australia, one of Australia’s fastest-growing franchise success stories. The global, US-based business came to Australia in 2007 and currently has outlets in Melbourne, Perth, Adelaide, Brisbane and Sydney. Lau says PostNet’s goal is to have 100 Australian franchises in the next seven years. “Investing in a franchise is a tried and tested way of doing business,” he says. “If you start from ground zero in your own small business you have to do everything yourself, without the support of essential infrastructure systems or even a website and social media. The economy is always going up and down, but if you have the support in place you can do well in any economy.”
78 Business Franchise Australia and New Zealand
Lau believes attending the Franchising & Business Opportunities Expo can be a great eye-opener for people thinking about buying a franchise. “It is a chance to look around at the different concepts available, and to spend time talking to someone about their business,” he says. “Entering a franchise is like getting married, it is a partnership for the long term and must be of mutual benefit.” Free pre-registration is available now at www.franchisingexpo.com.au. For information about exhibiting in the Franchising & Business Opportunities Expo contact Fiona Stacey on: P: 03 9999 5464 E: 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 79
Sn a pshot: Spr ay Pav e Aust r a l i a
The changing faces of
Spray Pave Australia operators
“The business has flexible hours, is home based and the work is classified as ‘light physical’, which means if you can mow a lawn, you can do it.” Multicultural is a word thrown around a lot these days. You see it everywhere, schools, shopping centres, work places, your local street and suburbs. It is also happening in the world of franchising. New people coming into Australia from around the world want to get a head start on their new life. They have arrived for a reason and don’t want to wait. So when they come to Australia, they want something better than they had in their old country. Who can blame them? Everybody is looking for a better life. This is where business systems like franchising comes in. The right person in the right business can really jump on the fast track to their dream lifestyle. Spray Pave Australia has been operating since 1991, franchising since 1998 and licensing since 2006. The business has flexible hours, is home based and the work is classified as ‘light physical’, which basically means if you can mow a lawn, you can do it. One of the first franchisees, back in 1998, was a school teacher from Perth and many franchisees from different backgrounds across Australia have followed to the Adelaide training centre. Applying a range of exciting colours and designs with a non-slip surface over existing concrete, whilst promoting safety and great looks, means any concrete is a job waiting,
so the work is absolutely everywhere, inside and outside. The work can take many forms:- a) Spray Paving, b) Polishing, c) Epoxy, d) Staining, or e) Colour sealing. All these trades plus marketing and administration skills can be learnt from one low price, with a National Accreditation Certificate.
A global franchise Over the years, the place of birth of many new franchisees started to change. A number of new franchisees are originally from New Zealand, and already living in Australia, while others fly over, such as Tau, Zigga and Tama, then return home to start their new franchise. There have been two Americans join the network. One flying over from Salt Lake City and another recently arrived from Colorado and living in Adelaide. One Canadian was having trouble getting established in Australia, joined the network, then had his wife and two teenage children working with him. Three people from South Africa. One is now working in Darwin, one has moved to New Zealand and the third is on the African Dolphin Coast near Ballito. Always ready to fly their home flag, a number of British have joined alongside many people with Indian or Middle Eastern backgrounds, such as Aaiyaz, Kumar, Hussain, Pravin, Rahul, and Abdule. With a number of Chinese joining the system such as Hu, Yang, Chin, Un and Wong, Spray Pave now have dedicated Chinese advertising.
80 Business Franchise Australia and New Zealand
So why are they all joining? They do their research and discover a growing industry with security for their families. Since 1998, the business offering has improved to include many benefits with income and money back guarantees. Spray Pave Australia offer a pay as you go Support Payment Plan. Meaning the company puts their money where their mouth is. They say you can make up to $170,000 per year, then back it up with their own money (no banks needed) and genuine guarantees, plus the bonus of new friendships within their network. So for $37,500, or a deposit of only $7,000 plus payments (plus any equipment) it is easy to see why these people see the opportunity and don’t waste any more time. Most new licensees still claim Australia as their place of birth, however the numbers are slowly changing. So regardless of where people are born, a Spray Pave Australia business has proven Australia has friendly people and really is the lucky country. J For more information contact Spray Pave Australia: P: FREE CALL 1800 688 888 E: email@example.com W: www.spraypave.com.au
Get that equipment for your business without affecting your cash ﬂow Join more than 25,000 other Australian businesses who have secured their equipment through us.
Our Rent-Try-Buy® Solution is perfect for franchisees who want to keep their options open. You won’t be locked into a long term contract. Instead, Silver Chef offers a simple 12 month term, so you have the ﬂexibility to: • Buy equipment at any time during the ﬁrst 12 months and receive a 75% rental rebate. • Return equipment at the end of the 12 month agreement if you don’t need it anymore. • Keep renting and we’ll continue to reduce the purchase price. • Upgrade if you decide your franchise has outgrown the original equipment.
Contact Silver Chef today on 1800 337 153 for fast, easy approval or visit www.silverchef.com.au/franchising
If you belong to a Silver Chef Accredited Franchise, you are already pre-approved for ﬁnance and you can access other great beneﬁts. Speak to your franchisor today or call the Silver Chef Approval Centre on 1800 337 153 for further information.
e x pert a A dv ice
ADVERTISING AND SELLING:
THE GOLDEN RULES
To Validate Or Not To Validate…
To finish the expression maybe it should read, to validate or not to validate that is the question. It may be a question, but is it an option? What is validation all about in the franchise world? In many franchise systems the validation process is a necessary and sometimes mandatory step towards a franchise award. Franchise disclosure documents talk about taking appropriate professional, legal and accounting advice. They talk about understanding the risks of a franchise and franchise ownership; but they rarely, if ever, tell a franchise candidate that
they must validate the franchise that they are exploring. It, therefore, becomes an optional matter for the individual to validate or not. What is validation? One dictionary definition states ‘Validation: To establish the soundness of…’. In other words, check out what you are buying before you buy it. In the world of franchising it usually comes down to calling existing franchisees in the chosen system to ascertain how their business is going, are they happy, would they do it again, and so on - on the face of it a sound and simple approach to rounding out all of the ‘legal’ verification and review that a candidate does. In practical terms validation breaks down to a candidate calling a perfect stranger to ask them what are often quite personal questions about their business. Why would
82 Business Franchise Australia and New Zealand
anyone want to take such a call and, if they did, why would they part with such personal information? Maybe that’s part of the franchising culture. After all, the existing franchisees being called were themselves once candidates and probably went through the same process. It was only the very first franchisee in the system that had no existing franchisees to confer with. Franchises rarely come with a ‘money back guarantee’ as might be the case with a new 40-inch flat screen plasma TV. Once you have bought into the franchise, that’s it - there is no going back to the store for a refund. It makes sense, therefore, to do as much research and validation work up-front as possible. Is the validation process going to give the same protection as a ‘money back
“It is important to enter into the validation process not only with an open mind, but also with a plan and an expected outcome.” David Banfield | President The interface financial group
guarantee’? - probably not, but it may be better than no validation at all. It is important, therefore, to enter into the validation process not only with an open mind, but also with a plan and an expected outcome.
Start with an open mind One of the best ways to create the open mind approach is to put yourself, as the enquirer, into the role of enquired. Imagine someone is calling you asking for information. There needs to be a comfort zone in terms of what can be asked and responded to. Timing is also a key element in getting helpful feedback. Depending on the nature of the franchise you need to pick your time carefully. A call at an inappropriate time may result in unsatisfactory information, even from the best of franchisees - you just caught the individual at the wrong moment. An open mind should also pre-condition you to expect to hear the good, the not so good, and perhaps even the bad. The larger the system and the size of the franchisee base, the more divergent will be the responses. Expecting to hear accolades for the franchise from everyone that you talk to is an unreasonable expectation.
Start with a plan If you are a candidate looking at a mature franchise system, maybe with hundreds of existing outlets, are you planning to call everyone in the system? Clearly not as that would just leave you with days of work and information overload. Strike a balance based on the size of the organisation - maybe two or three calls is sufficient, maybe 10 is appropriate. There is no magic number providing you decide in advance what will work for you. Naturally if you get less than satisfactory feedback you may choose to expand the calling base to see if there is a real problem or an isolated issue. The plan
that you create should also set out what specific questions you want to ask - what do you need to know to encourage you to move forward? Always ask the same questions to all of the franchisees that you contact in order that you can create a comparison chart at the end of the exercise.
Determine in advance the outcome you are seeking When do you have enough information, when are your questions fully answered decide these and other aspects in advance so that you know when you have completed the task. There is no advantage in calling franchisee after franchisee just for the sake of making calls. You are seeking some basic information - once you have that you should be ready to move on. If the information that you gather is not meeting expectations then additional calls might help, however you would probably be better communicating with the franchisor at that stage to have a debriefing meeting with them. Candidates working through a validation process need patience and direction. Existing franchisees may be hard to reach and the validation process may stretch out longer than a person would wish. It might, therefore, prove appropriate to ask the franchisor at the outset of validation to suggest the names of some franchisees that would be easy to reach and willing to share their story. While this means that the candidate will be talking with hand-picked franchisees as opposed to ones randomly selected from the Disclosure Document, it does at least get the process underway and opens the lines of communication. Existing franchisees will often be happy to make introductions to other franchisees with whom they are acquainted within their system. This can be another good independent way to move forward.
There are also some ‘outsourcing’ opportunities in the area of franchise validation. We are not talking here about hiring someone to make your calls - that certainly would not be a positive approach. Many mature franchisors have found there is value in having their system independently validated both as a management tool for themselves, and also as a means of speeding up validation for new franchise candidates. This independent validation comes in the form of a ‘mystery shopper’ approach. The franchise system hires a reputable organisation that is experienced in franchise validation, and then they survey, on a fully confidential basis, all of the franchisees already in the system. From their feedback they are able to produce a comprehensive report that addresses many of the questions that candidates would ask. Not only is this valuable feedback because it is from an independent source, but it is also information gathered from the total system rather than just three or four franchisees that a prospect might call. Always check with your proposed franchisor to ensure that they have such an independent validation process, and the make sure to get a copy of their report. To validate or not to validate - it’s not really a question - it’s a necessary part of becoming a franchisee. David Banfield is President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. For more information: W: www.interfacefinancial.com
Business Franchise Australia and New Zealand 83
profile : Sna p- o n Too ls
paid for your passion “I love my job, I really do. I have always loved cars and I’ve always wanted to have my own business.” “You can’t beat the team at head office – the girls in customer service are just amazing. Your sales team and support is just at the end of the phone. Specialist help in say, diagnostics, is only an email away.
Rodney Morris, Snap-On Tools, Geelong VIC
Rodney Morris trained as a motor mechanic, and completed an apprenticeship, but this avid car lover knew he wasn’t going to be lying on the floor of a workshop. Rodney had plans to run and operate his own business for many years but the right opportunity had never presented itself, plus finances held him back. “I tried to buy a Snap-on franchise in the early days, but at the time the bank wouldn’t give me the investment. So instead I worked alongside the franchisee as an employee, getting to know the ropes,” Rodney explained. “It was the best thing that could have happened to me. I could see the business was profitable. “When the local Snap-on guy retired, I was in the perfect place to take it on.” For Rodney the power of belonging to the Snap-on franchise is in the strong and supportive corporate culture, both inside and outside the business.
“But it’s the network of other franchisees which is equally important. We get together socially; we have barbecues and events. We share information – whether that’s over Facebook messaging, SMS or socially – and help each other out. I couldn’t run this business as well as I do without their support.” Rodney uses his customers and the workshops he visits as an indicator of how successful the year is going to be. “2014 is going to be a busy year – and I can see that from the workshops I visit. I choose my customers carefully, and I’ll support the ones that support me.” To that end, Rodney has recently decided to sponsor local car racing enthusiasts and the logo for Snap-on now appears on the rear of both a local drag car and a local speedway vehicle. He likes the strong community support the brand experiences, and he likes to give back in return. Snap-on for Rodney is a lifestyle decision, and it is clear in his voice the joy he experiences in running his own business. “I love my job, I really do. I have always loved cars and I’ve always wanted to have my own business. So every week when I open my stock delivery, it’s like Christmas. “I can see myself doing this for the next twenty years!” he exclaimed. If you’re interested in taking out a Snap-on Tools franchise, and you want to know if it’s right for you – take the Discovery Tour. The Tour is an interactive program of 6 modules that takes you behind the scenes of
operating a Snap-on franchise. Work out if the business will work for you, and get to ask the hard questions. Take a trial today: www.snapontools. com.au/franchise/discovery_tour
Rodney’s top tips on being a great Snap-on franchisee: 1. Personality – people buy off you if they like you. 2. Be respectful – listen to your customers and their needs. 3. Be the benchmark – everyone knows Snap-on is the gold class standard. 4. Flexibility – provide great payment plans to help your customer. - Hand tools, workshop equipment and diagnostics products for the professional mechanic and technician. - $50,000 initial investment is all that is required. - Snap-on Tools provides a complete credit program to get you behind the wheel of a truck. - Open territories exist around the country.
- All territories are surveyed, with potential customers pre-identified. - 19,000 products available. - Supportive and committed staff culture.
84 Business Franchise Australia and New Zealand
Business Franchise Australia and New Zealand 85 SharpestTool_2014.indd 1
FRANCHISee in action : H a i r h ouse Wa r eh ouse
Your Journey to Success “What really impressed us was that Hairhouse Warehouse really cared about us and did everything to help us succeed.”
Two Hairhouse Warehouse franchisees, Jim and Anne Marshall and Greg Banis, come from different parts of the country but share a similar journey. Both franchisees were new to the beauty and hair industry yet yearned for future security and being in charge of their destiny. Accordingly to franchisees Jim and Anne Marshall the key to success is hard work, following their passion and maximizing the much valued help and advice from the Support Centre at Hairhouse Warehouse. The husband and wife team purchased the first of two Western Australian Hairhouse Warehouse franchises in 2010 and have not looked back. Certainly it hasn’t been without challenges along the way but as Jim said, “Without the comprehensive training, support and expertise to call upon we would not have reached our business potential.”
Jim & Anne Marshall accepting Franchise of the Year award
86 Business Franchise Australia and New Zealand
Jim and Anne Marshall came to own two of the top Hairhouse Warehouse stores from a chance meeting with Arthur Mitroulas the CEO of Hairhouse Warehouse, which was the beginning of a truly successful and rewarding journey.
Greg Banis accepting award for Salon of the Year with his team
The time prior to 2010 however was a particularly difficult period due to an unfortunate experience with their previous franchise which resulted in significant personal losses for them. They were disillusioned with the notion of franchising but ultimately never lost faith in their own ability to achieve success. Jim recalls, “The difficulty we experienced was due to factors that were out of our control, yet we were good business people and extremely capable but had just made some bad decisions which we have learned from. The future looked daunting for us as we were approaching our senior years.”
LEARNING CURVE Jim says, “We were offered a chance to purchase a store that was in significant trouble and unless new owners could be found it would have probably closed. Initially there was significant reluctance due to the past negative experience we had with a previous franchise but we believed in ourselves and recognised that it was an excellent opportunity to take on a major challenge and turn our fortunes around.” Jim further adds, “Since that difficult time,
we have gone from being very average, probably in the bottom ten stores nationally to now I am pleased to say we are among the best of the best. We have been nominated and won the most improved store award two years in a row, nominated for the top three salon of the year award and have won the award for franchise of the year in the category of one-two stores owned.” Jims recalls, “It took us about 18 months to start seeing results and turn the store around. We are passionate about customer service and worked hard to ensure we had the staff that shared our vision. What really impressed us was that Hairhouse Warehouse really cared about us and did everything to help us succeed.”
FACTORS FOR SUCCESS Jim highlights, “We have learnt, to have a successful business, you need to be prepared to work hard especially in the initial stages and make personal sacrifices when necessary. It is vital to be prepared to learn and implement the established Hairhouse Warehouse strategies and procedures. Hairhouse Warehouse has an excellent operating model that truly works.”
Greg Banis bought his first Hairhouse Warehouse franchise back in 2005 with his brother Paul who was already involved in the industry and had worked for another Hairhouse Warehouse franchise. Greg says, “Since I joined the Hairhouse Warehouse family over 10 years ago, I am proud to now own two franchises in NSW at Blacktown and Chatswood. Hairhouse Warehouse is a great business model; the support you get is outstanding. What I really love is that it is such a fun and dynamic industry to work in, and Hairhouse Warehouse is always evolving to meet the changing needs of our customers.”
THE JOURNEY Greg was lucky enough to see first-hand the success his brother achieved with his Hairhouse Warehouse franchise. Greg says, “That’s all it took to convince me to go down the same path even though I had no experience working in the industry. Seeing how Hairhouse Warehouse changed my brother’s life was profound.” Greg further adds, “The pressures of owning a business and ensuring survival in an ever-changing and difficult economy is
Business Franchise Australia and New Zealand 87
FRANCHISee in action : H a i r h ouse Wa r eh ouse
all the hard work, sweat and tears that we have put into being the best Hairhouse Warehouse salon in the country. Achieving such high standard for the team was all about maximising the current education and training programs in place for the staff, this has resulted in having a business that now boasts some of the best hair stylists,” said Greg.
BECOME A FRANCHISEE Hairhouse Warehouse, the largest Australian retail hair care and beauty salon franchise with almost 150 stores is enjoying in a period of sustained growth; and are looking at new store openings in Australia where they can better meet the needs of their customers. 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. Hairhouse Warehouse understands that investing in a business takes thought and consideration. With the purchase of a franchise, Hairhouse Warehouse will work with you in receiving the following benefits:
“With Hairhouse Warehouse you are fortunate in that you have multiple revenue streams, you are not up against the threat of internet sales and simply everybody loves their hair.” a challenge. With Hairhouse Warehouse you are fortunate in that you have multiple revenue streams, you are not up against the threat of internet sales and simply everybody loves their hair.”
THE LEARNING CURVE “Without prior experience working in the hair and beauty industry was one of the biggest initial challenges I had to overcome. I learnt fast from the knowledge and skills based at the Hairhouse Support Centre. Hairhouse Warehouse was great in helping me with constant training and education that would otherwise not be available in a standalone hair salon. “Developing key relationships with major suppliers and brands not only improved my skill and knowledge base but seeing firsthand the Hairhouse Warehouse great buying power at play. To offer your customers the
best value on the brands and products is empowering,” Greg further adds. Greg says, “Hairhouse Warehouse has a lot of systems in place to help you deal with and overcome challenges as they arise. The network is strong and has a wealth of experience and knowledge which is shared amongst all of its franchisees”.
FACTORS FOR SUCCESS “Be prepared to work hard and do your best to understand the industry, once you do the initial hard work it gets much easier,” Greg says and further adds, “There will always be challenges but success very much depends on how you deal with these challenges especially in the early stages when you are still learning. “What I am most proud of last year was that the Blacktown store in NSW won the salon of the year award.” Greg says. “It recognises
88 Business Franchise Australia and New Zealand
• A very prestigious and valuable Hairhouse Warehouse trade mark and trading name; • Site analysis, selection, negotiation and acquisition assistance; • Operational support systems;
• 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: 0451 370 060 E: firstname.lastname@example.org W: www.hairhousewarehouse.com/ franchising
a lasting impression
CREATIVE DESIGN SOLUTIONS
LEAVING A LASTING IMPRESSION Jejak Graphics is a freelance graphic design business based in Melbourne, Australia working with clients worldwide. With over 18 years experience in the design and print industry specialising in magazine layout and advert design as well as offering a number of other graphic design services and print solutions including: t$PSQPSBUFTUBUJPOFSZ t#SPDIVSFTBOEnZFST t1PTUFSBOECBOOFSEFTJHO t&EVDBUJPOBMNBOVBMT t4QPSUTQSPHSBNT t.POUIMZ/FXTMFUUFST t1SPEVDUMBCFMTBOEQBDLBHJOH Artwork is tailored to your brand and focused on your message and target BVEJFODF/PKPCJTUPPCJHPSTNBMM $POUBDUNFUPEBZUPEJTDVTTIPX+FKBL(SBQIJDTDBONBLFZPVSDPNQBOZ or organisation leave â€˜a lasting impressionâ€™.
P: 03 8790 8006 M: 04222 676 39 E: email@example.com www.jejakgraphics.com.au Business Franchise Australia and New Zealand 89
e x pert a dv ice
So you think you can train? Simple but effective steps to deliver training with impact!
Most of us need to put on our ‘trainers hat’ from time to time. The challenge of training, whether it be of staff, franchisees or colleagues, is keeping it fresh and effective. Research shows that best learning takes place when it is enjoyable and experiential. Following are some simple processes that will help you to train with impact and ensure the learning ‘sticks’ and translates into improved performance.
Learning principles for adult learners In planning a training session, it’s important to acknowledge that adults learn differently from children. Avoid a training environment which revives memories of old-fashioned top down, ‘chalk and talk’. Here are some principles to keep in mind when training adult learners.
“At the start of a session avoid rushing straight into teaching the nitty-gritty of the skill or knowledge you wish to impart.” Rob Camm | Learning Strategist Franchise Relationships Institute
• Recognise and respect prior knowledge and experience. Take time prior to your session to learn something of the background and relevant experience of members of the group. Ask a few questions upfront when you start training to discover more about your learners. Also where possible, use the knowledge of people in the group so it becomes two-way learning. • Keep the learning relevant to their goals and needs. Adults learn best when they understand why a new skill or knowledge is important to them, their goals and their work. Spending a few minutes to discuss this will go a long way to capture their interest and motivation. • Keep in practical. Your training will have lasting results if you keep it real, practical and hands-on. The stronger the connection of your training to the real world, the more lasting the impact. Use the workplace as your training room, use actual tools and equipment, so learners experience the real thing during training.
draw a jigsaw or mud map to illustrate how this piece of training connects with all the others bits in their role. (Your learners love visuals by the way!) This is a simple component, quick to achieve but important for all learners to understand.
O = OBJECTIVES What do you want your learners to achieve by the end of your session? What behaviours are you hoping them to develop? Do your learners know what these are? Tell them! Setting and sharing training objectives or ‘outcomes’ with the group is essential for them to understand the goal of their session. Frame these in simple, clear terms so you can check back at the end of your session, measure their effectiveness and establish if your learners achieved what was expected of them.
Four training steps from my favourite nursery rhyme
M = MOTIVATION
NORMAL. In the first step, demonstrate the skill or task at normal speed without explanation. Let your learners know you’re about to demonstrate the skill from start to finish, without describing what you’re doing or the steps involved. The benefit of doing it ‘normal’ is the learners see the task in real time and to the standard expected. Watching a demonstration as close to how the task is completed in the workplace is a powerful learning technique as this sets the expected competency for the skill.
The COMA model is a good basis for setting up an effective training session.
This is the old “What’s in it for me?” Why should your learners go through this training? What are the benefits to them, their work, their customers and the business? You can help participants discover their motivation for learning by asking them open questions such as “How will you benefit by successfully completing this training today?” and the flip side, “What could be the possible consequences of not learning this skill or not knowing this information?” Take a few minutes to ask these questions and discuss their responses. You’ll find it makes a big difference to their motivation to learn.
C = CONTEXT
A = ASSESS
Put your learners into a COMA At the start of a session avoid rushing straight into teaching the nitty-gritty of the skill or knowledge you wish to impart. Learners need some time to understand what’s about to take place and prepare themselves for the process.
It’s important for learners to identify how your training session fits into broader context. How does it relate and connect with other training you have conducted or planned for them? How is it relevant to their job? All this can be achieved by explaining the context of your session. You could even
in this area previously? Do you have some ‘experts’ in this skill already in your session? Or do all your learners have little knowledge or experience in what you are about to train them? This is critical information to know before you get deep into your training session.
Ask a few questions upfront to find out more about the group members and what they bring to your training. All adult learners will bring some prior knowledge and experience into the learning environment. It’s powerful to find out about this and incorporate it into your training. Has someone done training
Once everyone’s in a COMA, you’re ready to get into the heart of your training session. If you’re training in a physical skill, task or behaviour, there’s a simple surefire 4-Step technique you can follow to ensure your learners successfully complete the task at hand. These are based on an old English nursery rhyme; “I do it normal, I do it slow, you do it with me, then off you go!”
SLOW. Once you’ve demonstrated the skill once, do it again, this time explaining each step as you go. Take your time to clearly show the technique and key points to completing each part of the skill. Explain any important safe handling points (especially if you’re in the food game) and let the group know why each part of the process is important in the overall task. This step will typically take the longest of the 4 Steps as you take the time to cover off every part of the process.
Business Franchise Australia and New Zealand 91
e x pert a dv ice
WITH ME. In the third step, the group now get hands-on and completes the skill alongside you. Ideally you will have enough materials and equipment for each person to complete the task. (If not, split them into pairs or small groups). With your encouragement and assistance allow the learners to carry out the skill, following your instructions and at a slower pace. Keep an eye on their progress – provide feedback, direction and support to help them complete the skill to the required standard. You can even quiz them on the steps, by asking “What do we do next?”; “Why is that step important to the overall task?” and “What safety points do we need to remember at this stage?” OFF YOU GO! After step 3 has been successfully completed by all learners to the required standard, it’s time to let them do it again, but without any assistance or input from yourself. This is where real training takes place, as that is what is ultimately required in the workplace. Let them go and carry out the task. If you do need to step in and provide corrective feedback or support, that takes them back to step 3, and you should encourage them to repeat it on their
“Learning doesn’t end at the conclusion of your training session. Keep the learning going by conducting follow-up activities in the workplace.” own to be sure they can carry out the skill competently. Following the 4-Steps, you might like to do some ‘overlearning’ by asking them all to complete the skill one more time and make it a competition or race between them. This will allow you to observe their ability to complete the task under a bit of time pressure. Or you could conduct a quiz challenge, breaking them into small teams and you as Quiz Master question them about the task or skill. Learners love a bit of competition and it injects some fun into your training. We all learn more effectively when we are enjoying the process.
Keep the learning going Learning doesn’t end at the conclusion of your training session. Keep the learning going by conducting follow-up activities in the workplace. As learners apply their new skills on the job, they will benefit from ongoing encouragement and constructive
92 Business Franchise Australia and New Zealand
feedback. After all mistakes are a natural part of the learning process. If you’ve done your job well as a trainer, you probably won’t need follow up training or to conduct the session again with the same people. So whether you need to train regularly, or just every now and then, following these simple techniques will really pay off. There are no real secrets here, just effective steps you can use when you need to put your trainer’s hat on and achieve the greatest return from your time and efforts. Rob Camm is a Learning Strategist and Events Manager with the Franchise Relationships Institute. He regularly designs and delivers training programs with impact for franchisees and franchisor executives. Rob can be contacted at: P: 0401 045 959 E: firstname.lastname@example.org W: www.franchiserelationships.com
sn fr anch a pshot: ise cou FC Busi nci lno ess f aust So lu r atli o i ans
we help businesses grow Our team of professionals has been providing specialised and expert services to franchises for many years. The recent ISO 9001:2008 accreditation achievement demonstrates to our existing and future clients that we are committed to ensuring that our business has the processes in place to provide them with the very best service and client solutions now and well into the future. The team plays an active role in the industry, being members of the Franchise Council of Australia (FCA) and proud to have received the FCA National Supplier of the Year Award in both 2012 and 2013. FC Business Solutions Director Corina Vucic explains why FC Business Solutions holds such a commanding position in the marketplace, “We are truly passionate about listening, working with and nurturing our clients. We are all about developing the right foundations and setting the right goals and plans for a stronger future. In this competitive environment, you can no longer rest on your laurels to survive and hopefully grow.”
Business Health Check Our Business Health Check delivers a comprehensive review of the key elements of a client’s system and provides a clear road map to ensure it is driving towards to being in the healthiest condition it can be to ensure sustained growth.
We were looking at growing our stores to meet the demand of the market and wanted to ensure that we had all the fundamentals right to ensure a successful growth strategy. FC Business Solutions were able to assist by providing a comprehensive Business Health Check and define the right path forward.” Phil Wall, National Franchise Manager, The House of Golf.
Thank you for your efforts in putting together the Autumn Newsletter. I think it turned out very well. It certainly sends a message that the Grey Army is moving forward positively.”
We offer expert consultation on the feasibility of franchising, as a method of achieving long-term business growth goals and assist with the design and implementation of the franchise system and distribution strategy. We can also conduct franchise systems diagnostic and strengthening initiatives, develop growth strategies, as well as provide advisory support, coaching and mentoring to key personnel.
Greg Miles, General Manager, Grey Army.
Human Resource Solutions
Manuals & Documentation FC Business Solutions offer expertise and resources to franchise systems in the documentation of standards and procedures. We professionally review and develop operational manuals, systems and franchise induction programs.
We having recently made the move into franchising, and recognised the need for the development of high quality company operations manuals. After hearing real testimonials and seeing some of the quality work produced by FC Business Solutions, it made our decision a rather easy one.” Jillian Haramina, Franchise Operations Manager, Coral Homes.
Marketing, Communications & PR
We have a strong focus on helping businesses maximise exceptional engagement and professional development of their HR. We are experts with the ability to act as the franchise external human resource department by providing key information, policies and procedures in effective and efficient people management.
Training Solutions FC Business Solutions provides professional and relevant training programs for franchisors, their teams and the franchise network to improve the performance of the brand. Training solutions are customised to suit individual franchisor and franchisee needs.
We cannot speak highly enough of the value we get from our franchisee induction programs. The feedback we have received from the new franchisees who have participated in these sessions has been overwhelming.” Sara Pantaleo, CEO, La Porchetta.
FC Business Solutions provide dedicated, fully integrated marketing, communications and PR services for franchise networks incorporating a dynamic range of services that every franchise operation requires to assure future growth of the brand.
Contact the friendly FC Business Solutions team today to find out how we can help your business grow with our tailored solutions on: P: 03 9533 0028 W: www.fcbusinesssolutions.com.au
Business Franchise Australia and New Zealand 93
e x pert a A dv ice
ADVERTISING AND SELLING:
THE GOLDEN RULES
94 Business Franchise Australia and New Zealand
“It is illegal for businesses to engage in conduct that leads a customer into error or to believe something that isn’t so.” Dr Michael Schaper | Deputy Chairman ACCC
The quirks of the franchising industry make advertising an interesting dynamic. For the most part, franchisors dictate marketing arrangements to ensure consistency across the network. While franchisors strictly handle the big budget campaigns, at a regional level franchisees deal with customers and work to attract new clients. So, it pays to know the law. All levels and types of advertising and selling are covered by the Australian Consumer Law (ACL) and two fundamental rules apply. First, don’t engage in conduct that is likely to mislead or deceive. Second, don’t make false or misleading claims. Franchisors and franchisees frequently seek advice from the Australian Competition and Consumer Commission (ACCC) about advertising and selling. Our free online guide is available at www.accc.gov.au/ publications/advertising-selling.
Don’t mislead or deceive The ACL ensures businesses compete on a level playing field in advertising products and services. It is illegal for businesses to engage in conduct that leads a customer into error or to
believe something that isn’t so. In other words, you cannot lie to people or lead them to a wrong conclusion; you cannot create a false impression or leave out important information; and you cannot make false or inaccurate claims.
Don’t make false or misleading claims Any statements made about products or services must be true and accurate. You must be able to substantiate your claims, so take care when making statements about the quality, price or benefits of goods or services. For instance, the ACCC has taken court action against a number of individual Harvey Norman franchisees. We alleged in-store sales staff made false or misleading representations to consumers about their rights to repair, replace or refund faulty products.
Online While the online environment has led to innovative selling methods, the law still applies. For example, using social media such as Facebook, Twitter and YouTube as promotional tools brings with it the responsibility to ensure all content on your pages is accurate, irrespective of who put it there. It’s also misleading to write or commission reviews about your own business as if they are from a genuine consumer. The same goes for posting fake negative reviews about your competitors. Not sure how to manage your online reviews,
download the ACCC’s guide for business and review platforms at http://www.accc.gov. au/publications/online-reviews-a-guide-forbusiness-review-platforms
The overall impression counts The most important question to ask is whether the overall impression created by advertising is false or inaccurate. Sometimes problems can arise from what you say or what don’t say. When considering the overall impression put yourself in the shoes of the class of consumers likely to be affected by the advertising. Have important details been left out or hidden in the fine print? Is the total price displayed? Are there any contradictory statements or unnecessary jargon? Do logos, symbols and pictures create confusion or the wrong impression?
Penalties The ACCC has a range of tools to take action against false or misleading claims. This includes powers to require businesses to substantiate their claims and the ability to issue infringement notices and use court enforceable undertakings, as well as the ability to seek penalties in the courts of up to $1.1 million. Dr Michael Schaper is Deputy Chairman of the Australian Competition and Consumer Commission. For franchising information, go to: W: www.accc.gov.au/franchising
Business Franchise Australia and New Zealand 95
profile : cafe 2u
THE ROAD MORE TRAVELLED You too can be a part of the picture… After 25 years in the trucking industry, Dean Ettwell is back on the road, this time in a Cafe2U Mobile Coffee franchise, and finding that his new business is exceeding all his expectations. Dean and his wife Maggie were looking for opportunities to become self-employed. They were looking for something that gave them control over their future and allowed them to work together, without sacrificing too much family life. “We came to the realisation that a fixed location coffee shop was limited in reach and was reliant on its location and passing trade. We also knew that most of our time would have been spent working at a shop, rather than being at home.”
Acceleration package Like the Ettwells, 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. Dean and Maggie chose franchising to provide them with the infrastructure to be successful in their first business endeavour. After experiencing Cafe2U’s unique ‘Acceleration Launch Package’ which propelled their business to a minimum of $500 per day during their opening weeks, twelve weeks on and there’s no looking back for Dean and Maggie. “We now have structured a daily route, which minimises our travel times and allows us more time at stops to increase our sales opportunities.” 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.” 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.
Support The support from Cafe2U doesn’t stop there. Once settled in your new territory, you will receive a weekly phone call from your personal Franchise Development Manager (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 continue to provide the necessary training and monitoring long after the business is launched. Franchisees have the full support of their FDM and Head Office to help with any issues or concerns as they arise. Dean and Maggie love their job and wouldn’t change anything about it. They would highly recommend Cafe2U as a business opportunity - owning a franchise has given them flexibility and freedom they were looking for and have put them in control of their own future.
Proven business model John Stanton, Cafe 2U’s Australasian Franchise Recruitment Manager, attributes Cafe2U’s success to its proven business model, ability to provide franchisees with a
96 Business Franchise Australia and New Zealand
guaranteed income and the work/life balance it affords them. “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: email@example.com Web: www.cafe2u.com
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 worldâ€™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
Business Franchise Australia and New Zealand 97 24/11/2013 10:12 pm
e x pert a A dv ice
Minimise risk and maximise your outcomes You don’t have to be a rocket scientist to know that there is an element of risk in any investment, but being smart about investing is being smart about minimising risk. Risk is unavoidable. Whether you are playing the stock market or buying a business, there are ways to minimise risk and therefore maximise your outcomes. Buying a business is no different from other forms of investment from that point of view. One way to reduce your risk is to buy an existing business that’s already demonstrated
an ability to successfully operate. That confidence may come at a price as you’ll generally spend more to buy a business than to start one from scratch. If you’ve got access to the funds, though, it’s a good option. While there are no guarantees in business and the risks must always be considered and managed, buying an established business clearly offers significant advantages worth considering if you want to own your own business. In order to buy the right business, you need to investigate its past performance, operations, current status, staff, management, competition, industry and its future potential, all of which is so much easier to do with an existing business. And just in case the idea hasn’t hit you yet, add franchise to the equation and you
98 Business Franchise Australia and New Zealand
might just be entering into a life changing experience.
But before you begin, consult the person in the mirror and ask yourself a few questions: Are you really serious about buying a business? Every day our team of advisors engage with people who have been looking for a business for “a long time”. If this is you, then maybe you need to redefine your parameters. Remember, the perfect business for you probably does not exist. Have you seen a business you like? If so, did you make an offer on it? This is a good way to test your courage. Consider how much you need to earn from a business. Let’s say you invested $200,000,
“Risk is unavoidable. Whether you are playing the stock market or buying a business, there are ways to minimise risk and therefore maximise your outcomes.” Geoff Watson | General Manager Wollermann & Associates
how much would you expect to earn from the business? How much can you comfortably invest in a business? Consider the asking price of the business and the availability of cash and potential borrowings and current debt you already have. What securities can you provide to a lender? Who will run the business? Is it just for you or will your partner/family help? You need to have a serious discussion with anyone else who will be involved, now, not later. If you have been in business before, what have you learned that will assist you in your next business? What skills do you possess, and will they help you run your own business? If you are currently employed, have you definitely decided to leave your job? Why do you want to buy a business? What do you see as the main criteria for the business that you want? How far will you travel to the right business? If you are still reading this article and have answered the above questions, then you are well on your way to achieving your goal of owning your own business. I mentioned earlier that there are significant advantages in buying an established business, and further significant advantages in buying into a franchise system. There are many reasons why you should fulfil your dream of becoming your own boss and buying a franchise. The following reasons to buy an existing franchise will help you to understand why it should be a lower risk investment.
• There are many ‘would be’ entrepreneurs that have exactly what it takes to run a successful business but don’t have a clue about getting started. Whether it be raising finance, negotiating lease terms or even the confidence it takes to quit their job and start their own business. Buying an existing franchise can often eliminate much of the hard work: finding a suitable location, negotiating a lease with a landlord, hiring adequately skilled staff and doing all this in a timely manner and within your budget. When you buy an existing franchise you are buying a resolution to these hurdles. • When you buy an existing franchise location you buy a proven system. All franchises have an established system in place that you must follow. These systems are designed to help you improve the overall productivity of the business and increase the revenue for each franchisee, thereby increasing the chances of keeping the franchise strong. Utilising a proven system can eliminate much of the guesswork a first time business owner may face. • When you buy into an established franchised system in an established location, the corporate image and brand is already recognised. Customers are already purchasing items they are familiar with. Trust already exists. • When you are considering your purchase, you will require the assistance of your accountant and your lawyer. When buying an established business, you must be given the opportunity to verify certain information. This normal procedure will allow your accountant to obtain the past
financial records of the business, so he can perform a ‘due diligence’ on those records to establish the accuracy of the information on which you based your offer to buy business. • Banks and other mainstream lenders are usually very comfortable financing the purchase of an existing franchise because they already have a proven track record, and will have financed other stores from the same franchise before. Whilst the different banks will from time to time change their preferences for certain franchises due to their current level of exposure, they will usually look at the more successful franchises as having a lower risk of failure and are more inclined to lend money based on that belief. A successful store within a successful franchise has a better chance of being an acceptable risk for the lender. Geoff was recruited by Wollermann & Associates from another business broking firm in 1999 and was appointed General Manager in 2005. During the 1980’s, he assisted many business migrants settle into Australia, providing financial and investment advice. In a ten-year period he assisted a range of businesses owners to understand their businesses better, particularly in the financial arena, by adopting a simple and understandable approach to business and financial management. For further information contact: P: 03 9888 6488 E: firstname.lastname@example.org W: www.wollermann.com.au
Business Franchise Australia and New Zealand 99
e x pert a A dv ice
Important considerations in applying for and gaining finance from a bankâ€Ś
100 Business Franchise Australia and New Zealand
“One of the main reasons many businesses (including franchises) are not successful is because they fail to plan.” Ian Watt | Senior Business Development Manager - Franchising, NSW & ACT retail & business banking, Westpac
So, you have done your research and homework to identify the franchise that is right for you. Arranging how you will pay for it is just one of the many potential pressure points in the process of becoming a franchisee, so the more prepared you are the better when embarking on your discussions with a bank to apply for finance. Going to a bank and applying for finance to purchase or set up a business can be daunting. This doesn’t need to be the case with some pre-meeting preparation and research. An important part of this is preparing a business plan. One of the main reasons many businesses (including franchises) are not successful is because they fail to plan. It is vital for the long term sustainability of your business to take the time to develop a business plan. Westpac provides support for business owners on how to prepare a business plan through our business bankers and also through our Davidson Institute (Westpac Financial Education).
complete package for their franchise partners which will typically include financial solutions specific to your franchise system, for example including a group merchant deal. Your banker will need to assess your financial capacity, both personal and for the business you are buying. In regards to the franchise you are purchasing, a copy of prior trading results, cash flow projections and breakdown of your funding requirements plus a business plan will greatly assist your banker understand the financial dynamics involved. A copy of the franchise and lease agreements plus a full list of your set up costs if you are setting up a new store, are crucial. The type of security the bank will require will vary depending on the franchisees borrowing requirements. At Westpac with our accredited franchise partners we have funding structures that enable us to consider applications without having to provide a home or other collateral security for the loan, however, this depends on the applicant’s specific funding requirements. One of the benefits of buying a franchise is the operational training and support provided by the franchisor. Your level of prior management experience is also considered as part of the loan assessment process so also include a detailed CV in your business plan that highlights any skills and education that you have undertaken that will assist you in running a business.
Many business owners, customers and noncustomers alike, have completed a range of the courses on offer and gained invaluable business knowledge and insight.
Banks may also have accredited the franchise system, assessing the system in terms of its business model and other key aspects. A bank accreditation creates many potential opportunities and benefits for a franchisor, including the possibility of growing their franchise faster (creating greater economies of scale and negotiating ability with suppliers too) which in turn benefits the franchisee.
Other banks may also have tailored a
For a franchisee, dealing with accredited
See website located at: https://www.davidsoninstitute.edu.au/
franchise specialist bankers who have the experience, capability and understanding of the business you are purchasing will certainly lower the stress in applying for finance. Obtaining advice from your business advisor, business accountant and lawyer, preferably skilled in franchising, is invaluable and definitely recommended. These advisors are able to recommend and advise on business structures, tax planning, GST obligations and book-keeping. It is also beneficial to speak to existing franchisees who already own a franchise to understand what will be involved in the day to day management of the business and the type of support provided by the franchisor. And finally, but no less important, is family support which is critical to the success of any business. Buying a business can be both exciting and daunting all at the same time so it is important to consider how this will impact on you and your family. Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT Westpac continues their long-term commitment to franchising in Australia. The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Ian at: P: 0419 271 995 E: email@example.com W: www.westpac.com.au/business- banking/industries/franchising/
Business Franchise Australia and New Zealand 101
sn fr anch a pshot: ise cou V.I.P.nci aust l orf aaust lia ralia
From Straw Boater
to V.I.P. Cap “People know and trust V.I.P. and this helps generate leads and gives customers confidence that they are dealing with a reputable and reliable business that cares about them.” Today Greg Stickler will be found caring for the lawns and gardens of his V.I.P. Home Services customers…he may also be heard singing as he pushes his lawn mower or prunes a rose bush or two! Greg’s vocal talents saw him become part of the original singing barbershop quartet at Dreamworld Queensland before he swapped the iconic straw boater for the equally recognisable green baseball cap of a V.I.P. Lawns and Gardens franchisee. Greg has certainly had a varied career and started out as a grave digger before his singing talents were put to good use at Dreamworld. He then formed his own independent lawns business and aptly named this the ‘Singing Lawn Mower Man’. Greg maintained this business for 10 years but eventually realised that the market had changed and customers were looking for a brand, which is why he joined V.I.P. “I have always provided great customer service but for my business to prosper I really needed the backing of a brand and people around me to support and help me
grow my business - that’s were V.I.P. came in.” Greg joined V.I.P. back in 1999 and hasn’t looked back since, “The brand has made a huge difference to my business. People know and trust V.I.P. and this helps generate leads and gives customers confidence that they are dealing with a reputable and reliable business that cares about them. Another big bonus has been the call centre. This enables you to get on with making money whilst someone else takes the calls for you so that you get back to them later when convenient. It’s not just the leads that they provide, they are also there to help support your business. It’s another part of the support network so that you make the most out of the franchise. I guess it’s just another part of the jigsaw puzzle that goes to making someone a success in business.” Greg has no immediate plans to return to the world of singing as he says that he can now combine this with his work, “I’m happy concentrating on my business at the moment. I can sing when I mow and nobody seems to mind at all. I’ll keep the straw hat on standby but will stick to the green cap for the moment. But I do hope that anyone who can hear me over the sound of the mower enjoys what they hear!” joked Greg. If like Greg 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:
102 Business Franchise Australia and New Zealand
Phone: 13 26 13 Web: www.viphomeservices.com
h ot to pics
headlines Jason Gehrke | Director Franchise Advisory Centre
Kleenmaid directors face criminal charges over franchise collapse Three former directors of whitegoods retail franchise Kleenmaid have been charged with 20 criminal offences, including fraud, as well as a further 18 charges of insolvent trading following a three-week committal hearing that concluded earlier this month. Kleenmaid was one of Australia’s highestprofile franchise collapses in recent years, mainly due to the approximately 6,000 customers who had prepaid almost $25 million for whitegoods that were never delivered. Approximately 30 franchisees, who each operated a retail shopfront and sold whitegoods on behalf of Kleenmaid lost their businesses altogether, while a similar number of service franchisees who installed and maintained Kleenmaid products joined another whitegoods maintenance chain following the 2009 collapse. The three directors, Gary Armstrong and brothers Andrew and Bradley Young, are currently free on conditional bail but could face up to five years jail for each charge, including charges of defrauding Westpac Bank of $13 million.
Court finds Sensaslim deliberately misled franchisees Weight loss franchise Sensaslim deliberately decieved franchisees by failing to disclose the involvement of serial conman Peter Foster, whom the Federal Court determined was the puppeteer who pulled the strings in the business which scammed more than $6 million from 110 franchisees. The Federal Court decision handed-down found that the scam also claimed the Sensaslim weight loss spray was the subject of a worldwide clinical study, when in fact no study had been done, that franchisees were profitable, and that executives Peter
O’Brien and Michael Boyle controlled the business when in fact it was Peter Foster who controlled it. Foster is on the run after receiving a jail sentence last year for contempt of court and is now the subject of an Interpol alert.
Bain Capital acquires stake in Boost Juice parent for $185 million Retail Zoo, the parent company of Boost Juice, Salsa’s Fresh Mex Grill, Cibo Espresso and Hatch Chicken Shop, has sold a 70 per cent stake to international investment firm Bain Capital for $185 million. The 70 per cent stake was previously owned by The Riverside Company, who bought it for about $70 million in 2010. The deal with Bain, who have previously invested in Domino’s in the United States and Japan, is expected to complete by the end of this month. Boost Juice founder Janine Allis will continue to maintain a stake in the business.
New franchisee litigation against Bank of Queensland After recently winning a class action for misleading representation brought by a group of 10 former New South Wales franchisees, the Bank of Queensland is again the subject of litigation, but now from two franchisees in Victoria. The former franchisees of the Geelong West and Hawthorne branches allege senior management of the bank forced them out of business by blocking loan requests, refusing customers and harrasment including abuse and inappropriate touching, according to an article in the Fairfax media. The two franchisees claim they both had high-performing businesses until their franchise agreements were renewed in 2012, when a new clause was inserted which gave
the bank the power to unilaterally reduce the franchisee’s income to zero. According to the media report, the action may yet be joined by other Victorian franchisees. Earlier this year, the New South Wales Supreme Court dismissed a case relating to representations about the likely business and profitability of franchises opened in metropolitan and regional NSW during a period of rapid expansion in 2005, but issued a number of criticisms of the support provided by the bank.
Dominos’ online sales to reach 80 per cent in three years Online sales currently account for about 60 per cent of the turnover of pizza chain Domino’s in Australia, however this is expected to grow to 80 per cent% in the next three years, according to a company statement. Domino’s is so committed to online sales, it recently operated a store for a day without phones in an experiment to see how online sales would be affected if orders could not be taken by phone.
Court finds Harvey Norman franchisees misled customers The Federal Circuit Court has found four Harvey Norman franchisees deliberately misled customers about their rights to refunds or replacements, and has applied penalties of $88,000 across the four. Counting these four franchisees, the Australian Competition and Consumer Commission (ACCC) has now successfully prosecuted nine out of an original group of 11 franchisees who were alleged in late 2012 to have misled customers about their consumer rights. The 11 stores were spread across New South Wales, Queensland, Western Australia
Business Franchise Australia and New Zealand 103
h ot to pics
and Victoria. In the latest court decision, the franchisees were found to have told consumers to pay a fee for the repair and return of faulty goods, that the store was not required to provide remedies for goods still covered by manufacturer’s warranties, and other breaches of the Australian Consumer Law.
not capable of giving the franchisees the experience to become licensed tax agents in their own right.
In addition to the financial penalties of up to $26,000 per store, the court also ordered that the franchisees display corrective advertising in-store, and implement a consumer law compliance program.
In launching action against Taxsmart last year, the Australian Competition and Consumer Commission (ACCC) alleged that the job applicants were required to pay upfront sums of between $45,000 and $80,000 on the unfulfilled promise that they would become registered as tax agents at the end of a 12-month supervision program, however a number had their employment terminated early and were not given refunds.
Taxsmart ordered to repay $260,000 to duped franchisees
Hungry Jacks settles litigation with young female former franchisee
The Federal Court has ordered tax preparation franchise Taxsmart, and two related companies, to repay $260,000 in franchise fees to five former franchisees who were misled into buying the franchise via a graduate recruitment program.
Legal action between Hungry Jacks and a former franchisee for the Victorian regional town of Wangaratta has been settled by negotiation between the parties after the commencement of court proceedings.
Taxsmart advertised for graduate accountants and represented that after a 12-month trial period, the accountants would qualify to become tax agents and therefore franchisees within the Taxsmart system. However the court found that the graduate program was
Hungry Jacks terminated former franchisee Toni Collins seven months after she commenced operating the Wangaratta franchise in March 2009, and sued her for $721,000, however Ms Collins responded with a counter claim of $320,000, alleging that Hungry Jacks gave her three weeks
104 Business Franchise Australia and New Zealand
rather than the required six months training, and had acted unconscionably towards her. In evidence tendered during the court proceedings, Ms Collins was referred to as “Legs” Collins, and as a “reserve candidate” for the Wangaratta franchise in internal emails. An email from Hungry Jacks founder Jack Cowin to senior management asked “What on Earth are we doing giving a franchise to a 29 year old single woman?”, who declared she was an unacceptable candidate. The Victorian County Court matter was resolved following negotiations between the parties after the commencement of court proceedings.
Metcash buys Midas for undisclosed sum The 88-store Midas chain of auto service and repair stores has been sold by its owner Lazard Private Equity to diversified retail group Metcash for an undisclosed sum. Metcash have announced that it will retain the existing management and structure of Midas, which will operate alongside other franchised Metcash auto brands AutoPro (112 stores) and Autobarn (109 stores).
PROFESSIONAL SERVICES LISTINGS
Ivan Poole Lawyers
6/64 Marine Parade (PO Box 10857) Southport QLD 4215 485 Papanui Road, Christchurch
P 07 5591 2522 F 07 5591 2511 Contact Peter Thelwell
P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott
E firstname.lastname@example.org www.ivanpoolelawyers.com.au
E email@example.com www.harmans.co.nz
Ivan Poole Lawyers has specialised in franchising for over 25 years and also provides expertise in Licensing and Intellectual Property. Acting for over 50 national franchise systems and a number of Licence Systems both in Australia and overseas, Ivan Poole Lawyers develops long-term relationships with franchisors and takes pride in helping them achieve success.
If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help. Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for.
Ivan Poole Lawyers acts for franchisees of various types of franchise systems when buying, renewing or selling their franchised business with vast experience in:
Our Franchising Team can assist with a full range of franchise related services, including:
• Disputes including mediation; • Distribution Agreements;
- Legal rights and obligations under franchise documentation
- Business structures and asset protection structures
• Structure of Franchise Systems and Documentation;
- Financing issues
• Master / State Franchisee models;
- Employment issues and health and safety
• Trade Marks; and
- Lease arrangements and agreements
- Terms of trade - Dispute resolution
Ivan Poole Lawyers are Member of both the Franchise Council of Australia (FCA) and the Queensland Law Society (QLS).
We are members of the Franchise Association of New Zealand
Wisewould Mahony Lawyers
Wisewould Mahony Lawyers 419-425 Collins Street, Melbourne VIC 3000 P 03 9629 8333 F 03 9629 4035 Contact Robert Toth E firstname.lastname@example.org www.wisewouldmahony.com.au
Level 33 140 William Street Melbourne VIC 3000 P 03 9242 4744 F 03 9242 4777 Contact Ed Browne E email@example.com www.madgwicks.com.au
Lawyers in love….with Franchising
Madgwicks’ Franchising team has experience across a variety of franchise industries representing both franchisors and franchisees. Our Franchise team is made up of lawyers from across our Business Services, Litigation and Property areas, enabling the group to address the broad nature of legal needs associated with establishing and operating a franchise system. A key part of our service delivery is partner accessibility and in-depth industry knowledge. Our services include:
30 Years of Specialised Franchise Industry Knowledge
Member Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service. FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises!
• Franchise agreements and disclosure documents
• Advice on business structures appropriate for franchise systems
• • • • • • •
• Franchising Code of Conduct Compliance
• Trade Practices advice including ACCC notification/authorisations • Acquisition, disposal, joint venture and partnership advice • Supplier and terms of trade agreements • Workplace Relations
• Commercial and retail leasing, as well as general property advice • Tax, duty and GST advice
• Litigation and dispute resolution
• Advice on branding, intellectual property and trade marks.
105 Business Franchise Australia and New Zealand
Legal and consulting advice to Franchisors & Franchisees Code compliance requirements Dispute resolution – mediation – strategies & solutions Sale/Purchase of Franchise Systems Employment Law and Workplace Relations Specialists Master Franchising International Franchising
• Business Law Specialists
Call or email for a complimentary brochure for Franchisors & Franchisees
Business Franchise Australia and New Zealand 105
FRANCHISE LISTINGS FRANCHISE 9D ACTION CINEMAS
PO Box 1333, Double Bay NSW 1360 Ph: AUS 1300 855 435 NZ +61 2844 88121 Email: firstname.lastname@example.org Website: 9dactioncinemas.com.au
Level 7, 3 Rider Blvd, Rhodes NSW, 2138 Ph: 13 8000 Website: www.allphones.com.au
APPLIANCE TAGGING SERVICES
80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: email@example.com Website: www.appliancetaggingservices.com.au
AUSTRALIAN DRUG DETECTION AGENCY PTY LTD
PO Box 301678, Albany, North Shore City 0752 NZ Ph: +64 9 479 4332 Email: firstname.lastname@example.org Website: www.tadda.com.au
BATTERY WORLD AUSTRALIA
PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: email@example.com Website: www.batteryworld.com.au/franchising
BODIEZ 24/7 FITNESS
260 Brisbane Street, Ipswich QLD 4305 Ph: 1300 642 575 Fax: 02 9337 1066 Email: firstname.lastname@example.org Website: www.bodiez.com.au
5 Henry Street, Loganholme QLD 4129 Ph: 07 3423 0555 Fax: 07 3423 0600 Email: email@example.com Website: www.buckingbull.net
Building 7, 81 Frenchs Forest Road East, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: firstname.lastname@example.org Website: www.cafe2u.com
CITY FARMERS DOGWASH
190 Main Street, Osborne Park, WA 6017 Ph: 08 9345 7200 Fax: 08 9440 1065 Email: email@example.com Website: www.cityfarmers.com.au/dogwash
16B Harvest Court, Southport QLD 4215 Ph: 07 5532 7727 Fax: 07 5526 4896 Email: firstname.lastname@example.org Website: www.cremaespresso.com.au
NATURE OF BUSINESS
MULTI-DIMENSIONAL ACTION RIDES
AUSTRALIA’S LARGEST INDEPENDENT MOBILE PHONE RETAILER
ELECTRICAL TEST AND TAG
$47,000 + GST + Vehicle
DRUG TESTING & EDUCATIONAL SERVICES
+ mobile testing unit
RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES
$49,900 + GST
$250,000 + GST
FITNESS & PERSONAL TRAINING
BOUTIQUE CARVERY FRANCHISE
Franchise Council of Australia
$60,000 + gst
MOBILE COFFEE VANS
Over 200 worldwide
FCA, FANZ, IFA
INITIAL FEE INCLUDED IN PURCHASE PRICE
MOBILE DOG WASH
Franchise Council of Australia
PREMIUM CAFÉ FRANCHISE
Franchise Council of Australia
$45,000 + GST Incl. Training
Dependent on Site conditions $250k$450K
$60,000 + GST
KITCHEN, BATHROOM & BEDROOM REMODELLING
SKIN CARE, BEAUTY INDUSTRY
Franchise Council of Australia (FCA)
MOVIE RENTAL VENDING
AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE
Franchise Council of Australia
$50,000 + GST
FCA & FANZ
FCA & FANZ
LEATHER, PLASTIC & VINYL RESTORATION
RESIDENTIAL PROPERTY MANAGEMENT
$35,000 (GST inc)
24 HOUR FITNESS AND HEALTH
HAIR & BEAUTY – RETAIL & SERVICE
$66,000 plus GST
$400,000 plus SAV for Greenfield sites
MANUFACTURERS & DISTRIBUTORS OF MEDICAL DEVICES
AMA & Aus. Health Funds
PROPERTY INSPECTION SERVICES
2 Franchised/ 2 Company Owned
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
Suite 3, 203-205 Henley Beach Road, Torrensville SA 5031 Ph: 08 8351 8588 Email: email@example.com Website: www.dreamdoorskitchens.com.au
2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: firstname.lastname@example.org Website: www.franchise.ellabache.com.au
S5, L9, 1 Rider Blvd, Rhodes NSW 2148 Ph: 02 8833 2111 Email: email@example.com Website: www.fegroup.com.au/franchising
FASTA PASTA PTY LTD
Level 1, 137 The Parade, Norwood SA 5067 Ph: 08 8304 8600 Fax: 08 8332 8389 Email: firstname.lastname@example.org Website: www.fastapasta.com.au
FASTWAY COURIERS AUS
Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 1300 FASTWAY Fax: 02 9264 4966 Email: email@example.com 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
1/47 Sunnyside Rd, Scarborough, Brisbane QLD 4020 Ph: 1300 362 994 Fax: 07 3203 4178 Email: firstname.lastname@example.org Website: www.fibrenew-franchising.com.au
4/68 Jessica Blvd, Minyama QLD 4575 Ph: 1300 783 658 Fax: 07 5444 6916 Email: email@example.com Website: www.frogrent.com.au
81 Gozzard St, Gungahlin ACT 2913 Ph: 02 6280 4987 Email: firstname.lastname@example.org Website: www.goldsgym.com/australia/
Level 1, 605 Doncaster Road, Doncaster VIC 3108 Ph: 03 9234 2200 Fax: 03 9234 2266 Email: email@example.com Website: www.hairhousewarehouse.com.au
Unit 18/38 Kendor Street, Arundel, Gold Coast QLD 4214 Ph: 1300 911 442 Email: firstname.lastname@example.org Website: www.hidow.com.au
Level 6, 257 Collins Street, Melbourne VIC Ph: 03 8631 7700 Fax: 03 8631 7799 Email: email@example.com Website: www.hudsonscoffee.com.au
INSPECT MY HOME
4/9 Millenium Circuit, Helensvale, Gold Coast QLD 4212 Ph: 1300 337 447 Email: firstname.lastname@example.org Website: www.inspectmyhome.com.au
106 Business Franchise Australia and New Zealand
NATURE OF BUSINESS
COMPETITIVE GLOBAL EXPRESS FREIGHT FRANCHISE
200+ franchises across 15 countries
DOMESTIC & COMMERCIAL CONCRETE EDGING
$180,000 min + GST
HEALTHY EATING CAFÉ
$60,000 + gst
FAST FOOD OVEN ROASTED CHICKEN
FIXINGS AND FASTENER TRADE SALES
$275,000 Incl. stock
MODERN SEAFOOD CAFÉ
Franchise Council of Australia
$60,000 + gst
MEDITERRANEAN FAST FOOD CONCEPT
Franchise Council of Australia
$60,000 + gst
MOBILE TOOL AND EQUIPMENT STORE
Franchise Council of Australia
SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE
$15,000 (Licence Only)
HEALTH FAST CASUAL FOOD
MEXICAN RESTAURANT, BAR AND TAKEAWAY
Restaurant Catering Victoria
MOBILE CONCRETE SAWING
Initial fee + vehicle
PROVIDES UNIQUE SPOT FACTORING PROGRAMME
FCA, IFA, CFA, Irish FA
REAL ESTATE PHOTOGRAPHY
$39,950 plus GST
$39,950 - $60,000
GLASS RESTORATION AND PROTECTION
$35,000 + GST
$55,000 + GST
DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS
DI BELLA COFFEE MOBILE ESPRESSO VAN
$115,000 + GST (in total)
$115,000 + GST
Unit 1/26 Flinders Parade, North Lakes QLD 4509 Ph: 0418 600 919 Fax: 1300 030 066 Email: email@example.com Website: www.inxpress.com.au
PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: firstname.lastname@example.org Website: www.kwikkerb.com.au
LAVA CARTS PTY LTD
PO Box 3, Mooloolaba QLD 4557 Ph: 0458 202 649 Email: email@example.com Website: www.lavacarts.com.au
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: firstname.lastname@example.org 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: email@example.com Website: www.redrooster.com.au
5-11 Jardine Drive, Redlands Business Park, Redland Bay QLD 4165 Ph: 07 3829 1993 or 1300 794 499 Fax: 07 3829 1283 Email: firstname.lastname@example.org Website: www.scrooz.com.au
SEVEN SEAS SEAFOOD CAFÉ
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: email@example.com Website: www.aktivbrands.com
5 Henry Street, Loganholme QLD 4129 Ph: 07 3175 0640 Fax: 07 3423 0600 Email: firstname.lastname@example.org Website: www.skewerz.net.au
SNAP-ON TOOLS (AUSTRALIA & NEW ZEALAND) PTY LTD 80 Holbeche Road, Arndell Park NSW 2148 Ph: 1800 762 766 Email: email@example.com Website: www.snapontools.com.au Facebook: https://www.facebook.com/SnaponToolsAustralia
SNOOZE SLEEP WELL PTY LTD
21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: firstname.lastname@example.org Website: www.snooze.com.au
SPRAY PAVE AUSTRALIA
GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: email@example.com Website: www.spraypave.com
1/147 Chapel Street, Windsor VIC 3181 Ph: 03 9525 1214 Email: firstname.lastname@example.org Website: www.spudbar.com.au
TACO BILL MEXICAN RESTAURANTS
375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: email@example.com Website: www.tacobill.com.au
THE CONCRETE CUTTER (FRANCHISING) PTY LTD 2 Cormorant Parade, Pakenham VIC 3810 Ph: 0499 399 355 Email: firstname.lastname@example.org
THE INTERFACE FINANCIAL GROUP
Level 19, 1 O’Connell St, Sydney, NSW 2000 Ph: 1300 940 908 Email: email@example.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: firstname.lastname@example.org 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: email@example.com Website: www.vipfranchisesales.com.au
XPRESSO MOBILE CAFÉ 35 Railway Terrace, Milton QLD 4064 Ph: 1300 655 559 Fax: 1300 655 569 Email: firstname.lastname@example.org Website: www.xpresso.com.au
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 Business Franchise Australia and New Zealand 107
A-Z FRANCHISE DIRECTORY 9D Action Cinemas Operated by just one person, 9D Action Cinemas has low overheads, is supported by an experienced franchisor and has an income guarantee to give franchisees confidence in the expected revenues. 9D Action Cinemas offers something very different from the usual juice making, lawn mowing and fast food franchises. Being the latest generation in dynamic, multidimensional, visual entertainment rides, 9D Action Cinemas is suitable for both children and adults. Senses are overwhelmed with the stimulating and
allphones With over 100 locations across Australia Allphones is the largest independent telecommunications retailer consisting of company owned, licensed and franchised stores. Allphones started trading as a single store in Mile End, South Australia in 1989. After moderate growth in the early 90’s the business moved into franchising and the operation grew in South Australia to 15 stores. In 1999 the master franchise
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 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-purchase/pre-occupancy property
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
108 Business Franchise Australia and New Zealand
exciting 3D animated movies with surround sound, coupled with ‘active motion’ luxury chairs and dramatic effects such as rain, fog, lightning, wind, snow, touch and bubbles. 9D Action Cinemas provides a ‘turn-key’ business solution, fully established and ready to start trading. The total cost of the investment starts from A$170,000 for a six seat stand alone model. Franchise enquiries: Australia: 1300 855 435 New Zealand: +61 2 844 88121, E: email@example.com See our website : www.9dactioncinemas.com.au
rights were purchased for Western Australia and the first store in W.A was opened in May 2000. Late in 2000, the rights to the franchise system were purchased. During 2001, the group moved into the eastern states opening the first store in Hurstville, NSW. Since that time the group has continually grown and is now a truly national company, operating in WA, NSW, VIC, SA, QLD and NT. For more information and to register your interest, visit allphones.com.au/franchise or phone 13 8000.
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
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: firstname.lastname@example.org 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
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
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.
City Farmers Dogwash Beginning more than 20 years ago as a small enterprise, City Farmers Dogwash is now part of the City Farmers Group. City Farmers comprises 42 specialty large format pet stores throughout Australia with many more planned, a mobile network of over 30 City Farmers Dogwash vans as well as pet insurance business and an online store.
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.
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: email@example.com 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: firstname.lastname@example.org www.cafe2u.com
Australia, we’ve got plenty of work to do and are always looking for Franchisees with big smiles and big hearts to come on board and enjoy the ride. • No experience necessary • Full training & support • Strong brand recognition • Exclusive Marketing Zone • All-inclusive start-up package
Our Franchisees love what they do and are so passionate about the part they play in a dogs’ health and wellbeing. But with more than 3.7 million pet dogs in
• Work outdoors & be your own boss
of sale terminal, uniform package, store design & fit out together with ongoing research and development supported through marketing and advertising.
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
For more information call Scott McIntosh on 08 9345 7200 or visit www.cityfarmers.com.au/dogwash.
“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: email@example.com www.cremaespresso.com.au
Business Franchise Australia and New Zealand 109
A-Z FRANCHISE DIRECTORY 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.
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:
Dream Doors is looking for people with managerial, organisational/communication skills or real go-getters, no formal kitchen design experience is necessary – as long as you have the drive, ambition and enthusiasm to succeed in business we will supply you with the internationally proven and tested formula of the Dream Doors business model.
Dream Doors is a kitchen, bathroom and bedroom remodelling business that has a proven track record internationally. Established in 2000 in the UK, Dream Doors takes the hassle, and the cost, out of remodelling out-dated home interiors. Now with 35+ locations in the UK, 10 in New Zealand since 2009 and now with 1 location in Australia, we are looking to expand our network of Franchisees throughout Australia.
Ella Baché 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.”
Evolve entertainment The Franchise Entertainment Group (FEG) is Australia’s premier home entertainment group encompassing such iconic brands as Video Ezy and Blockbuster. FEG leads the way in the Australian home entertainment industry through state of the art marketing campaigns and initiatives as well as providing systems and support to over 800 locations across Australia.
1300 366 466 Franchise.Recruiting@dominos.com.au www.dominos.com.au/franchising www.dominospizza.co.nz/franchising
For more information contact Derek Lilly on: T: +64 8 8351 8588 M: +64 2 7213 5133 W: www.dreamdoorskitchens.com
We pride ourselves on being the “Skincare Experts” and attribute our success to our people, knowledge and understanding of tailored skincare Solutions. 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: firstname.lastname@example.org P: 02 9432 5000 W: www.franchise.ellabache.com.au
team consisting of over 60 staff Australia wide has your business success as their top priority. Our franchisees come from all walks of life and have various backgrounds and life experiences. We do not require that you have any previous experience in running a business, rather that you have the right personality, outlook and aspirations. Welcome to the next generation in home entertainment!
FEG is proud to offer you a low cost entry into the Home Entertainment Industry through our Kiosk Vending Business. Our dedicated franchise support
W: Fegroup.com.au/franchising E: email@example.com P: (02) 8833 2111
opportunity to be part of our winning national organisation.
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
110 Business Franchise Australia and New Zealand
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 firstname.lastname@example.org, or visit our website, www.fastapasta.com.au
FASTWAY COURIERS AUSTRALIA
• 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
business franchise australia and new zealand
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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*
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
FASTWAY COURIERS New Zealand Run your own rewarding business and take control of your future as a Fastway Couriers Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • 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
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
AUSTRALIA AND 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 *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
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 email@example.com or phone 1300 783 658 or visit www.frogrent.com.au
Business Franchise Australia and New Zealand 111
A-Z FRANCHISE DIRECTORY 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
HiDow Australia HiDow Australia, manufacturer and wholesaler of the painPod medical devices in Australia and globally, TAPS ITS’ MARKET like no-one else – and it feels oh-so-good! As seen on ACA & Today Tonight, the painPod provides fast-acting, DRUG FREE pain relief, improving mobility and quality of life of our Aussie sufferers! Most sort after pain relieving medical device, fully portable. Don’t miss your chance to secure a FREE distributorship in your area. NO franchise fees! HiDow is now poised for rapid growth in all states,
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
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 firstname.lastname@example.org or visit www.hairhousewarehouse.com.au/franchising
HUGE profit margins, INCREASE your business potential without increasing overheads and costs. • Minimum setup • Full support and training • Exclusive products • Health Rebates Apply Ready for the next BIG thing? No experience necessary Get involved in something BIG! NO Franchise fees: Secure your area today call Sue Lamb on 1300 911 442 or email email@example.com for a FREE Information Pack! EXCLUSIVE AREAS AVAILABLE CALL NOW!
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 firstname.lastname@example.org or visit www.inspectmyhome.com.au
InXpress – Global Express Freight
• Low entry costs
InXpress provides a revolutionary yet simple concept delivering customers with freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing customers with greater value and personalised service, saving valuable time and money. Operating in 15 countries with over 200 franchisees internationally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include:
• No inventory/warehousing
112 Business Franchise Australia and New Zealand
• Low risk • Minimal employee base • High income potential • Ongoing training and support Whatever your location InXpress represents a unique opportunity for you to build financial freedom, within a global network. Start building your future with the right company and the right model, for more information about becoming an InXpress franchisee within your region call 0418 600 919, email email@example.com, www.inxpress.com.au
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
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
scrooz We’re Australia’s biggest online and multi-channel retailer of premium range fasteners, fixings and consumables for tradesmen, light industry and serious DIY’ers and we’re revolutionising fastener retail. We’re growing rapidly and to meet the high customer demand for our products we’re starting the launch and roll-out our network of Scrooz® Trade Centres across Australia right now. Want to earn some real money and get involved in
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 firstname.lastname@example.org
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: email@example.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: firstname.lastname@example.org Phone: 03 9582 8716
• A $650 billion dollar industry • With highly profitable repeat sales of consumables to the trades and DIY industries • Retailing our premium quality Scrooz® branded product range • With National and webstore driven multi-channel sales • Full training and on-going support provided • Outstanding opportunities for early take up We have limited opportunities for highly motivated people looking for a serious business, so to find out more contact us now for an information pack at email@example.com
scrooz f a s t e n e r s
Business Franchise Australia and New Zealand 113
A-Z FRANCHISE DIRECTORY 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
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: firstname.lastname@example.org 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: email@example.com W: www.skewerz.net
clearly surveyed and designated territories, with a rigorous training program and comprehensive support.
Snap-on Tools is a mobile franchise putting high quality tools into the hands of mechanics, engineers and technicians across Australia for over 25 years.
Nominated as a BRW Fast Franchise in 2013, Snap-on Tools a quiet achiever. Today it is one of the largest non-food franchise companies in the world, selling its products and services through franchisee, company-direct, distributor and Internet channels.
Snap-on provides technicians with a high quality range of products and services that make their working life more productive. Over 19,000 state-of-the-art products are offered to customers, including hand and power tools, tool storage, diagnostics tooling and software, information and management systems, shop equipment and other solutions for workshops and repair centres. Snap-on Tools provides high-demand products through its instantly recognisable fleet of more than 160 trucks – a mobile store selling direct to the workplace. Franchisees work within
If you are interested in considering whether this business is right for you, we make it easy. We’ve created a Discovery Tour, which steps you through the process of owning and operating a Snap-on franchise. Take a trial today: http://www.snapontools.com.au/franchise/ discovery_tour Or visit snapontools.com.au and join in the conversation online facebook.com/SnaponToolsAustralia
• 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
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!
114 Business Franchise Australia and New Zealand
• 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
spudbar Spudbar is all about healthy and delicious food packed into the crispy skinned gem of goodness that is the Baked Spud (or Sweet Potato). Our co-owner Matt Wilkinson is one of Australia’s best chefs, and together we are responding to the growing demand for healthy & delicious fast food. We dish up recipes from Matt’s kitchen, using great produce from farmers and growers we
business franchise australia and new zealand A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
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
trust and respect. Our chicken and bacon is free-range, and just taken the whole menu Gluten Free! We welcome great people who want to join the team. If you love the idea of bringing fresh & healthy to the fast casual world and are excited by the idea of owning your own business then we’d love to hear from you. For more information email firstname.lastname@example.org or visit www.spudbar.com.au/franchising
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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 email@example.com
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: firstname.lastname@example.org www.interfacefinancial.com.au
Business Franchise Australia and New Zealand 115
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.
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 email@example.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. For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au
XPRESSO MOBILE CAFE
• Unique coffee bean showcase – you can custom grind, weigh, bag, heat seal and then retail beans, on the spot – and we offer EFTpos!
Di Bella Coffee - Australia’s largest boutique coffee roaster and amongst the Top 50 Innovative companies for 2013.
• No cables or noisy/smelly generators – our coffee machines and fridges run on a combination of both gas and inverter/battery.
This coupled with the very latest in mobile espresso van technology and what do you have? Xpresso Mobile Café But that’s not all:
• From crop to cup®, your customers are guaranteed quality and sustainability.
• 100% Australian owned.
• Perfect business for the owner-operator. No headaches worrying about staff.
• Leadership team that’s been in the coffee-van game for over 12 years. • Exclusive and generous territory as close to your home as possible. • No reporting, hidden fees or red tape – you really are your own boss! • The best-looking Mercedes-Benz® coffee vans.
business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND
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.
A-Z Listings are a great way to promote your business, giving you a presence within our publication and also the Business Franchise website.
116 Business Franchise Australia and New Zealand
• Home by 1pm....30 hours a week for a great income and more time for the kids or hobbies! • The Best Coffee. The Best Vans. The Best Decision You’ll Ever Make! Contact Jonathan Payne at firstname.lastname@example.org to register your interest and be part of our success story.
For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to www.businessfranchiseaustralia.com.au or www.businessfranchisenz.co.nz
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
13/12/13 2:52 PM
Business Franchise is a bi-monthly consumer and trade publication bringing you all the latest news, expert advice, and information from the...
Published on Jul 4, 2014
Business Franchise is a bi-monthly consumer and trade publication bringing you all the latest news, expert advice, and information from the...