Business Franchise Aus & NZ Nov/Dec 2014

T h e

m a g a z i n e

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f r a n c h i s e e s

AUSTRALIA and NEW ZEALAND

VOL 09 ISSUE 01 NOV / DEC 2014

THE POWER

OF GOOD HAIR Setting

health, beauty & fitness

franchises

goals to win

Countdown to the new Code

$4.95 (AUD), $6.95 (nz) inc. gst.

LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

TOP LAWYERS’ ADVICE

Increase productivity More financial control Greater efficiencies More control of inventory More control of staff

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

From the

Editor

BUSINESS FRANCHISE AUSTRALIA and new zealand

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 there will be changes to the Code, which become effective from 1 January 2015.

from MST Lawyers writes about the benefits of the new Code for franchisees.

As franchisees and potential franchisees, it’s important that you understand how these changes will impact you and also your franchisor which is why we have a number of articles this issue that relate to this. In this issue, on page 12 Michael Paul, the Chairman of the Franchise Council of Australia looks back over 2014 and hopes for a smooth transition into 2015, On page 74, Dr Michael Schaper from the Australian Competition and Consumer Commission, who ensure compliance with the Code writes regarding the new powers they will have to enforce this compliance and on page 90, Louise Wolf

Alongside this we have franchise systems from the beauty and health industries including Australian Skin Clinics on page 48 and Just Lashes on page 58.

Our feature topic in this issue is ‘Health, Fitness and Beauty’ franchises.

The number of people who are overweight in Australia continues to rise according to the Australian Bureau of Statistics. The 2011-12 Australian Health Survey - the largest check up on the nation’s health ever undertaken - found that nearly two-thirds (63 per cent) of the population are now classified as overweight or obese.

With these staggering figures, it’s no wonder that fitness franchises have experienced rapid growth over recent times. You too can live the dream with Jetts Fitness, read more on page 54, or find your piece of gold with Gold’s Gym on page 61.

There’s much more, including all of the profiles, regular columns and the latest news in the world of franchising.

Finally, we love hearing from our readers and if there’s anything you’d like to see covered in the future, please let us know. Your feedback is most welcome.

Joanne Tuffy Editor

VOLUME 9 ISSUE 1, november / december 2014 publisher: Colin Bradbury. colin@cgbpublishing.com EDITOR: Joanne Tuffy. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au PRODUCTION: production@cgbpublishing.com.au ACCOUNTS: Samantha Klimecki. accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 8790 8006 COVER IMAGE: Hairhouse WAREHOUSE TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz

SUPPLIER FORUM

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 a nch ise aust r a l i a a n d n e w ze a l a n d

Contents november / december 2014 On the Cover 10 Cover Story: The Power of Good Hair Hairhouse Warehouse

Health, Beauty & Fitness

90 Countdown to the new code

40 Setting goals to win

Louise Wolf, MST Lawyers

40

Katherine Grace, Graceful Solutions Marketing

24

43 Feature

88

In Every Issue 6

What’s New!

Announcements from the industry

12 2014: Another great year for Franchising

Michael Paul, FCA Chairman 14 Latest news

Graham Billings, FANZ Executive Director

43 Feature: Health, Beauty and Fitness

Have your say 54 Jetts Fitness

95 Behind the Headlines

Profiles

97 Professional Services Listings

28 Evolve Entertainment

98 Franchise Listings

38 Franchise Selection

Jason Gehrke, Franchise Advisory Centre

100 A-Z Franchise Directory

18 Walker Wayland

48 Australian Skin Clinics 68 Franchising Expo 84 Snap-on Tools

4 Business Franchise Australia and New Zealand

20 Are you interested or committed?

Tania Allen, Vision Alliance

24 Five lead indicators of Franchisee

Buy Australian Properties.......................73, 101

City Farmers Dogwash. ....................................101

Suzanne Jarzabkowska, DC Strategy

Crema Espresso....................................................101

Jamie Bishop, McLean Delmo

Richard Brodie & Kaajal Dharan, Deloitte Private

Corina Vucic, FC Business Solutions

74 Think twice before breaching the Franchising Code

Cafe2U. ............................................................... 33, 101

after your Franchise Business

70 The Franchisor Conference: Keeping it fresh

Bodiez 24/7 Fitness............................................ 100

Jason Gehrke, Franchise Advisory Centre

62 Franchising the Future

Battery World............................................OBC, 100

Bucking Bull............................................................. 100

36 What are my Businesses Working Capital needs?

Appliance Tagging Services......................... 100

underperformance

30 Avoid the Fair Work Ombudsman coming

20

Expert Advice

also in this issue:

Dr Michael Schaper, ACCC

Domino’s Pizza............................................... 17, 102 Dream Doors........................................................... 102 Ella Bache.................................................................. 102 endota spa....................................................... 59, 102 Fasta Pasta............................................................... 103 Fasyway Couriers...................................... IFC, 103 FC Business Solutions. ....................................... 15 Fibrenew............................................................ 35, 104 Frog Rent.................................................................... 104

78 What’s the hurry?

Hairhouse Warehouse............................. 53, 104

InXpress. ..................................................................... 105

David Banfield, The Interface Financial Group

80 Increasing the success of your Franchise Business

Jejak Graphics........................................................... 87

Just CutsTM................................................................ 105

Steve Seddon, Westpac

88 Understanding Business Partnerships

Lorelle Frazer, Griffith University

Local Appliance Rentals......................... 83, 105 Primal Pantry. .......................................................... 105 Redcat................................................................................ 1 Scrooz.......................................................................... 106

50 Ella Baché

Seven Seas Seafood Café............................. 106 Skewerz Kababz................................................... 106 Snooze.............................................................. IBC, 107

62

Franchisor in Depth

Spray Pave Australia...........................................107

Snapshots

Taco Bil. ........................................................................107 The Drug Detection Agency................. 27, 107

34 V.I.P. Home Services

The Interface Financial Group..................... 108

58 Just Lashes

Top Snap........................................................... 35, 108

60 Gold’s Gym

Voyages............................................................................. 2

66 Just CutsTM

Xpresso Mobile Café.......................................... 108

86 Madgwicks Lawyers

Yellow Express.............................................. 23, 108

what’snew!

Anytime Fitness australia Earns 3rd Place in TopFranchise Awards 2014!

Anytime Fitness Australia, part of the world’s largest 24 hour fitness franchise, are celebrating earning 3rd place in the TopFranchise awards. They are the only health and fitness franchise group to make it into the top ten.

The TopFranchise Awards, www.topfranchise.com.au, surveys over 1,000 franchisees across Australia and benchmarks franchisors against average industry performance. This is measured across numerous categories, which include; renewal, recommendation, financial, lifestyle, passion, support and opportunities. Anytime Fitness has made the top 10 franchises in Australia, exceling across all of these benchmarks and ranking at number 3.

Justin McDonell and his sister Jacinta McDonell-Jimenez launched the highly successful US franchise Anytime Fitness into Australia in 2008. With over 2500 clubs and 1.5 million members’ worldwide, since Anytime Fitness’s launch into Australia it has become the quickest growing segment of the world’s fastest growing fitness chain and is Australia’s number one health club.

Essential Beauty Franchisee of the Year 2014 Award Night It was the one night in a year for franchisees, employees and friends of Essential Beauty to relax, network and renew friendships. More importantly, the event strengthens the support that franchisees and the company have for each other.

Essential Beauty acknowledged that support is the cornerstone of a successful franchise and many a franchisee had expressed their appreciate of that fact.

of the Year in 2012. Together they own five salons, three in Victoria and another two in New South Wales.

Other award winners include Troy and Sarah Nehemia for achieving the Highest Overall Turnover for a single salon. They are multiunit owners as well but it was their Joondalup salon that pipped the rest for that award.

This year, the Franchisee of the Year Award went to Essential Beauty Marion’s (SA) franchisees, Allan and Barbara Banicek.

Barbara who is the main driver of the business attributes her salon’s success to having the right partners on her journey, both business and personal.

Five other salons, Watergardens, Northland, Vogue, Rockingham and Strathpine received awards for developing and achieving the best sales with a partner business, skin care company ASAP Skin Products. The Unley, Marion and Watergardens salons received acknowledgements for improving their respective businesses dramatically since the owners came on board.

The Best Multi-unit Franchisee Award went to Con and Fiona Sarazen who were previous winners of Essential Beauty’s Franchisee

image: Barbara Banicek – Franchisee of the Year 2014 winner, Essential Beauty Marion (SA)

6 Business Franchise Australia and New Zealand

Industry heavyweights to build new franchise A collaboration between the owners of building heavyweights G.J. Gardner Homes and Smith & Sons has resulted in the development of a new commercial fitout franchise expected to generate up to $10 million turnover in its first year.

After just six months of inception the group already has six franchisees, with several more looking to join in the coming months.

With first year targets reached in New South Wales the focus is on establishing the business’ presence in Western Australia and New Zealand.

Greg Gardner founder of G.J. Gardner Homes, Matt Hope Master Franchisee of G.J. Gardner NSW /ACT and Corey Passey from renovation specialist Smith & Sons realised there was an opportunity to offer builders more long-term career options.

“Right now, there is an excellent capacity for growth with this business as it provides a solution for a niche in the marketplace that has been overlooked until now,” said Mr Hope, Total Fitouts NSW / ACT Managing Director.

“Economic circumstances have meant industries that have taken large spaces in expectation of growth are now relinquishing it resulting in more need for refurbishments

of smaller spaces or refits to avoid the expense of moving.

market,” he said.

Corey Passey from Smith & Sons said they became involved as it offered builders more opportunity.

“Our prediction is that we will have 50 franchisees nationally in the next two to three years.”

Greg Gardner said being part of the business was a strategic move to diversify earning potential.

“Our focus has always been on residential building but after the opportunity was presented to us we jumped at the chance to lend our experience to bringing a new reliable, trustworthy building brand to a new

“The building renovations game is not for everyone but we know there are many operators out there who would like to remain in the industry but who want a change of pace from residential work and Total Fitouts provides this option,” he said.

Total Fitouts specialises in key markets of hospitality, health care, offices, professional suites and retail franchises.

New Franchise Opportunity for Hydraulink After three years of development, Hydraulink Australia has launched its full business format franchise model.

The model has been designed to suit franchisees with a technical, mechanical or commercial background, or a combination of all three skill-sets. The franchise is ideal for companies looking to expand into an aligned industry or for partners, and can also operate as a family business.

For many years, Hydraulink has operated under an efficient national distributor network. However, in light of recent changes to the Australian Franchise Code, Hydraulink believes a move to a franchise model will best support its expansion plans by giving it the ability to expand into territories lacking a distributor presence.

Franchising standardises the Hydraulink customer experience by ensuring the same competences, service and product quality at each location, and it offers a wider protection of the Hydraulink brand and IP. There will be a professionally designed fit-out incorporating the company’s distinctive yellow and black livery used in all franchise outlets, and this will also be incorporated into the distributor channel over time.

“Hydraulink is proud of its longstanding distributor network,” says Owen Knight, Hydraulink Australia CEO. “We are also extremely pleased that our extensive franchise recruitment drive is bringing in excellent prospective franchisees from across Australia. We already have a franchisees coming on board in NSW, Victoria and Queensland.”

Business Franchise Australia and New Zealand 7

what’snew!

$5,000 Incentive is Food for Thought Australia’s largest multi-food franchise operator, Retail Food Group (RFG), is on the hunt for new Franchisees to take up ownership at the 263 potential new territories currently available.

RFG is not only giving potential Franchisees the opportunity to join one of its highly recognisable Brand Systems, but as an added incentive in the highly competitive food franchising market is offering candidates who know someone looking to start their own business a $5,000 referral incentive.

RFG Director of Franchising Gary Alford said to kick start the financial year with a solid stream of franchise enquiries, any

person who refers a friend to purchase a brand new RFG franchise using RFG’s ‘refer a friend’ website, and that friend submits a successful application for a new franchise before 19 December 2014, may be eligible to receive a massive $5,000 referral incentive.

“Many of our Brand Systems are currently experiencing rapid growth and a high level of interest from the Franchising community,” said Mr Alford.

“We are confident that our new, limited time only referral incentive will keep RFG top of mind for those thinking about purchasing a franchise this year.

“With a wide variety of brands and outlet styles to choose from, selling everything from pizza to coffee, we have a range of options available to suit any prospective franchisee’s needs.

“With six Brand Systems to choose from, all offering a wide range of products, store designs and operations, our highly skilled recruitment team helps candidates find the right store for their needs,” said Mr Alford.

The referral incentive is open to all Australian residents over 18 years of age. * Full terms and conditions available at www.rfg.com.au/referafriend

7-Eleven Australia opens 600th store 7-Eleven’s strong, sustainable growth continues, with the company opening its 600th store at Gumdale in Queensland on Thursday 2 October, 37 years after the first store opened.

According to Queensland State Operations Manager, Gavin Monaghan, Gumdale locals will be able to take advantage of the brand’s high quality convenience offer.

“Gumdale customers can enjoy our iconic Slurpees, and our coffee, anything from a latte to a long black, is made in our quality machines from freshly ground beans. A regular size is $1,” he said.

“Gumdale will have our quality Mobil

branded fuel range, a Bankwest/ Commonwealth ATM, public transport ticket and top up facilities, a Moneygram money transfer service as well as drinks, sweets, snacks, fresh food and top up groceries,” Gavin said.

The owners of the store are experienced 7-Eleven Franchisees Ravi, Upendra and Meher. According to Ravi, the trio are very pleased to have the opportunity to establish a brand new 7-Eleven store.

“This is a great opportunity for us to grow our business with a new store, and it is wonderful to be a part of a milestone store for the company,” Ravi said.

8 Business Franchise Australia and New Zealand

Ravi already lives in the area, and Meher is moving to the neighbourhood soon.

“We want to be close to the store to better serve our customers. Meher and I are really excited about operating a store within our local area, which will allow us to offer support to the community. We are really looking forward to meeting everyone, and on Friday 3 October we have some giveaways for our customers to welcome them to our store,” he said.

CEO Warren Wilmot said “this milestone for 7-Eleven comes at an exciting time, only weeks before the company’s first store opens in Western Australia, our first new market entry in more than 30 years.”

Macca’s invites customers to create their own Kicking off a bold plan to transform the Macca’s experience for Australians over the next three years, a purpose-built Customer Learning Lab restaurant opened in Castle Hill in October. The restaurant will give customers a glimpse into the future of McDonald’s in Australia.

The restaurant is the first to offer a new customisable gourmet burger menu called ‘Create Your Taste’. Using digital kiosks, customers can build their own burgers from scratch, choosing from 19 ingredients.

the service and food experience McDonald’s offers its customers to suit the changing pace of their lives.

Customers are also treated to table service, allowing them to sit down and enjoy a drink while they wait for their creation to be made fresh off the grill and brought to their table.

Through new technology, customer service approaches and menu options, decisions about how McDonald’s will serve Australians in the future is being placed fully in the hands of customers.

The Create Your Taste gourmet burger and table service experience will be rolled out in all restaurants over the next six to nine months.

The Castle Hill restaurant is the first of many new initiatives that will be implemented around the country, with the aim of adapting

Whether they want the iconic Big Mac and fast convenience McDonald’s is famous for, or a gourmet burger in a more relaxed dining environment, customers will have more options than ever before.

The innovations McDonald’s plans to roll out

to restaurants everywhere over the next three years include: • Create Your Taste – customisable gourmet burger menu • Self-service digital kiosks • Table service • Mobile ordering app • Digital menu boards • Home delivery • McCafé barista made coffee in drive-thru Three more Customer Learning Labs will open this year, with a further ten planned in early 2015 before a full roll out.

Competition Policy Review – release of Draft Professor Ian Harper, Chair of the Review, said the recommendations in the Draft Report, released in September 2014, seeks to bring Australia’s competition policy up to date.

‘Australia’s competition policy needs to be fit for purpose, and updated for the economic opportunities and challenges Australia will face in coming decades from increased globalisation, population ageing and new technologies, which are rapidly changing the way our markets operate.

‘The Panel has reviewed Australia’s competition policies, laws and institutions against a set of questions to consider whether our current competition policy settings are capable of navigating these changes.

‘The Panel’s assessment draws on nearly 350 submissions and close to 100 consultation

meetings with a wide range of stakeholders.

But the judgements that underpin the draft recommendations are our own,’ Professor Harper said.

COMPETITION POLICY REVIEW Both the world and Australian economies have changed significantly since the Hilmer Review of the 1990s.

DRAFT REPORT Globalisation Ageing Population Digital Revolution

We have assessed Australia’s competition policy to see if it is still ‘fit for purpose’.

The Draft Report sets out the Panel’s draft recommendations and the Review seeks further input from from all interested stakeholders. Consultation on the Draft Report is now open, and will run for eight weeks until 17 November 2014.

Does it focus on making markets work in the long term interests of consumers?

Does it foster diversity, choice & responsiveness in government services?

Does it promote efficient use of infrastructure and natural resources?

Does it encourage innovation, entrepreneurship and the entry of new players?

Does it establish laws & regulations that are clear, predictable & reliable?

Does it secure necessary standards of access & equity?

The Panel will be holding public forums around the country and is also asking for written submissions and feedback from interested parties on the views and draft recommendations in the Draft Report.

We recommend changes in three main areas.

COMPETITION POLICY

After the close of consultation on 17 November 2014, the Panel will then consider its final recommendations, with the Final Report due with the Australian Government

by March next year.

Needs reinvigorating: - competition principles should apply to all activities of government - review regulations restricting competition - 7 priority reform areas covering new and unfinished business

COMPETITION LAWS Reforms to enhance effectiveness: - reformulate s46 to protect competition - simplify and clarify some provisions - streamline approval processes - access to remedies

COMPETITION INSTITUTIONS A gap exists in the competition framework: - a new national competition reform body to replace the NCC - a new governance structure for the ACCC - a separate access & pricing regulator

Consultation runs until 17 November 2014

Business Franchise Australia and New Zealand 9

cover story: H a i r h ouse Wa r eh ouse

The Power of Good Hair Hairhouse Warehouse loves hair. The unique concept of combining a salon with a hair and beauty store is all about sharing the power of good hair. Because if you look good, you feel good. And if you feel good, you look good. That’s a pretty amazing happy circle! And it’s the reason Hairhouse Warehouse has gone from strength to strength.

With over 140 stores across Australia, and plans to grow to more than 180 stores by the end of 2017, Hairhouse Warehouse has built a thriving business model on a real consumer truth about the power of good hair. Nurtured from modest beginnings in 1992, its robust business model has led to strong growth, making it Australia’s largest hair and beauty retailer and salon network.

And the best is yet to come.

Culture is key So what sets Hairhouse Warehouse apart from other franchises? First and foremost, it’s about the culture, says Peter Fiasco, Franchise Development Manager. “As a franchisee you’ll work for yourself but you won’t be alone,” he explains. “Our franchisees are fully supported by the expertise of seasoned professionals in our national office.”

Hairhouse Warehouse seeks out franchisees with a drive to succeed and a desire to operate their own business, casting the widest possible net to attract the highest quality candidates to grow the group.

10 Business Franchise Australia and New Zealand

One such step is the remodelling of its cost of entry, thus reducing the payback period to around 2.5 years. Similarly, Franchisees need no hairdressing experience as all tools and support are provided by the national office – they simply require the passion to see their own business flourish.

“Our priority is to put franchisees in the right location where the brand has the highest opportunity of succeeding. As a franchisee, you are able to get to your business ownership dream even faster,” says Peter.

Identifying future leaders Hairhouse Warehouse strives to support the development of franchisees in multiple ways – not only in being great business owners, but also in becoming strong and inspiring leaders.

It’s important that someone interested in buying a Hairhouse Warehouse franchise has the ability to lead a team of dynamic people, in a fun and exciting environment.

“Not only is a store a place of doing business, but it is also a hub of activity,” says Jason Kliese, a multi-unit Hairhouse Warehouse franchisee in Queensland. “Leading a strong performance team is key to building success.”

Franchisees need a genuine interest in people, Peter Fiasco explains, as well as the conviction that their ability and hard work will drive results. The power of good hair is not just a tagline, in this sense – it’s a belief that all franchisees share, part of a mission to make people feel good, wherever they are.

On top of that, Peter adds, Hairhouse Warehouse plans to take the power of good hair to the world.

“We have done a lot of research with regard to key markets and are in key discussions to take the brand international.”

Serious buying power

Why Hairhouse Warehouse?

With the festive season looming, the Hairhouse Warehouse network is gearing up for a bumper Christmas once more. So how does it deliver such strong results again and again? The brand leverages its buying power with suppliers to ensure franchisees get the best possible gross margins in their business.

So why join Hairhouse Warehouse as a franchisee? The benefits are many, explains Peter, but in brief they are:

“We have been able to negotiate with our vast group of suppliers to bring the best possible value to customers while protecting the trading terms of our franchisees,” says Peter. “This has become a fundamental of the Hairhouse Warehouse brand. We can also offer our franchisees high quality exclusive brands that are only available from Hairhouse Warehouse stores, thus protecting our customer base.”

The future of good hair What’s next for Hairhouse Warehouse? Quite a lot, says Peter Fiasco. “We are planning to open new stores in areas where we can better meet the needs of our customers.”

That means targeting specific regional areas to extend customer care right across Australia. “Hairhouse Warehouse stores do well in key urban and regional areas because there are few or no comparable retailers in those regions,” Peter says.

New stores are set to open in two Northern Territory locations, including Darwin.

In Queensland, a new store will open in Gladstone at the end of November 2014, with others scheduled for Toowoomba and Hervey Bay. Several key urban Perth centres have been identified in Western Australia, as well as Geraldton, Broome, Bunbury and Mandurah. In New South Wales, more are planned for Sydney as well as Tamworth, Gosford, Goulburn, Wagga, Dubbo and Nowra. Victorians can expect to see a new outlet in Sale, with one planned for Mount Gambier in South Australia as well. There are also several urban stores planned to fill unmet needs.

• Being part of the market-share leader in the hair and beauty industry • The prestigious and valuable Hairhouse Warehouse trademark and trading name

• The assurance that you’re with an acclaimed, established brand (most recently awarded

by FCA, BRW, Ernst & Young and the Australian Catalogue Awards) • 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 at the best supplier terms in Australia • High-level, on-going training • Financial reporting systems

If this appeals to you, then Hairhouse Warehouse may help you achieve the goal of owning your own business.

Of course, investing in a franchise takes real thought and consideration so for a confidential discussion please contact Peter Fiasco on: P: +61 451 370 060 E: franchising@hairhousewarehouse.com.au W: hairhousefranchising.com.au

1st image: Dream Teamers 2014 2nd image: Marketing 3rd image: Salon

Business Franchise Australia and New Zealand 11

fr anch ise cou nci l o f aust r a l i a

2014: Another great year for Franchising It’s been another busy year in the franchise sector. We have continued with what is now an almost two-year Franchising Code of Conduct review, we’ve seen new brands enter the Australian market, Australian brands head overseas, an increased interest in franchising among the general population and the sector has continued to outperform the wider small business market.

12 Business Franchise Australia and New Zealand

“Australian franchising, with its strong business systems and robust regulation has long been able to boast world’s best practice.”

Michael Paul | Chairman Franchise Council of Australia

Franchising Code of Conduct review The Code review has been an ongoing discussion in the sector since it was first announced in January 2013. With the submission process, consultation period and regulatory impact statement drafting finally complete, the 18 months’ work the FCA Board and legal team have put into the Franchising Code of Conduct update is finally taking shape. We will see changes to our national code come into place on 1 January 2015.

At the time of writing, we are still waiting to see the new Code released, but this review has certainly been the most positive yet. In the time since the Coalition Government came into power last September, we have seen a continued and increased collaboration with the Department of Treasury and other key federal stakeholders including the ACCC, the Small Business Commissioner and the Fair Work Ombudsman.

This increased communication and participation has allowed us to double our representation efforts on behalf of our members and the wider sector.

Along with the Franchising Code of Conduct update, the FCA has also been consulting with Treasury on the proposed extension of unfair contract terms to small business. These invigorated relationships and a continued focus on collaboration are ensuring the business environment remains a fair and ethical place for our members to succeed, and to secure continued growth for franchising.

International Franchising Australian franchising, with its strong business systems and robust regulation has long been able to boast world’s best practice.

It is little wonder then, that many of our home grown brands are readying, or already exporting their brands overseas. In 2014 the appetite for all things international only grew stronger, and the Franchise Council worked to provide our members with opportunities to research the best way forward.

In early 2014, the FCA again travelled to the US with an Australian delegation to attend the International Franchise Association Convention, held in New Orleans, Louisiana.

Following the three-day convention - which is an invaluable learning experience and something I would encourage anyone in franchising to attend – the FCA in conjunction with the IFA hosted the second annual FCA Franchisor US Study Tour.

Travelling from Louisiana to Atlanta, Georgia, franchisors had the rare opportunity to visit major private equity firm, Roark Capital Group (franchisor of nearly 30 brands including Anytime Fitness, Focus Brands, Cinnabon, and Fast Signs) and franchise brands such as Shelf Genie and Wingzone.

The US Study Tour is something we are particularly proud of at the FCA and I look forward to seeing it grow and evolve as more franchisors take up the opportunity to visit with some of the largest and most successful franchise brands in the world.

FCA head office is currently taking registrations for the 2015 IFA Convention, being held in Las Vegas in February. Contact 1300 669 030 for more information.

Franchising and Small Business in the community Each year, the FCA engages in various activities in Australia and abroad to educate and enhance the perception of Australian franchising.

The revamped Franchise and Business Opportunities Expos held around the country this year were clear evidence that public interest in franchising is on the increase. The Melbourne Expo held in August had a record number of exhibitors, and a vibrant speaking program. The main change though, is the number of interested parties coming through the door who have already begun their research. If you are thinking about franchising, the Expos are a sensational opportunity to speak face to face with franchisors and learn more about the business model itself. The quality of visitors at these shows speaks highly of the future of franchising in Australia.

If you would like more information about the expos being held in 2015, visit www.franchisingexpo.com.au.

Looking ahead 2015 already has a buoyant energy. With the changes to the Code of Conduct finally being implemented on 1 January 2015 we can move forward with a clear understanding of how our sector will look. Franchisors can now plan for change and ensure a smooth transition for their current and potential franchisees, and wider business relationships.

As the economy gradually continues to strengthen, the franchise sector will continue to outperform the broader small business market. The FCA is committed to ensuring that government understands the valuable contribution that franchising makes to the national economy. We will work collaboratively with the government, to influence good policy not only for franchising, but for small business generally. www.franchise.org.au

Business Franchise Australia and New Zealand 13

fr anch ise associ at i o n o f n e w ze a l an d

New FANZ Board takes up its responsibilities following the AGM At its first meeting of the FANZ Board following the annual elections, Board members elect the Chair and Vice Chair positions for the following year.

For the coming 2014/15 year Ian Robertson, National Franchise Manager of New Zealand Post, was re-elected to serve a second term as Chairman, with Brad Jacobs, Director of The Coffee Club, New Zealand, re-elected as Vice Chairman.

Ian Robertson

Ian Robertson is an experienced franchise professional with more than 20 years in the franchise industry; initially as a franchisee and then in franchise sales, recruitment, training, operations and management. He was elected to the Board in 2011 and as Vice Chairman in 2012.

14 Business Franchise Australia and New Zealand

Ian is passionate about franchising and the benefits it has to offer and he commented, “As an industry that generates a turnover of approximately $20 billion in New Zealand, franchising contributes significantly to our economy. The high standards set by members of the Association, combined with their commitment to self-regulation, certainly add credibility to those franchise systems and affiliates that are members.”

Ian went on to say that the work carried out by the Board over the last two years, to develop and implement the free pre-entry online course for prospective franchisees and more recently, under a working group led

by Vice Chairman, Brad Jacobs, to launch the Association’s own web directory of franchises for sale and franchise advisors, buyafranchise.co.nz, was a great testimony to the Board’s focus on developing more and improved services to FANZ members.

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Business Franchise Australia and New Zealand 15

fr anch ise associ at i o n o f n e w ze a l an d

WFC Joint Declaration The WFC members in Taiwan jointly signed a Declaration clarifying the structure of employment in a franchise contract.

This need for clarification follows a much publicised recent issue that arose in California in relation to McDonald’s, where there was a proposal for a California Senate Bill that would have established that a franchisor could be considered a joint employer of their franchisee’s employees.

This Bill was vetoed last week by the Governor, thanks in great part to the strong lobbying of the International Franchise Association, the national association for the United States.

This issue relates also to the perception in the minds of many in countries (legislators, trade unions, media, etc.) that a franchisee is not truly an ‘independent’ entrepreneur.

This joint statement is important in that it is a communiqué from the single widest international franchise body and that it strongly upholds that franchisor and franchisee are totally independent entrepreneurs.

16 Business Franchise Australia and New Zealand

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profile : Wa l k er Way l an d

Seeking support in building your business A new business venture always comes with it both a sense of excitement and trepidation. Combine that with the additional stress of a new country and the cocktail could prove toxic.

combined with the personal relationships provided by smaller to mid-tier firms.

For Preeti Soni and Bindya Patel, the urge to step into something new was strong. They had both moved from South Africa having developed separate hardware businesses there. Now they wanted to turn their hands to hospitality.

“Whether they are starting out and need assistance in those early stages or have an existing franchise and need support to improve bottom line performance, we have found the team at Walker Wayland totally trustworthy,” he said.

Having decided to change both country and career, the appeal of a franchise was powerful.

“We were not familiar with the local business laws and regulations, so a franchise seemed both prudent and exciting,” says Preeti. “The move from hardware to hospitality didn’t daunt us, though. In the end, business is always about the customer, whether we are in hardware, hospitality or anything else.”

They called on franchise broker Rajiv Rajan.

Careful research led them to a Coffee Club franchise and then to look for a guiding hand. Rajiv recommended accountants Walker Wayland.

“The team at the Walker Wayland accounting group were able to offer us just about everything we needed to make the right decision,” says Preeti. “They understand franchise law as well as being able to crunch the numbers on due diligence for us.”

Walker Wayland Australasia is a network of 13 like-minded accounting firms across Australia and New Zealand. With skills across the network in advising franchisees and the resources to call on specialists in any of the firms, the group offers the strength of 50 partners and hundreds of skilled staff,

“We have been advising and supporting franchise businesses across a wide range of industries for many years,” says Walker Wayland Australasia chairman John Dorazio.

According to Rajiv of Finn Franchise Brokers, Walker Wayland is able to provide a one-stop shop for people seeking help with franchising.

Rajiv met Walker Wayland’s John Dorazio through the Franchise Council of Australia and was immediately impressed with his dedication to the sector and knowledge of the peculiarities of franchise businesses.

The Walker Wayland network counts among its client franchisees in virtually every industry, from couriers to real estate, furniture retail and travel as well as hospitality.

In the hospitality industry alone, Walker Wayland accountants have advised businesses ranging from multi-nationals such as McDonalds and Gloria Jeans to homegrown franchises such as Baker’s Delight and the Coffee Club.

“Getting quality advice based on many years and many industries can make the process of buying a franchise or simply improving bottom line performance vastly simpler,” says Dorazio.

“Much of our work goes well beyond the initial due diligence and set-up advice. We talk with clients regularly about business structure, benchmarks and key performance indicators.”

Walker Wayland’s John Dorazio

In New Zealand, Walker Wayland member Munro Benge advises the giant McDonalds organisation.

“We provide McDonalds Restaurants (NZ) Ltd with a comprehensive range of services, from monthly accounts for franchisees, assistance with the purchase and sale of franchises as well as business consulting support,” says Munro Benge partner Shane Browning.

Membership of the franchise industry bodies keeps the Walker Wayland advisors in constant touch with changes in the industry sector.

“Franchising offers business people a powerful level of support, but in the end, each franchise is a business and the owner needs to be across the gamut of financial information in the business. That is where a skilled business advisor can make a powerful difference to success,” says Dorazio.

P: 08 9364 9988 W: www.wwaustralasia.com

18 Business Franchise Australia and New Zealand

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Business Franchise Australia and New Zealand 19 1167 WWA WA Franchise FP ad.indd 1

30/09/2014 4:56 pm

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ARE YOU INTERESTED OR COMMITTED? Another year almost gone and a new one fast approaching. How will you make the most of the next few weeks and more importantly how will you prepare for the New Year that’s fast approaching so that you have every opportunity to maximise your potential in business and in life?

A couple of months ago I took a day out of the office to look at my own business, to review our current strategy, to look at what was working and what could be improved.

That day had a sole focus on me finetuning the business’s current strategy and developing the future strategies that would not just support the business over the next 90 days but the year ahead.

How often do you take time out to review your strategy, to really analyse what’s working and what’s not working? And how much time do you then allocate to putting a plan in place that will contribute to change, growth and transformation in every area of your business and your life and not just the top line revenues and bottom line profits?

As we move swiftly toward the end of the

20 Business Franchise Australia and New Zealand

year for most of us it means we feel rushed, stressed and we feel we have little time to do everything that needs to be done so I can already hear you saying, ‘but Tania, I simply don’t have enough time to step out of my business, in fact I don’t have enough time to do much this time of year. I want to just get to the end of the year, get through the Silly Season and then I will relax, recharge and look at things in the New Year’.

How familiar does this sound? As a coach and consultant I hear this all the time. It’s November or December and all of a sudden business owners are closing the door to opportunities and are convincing themselves there’s no time to look at things until January. Let’s face it January comes, and then it’s not until February when the kids

“I’ve come to identify there are two types of business people in the world today. Those who are interested and those who are committed.”

Tania Allen | Founder Vision Alliance

have gone back to school and you’re now coming to the realisation that you’re half way through the first quarter of the calendar year and you’ve done nothing to plan and prepare for the year ahead, let alone take action, build momentum and are well on your way to achieving your quarterly objectives.

Today I would like to share with you some key insights into how you can maximise your potential over the next couple of months and lay solid foundations in preparation for the year to come.

Time waits for no one Here’s a little reminder of just how valuable our time really is. No doubt you have heard this before....

Imagine there is a bank that credits your account each morning with $86,400. You are free to spend that money however you choose. It carries over no balance from day to day. Every evening the balance you failed to use during the day is deleted. If this were your bank, what would you do? I’m sure your answer would be like everyone else’s. You would draw out every cent, of course!

Each of us has such a bank. Its name is TIME. Every morning, it credits you with 86,400 seconds. Every night it writes off, as lost, whatever of this you have failed to invest to good purpose. It carries over no balance.

It allows no overdraft. Each day it opens a new account for you. Each night it burns the remains of the day. If you fail to use the day’s deposits, the loss is yours. There is no going back. There is no drawing against ‘tomorrow’. You must live in the present on today’s deposits. Invest it so as to get from it the utmost in health, happiness, and success.

The clock is running so it’s vitally important you make the most of today. This can start with being very protective of your time.

Many fall into the trap of being far too loose with our time now. In order to be outstanding you’ve got to be very protective of your time.

This will not only increase your efficiency, it will position you to achieve so much more in less time so new opportunities can be seized, more leisure time can be had and you will start to build the momentum you need to take your business to the next level.

Live and work by the 80:20 rule I’ve come to realise in business progression is better than perfection. We’ve all heard of the 80:20 rule but do you really know what that means? The value of the 80:20 rule for a business owner is that it reminds you to focus on the 20 per cent that matters. Of the things you do during your day, only 20 per cent really matters. It’s the 20 per cent that produces 80 per cent of your results. So a quick tip is to identify and focus on those things.

Don’t over plan – take daily action instead If you fail to plan you plan to fail so the old saying goes. I have to agree to some degree.

The key is not to over plan. Every 90 days create your action plan for the quarter, identify the actions you need to take, the resources you require to help you achieve your outcomes for the period and then get into action.

Stay 100 per cent responsible for your success No one else can achieve success for you.

You have got to be 100 per cent responsible for your success. I’ve come to identify there are two types of business people in the world today. Those who are interested and those who are committed. Those who

are interested do what’s convenient to them and blame the outside world, events and circumstances for their shortfalls. Those who are committed do whatever it takes to make things happen. They have an attitude that leads them to transforming their business year after year. Are you interested or committed?

Be willing to make changes The average business owner stays average and never reaches their true potential because they operate in their comfort zone day after day. Stretch yourself and change three things immediately in your business. You may have wanted to make some changes for a long time so now it’s that time. When we are uncomfortable we try to change things back to how they were before so it’s important to habitually get used to discomfort if you are going to stretch into the new and reach your true potential.

Work harder on yourself It’s vitally important you work harder on yourself than you do on your business. When you get that right you will see shifts in all areas of your business and your life. Things will unlock, unfold and open up for you. It’s very easy when running a busy business to close the door to balance. I don’t necessarily believe work/life balance exists today, however I do believe you are in control of balancing your focus. Ensure you maintain the balance of focus in all key areas of business and in life and your overall results will flourish.

Hold yourself accountable or get a coach Accountability is the key to achieving momentum in your business faster. If you

Business Franchise Australia and New Zealand 21

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can’t hold yourself accountable to taking certain actions on time, then get yourself a coach. A coach will hold you accountable and will help you consistently make the improvements you need to grow the business you want. If you can’t get hold of a coach ask a family member or friend to support you.

Know your key drivers Although businesses today face many challenges the most common that cause stress and overwhelm to the business owner is: • Not having enough customers; • Inconsistent cashflow; • Not enough time; and • They don’t have a great team.

Start to know your numbers and ensure you have a good grip on the key drivers in your business. A good place to start is to look at your lead numbers and sales every day.

“Committing to your success and keeping a balanced focus on business and your life will help you achieve more.”

How many leads are coming in, where are they coming from, what marketing activities are working and what’s not? What’s your online and social media strategy? Are you working closely with your franchisor with this to ensure the brand and your individual location or store is benefitting. Are your lead generation activities inviting your potential customers and existing customers to do business with you, to come into store, to take up the offer and buy your product or service from you? If you are not proactively looking at this every day or at least every week, the months will turn into quarters and years very quickly with no real change being realised.

Keeping your finger on the pulse, being protective of your time, committing to your success and keeping a balanced focus on

22 Business Franchise Australia and New Zealand

business and your life will help you achieve more over the next few months and will also lay a more solid foundation for the year ahead.

Tania Allen is the founder of Vision Alliance and author of Franchise Profits.

Vision Alliance is a business growth and franchise consulting firm that helps franchisors and franchisees get more out of business and more out of life.

For more information about how Tania and her team can support you contact: Phone: 1300 76 49 20 or 0419 481 203 Email: tania@vision-alliance.com Web: www.vision-alliance.com

All inclusive vehicle packages No territories Full call center support

Business Franchise Australia and New Zealand 23

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five lead indicators of franchisee underperformance

24 Business Franchise Australia and New Zealand

“Where franchisors recruit franchise candidates with the ‘right’ attitude before joining the franchise, it is reasonable to believe that the franchisees will do whatever is necessary to be successful thereafter.”

Jason Gehrke | Director Franchise Advisory Centre

Underperforming franchisees in a network do harm to themselves and to the brand they represent, yet the lead indicators and causes of underperformance are poorly understood.

Franchisors will generally rely on afterthe-fact sales data to identify performance trends. The sales data could be days, weeks or even months old before any franchisor personnel assess it for performance trends, and by then the effort required to reverse a decline will be significantly greater than if the trend had been identified earlier.

Worse still, an analysis of sales data only indicates one element of the performance of a franchisee’s business. Sales data does not provide any meaningful information to assess the management of costs in a business, which can equally represent an area of underperformance.

Even for those systems where the franchisor regularly receives profit and loss information from franchisees which shows both sales and costs, underperformance can still go unnoticed. This is because the data (particularly in relation to costs) is not comparable across the network, or because the profit and loss reports are provided so infrequently (eg. annually) that they are analysed too late to undertake a meaningful intervention to improve a franchisee’s business.

So if sales and profits are indicators of the performance of a franchisee’s business after the fact (ie. lag indicators), what are the factors (ie. lead indicators) that determine franchise performance in advance, and how should they be assessed?

Lead indicator 1: Franchisee attitude

themselves their strengths and weaknesses, and if need be, to improve their efforts during training.

Surveys of franchisors indicate that the most desirable quality in potential franchisees is passion and enthusiasm. Franchisors want franchisees who will leap out of bed in the morning, who punch the air with excitement, and can’t wait to get to their businesses to start selling their products or services each day.

Operational proficiency after training is usually assessed by compliance measures only, but should take a broader focus as compliance alone does not always guarantee high performance.

Unfortunately attitude is so innate to an individual that it can be transferred only under special circumstances (eg. peer pressure).

Where franchisors recruit franchise candidates with the ‘right’ attitude before joining the franchise, it is reasonable to believe that the franchisees will do whatever is necessary to be successful thereafter, including gaining the skills required to operate the business.

This contrasts with recruiting franchisees for their pre-existing skills or industry experience, which might be desirable, but if not paired with the correct attitude, is no guarantee of success.

Lead indicator 2: Operational proficiency Franchisees that are operationally proficient have proven that they are capable and competent to operate their businesses.

Determining when operational proficiency has been achieved involves a constant process of assessment, especially during a franchisee’s initial training.

Competency assessment is often poorly executed in training programs offered by franchisors, and frequently made on the basis of the gut feel of the trainer, rather than against an identifiable scale of performance measures known to both the franchisee and the franchisor. By sharing the performance measures at the outset of training, franchisees are able to identify for

Lead indicator 3: A plan Operationally proficient franchisees who have a great attitude can still wander off course if they are not focussed on a set of outcomes for themselves and their business.

These outcomes – and the actions from which the outcomes are generated (particularly marketing activities) – should be set out in a business plan which is shared with the franchisor at the commencement of the relationship, and then used by both the franchisee and the franchisor thereafter as the franchisee’s roadmap to success.

Monitoring by the franchisor of all elements of the business plan will help keep the franchisee on track, or to realistically modify their plan as required. Unfortunately many business plans are prepared as a condition of joining the franchise, and then never looked at again by either the franchisee or the franchisor.

Lead indicator 4: Franchisee engagement While it is possible to have high-performing but disengaged franchisees, this is the exception, not the norm.

Franchisees who are engaged with the franchisor will have a business plan they refer to on a regular basis. They will attend meetings, read memos, undertake additional training provided by the franchisor (and send their staff as well), and generally take the view that the franchisor provides resources to help them grow their business and will be proactive in utilising those resources.

Business Franchise Australia and New Zealand 25

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“Franchisees that are disengaged may not have had the right attitude from the outset, or have suffered one or more setbacks in their business journey.� and are married or in an otherwise stable relationship. Even if only one spouse or partner is involved in the daily operation of the franchise business, the financial and moral support of the other may be necessary to get the business off the ground and to keep it going.

If there is a change in a franchisee’s family circumstances, such as relationship breakdown or divorce, this can remove these behind-the-scenes support factors necessary to the survival and growth of the business.

Other changes in family circumstances including bereavements and to a much lesser extent, births or issues arising from dependents, can also be a lead indicator of franchisee underperformance.

The bottom line Franchisors that have the ability to monitor these lead indicators and can provide timely and appropriate remedies when required have a much better chance of maintaining and increasing performance across a network.

It also follows that not only will franchisors then have higher-performing franchisees, but that those franchisees will be better advocates for the brand, which in turn leads to further benefits for the network.

Franchisees that are disengaged may not have had the right attitude from the outset, or have suffered one or more setbacks in their business journey which they will consciously or subconsciously attribute to the franchisor.

Franchisees demonstrate disengagement through such behaviours as failing to attend meetings (or improperly participating if they do attend). They may also submit reports late or incomplete, ignore franchisor communications or fail to access online knowledge or training systems. They may

even seek to avoid visits from franchisor field consultants, or undermine the usefulness of these meetings by failing to prepare or allocating appropriate time or resources to the meeting.

Lead indicator 5: Family circumstances Franchising Australia Surveys conducted

by Griffith University over the years have consistently indicated that franchisees are overwhelming in the age bracket of 35-55,

26 Business Franchise Australia and New Zealand

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: jason@franchiseadvice.com.au W: www.franchiseadvice.com.au

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Franchise Australia and New Zealand 27 Workplace and pre-employment drug testing is Business exploding as a business

profile : E vo lv e En t erta i nm en t

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 590 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 and convenience were becoming more and more sought after 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.

Paul says, “With 350 VideoEzy and

“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.”

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 franchisees to service these high traffic retail 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,

28 Business Franchise Australia and New Zealand

Evolve operations staff manage approximately 80 per cent of the Evolve kiosk business, leaving the franchisee to 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.

Evolve has recently added a number of outdoor units to their fleet 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.

For further details contact: P: 02 8833 2100 E: franchise.enquiries@fegroup.com.au W: www.fegroup.com.au/Franchising/

BUSINESS MADE SIMPLE Video Ezy and Blockbuster offer Video Ezy & Blockbuster offer you entry into the growing movie franchisees support that matters: rental kiosk industry backed by t Experience with identifying the best kiosk over 30 years of experience in sites franchising, brand recognition t Assistance in dealing with local sites and and marketing. access to a national property portfolio With over 50 franchisees and 590 kiosks since May 2012 this makes us Australia’s fastest growing DVD vending franchise. Our future vision sees 4000 of our kiosks in the marketplace over the coming years.

t Kiosk Installations t Technical support t 7 day customer care support team t National 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 Australia’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:

www.fegroup.com.au/Franchising/

Business Franchise Australia and New Zealand 29

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How to avoid the Fair Work Ombudsman

coming after your franchise business Newspaper headlines have been documenting a growing rise in the number of prosecutions against employers underpaying staff in businesses ranging in size from a few members to large corporates.

investigated by the FWO. And of course virtually all the multi-unit food brands of scale in Australia and worldwide are franchise networks, although most have a mix of franchised and corporate outlets.

This appears to be a recent development by the FWO and shows a growing sophistication in their investigation of franchised businesses with multiple ‘employer’ entities, which in the past the FWO has generally investigated on an isolated (company-to-company) basis.

In FY2010/2011 alone the Fair Work Ombudsman (FWO) commenced more than 50 underpayment prosecutions against employers and this number has only increased in the ensuing years.

Headline - April 13 2011: “Company fined for underpaying almost 700 staff over $665,000.” A fast food corporate office was fined $100,500 after underpaying almost 700 of its Tasmanian employees hundreds of thousands of dollars.

Of note to the franchise community is the rise in food businesses that have been

Possibly in response to the above 2011 violation, the FWO then investigated a

30 Business Franchise Australia and New Zealand

franchise within the same group in central Victoria in January 2012 and fined that company $46,200 for underpayment of its staff.

Headline - April 27 2011: “Operators fined $150K for exploiting students.” Fines of $150,000 were imposed on two former franchisee operators who systematically under paid six international students from Zimbabwe and India one in excess of $40,000.

What has happened?

What these news reports highlighted is that franchise businesses (both franchisor and franchisee) are increasingly vulnerable to investigation by the FWO and the associated costs of paying back pay to underpaid workers.

“It is clear that the FWO is targeting franchise systems and has found a way to enforce award conditions through the franchisor.”

Suzanne Jarzabkowska | CEO DC Strategy

An Australian fast food franchise was recently investigated and an internal audit found more than 3000 employees had been underpaid close to $650,000. That was nearly half of all its employees between 2010 and 2011.

Another made headlines when a self-audit required by the FWO revealed around $590,000 in underpayments to delivery drivers between 2010 and 2011.

A worldwide fast food franchise also entered into a formal Proactive Compliance Deed with FWO to regularly check its payments to employees and ensure systems were in place to rectify underpayments in both corporate stores and franchisee stores.

In another case a former franchisee of a beauty and spa franchise is alleged to have failed to back-pay an apprentice hairdresser resulting in the former franchisee facing court after allegedly ignoring a Compliance Notice from the FWO. This case is yet to be heard, but as sole director of his company he faces a maximum penalty of $5,100 and his company faces a maximum penalty of $25,500 in addition to back paying the apprentice.

Finally, a well-known Asian bakery chain, has entered into a voluntary Proactive Compliance Deed with FWO to ensure its compliance with workplace laws and ensure continuous improvement regarding their workplace practices.

Why this happened?

The common feature of all of these cases was the fact that employees had lodged complaints with the FWO. In the case of the bakery franchise, apparently only a few employees had lodged complaints but this piqued the interest of the FWO leading to a substantial investigation.

This eventually resulted in a Proactive Compliance Deed being signed between the company and the FWO. The Deeds are

publicly available and can be found on the FWO’s website.

Why this is important to all franchisors

It is clear that the FWO is targeting franchise systems and has found a way to enforce award conditions through the franchisor. The FWO has targeted franchisors as a way of quickly and efficiently conducting internal network wide audits to ensure widespread compliance.

The extraordinary and notable aspect of these Proactive Compliance Deeds is that the FWO has very carefully divided up the responsibilities of the franchisor entity as both employer and franchisor.

In the past, any enforcement agency (or union) had a problem getting network wide compliance within franchise systems.

The nature of franchising required the investigator to target individual franchise businesses and go from business to business to investigate and seek compliance.

Obviously this was a costly, laborious and difficult process.

And perhaps this has in part been one of the attractive features of the franchise model from a compliance/audit perspective. It ‘diversified risk’ throughout a network of independent franchisees so that if an audit was ever conducted it would be on a limited number of businesses and not affect the network as a whole.

Recent FWO actions indicate that the FWO has finally found a way of enforcing compliance without incurring the massive costs associated with investigating each individual franchise business. It would seem that they are pressing franchisors into doing the work for them, through their franchise networks.

Effectively the FWO has co-opted franchisors into becoming their Fair Work Act policemen, presumably under threat of full audit (and prosecution) of their corporate operations should they not agree.

Given that almost all franchisors will have substantial corporate operations alongside their franchise network, the franchisors may well feel that agreeing to audit the network is better than being subject to a full audit by FWO in respect of their own operations.

There are some responsibilities in the Deeds that relate solely to the franchisors auditing the franchisees for compliance with pay and conditions required under relevant award or enterprise agreement. The franchisor then has the obligation to provide this report to FWO in a format and with information required by FWO. Once FWO comes knocking, it is inevitable that this internal audit will be costly and involve significant internal friction within the network itself. The franchisees of the Australian fast food franchise above apparently stated that the franchisor may have previously advised them incorrectly in relation to the specifics of their enterprise agreement and this caused some confusion within the network. Innocent mistakes will not protect franchisors or franchisees from having to back pay employees who were underpaid.

How to avoid the FWO investigating your franchise business We recommend the following measures to reduce the risk of the FWO conducting an audit on your franchise business: 1. Have a clear and well publicised internal review process that allows anonymous complaints from franchisee employees to go through to a senior HR staff member within the franchisor organisation who will promptly investigate and resolve the issue. This can involve utilising the ‘audit’ provisions present in almost all franchise agreements to quickly and efficiently

Business Franchise Australia and New Zealand 31

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still compel you to cooperate with them in auditing your franchisees.

For franchises: you should make independent enquiries yourself to confirm what the applicable conditions are for each and every employee and have accurate and complete records to comply with your obligations making sure it is the latest information as awards can change annually. If in doubt, contact the franchisor and obtain appropriate advice in writing.

Below is a link to an organisation that can help you. The New South Wales Business Chamber can provide nationally compliant advice to assist both franchisees and franchisors on their obligations. www.nswbusinesschamber.com.au

“Innocent mistakes will not protect franchisors or franchisees from having to back pay employees who were underpaid.” check the books of the franchisee and get to the bottom of any allegations of underpayment without having to reveal the identity of the ‘whistleblower’ or complainant.

2. Make sure posters advertising this internal review process are required to be posted on franchisee staff noticeboards as part of the Operations Manual.

3. If a franchisee refuses to pay a disgruntled employee and the employee threatens to complain to the FWO, this must be addressed quickly and rapidly. If you consider there is a risk that this may trigger an investigation by the FWO and the franchisee does not have the money to pay at the time of the dispute, consider a confidential settlement agreement whereby the franchisor contributes to the settlement payment to the employee, but obtains a payment plan from the franchisee to pay this money back to the franchisor over time. It should be noted that several franchisees were forced to take out loans under the FWO investigations to fund back pay to underpaid workers; but better that the franchisor resolves this internally than have the FWO do it for you.

4. Ensure franchisees have clear, understandable and actionable information regarding awards and applicable enterprise agreements and conditions for each and every position in the business. There are a range of employer groups and law firms (including our firm) that can assist

in developing templates and ensuring the Operations Manuals have sufficient information to ensure compliance at the franchisee level. This is vital to reduce the risk of misunderstanding (or ignorance) of relevant awards and conditions resulting in a complaint being made to the FWO which, as recent history reveals, is much more likely to result in an audit of a franchise system.

Where to go to protect your franchise business from the FWO Another interesting point to note is that in news stories mentioned, the franchisees concerned are referred to as ‘former franchisees’. Underpaying staff is a major breach of virtually every franchise agreement and may result in immediate termination of the agreement.

Franchisors justifiably regard this as having a serious impact on their brand and the perception of their business by their customers/clients. And ignorance of the law, the relevant awards and the regulations under the Fair Work Act are not a defence. The most important step you can take to protect yourself and your business is to be accurately informed of the latest updates pertaining to your industry.

For franchisors: even though you may be protected legally from infringements by your franchisees provided you have supplied accurate, up to date information on all the regulatory requirements, the FWO can

32 Business Franchise Australia and New Zealand

Timothy Mak, Managing Partner of the legal team at DC Strategy brings diverse experience in franchise law from commerce and international finance to Global Counsel for several large international franchise networks to intellectual property. He really understands the need for practical, cost effective, commercially applicable advice.

E: timothy.mak@dcstrategy.com Suzanne Jarzabkowska, CEO heads up the multi-disciplinary consulting, legal, recruitment, brand and marketing team at DC Strategy. She specialises in organisational behaviour, change and performance management and business growth and transformation for franchises and writes and presents widely in all aspects of franchising.

c t

E: suzanne.jarzabkowska@dcstrategy.com For 30 years DC Strategy has been the region’s leading end-to-end franchise consulting, legal, recruitment, brand, marketing and technology firm. Franchise programs developed by their highly experienced specialist teams have built over $1.7 billion in enterprise value for their clients in the last decade alone growing the networks and brands of the many of the most successful national franchises, many of which they’ve taken to the world. DCS have specialist franchise lawyers, franchise consultants and trademark lawyers looking after all your commercial, franchise legal and IP and franchisee recruitment needs For more information contact: P: 02 8220 8700 E: growth@dcstrategy.com W: www.dcstrategy.com

CAF

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Enjoy your work. Spend time with your family.

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1300 223 328 (AU) 0508 004 388 (NZ) www.cafe2u.com CAFE2U004 Cafe2U004_BusinessFranchiseMagazine_V1.indd 1

Business Franchise Australia and New Zealand 33 24/11/2013 10:12 pm

sn a pshot: v.i.p. h o m e serv ices

Like father, like son It’s a midweek afternoon and Peter Ault has finished his work for the day. He grabs his bag and heads out of the door to his local football club where he coaches the under 17’s team. Peter has been a coach on and off for the last 20 years, and before that loved playing the game just as much.

Finding the time to balance a family life, work and a hobby that can take so much time isn’t all that easy for most; and that’s where Peter’s V.I.P. franchise business comes into play.

For the past 20 years Peter has owned his

own lawns and gardens franchise with the award winning V.I.P. and has no plans on changing this any time soon. Before joining V.I.P. Peter worked at a well-known bank in the area of commercial lending. Ironically it was a friend of Peter’s who asked him to do a little research into the V.I.P. business model; his friend never joined V.I.P. - but Peter did!

“I had young children at the time, the work in the bank was stressful and I really needed a change. I simply didn’t have enough time for the family or for myself, and wanted to take charge of my financial future. Having the franchise over the 20 years has given me so much more than I would have had just being a number at the bank,” explained Peter before heading out to the football club.

In fact, Peter feels so strongly that he made the right decision all those years ago that his son Michael, after advice from Peter, has now joined V.I.P. with his own lawns and gardens business. “Michael has helped me out with work over the years so understands a little about what running his own franchise might be like. If I had any doubts whatsoever about if it was right for him or not I would of

34 Business Franchise Australia and New Zealand

course have raised them. I would certainly recommend V.I.P. to anyone considering running their own business so didn’t hesitate to do the same for Michael. I was delighted for him when he decided to take the next step.”

Michael is set to follow in his father’s footsteps and cannot wait to get going. “I’ve seen at first hand the lifestyle dad has had with his business. That’s something I’m looking for too. I still wanted to do my own homework as well so went out for a day with another V.I.P. lawns and gardens franchisee which just cemented my decision even further.” commented Michael.

If, like Peter and now Michael, you are interested in finding out more about running your own franchise business or would like to spend some time with an experienced franchisee to give you an impression of what life could be like as a franchisee, simply contact V.I.P. today.

P: 13 26 13 W: www.viphomeservices.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.”

Top Snap has franchisees operating across Australia and New Zealand, and is continuing to grow!

For more information on available territories contact Top Snap TODAY.

1300 TOP SNAP sales@topsnap.com www.topsnap.com

U O Y AREDY TO REA NGE CHAR LIFE? YOU

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“What are my businesses working capital needs?�

36 Business Franchise Australia and New Zealand

“When assessing how much working capital is required to run a business it is critical to clearly understand the trading cycle.”

Jamie Bishop | Partner McLean Delmo Accountants and Business Advisers

What is working capital?

Working capital in its simplest form is cash that is used in a business. It can also take the form of current assets and liabilities such as stock, debtors and creditors. These items are not cash but will be turned into cash during the trading cycle. Working capital is the lifeblood of any business.

Working capital is closely linked to the concept of cashflow. Working capital is the cash that flows through the business during the trading cycle. The trading cycle varies widely from business to business.

When assessing how much working capital is required to run a business it is critical to clearly understand the trading cycle. For a retail business the trading cycle may look like this: 1. Receive stock on credit terms (Creditors) 2. Pay wages and other expenses

Where does working capital come from?

Working capital may be raised in four ways: 1. Cash invested by the proprietor 2. Money borrowed from a financier 3. Cash generated from business profits 4. Cash generated by reducing the amount of working capital required to fund the trading cycle.

Successful businesses place a high priority on the fourth method. Reducing the working capital required to fund the trading cycle will result in what is often referred to as ‘free cash’. This may be achieved by: 1. Reducing the level of stock / WIP held 2. Reducing the period of time stock / WIP is held before it is sold / invoiced 3. Collecting debtors quicker

3. Sell stock on credit terms (Debtors)

4. Paying creditors slower.

4. Pay Creditors

These strategies are the easiest and most immediate ways to improve the cashflow position of any business.

5. Collect Debtors.

In a non-retail, service or manufacturing business, stock will be replaced by work in progress (WIP). The length of time taken to complete this cycle will vary significantly from business to business. Generally speaking, the shorter the cycle the less working capital that is required.

How much working capital does a business require?

Typically a business needs enough working capital to fund one full trading cycle. That is the cash that must be expended to supply the goods or services prior to collecting the revenue from the customer. Once collected, some of these receipts will be re-invested as the working capital required to fund the next trading cycle. In this way the working capital continues to circulate through the business. It is important that some additional working capital is set aside to fund various contingencies which occur from time to time.

Funding growth

Working capital (cashflow) forecasting A working capital forecast is generally referred to as a cashflow forecast. A cashflow forecast is a component added to the end of a budget forecast. A budget is a forecast of a business’s profit position, usually completed on a monthly basis for each financial year in advance. The cashflow component uses the budget figures to estimate a bank balance at the end of each month. This is achieved by adjusting the profit for movements in debtors, creditors and capital items during the period.

It is important to understand profit is not the same as cashflow.

The main purpose of the cashflow forecast is to ensure the business has sufficient working capital to trade through the budget period.

Many profitable businesses have failed due to insufficient cashflow.

Growth can be very difficult for a business to manage. An increase in business activity usually leads to more working capital being tied up in the trading cycle. This increase in working capital must be funded from somewhere. A key component in funding growth is the four strategies outlined above to reduce working capital required to fund the business cycle. It is often working capital that limits the speed at which a business may grow. Experience tells us that many businesses who are unable to properly manage growth fail.

Working capital is a critical component to all businesses. It must be carefully managed to ensure the business has sufficient funds to trade. A cashflow forecast should be prepared in conjunction with the budget.

Successful management of working capital will enable a business to grow and take advantage of opportunities in the future. If you have concerns in respect to managing working capital you should consult your financial advisor.

Jamie Bishop is a partner and head of the franchising division of Melbourne firm, McLean Delmo Accountants and Business Advisers. Jamie has over 14 years’ experience in public practice, specialising in business structuring, franchising, management consulting and business valuation.

McLean Delmo is a leading provider of accounting advice to franchise businesses in Australia. The team includes progressive accountants, financial planners, auditors, mortgage brokers, tax and other specialists.

Contact Jamie at: P: 03 9018 4604 E: Jamie.Bishop@mcleandelmo.com.au W: www.mcleandelmo.com.au

Business Franchise Australia and New Zealand 37

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38 Business Franchise Australia and New Zealand

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e x pert a A dv ice

s l a o g s e t t i ng

to win

How to set and achieve realistic goals to take your business forward.

The problem with goals As a business coach, one of the hardest things to do is not to get your clients to want something more for their business, but to get them to actually believe that the goals we set might really happen one day.

You see, almost no one has experience with setting goals – fitness goals, diets, New Year’s resolutions – and actually achieving them.

If you’ve never genuinely set out to do something and then done it, believing in yourself can be difficult. But there is hope!

Taking stock of what will be reasonable and suitable for you and your business is the

secret to experiencing the satisfaction (and rewards) of regularly achieving your goals.

Deciding what you want If no-one’s ever asked you, it’s quite possible that you have literally no idea of what you want.

The most direct way to set goals for your business that are going to make you work – and make you happy – is to go through some key areas and try to paint a picture of what your ultimate scenario would be.

The exercise: Set aside any disbelief in what you can do. Sleep on the following questions (you, your partner and anyone else

40 Business Franchise Australia and New Zealand

important). Answer them as thoroughly as you can, and from your heart by what’s really important to you when all is said and done.

The answers will give you the end point, and from now on all your goals will be steps closer to that.

1. What would make you feel completely secure, that you would never again have to worry about money?

2. What will your ultimate leisure time be like? What will you do, what will you own, where will you go?

3. What will a normal work week look like?

What will your job be and what sort of hours will you work?

“It is amazing how just by having a quarterly ‘to do list’ for your business and life can make a difference.”

Katherine Grace | Director Graceful Solutions Marketing

4. Retiring with the business still paying you a wage 5. Only being the general manager and checking in on the business from time to time 6. Buying at least one investment property for each child 7. Buying a second franchise, new location etc 8. Taking a holiday every six months, one a year overseas.

Once done, set a time frame on making it happen (3-10 years for big, big ones, depending on how ambitious you are) then break each goal down into what needs to happen in Year 1, 2 etc. Scale the markers as you can reasonably expect that things will get easier as you get more successful! For example, if your goal is to pay off a $600,000 mortgage, you might aim to pay off $75,000 in the first year, then $100k year two, etc.

By the by, this is essentially the key aspects for a really good business plan.

Breaking it down further, take all the Year One goals and work out what needs to happen in each quarter to achieve each of them (this part you may need help with, if your knowledge about areas such as marketing, systems, recruitment etc doesn’t give you a clear idea of the best plan). The smaller the chunk, the easier it will be to achieve and the more inspiring it will be to go on.

5. What will your year be like? When will you take breaks and for how long?

You should also look at some specific goals that make your business one of the best in its industry (and a good bet for potential buyers).

Your accountant can also help with these as they often have industry standards at hand.

6. What will people say about your business?

What will its reputation be?

1. Net Profit (generally over 12 per cent for my clients)

4. What sort of people will you have in place to do the things you don’t want to?

Other goals that might help By way of a starting point, here are some common goals that many business owners end up including in their plan. Feel free to plagiarise at will.

1. Building or buying your own factory/shop 2. Paying off the business loan, tax debt or mortgage, and being debt free 3. Selling the business at a large profit.

2. Stock Margin or Gross Profit percentage 3. Turnover

What is on the plan dictates what you get when you finish it, so spend time and get advice if needed to ensure you are working in the right direction and doing things that will make the biggest and fastest improvement.

We work in quarters of three months each as this is the perfect amount of time to get something worthwhile done without losing momentum. At the end of the quarter, review the plan and strike off or move forward anything not yet done, then regroup and write a new plan with your situation and end goals in mind.

4. Paying good wages.

Prioritising tasks

Breaking it down Once you have your end goals, the first step is to truly believe they are possible for you.

Many people have achieved all you dream of and more - so the only thing stopping you is either a lack of knowledge or a lack of motivation.

Try to keep your goals clear and your action plans simple, so that you aren’t overwhelmed into inaction.

Take each quarterly list and prioritise your tasks according to: 1. What will make you money

Business Franchise Australia and New Zealand 41

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“You should also look at some specific goals that make your business one of the best in its industry.”

2. What will save you money 3. What will save you time

is for many, build a few fail-safes into your goals plan.

4. Everything else.

Staying on track

*As a general time management tip, if you are ever overloaded take five minutes to jot down everything on your plate and sort according to the above (rather than trying to get all the easy ones done first which invariably takes up the day).

The biggest reason why people don’t achieve their goals is because they don’t have a plan.

The second biggest is not following the plan – whether it be due to distraction, lack of motivation, being side swiped by external factors, etc.

Knowing your limits

An accountability measure therefore needs to be built into every action plan if you hope to achieve your goals. This can be a coach, a mentor, a family member or another business owner, as long as they have the brief of holding you to your plan no matter what. You should review your quarterly plan at least weekly, and provide a status report to your accountability person at least monthly.

Don’t set yourself up for failure. If you absolutely hate numbers then making doing the books daily a key part of achieving your goals may not be the best idea.

I am always telling people to play to their strengths. Why spend all your time trying to improve your weaknesses when you can gain far more, far more easily by improving on your strengths? You will also enjoy working a lot more which is a big motivator!

Insist that part of your plan is to hire or contract the people to specialise in the areas you don’t love or are no good at. And if keeping focused is a problem for you, as it

It is amazing how just by having a quarterly ‘to do list’ for your business and life can make a difference. Working towards something special to you makes business interesting again and shows you that you control the future and what it contains.

Without goals you are simply passing

42 Business Franchise Australia and New Zealand

through time with your business and hoping for more, with them you are taking time by the horns and making it work for you and your family.

A former CEO for the Jim’s Group, Katherine has over 18 year’s experience in franchising. She has worked with many brands, been a successful ActionCOACHfranchisee (#14 in the world) and was runner-up Franchise Woman of the Year in 2010.

Graceful Solutions offers marketing coaching to ‘control the tap’ and ensure the phone is always ringing with new business. It is best suited to small businesses and franchisees who need help with the ideas but would be happy to do some of the work themselves or get their team involved, rather than facing a hefty bill to an advertising agency.

Phone: 0400 865 277 Email: Katherine@gracefulsolutions.com.au Web: www.gracefulsolutions.com.au

FE ATURE

health, beauty & fitness

Feature

Business Franchise Australia and New Zealand 43

FE ATURE

A HEALTHY BOTTOM LINE Whether you simply want to join these growing industries for the financial returns or you enjoy a healthy lifestyle and keeping fit, then look no further than franchising to provide you with a multitude of exciting business opportunities.

Appearances count. It’s a fact. And as a result, the health, fitness and beauty industries are booming. Health, beauty and fitness franchises are attractive businesses that are guaranteed to make you feel good!

Franchising has proven to be a fantastic format for successful businesses across these growth areas. People are becoming more aware of the benefits of maintaining a healthy lifestyle, and have the desire to take better care of themselves than ever before.

The health, beauty and fitness industry covers an enormous choice of businesses, ranging from gyms to spas, to hairdressers and a wide range of beauty services including nails, hair removal, and male grooming.

Keeping in shape, being healthy and well-groomed can make you feel vibrant and attractive, on the inside and out. Fit and healthy people radiate happiness, self-confidence and vitality. Likewise, owning a customer-focused franchise that helps to promote a sense of well-being and happiness can be just as rewarding, not to mention lucrative!

Expanding waistlines The number of people who are overweight in Australia continues to rise according to the Australian Bureau of Statistics.

The 2011-12 Australian Health Survey - the largest check up on the nation’s health ever undertaken - found that nearly two-thirds (63 per cent) of the population are now classified as overweight or obese.

Men are more likely to be overweight or obese (70 per cent) than women (56 per

44 Business Franchise Australia and New Zealand

FE ATURE

Franchisors are looking for people who are passionate about what they will be committing a large part of their lives to.

cent) while one quarter (25 per cent) of our children are overweight or obese.

With these staggering figures, it’s no wonder that fitness franchises have experienced rapid growth over recent times.

Two of the top three on BRW’s fast franchise 2014 list are fitness outlets with Jetts Fitness at number two, and Anytime Fitness coming in third. Indeed, five of the top ten are health, fitness or beauty related with the top ranking taken by beauty based franchise Laser Clinics Australia.

Many franchised gyms, in varying formats, have experienced similar success in recent years.

Improving your bottom line In recent years, franchised gyms have experienced outstanding success as people become more and more aware of the importance staying active and looking after their physical wellbeing.

Added to the mix are 24 hour gyms -catered specifically for our busy lives, single sex gyms and more - and you have a sector of franchising that has boomed across the country and the world.

Check out the figures

• about $292 million on dietary supplements; and

Big business

• about $121 million on surgery.

The Australian Fitness Industry Report 2012 (by Deloitte Access Economics for Fitness Australia) highlights some key statistics: • Among Australians, aerobics, fitness or gym workouts are now the second most popular physical recreational activity after walking.

• Over four million Australians participate in fitness industry activities.

A report released by IBISWorld states Australian fitness industry revenue of $2.9 billion and estimated to reach, over the next five years, $3.4 billion. Australians are expected to spend:

• Users are typically female (42 per cent) and younger (25-34 years).

• about $1.7 billion on gyms and personal training;

• Looking forward, participation will continue to increase exponentially with total demand increasing to 7.15 million users by 2020.

• about $380 million on weight-loss services;

• The biggest increase in users was from the 45-54 year age group.

The beauty business is big business. These days, people are spending more money on beauty than ever before, and the industry is constantly growing and evolving.

Women have always loved to be pampered and preened, and now with ‘man-scaping’ rising in popularity it’s men too who like to be buffed and waxed – not just their cars!

Just about every aspect of the beauty industry is covered by franchising. From teeth whitening to cosmetics, hair dressing, manicures and pedicures, massages, waxing, tanning, and all the beauty products to keep you looking great, there’s a business opportunity out there for you.

Perhaps you have been a beauty therapist working out of a salon for many years; now may be the right time to build your own business based on a tried and tested successful formula offered by a franchise.

According to an IBISWorld report (Hairdressing, Beauty Salons Market

Business Franchise Australia and New Zealand 45

FE ATURE Perhaps you have been a beauty therapist working out of a salon for many years; now may be the right time to build your own business

Research Report) key success factors for operators in the industry include: • Having links with local health professionals. Beauty salons can benefit from client referrals from local doctors and dermatologists.

• Use of specialist equipment or facilities.

Having specialist equipment enables salons to provide value-added, higherpriced services.

• Proximity to key markets. It is an advantage to be located in a high profile, preferably wealthy area with significant passing pedestrian traffic and easy parking.

• Having a loyal customer base. It is important for a salon to build up a base of satisfied clients, to ensure repeat visits and attract new customers through good word-of-mouth.

• Ability to control stock on hand.

Controlling stock levels, particularly hair-care and beauty products, is important to maintain the liquidity and cashflow of the business.

• Superior financial management and debt management. Financial and business management skills are vital to ensure

46 Business Franchise Australia and New Zealand

Once you have made the decision about which industry is right for you, the next step is working out whether you can actually afford it!

You must then get with your franchise banker and put together a realistic sum of money you can afford to put into this new venture. This will most likely weed out some systems quite quickly – as the larger, more well-known fitness names come with a hefty price tag. They are strong, tried and tested and have proven success stories – but you must truly be able to afford to buy into them.

Once you have an amount in mind, you can begin to shop around. You will be able to narrow down your search, but don’t rush. If you get to your short list, it is time to direct all your attention to the franchise system and the franchisor.

Know your franchisor cashflow and the survival of the salon.

• Access to highly-skilled workforce.

A salon depends on the skill of its hairdressers and/or beauticians.

Maintaining and updating skills is important to stay abreast of new hair styles and beauty treatments.

• Marketing of differentiated services.

Salons can move away from price based only competition by offering quality, value-added and higher priced services.

An alternative approach Alternative health therapies are also becoming increasingly popular among people searching for alternatives to prescription medicine, which has resulted in an increase in the popularity and use of herbal remedies in recent years.

Financial figures showed the sector, which includes Chinese medicine, acupuncture and other therapies to grow by around six per cent per annum over the next five years.

According to the Australian Trade Commission; “The Australian natural (complementary) healthcare industry has domestic sales of over $1 billion per year.

Market research shows that the popularity of natural healthcare products is increasing with a growth rate of seven per cent year on year. Three-quarters of Australians, including 92 per cent of women aged 2024, take at least one dietary supplement and a quarter of the population visit

complementary healthcare practitioners each year.

The Australian industry continues to grow to meet these requirements. Already attuned to alternative approaches to health, discerning baby boomers (Australia’s largest population group) increasingly demand greater choice and adopt a preventative healthcare approach to maintaining healthier lives. In Australia, the fastest growth areas are nutritional oils, men’s health and eye health.

Making the right choice The decision to purchase a franchise is no doubt a difficult one, and with so many successful offerings out there on the market, how do you decide which one is right for you?

Passion for the industry is an obvious must. Franchisors are looking for people who are passionate about what they will be committing a large part of their lives to. If you already love to spend time at the gym, enjoy exercising and living a healthy lifestyle, then that passion for the industry will be a great back bone for building a successful business.

Becoming a franchisee could be a great step towards improving your lifestyle. Once you’ve done the hard yards in establishing the business it could give you more opportunity for flexibility to work around family life, or other commitments.

The management system, the operational procedures, the leasing agreements, the contracts, and the fees have been generated by the franchisor. Check the franchisors background – is it solid? Meet with him or her. Do they seem to be a person of integrity? Do they answer all of your questions openly and honestly? Do they invite you to do your own investigations into the company? Are they eager for you to talk to existing franchisees?

If at any point you feel pushed, rushed, bullied or even ignored by the franchisor – it is time to consider walking away.

Hopefully though, the franchisor will be professional, honest and open.

The next step is to meet with existing franchisees. While it’s fine to have all the manuals in place and have the franchisor tell you how great and successful the business may be, it’s the franchisees that have the real story. Visit them in their place of business, ask questions, and ask their employees if they enjoy working there.

The hard work begins!

Once you have made the decision to purchase your franchise then the hard work really begins, and that’s where your passion and drive to succeed will be vitally important.

So if being healthy, looking great or keeping fit is something that will get you out of bed every day, ready to work hard at growing your business then perhaps a franchise from one of these exciting growth areas is the one for you!

FE ATURE

Is the price right?

FE ATURE

Australia n Sk in Clinics

Coming of Age After celebrating their 18th birthday in September, Australian Skin Clinics have honed their experience, skills, and systems over the years to such a level that savvy investors, company team members and even current franchisees are vying to be the next in line for new franchise opportunities.

some as multi-franchise owners) and many who have expressed an interest in starting their own Australian Skin Clinic in the future.

Founded in Ashmore in 1996, Deb Farnworth-Wood had a greater vision for the company and knew there was a great opportunity to develop a system and business model that could be replicated in various locations.

With clinics established in Queensland and Victoria, and an imminent presence in New South Wales, Australian Skin Clinics are heading towards market dominance in this highly competitive industry. What sets Australian Skin Clinics apart from others is that all treatments are highly effective, clinically tested and proven.

Belief in the vision General Manager, Nicki Wright says it is amazing the support the company’s 150 plus team members have given to achieve Deb’s vision, with team members becoming franchise owners themselves (including

Deb Farnworth-Wood

“The franchise model developed by Deb at Australian Skin Clinics sets it apart from its competitors. In 2011, the first franchise was opened by a senior team member, who begged to be the first franchisee and is now subsequently opening her second clinic next year.

“We have 14 franchisees and another clinic scheduled to open in November, by a team member who originally joined as a technician. Our franchisees share our belief and passion to provide leading edge and medically proven treatments in a professional environment.”

Premier skin clinics

The head office is situated in Queensland, which has the most stringent licensing regulations for laser procedures in the country. Australian Skin Clinics have developed a standard that exceeds those requirements, setting the highest benchmark compared with others within the industry. This high benchmark is used throughout other states where regulation and licencing is not as stringent and ensures the clinics offer the highest quality treatments, but at affordable and competitive prices.

Therapists within the clinics are highly trained, experienced and offer a range of non-surgical procedures such as laser hair removal, fractional radio frequency with dermal stamping, laser rejuvenation for pigmentation and redness, acne treatment and cosmetic injectables. The company is supported by a Medical Director and medical advisors to ensure their standards remain the highest and their procedures most effective, always considering new and upcoming technologies and procedures.

48 Business Franchise Australia and New Zealand

Above and beyond In an industry that’s increasingly more competitive, one of the key areas that sets Australian Skin Clinics apart from their competitors is the training and development offered to franchisees and team members.

Nicki continues, “Whilst we have always had our own training facility, we have recently launched our own training academy called The Aesthetic Academy.

We found this important to continue to deliver the highest quality treatments in the industry, by making sure that the training our team members receive is outstanding.

We know this truly sets us apart from others in the industry.

“A lot of training programs for technicians in our industry are predominantly theory based, whereas the training we provide at Australian Skin Clinics is 90 per cent practical hands on training, which we feel is critical to maintain high standards in treatment delivery. When we open a new clinic we provide a six week training course which includes management training and a two week in-clinic support system starting on the first day the new clinic opens the doors.”

All team members have an in-depth training schedule set for them with competency based measures set in place, so team skills and knowledge are constantly supported and developed. The company values career progression within a clinic environment and there are always various specialisation opportunities for ambitious team members wanting to learn and do more.

Becoming a franchisee An Australian Skin Clinic franchise offers you the benefits of being your own boss, while being part of a highly organised, well-structured business with ongoing support.

If you are forward thinking, looking for business growth and able to drive performance, contact Nicola Connolly on: P: 07 5509 0000 E: Nicola@ozskin.com W: www.ozskin.com

Be Part of a Leading Cosmetic & Aesthetic Franchise Brand Australian Skin Clinics have been at the forefront of the industry since 1996 as a highly reputable leading aesthetics brand. We provide affordable & highly effective laser & skin treatments, together with cosmetic injectables, acne programs & skin care.

Our Unique Benefits: Centralised marketing Accredited training programs & ongoing development Medical Director & Advisors Tried & tested protocols, procedures & standards Superior clinic design & fit-out Highly organised systems & software Options include partial or full franchise ownership + many more benefits

For more information visit www.ozskin.com/franchise | Ph 1300 303 014

feature

FRANCHISE OPPORTUNITY

FE ATURE

El l a Bach é

In the skin business

The Ella Baché story started in 1936 with revolutionary cosmetic chemist, Madame Baché, a modern woman who knew that improving the condition of a woman’s skin could not only improve her overall appearance, it could also unleash her inner radiance.

Madame Baché recognised that the standard way of diagnosing skin types by dry, oily or normal was over simplistic.

Instead she moved skincare into a new era, where solutions were individually tailored based on the skin’s condition on a cellular level. This philosophy still underpins everything Ella Baché does today.

Ella Baché has become a uniquely

50 Business Franchise Australia and New Zealand

Australian story thanks to the inspiration of Edith Hallas. Married to Madame Baché’s cousin, Edith brought Ella Baché to Australia in 1954, creating one of Australia’s most enduring and respected skincare companies.

Now in their third generation of family ownership, and sixty years since launching a small range of French products, they boast the country’s largest franchise network with their products and services available in over 156 salons nationwide and 35 David Jones stores.

ALWAYS EVOLVING Investing heavily in developing diagnostic tools that are the best on the market and using technologically advanced devices, including TrUView, exclusive to Ella Baché, beauty therapists see below the surface of every customer’s skin to identify skin conditions quickly and accurately.

Potential problem areas are revealed so they can be treated long before they surface and become visible to the naked eye and each diagnosis is complemented by a treatment solution that addresses the specific needs of the skin.

fe feature at u r e Employing an Australian team of researchers to create products that cater for the needs of Australian skin and with a belief in natural ingredients and not testing on animals, their search for new skincare solutions is ongoing.

JOIN AN ESTABLISHED BRAND The beauty industry is ever changing and exciting, and the rewards are abundant.

Helping customers glow with a newfound confidence is an endless thrill, and the opportunities to keep learning and developing are boundless. When you’re part of the Ella Baché family, these rich benefits and opportunities are revealed in all their glory.

There’s no secret to the enduring success of Ella Baché. In essence, the brand reflects the traits Australians tend to value and admire most, like authenticity, curiosity, hard work and confidence. They’re also a family affair –taking care of each other.

As a franchise owner, you can expect the ongoing support and training you need to create the vibrant new lifestyle you want.

If you love all things beauty and skincare and you’re committed to continuous improvement, you’ll fit right in.

Ella Baché are leaders in skincare products, salons and education in Australia because they attract leaders. Their business has always been based on understanding and respecting individuals, which means they get the best out of their own people.

Every person within the network is valued and recognised as being one of their most valuable assets and in order to stay competitive they need to stay at the cutting edge, and it’s their people who keep them there.

Most of the people who run Ella Baché franchises were clients who loved their experiences with them and jumped on board. While many are qualified beauty therapists, many are not. What unifies them is a belief in the philosophy, a readiness to learn, and a desire to change their lifestyle.

“Joining the Ella Baché family means learning from our inspiring history and contributing to our exciting future. It means you won’t settle for anything but the best.” Pippa, CEO, Ella Baché.

SUPPORT AND TRAINING Your success is Ella Bache’s success, so you are provided with an array of market leading tools, resources and services to give you a boost wherever you need it.

6. Business Benchmarking

1. Marketing Support

The Ella Baché brand is embedded in the Australian beauty landscape, it’s trusted, respected and well known. You receive comprehensive marketing support, including; top line brand awareness campaigns, social media toolkits, monthly promotional plans, localised marketing material, cooperative advertising and generous rebate programs.

Ella Baché is the first and only company to offer salons a new and exciting way to communicate with their customers.

Virtual salons are personalised websites that allow customers to browse your menu of services, check out your special offers, book an appointment online and more. Owners are provided access to make live web updates, check user statistics and send e-newsletters directly to their subscribers list.

An easy to access online location for all franchisee services, online resources and business management tools, including manuals, advertising templates, image libraries, training videos and more.

One of the many benefits of owning an Ella Baché salon is the ongoing training that you and your team will receive.

An energetic and expert team of field trainers are responsible for coaching and training your salon team so they deliver superior service and treatments.

As a franchisee you will have access to regular in-salon training that focuses on your team’s individual training needs and, to keep your experienced beauty therapists engaged, they are also offered advanced skin seminars.

As a new salon owner, you will be provided with all the training support you need to prepare your team for a successful opening day and a vibrant future.

A rebate is provided to salon owners for online sales, with customers directed into salons post-purchase.

5. Recognition

Passion and hard work are prized at Ella Baché, who love to see beauty therapists, salon teams and salon owners glow with pride when they’re recognised for their outstanding achievements with incentives like international travel, training and bonuses.

The annual ‘Ella Awards’ is a glamorous event that applauds the performance of top salons and selects individuals in

Communication is key to maintaining a healthy and constructive relationship with salon owners. The Franchise Advisory Council promotes open and two-way interaction, and actively seeks out ways to improve the transfer of information and promote all the support that’s available to you.

9. Training

4. Online Retailing

Each year, salon owners are offered the opportunity to attend the conference which offers business tools to improve operational efficiency, ideas to inspire business development and opportunities for professional growth through networking.

8. Franchise Advisory Council

3. Media Centre

The family oriented nature inspires salon owners across the network to share business and management intelligence, performance tips, best practice protocols and margin strategies to achieve greater returns. You have the opportunity to share your challenges with fellow salon owners, to learn how they’ve coped in similar circumstances and share your solutions to help your peers grow

7. Annual Conference

2. Virtual Salon Website

Does that sound like you?

Franchise opportunities don’t come more nurturing than this. Ella Baché are in the business of providing women with a look, feel and experience that’s second-to-none, whether they’re customers or franchisees.

each state for their performance and commitment.

Business Franchise Australia and New Zealand 51

FE ATURE

El l a Bach é

“The contemporary look and feel of the salons plays an important role in the perception Ella Baché customers have of the brand.”

10. Education

The Ella Baché College of Skin & Beauty Therapy is among the most highly respected education providers of its kind in the world. 98 per cent of graduates find employment within the industry.

Therapists can gain qualifications and units of competence for new procedures and techniques through ongoing postgraduate training. It is also an invaluable asset to salon owners in fulfilling their salon staffing requirements.

With a state-of-the-art facility in the centre of Sydney and over 50 years of training and education, it’s the best place to learn to become a beauty therapist. The college is nationally and internationally accredited as a Registered Training Organisation and it’s also an Educational Sponsor of the Advanced Association for Beauty Therapists (AABTH), the beauty industry’s premier professional beauty association. They even offer a distance education program called Stellar Learning, which allows pupils to study off-campus and at their own pace.

A GLOWING FUTURE When you join the Ella Baché family, you are provided with a dedicated Business

Manager to give ongoing support and training, as well as business coaching, planning support and guidance on how to effectively market your salon.

Your targets will be easier to meet and your business will be easier to manage with their continued motivational support and advice, which includes in-salon business coaching; regular face-to-face business planning support; help to create and implement marketing plans; in-salon sales training and advice on promotional activities and help to maintain high standards in customer service, presentation and practice standards with independent benchmarking

SUPERIOR SALONS The contemporary look and feel of the salons plays an important role in the perception Ella Baché customers have of the brand so, not only do they offer the ultimate in salon design, they also assist you to bring it to life at your site. From your shopfront, to your waiting area and treatment rooms, you are guided through the salon design process so your appearance matches the superior experience awaiting the customer inside. With a recommended salon size of 85sqm, ideally consisting of

52 Business Franchise Australia and New Zealand

four cubicle treatment rooms, Ella Baché also ensure that your site is compliant with all Australian standards and regulations.

In-house design support is offered to assist with initial site measurements, preliminary concept and drawings with a unique and attractive conversion model in place for non-Ella Baché salon owners looking at joining this prestigious and profitable brand.

MAKE IT HAPPEN The Ella Baché approach is tried, tested and proven, and they’re eager to share it with you if you’re as committed to providing results-driven skin care and beauty therapy as they are.

The path to becoming an Ella Baché salon owner is packed with considerations and decisions, and they’re with you all the way to answer questions and help you decide if salon ownership is right for you.

If you’re passionate about skin and interested in salon ownership, visit the website to learn more about franchising opportunities.

W: www.ellabachefranchise.com.au

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

HAIRHOUSE WAREHOUSE is Australia’s leading hair & beauty WAREHOUSE brand, with plans to expand its network HAIRHOUSE is Australia’s leading hair by 20% over the next across the nation. & HAIRHOUSE beauty brand, with plans3to expand itsleading network WAREHOUSE isyears, Australia’s hair We are looking for passionate peoplethe with ahair desire HAIRHOUSE WAREHOUSE is Australia’s leading by over theWAREHOUSE next 3plans years, across nation. & 20% beauty brand, with to expand its network HAIRHOUSE is Australia’s leading hair HAIRHOUSE WAREHOUSE is Australia’s leading hair to strive for results and take control ofa their own &by beauty brand, with plans topeople expand itsthe network We are looking for passionate with desire 20% over the next 3plans years, across nation. & beauty brand, with to expand its network & beauty brand, with plans to expand its network destiny.

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FE AT U R E

J e tts Fi t n ess

live the dream with jetts The Jetts story began in 2007 when Sunshine coast couple, Brendon and Cristy Levenson, introduced the 24/7 no-lock in contract club model to Australia. Their idea was to build a gym model based solely around customers.

Seven years later, Jetts has more than 250,000 loyal members and more than 250 clubs across Australia and New Zealand. Jetts clubs provide an alternative for gym goers who want to avoid limited opening hours, busy clubs, heavy sales tactics and high membership fees.

Jill Bingham and Warren White

54 Business Franchise Australia and New Zealand

The Jetts model Brendon and Cristy created includes a small staff infrastructure, with the removal of the frustrations members used to typically experience in what we call the big box clubs like locked-in contracts, paying for facilities which the majority of members don’t utilise including saunas and crèche facilities.

Jill and Warren’s story In 2009, the Jetts model grabbed the attention of long time personal trainers and dynamic duo Jill Bingham and Warren White. Jill and Warren became a part of Jetts in 2009 with their first club in Peregian on the Sunshine Coast, and opened their second club not far away in Coolum in 2012. Before joining Jetts, Jill and Warren were both PTs for other gyms.

Jill is also a qualified chef and Warren is a professional outrigger racer and a marine mechanic.

Working as PTs for competitor gyms, Jill and Warren weren’t quite satisfied working in someone else’s club, so they decided to open their own club. “Warren was already a business owner prior to starting with Jetts so that helped with running the business side of things. However, the fact that we were both fully qualified PTs really helped us because we knew those insights prior to opening. We knew what machines we

fe feature at u r e “Jetts can be a semi-passive investment where business owners have the freedom to keep their day jobs.”

wanted in our club and knew what sized club we wanted. We could step in and do orientation for members and train people.

Even down to the cleanliness of our clubs, we knew what we wanted our club to look like,” Jill said.

Jill explains that they chose to go down the franchise path because of the support systems in place at Jetts. “We felt that opening a Jetts club would give us the best opportunities and support. Support really sums it up. We didn’t know how to run our own club at first however the support we receive from Support Office is amazing.

As Jetts grows, the support just gets better and better. The culture within Support Office is so fantastic that no matter how busy everyone is, they’re always willing to help you out if you have questions or need a favour,” Jill said.

Jill and Warren have found, although running two clubs seems like a time consuming task, they have a great work life balance. Although Jetts can be a semipassive investment where business owners have the freedom to keep their day jobs, Jill and Warren have taken a very handson approach to the running of their clubs.

“We’re very engaged with both of our clubs.

It’s very flexible as we can choose what we do and when we do it. We work a lot of weekends but then don’t work as much

during the week,” Jill said.

Becoming a business owner

Jill and Warren are very involved in the local Sunshine Coast communities and as a result, were awarded the Jetts Community Spirit award for the last three years in a row. “We get such a kick out of helping out with community events and raising funds for charities. Yes, it helps with branding but we love the warm and fuzzy feeling we get out of doing it,” Jill said.

Jumping into the deep end and becoming a business owner is definitely a big decision, so here is a snap shot of what it looks like with Jetts.

Throughout their time at Jetts, Jill and Warren have been a part of many events such as the Zoo Run, which raises money for the Wildlife Hospital, the 65km for Cystic Fibrosis, The Jetts Coolum Classic, and local fundraising opportunities for community members. “All of these events are always more about the charity or the cause – it’s not about the clubs, we just want to help out,” Jill said.

“We get so much back from the community when doing them. They are a lot of work but we love doing it, and we have managed to create and surround ourselves with a great team who love to help out.”

Jill and Warren’s lives have been changed drastically since becoming Jetts business owners. Warren said, “It’s a way of life we’ve discovered. It’s what we do and we love it.”

Those who become business owners receive strong support from the Jetts Support Office. Everyone from the Business Performance Managers on the ground, up to the experienced Executive Team are there to provide business owners with guidance from day one. This is evident in the strong multi-club representation – many Business Owners don’t just stop at one club, with some owning three, four or five clubs, and some with more than 10.

Jetts was awarded Canstar Blue 5 Star Rating for customer satisfaction 2012 and 2013, making Jetts the number one gym chain in Australia for customer satisfaction two years running. Jetts was also crowned number one on BRW’s Fastest Growing Franchise list 2012 and the number one Fitness Group on BRW’s Fast Franchise list 2013.

For more information on owning your own Jetts franchise, contact: W: www.jetts.com.au FB: www.facebook.com/jettsfitness T: http://twitter.com/jetts247

Business Franchise Australia and New Zealand 55

FE ATURE

J e t ts Fi t n ess

a flying partnership Austr alian pioneers of 24/7 no lock-in contr act gym concept Je t ts celebr ates an Austr alianfirst partnership with Velocit y Frequent Flyer Leading 24/7 fitness group, Jetts, has revealed a three year partnership with Velocity Frequent Flyer, the award-winning loyalty program of Virgin Australia.

The Australian-first partnership sees Jetts become Velocity’s first official fitness partner enabling members to earn Points with Jetts Fitness.

Benefits will include the ability to earn two points for every dollar spent on Jetts’ membership payments and one-off club access fee. Additionally, Jetts members who visit a Jetts gym five or more times each month will earn 60 bonus Velocity Points.

The partnership will also generate the largest Velocity Frequent Flyer Points earn opportunity currently available. As part of the launch, Velocity Platinum, Gold or Silver members who purchase a Jetts

franchise will earn 500,000 bonus Points.

you burn so to speak,” said Mr Gokani.

Jetts CEO Martin Oliver (pictured above) said the decision to partner with Velocity is the result of 12 months of planning and discussions. “We want to put our members’ needs first to ensure they continue to get the most out of their membership. By partnering with a leading Australian loyalty program like Velocity Frequent Flyer, we can ensure Jetts members’ experience continues to be nothing but rewarding,” said Mr Oliver.

Velocity Frequent Flyer members interested in joining Jetts should do so during the launch offer period. New Jetts members will receive 3,500 bonus Points when purchasing an Annual Membership, or 750 bonus Points on their first Freedom direct debit payment from 13 October to 30 November 2014 and again from 1 January to 28 February 2015.

Velocity Frequent Flyer General Manager Sid Gokani said, “This Australian-first partnership is another example of the program’s ongoing quest to add meaningful partners and reward its members on everyday spend.

“At Velocity, we are proud to provide members with an extensive portfolio of partners across a range of categories, and from today, this will include our first fitness partner. We recognise the importance of health and well-being to our members and we are thrilled to welcome Jetts to the program, offering the ability to earn while

56 Business Franchise Australia and New Zealand

Points can also be redeemed for a one month membership and an advance 12 month membership on the Velocity Online Rewards Store.

The Velocity partnership further solidifies Jetts position as the number one fitness chain in Australia for customer satisfaction and Australia’s leading 24/7 fitness group.

Jetts currently operates over 250 clubs across Australia, New Zealand and the Netherlands.

For more information contact: W: www.jetts.com.au FB: www.facebook.com/jettsfitness T: http://twitter.com/jetts247

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 CGB’s website also provides an additional advertising and information format and complements our publications.

www.businessfranchiseaustralia.com.au

FE ATURE

Just L ashes

serious

Eye Candy Just Lashes are a specialist beauty salon focusing on Eyelash Extensions - a vibrant, young trend that is already proving popular around the world with a large following of ‘Lash Addicts’.

Catering mostly to women of all ages and a diverse demographic, Eyelash Extensions create length, thickness, curl and colour and results in a remarkable enhancement to the appearance of the face. Not to mention the time saved applying mascara and the confidence boost! Just Lashes call it ‘serious eye candy’.

Currently the only eyelash extension franchise in Australia and an extremely loyal client base, the industry is starting to boom and Just Lashes is at the forefront, continuing to stand out as leaders in their field.

Just Lashes started eight years ago with their first franchise opening late 2010 and has 5 locations across NSW and VIC. The Newcastle franchisee was very successful and in July 2014 took over the whole group with her Business Coach, creating a dynamic team passionate to help others succeed in this exciting industry! They have remodeled the franchise to make it more focused to the success of the franchisee and are now rolling this out across all states and territories in Australia, even taking enquiries from overseas. There is a comprehensive training program when you come on board which totals a solid five weeks to help fast track the franchisees to learn all the skills they need to grow their business.

The core focus at Just Lashes is Eyelash Extensions, they do it all day every day and that’s why they do it best! They have mastered the art of workmanship, scoured the world sourcing the best quality products and have developed a system that’s proven to work over and over again. The industry is forever evolving, with new techniques and regulatory standards higher than ever, Just

Lashes stays on top through an eye for new trends and international connections.

Just Lashes now offer four exciting models meaning there’s sure to be an option for you no matter what your budget is, which starts at around $25000.

• Accredited Specialists/Sole Operators • Express Kiosk in Shopping Centre • Boutique Plus Lounge/Salon Conversions • Master Franchise.

Training and Quality Director Aleena Maney says you don’t need to have experience, or even come from a beauty type of career, she was actually in a Government department prior to getting into her franchise. It was the model and her energy, combined with support from her Business Coach and now Franchise Development Director Clive Jones, that helped her build a successful business. Just Lashes are looking for passion and energy to build a successful business, as they know the system works and can easily train willing and motivated individuals.

With the support and encouragement of the Just Lashes turnkey system, you don’t need any formal business experience or prior education in beauty therapy. Just Lashes provide everything you’ll need to run this highly flexible, uncomplicated enterprise.

Rely on the ongoing professional support supplied by the Just Lashes Directors and team and experience the benefits of a rewarding working lifestyle!

For further details contact: P: 1300 790 898 E: franchising@justlashes.com.au W: www.justlashesfranchising.com.au

58 Business Franchise Australia and New Zealand

Business Franchise Australia and New Zealand 59

FE ATURE

Gold’s Gy m

YOUR PIECE OF GOLD With a name synonymous with the golden beaches of California, bodybuilding and Arnold Schwarzenegger, Gold’s Gym is the largest co-ed, multi-purpose brand in the world, located in over 30 countries and with more than 3 million clients.

Brought into Australia in 2013 by brothers Scott and Leigh Taylforth, the plan for Gold’s Gym is to extend its prestigious service in the fitness industry nationwide, across all states.

STRONGER TOGETHER The substantial difference at Gold’s Gym is the blend of industry leading quality, value and sustainability for both franchise owners and members.

Members have the ability to join facilities which represent the best quality in the industry, giving them the best opportunity for them to reach and surpass their goals.

Christos Kyrgios, head of legal and regional manager says, “As a multi-purpose facility offering Mills group fitness, top of the line Hammer Strength equipment, Ivanko free weights and state of the art cardio equipment, we are here to cater to everyone.

“From the opening of the first gym we decided to cater to all, from competitive

bodybuilders through to the casual, every day gym-goer; from the young looking for cardio and weights through to older citizens, who might want to improve their movement or flexibility through yoga and every one in between. We differentiate our gyms through completeness and quality, not to mention customer service. Gold’s gyms are a place for everyone to come and be supported in reaching their fitness targets.”

The same goes for franchise owners, who have the ability to leverage of the most recognised and reputable names in the industry at an affordable price.

Sustainability and perseverance are proven through the history of the brand over the years. Franchise owners are given the ability to buy a piece of the history, and continue the expansion of Gold’s worldwide.

THE BEST SUPPORT AVAILABLE The opportunity to buy into the most reputable name in the fitness industry is coupled with some of the best support and systems available anywhere within the franchise industry.

Providing support from the start of the process, through to opening day and then ongoing, Gold’s Gym are with you every step of the way.

Site Selection: Aided through the site selection process, you will have the guidance of their corporate negotiation expertise and in-depth demographical analysis. You will have extended protection with a 12km circumference of exclusivity.

Sales Support: Franchisees receive

60 Business Franchise Australia and New Zealand

access to premier sales systems and experts from Gold’s USA and Gold’s Australia as well as being added to the master Gold’s Australia webpage and given access to the database of contacts. Franchisees are included in the national marketing campaigns initiated by the corporate team which ranges from television and radio advertising, social media, cross promotions with other national companies and joint ventures with Government bodies.

Corporate Network: Franchisees are able to utilise the existing corporate network and have access to services including builders, sign writers, group fitness instructor networks, personal trainers, health and nutrition supplement supplies, and pre-made meals which generate secondary revenue streams.

FLEXIBLE AND AFFORDABLE WITH PROVEN RETURNS Providing franchisees with an affordable and fully financeable initial franchise fee, along with low monthly fees, Gold’s Gym offers one of the easiest, most affordable yet rewarding opportunities of all the fitness industries franchise systems. Having the ability to spread your costs during the startup years of your business, means that the required capital is significantly low.

If you’re passionate, hungry, ready to take control of your life and embrace a proven system, take the next step and contact: T: 02 6280 4987 E: ckyrgios@goldsaustralia.com.au W: www.goldsaustralia.com.au

Business Franchise Australia & New Zealand is part of the global network of CGB Publishing

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E x per t Advice

HE ALTH AND WELLBEING

FRANCHISING THE FUTURE The health and wellbeing of Australians is of utmost importance to ensure the continued growth and success for current and future generations.

Earlier this year, Deloitte published Part 3 of its Building the Lucky Country series, entitled Positioning for prosperity?

Catching the next wave. This publication explores how we can position Australia – and its individual sectors and businesses – for future prosperity, and identified the preventative health and wellness industry as one of 19 key growth pockets with

the greatest potential to contribute to Australia’s prosperity.

In this article, we focus on the physical health industry and highlight the key trends and future outlook for this growing ‘local hero’ of our economy. In particular, we focus on how well-established, franchised Australian fitness providers and newcomers alike are catching the wave of prosperity and positioning themselves to grow in the future.

Positioning the physical health industry in Australia Future wave, local hero Over the next two decades, no market is likely to see better growth in Australia than preventative health and wellness services. We’re living longer but we also want to keep living better, and that tension will generate billions of dollars in opportunities. Whilst this industry is vast and varied in terms of the services included (think everything from vitamins and supplements to pharmaceuticals; tailored exercise regimes to specialist cosmetic procedures), the underlying message is the same – businesses that can focus on the rapidly growing health submarkets, such as physical health and wellbeing, will be well placed.

62 Business Franchise Australia and New Zealand

In 2012, Fitness Australia, in conjunction will Deloitte Access Economics, published the Australian Fitness Industry Report which estimated the physical health and fitness industry to be worth $1.2 billion.

Incidentally, in 2014, IBISWorld estimated the industry to be worth $1.3 billion. This represents a compounding growth rate of more than eight per cent over a two year period. The Report stated that ‘in comparison to other sectors, the fitness industry on the whole, has fared better and continues to grow despite the backdrop of uncertainty that has affected the broader economy’. The Report attributes this to ‘a myriad of factors including cultural and demographic changes associated with the increasing importance accorded to fitness, the recognition that it delivers personal health benefits, and industry innovation in tailoring programs to meet the needs of consumers’. Whilst the impact of Australian-owned health and fitness businesses on the international economy is limited, there is significant potential to ride the wave locally, making this industry one of the local heroes of our country.

Composition of the physical fitness industry The overall structure of the industry has changed over recent years, allowing for healthy growth and enabling newcomers into the industry to prosper. The majority of industry growth has been stimulated by two key areas – affordable 24 hour gyms, and consumers becoming better educated about the importance of physical health.

Recent Government initiatives on obesity, and television programs like ‘The Biggest Loser’, have inadvertently had a positive impact across the fitness industry. There is now more and more emphasis being placed on tailored health and fitness regimes being provided in safe and non-judgemental environments. According to Fitness Australia, traditional full service gyms have also seized the opportunity and are enjoying an uptake in memberships due to increasing health and fitness awareness.

The industry is primarily made up of privately owned health and fitness service providers which are either independent or franchised in nature. The major players in the industry include Anytime Fitness,

Kaajal Dharan | Client Manager Deloitte Private

Fitness First, Jetts Fitness, Goodlife Health Clubs, Fernwood Fitness, and YMCA. While membership fees still account for the majority of the sector’s revenue, there is an increasing trend in personal training fees and the use of specific services, such as physiotherapists, yoga and pilates studios, and group fitness trainers. It is becoming increasingly popular for independently owned businesses, which prosper from organic growth, to offer franchisees the opportunity to be part of their growing brands.

To better gauge the current issues and trends within the franchise health and wellbeing market, Deloitte Private called upon three influential contributors to the industry – Di Williams, founder and CEO of Fernwood Fitness, Jason Smith, founder of Back in Motion Health Group, and Ben Fletcher, founder of Listen to Your Body.

Each of these successful individuals have, in their own right, been shapers of the industry to date.

Fitness experts with a healthy appetite for success The first Fernwood Fitness health club, dedicated to women, opened in Bendigo in 1989. The club now has over 70 locations and over 68,000 members throughout Australia. Ms Williams identified the need for women to have their own space to work out, especially when it came to weight training. She had no intention of creating a national brand, but the combination of hard work on building the brand, increased demand for womens’ gyms and dedicated and commercially savvy franchisees, has created just that – an iconic, fresh and modern space for women to work out comfortably.

Back in Motion was launched as a small practice in the garage of Jason and Paulina Smith’s family home in 1999.

As a physiotherapist, Mr Smith came to realise that there “were two converging

Business Franchise Australia and New Zealand 63

fe feature at u r e

Richard Brodie | Partner Deloitte Private

FE ATURE

E x per t Advice

“The industry is primarily made up of privately owned health and fitness service providers which are either independent or franchised in nature.”

forces” in the sector – “disillusionment with philosophy of care seen in most private physiotherapy practices, and a deep desire to help the disadvantaged.” The unique philosophy that Mr Smith employed, which he coined Results4Life, caught on and this early success resulted in quick growth. By April 2000 they had moved the practice from their home into more suitable commercial medical facilities. An expert and committed team soon gathered around Jason and Paulina as they focused on building their business and reputation to be one of the choice physiotherapy providers and employers in the industry.

Ben Fletcher, a qualified personal trainer, founded Listen to Your Body in 2008. Mr Fletcher started his career as a one-onone personal trainer in 2002, and rapidly

built up a portfolio of over 400 clients, and employed 20 personal trainers. He identified a gap in the market and developed a group model (to ensure cost effectiveness), with individualised personal training programs. This would give more people the opportunity to become fit and healthy, whilst enjoying all the benefits of having a motivating, qualified Personal Trainer by their side. In 2008, the first Listen to Your Body was opened and by early 2013, the first franchised studio was opened.

The future of the industry While the industry as a whole is established and mature, certain pockets are likely to face continued growth over the next three to five years. Specifically, locally owned and grown businesses are likely to further

64 Business Franchise Australia and New Zealand

expand, with franchising structures a preferred way to grow and prosper. In order to do so, two key factors that successful franchisors have acknowledged as imperative to success are: • Attracting and retaining passionate franchisees; and • Ensuring that these franchisees have the right platforms to ensure not only personal satisfaction, but financial success.

In order to assist franchisees with their success, franchisors advocate the importance of the following three key foundations: • Providing personalised solutions for their clients;

fe feature at u r e “The overall structure of the industry has changed over recent years, allowing for healthy growth and enabling newcomers into the industry to prosper.”

forefront of many business owners’ minds.

In order to prosper in this growth pocket, franchisors are looking for “courageous, free thinking, strategic professionals who are prepared to take the best of our traditional and conservative heritage and mix it with the ethical creativity that capitalises on our bright future,” states Ben Fletcher.

• Utilising state of the art technology to deliver an exceptional service and stay ahead of competitors; and • Reliance on experts for legal, financial, and other non-operational aspects of their business.

Of the three key foundations, technology is having an increasingly large impact. Recent social trends suggest that the industry is sensitive to factors such as innovation, advertising, and use of social media. Ms Williams says “you need to keep your business relevant and keep up with the market”. On 1 July this year, Fernwood Fitness launched an online fitness program called 28 Day Breakthru – the first of its kind in the fitness industry. Amongst other things, the program has created an interactive online community. According to Ms Williams, technologically, Fernwood Fitness is “miles ahead of its competitors”.

As stated by Jason Smith, Back in Motion actively uses “social media to further engage and retain our clients, our recently redeveloped website now offers online booking capability putting us at the forefront of the industry and making us more accessible to our clients. It also means we have more avenues for enhancing and growing our brand, segmented by the different audiences we target. In practice, we’re exploring new and innovative ways to work with our clients, from state of the art exercise prescription software to the possibility of branded apps enhancing the experience both in and outside of the practice for our clients.”

The technology trend is booming; social media and real-time convenience are at the

All three franchisors are considering the impact that technology has, and will continue to have, on the ability of their franchisees to manage their businesses. In particular, cloud technology disruption has the potential to impact: • Franchisees looking for insights, not just compliance.

• Franchisees that are flying blind in terms of understanding their financial performance at any given time.

• Franchisees’ desire to spend less time on day-to-day transactions, paying staff and suppliers and scrambling to balance the books at month end.

• Franchisees wanting to spend more time on the bigger picture; things that helped their business succeed in the first place – working on the business, not in the business.

• Information sharing across the franchise network and even against industry best practice.

• Franchisors are looking to add additional value to the network by providing insights and guidance into individual/ regional franchisee performance.

In conclusion The physical fitness industry is well established, and growing. With an expected annual growth rate of four per cent, and increasing emphasis placed on the importance of physical health and fitness by Government and social media, budding entrepreneurs looking to build new businesses are looking for fresh ways to enter this industry and differentiate themselves.

The future state of the industry is set to provide great opportunities for those with

a passion for people and with the ability to influence others to achieve business and financial success. Every business owner needs to understand what their proximity is to prosperity in the wider industry.

Technology, personalised, goal-driven solutions, and the support of a strong franchise network have proven to be critical levers of success in this industry. Focussing on these areas will be critical for running a successful, modern, and relevant franchised business.

Richard Brodie is a Deloitte Private Partner based in Melbourne and has been involved with the Franchise Industry for over 17 years both as an advisor to clients and roles within the Franchise Council of Australia.

Kaajal Dharan is a Client Manager in Deloitte Private’s Melbourne practice and has over 8 years’ experience as a trusted advisor to privately owned businesses, ranging from newcomers to iconic Australian brands.

As one of Australia’s leading professional services firms, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country.

Deloitte Private has over 100 partners and 800 dedicated staff, with offices in every state across Australia. We work with families and individuals who are passionate and hands on with their business.

For further information contact: Richard Brodie Phone: 03 9671 7474 Email: rbrodie@deloitte.com.au Kaajal Dharan Phone: 03 9671 6844 Email: kdharan@deloitte.com.au Web: www.deloitte.com.au Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.]

Business Franchise Australia and New Zealand 65

FE ATURE

Just Cu ts™

A cut above Just Cuts™ CEO & Founder Denis McFadden has set the pace for the hair and beauty industry, implementing a NEW marketing, communications and POS system (JustOnline) that drives direct communication between B2B & B2C markets; exclusive to Just Cuts™.

Cutting edge technology, innovation and expansion. The future looks bright for the largest hairdressing franchise in the southern hemisphere.

Just Cuts™ are proving to be a cut above the rest with their recent investment in themselves. With 64 per cent of franchisees being multi-site owners, Just Cuts™ have a ‘genuine business system’ that is second to none but what are they doing to remain profitable in the future?

The answer to this, internal growth.

With a strategic vision to double their market share by 2017, Just Cuts™ have looked within their current systems to ensure they remain industry leaders.

Developed by a working group of Just Cuts™ franchise owners, JustOnline has systemised and simplified daily operational tasks for stylists allowing real-time remote access for franchise owners. JustOnline gives franchisees a real-time snap shot of their business allowing them to work ON their business rather than in it.

JustOnline has streamlined both internal

and external communications from the international support office in Sydney (Just Cuts™ Academy).

A cloud based operating tool, JustOnline drives 360 communication from remote locations between the Just Cuts™ academy, franchisee, salon (stylist) and client in realtime.

Tracking consumer behaviour, the system has been developed to communicate national marketing campaigns and capture the data of the 66,000 clients Just Cuts™ style every week. This information has given greater ROI for franchisees driving more clients into the salon ensuring more intelligent local area marketing and national marketing campaigns moving forward.

JustOnline is an extension of the systems, policies and products in place to ensure Just Cuts™ franchise owners remain profitable and continue to grow. It was launched at Just Cuts™ international conference in August earlier this year on the one year anniversary of Just Cuts™ exclusive retail range; JUSTICE Professional™.

The conference also saw three new products launched to market to satisfy the needs of both Just Cuts™ stylists and clients; JUSTICE Professional™ Scalp Treatment Shampoo, Pomade and Firm Clay. This salon professional styling and care range has been extended to 17 unisex products, allowing clients to maintain their Style Cuts™ cut in between visits to the salon.

But innovation has not stopped here, the Just Cuts™ kiosk now joins the traditional inline salon as a cost effective entry point for stylists making the transition into business owners.

Mitigating early financial risk, the kiosk runs at both a lower purchasing price (from AUD$100,000) and lower operational costs.

Just Cuts™ COO, Amber Turnbull, also

66 Business Franchise Australia and New Zealand

sees the kiosk as a key factor in the future growth of multi-site franchisees, moving into additional satellite sites in high foot traffic shopping centres.

“We have developed a training program that encompasses all areas of the business with an ongoing support program in place to ensure the transition from both Stylist to Owner and Owner to multi-site franchisee is seamless,” Turnbull said.

Just Cuts™’ growth can also be credited to promoting Style Cuts™ cuts for everybody!

Currently boasting a Client base of 50/50 male/female, Just Cuts™ market to the whole family.

Why Just Cuts™?

Iconic franchise powerhouse Just Cuts™ have paved the way for franchising in Australia for the past 24 years building a system that puts the franchisee first; • Fixed franchising fee

• 78 per cent brand awareness in the market • Spend less than 30 hrs/week working on your business • Do NOT have to be a hairdresser to own a franchise • On average, franchisees go on to own 2.4 salons each • Exclusive professional retail range

• National support and training team

• National advertising and marketing campaigns • In good and bad times; hair grows!

For more information, contact National Business Development Manager, Luke Manning at: M: 0439130499 E: bdm@justcuts.com W: justcuts.com

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Every edition we feature advice from the experts to help you on your franchising journey.

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BusinessBusiness Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand 67 67

fr anch isi ng e x p o

come face-to-face with your future at expo After three successful Franchising & Business Opportunities Expos this year in Sydney, Brisbane and Melbourne, organiser Specialised Events is preparing for another bumper year in 2015.

“The Melbourne show in August wrapped up a huge year for us,” says Exhibition Manager Fiona Stacey. “We were thrilled with the crowds of visitors, who genuinely found it useful to meet face to face with representatives from companies they were interested in, and to dig deeper into why franchising is such a successful business model.

Hugh Moore (L) met Rogelio Martinez from US-based Tutor Doctor at the Sydney Franchising & Business Opportunities Expo.

“Many walked away with clear ideas of businesses they would like to invest in, and it’s so exciting to see someone’s dream become reality.”

long conversation with her about the business. By the time I met Rogelio Martinez at the Expo, I had done a fair bit of research and had pretty specific questions about Tutor Doctor and their model,” he says.

Hugh Moore attended the Sydney Franchising & Business Opportunities Expo in March, where he met Rogelio Martinez, VP International Franchise Development at US-based Tutor Doctor. By August, Moore was a Tutor Doctor franchisee and joined Martinez at the Tutor Doctor stand as an exhibitor in Melbourne.

“It’s unlikely I would have pursued the opportunity unless I could have spoken to someone senior in the business in person,” adds Moore. “I think it’s vital, particularly for global franchises looking to establish themselves in Australia, to provide a ‘face’ when marketing themselves and not just rely on impersonal means such as email or phone.

“I had worked in the finance sector for 17 years and was looking for a change – something more suited to family life, that had flexibility and also longevity,” Moore explains. He registered for the Sydney Franchising & Business Opportunities Expo, and saw Tutor Doctor on the list of exhibitors.

“Tutor Doctor was one that caught my attention, primarily because of the sector it was in. I did some digging and sent them an email for an information pack. I was contacted immediately by one of their International Franchise Developers, Jennifer Meyer, and I ended up having a reasonably

“I had specific questions for Rogelio and meeting him in person allowed me to get far more detail out of him, quicker than I would have otherwise.”

Fiona Stacey says she sees many visitors like Moore, who find meeting exhibitors at the Expo is far more valuable than limiting their research to websites and email.

“I think it’s really worthwhile to do as Hugh did and look through the list of exhibitors first and do some preliminary research, maybe even set up some appointments at the show. Then you can make the most of your time on the day.”

68 Business Franchise Australia and New Zealand

Registrations open early December for the Sydney show in March. “It promises to be a very exciting event with even more exhibitors than last year,” says Stacey. “Visitors and exhibitors all love the venue at Royal Hall of Industries, it is so convenient and offers excellent access by car or public transport.

“The entry cost is discounted if you preregister online, and there is an abundance of information available on every aspect of being your own boss,” she adds. “It’s really time to stop dreaming and start doing.”

For more information go to: W: www.franchisingexpo.com.au

Next year’s dates are: Sydney 27-29 March 2015 Royal Hall of Industries, Moore Park

Brisbane 18-19 July 2015 Brisbane Convention & Exhibition Centre

Melbourne 21-23 August 2015 Melbourne Exhibition Centre

Business Franchise Australia and New Zealand 69

e x pert a A dv ice

The franchisor conference:

keeping it fresh

Of all the training and development opportunities a franchise offers its franchisees throughout the year, the annual conference can be seen as the icing on the cake.

The conference is designed to unite the franchisees, enabling them to network, share experiences and ideas, and engage with the franchise brand. It allows the franchisor to present new ideas, innovations, the state of the nation, and industry trends. It is an occasion to review the previous twelve months and to look ahead at what the next twelve months holds within the business and system.

Peter Fiasco, Franchise Development Manager with Hairhouse Warehouse, points out that the conference is also an opportunity for the people who work in the background of the franchise to outline their strategy and vision for the brand. “During the normal course of running their businesses, franchisees don’t usually have the chance to interact with these people,” Peter says.

Franchise systems have always held annual conferences. Traditionally, a one-dimensional approach was applied, based on the assumption that the profiles and needs of all franchisees were closely aligned. This model failed to acknowledge that some franchisees had been in the business and engaged with the brand for ten years or more, while others had only belonged for a few months.

Best practice franchises have evolved to make their conferences more inclusive, identifying who their franchisees are and

70 Business Franchise Australia and New Zealand

devising conferences that address the needs of different audiences in various stages of the lifespan of the business. These franchisors strive to run a variety of sessions that appeal to the interests of all the different types of franchisees under their umbrella.

Some franchises engage external events organisers to manage their conferences, while others form internal conference committees within their head office. The internal model lends itself to consultative input across different stakeholders, and is more likely to appreciate the unique needs of their industry.

This year, Hairhouse Warehouse’s annual conference achieved a 96 per cent attendance rate. Peter Fiasco attributes the high turnout to careful planning and ensuring that the content of the conference was attractive and relevant to its delegates.

“People learn differently, and in order to

“The conference is designed to unite the franchisees, enabling them to network, share experiences and ideas, and engage with the franchise brand.”

Corina Vucic, Director, FC Business Solutions.

respond to the unique learning style of your industry, you must take into account the type of people who are attracted to the industry,” Peter says. “Hairdressing is a very dynamic industry. The type of people who go into hairdressing are creative people and must be presented in a way that appeals to them. Presentations can’t be PowerPointdriven. You have to present ideas using different tools – visuals, videos and live demonstrations.

“We utilise the conference to launch something new, something different, something they haven’t seen before,” says Peter. “It can’t be wishy-washy, and it can’t be the same old thing every time. We need to give our franchisees something to take back to their business to make it worth their while to leave the business for a few days.”

Barry Markoff is Founder and Managing Director of ICMI, a company that sources speakers and entertainers for conferences.

Barry believes that although motivational speakers and success stories are still popular at events, there are three major trends emerging in the types of expert speakers he is requested to find.

Technology is a hot topic. In the retail and service industries in particular, technology has had a big impact. Barry says, “People want presenters who can inform them of the impact of technology on their industry, and how they can cope with it. They want to learn which technologies are relevant to them, how technology can help them, how to approach marketing in the online era and also how technology potentially threatens their industry.”

Mental health is another area of growing concern, with the cost of mental health issues having a staggering impact on business.

Creating the right environment to keep people mentally fit for work is vital for the success of a business, and experts in this area are highly sought after.

The topic of women in leadership is the

third trend that Barry identifies, especially in the area of marketing where women now represent an estimated seventy to eighty per cent of department heads.

While annual conferences are aimed primarily at the franchise’s principal business owner, franchisors offer different types of conferences throughout the year for various levels in the business.

In the real estate sector, for example, Barry Plant offers numerous conference opportunities for their franchisees. From their Kick Start Conference, designed to motivate sales staff, to the Think Tank Conference for property managers, each is tailored to suit the specific needs of different facets of their business.

Autobarn encourages their franchisees to attend industry expos to talk to experts in the industry and stay abreast of current trends and products. Quest Serviced Apartments arrange conferences for their business development managers, who work across

various properties, building corporate relationships with their local communities.

Within smaller systems, large-scale internal conferences may be less viable, but their benefits are no less significant. For Rob Gauci, Director of Manhor men’s grooming studios, the solution is to take his staff to the ABIA Awards and Beauty Expo in Sydney annually.

“It’s inspiring for them to see the benchmark for our industry, to be recognised for their achievements and to keep up with suppliers and new technology,” Rob says.

During the year, Hairhouse Warehouse runs hair trends workshops to keep franchisees up to date with current styling trends. “The annual conference is the pinnacle,” says Peter Fiasco, “but the flame we light at the conference eventually dwindles and we need to reignite it regularly.”

In most franchises, conference attendance is mandatory and forms part of the franchise agreement. Franchisees contribute a monthly

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“In most franchises, conference attendance is mandatory and forms part of the franchise agreement.”

fee towards the cost of the event, which not only encourages attendance but also eases the financial impact of having to produce a lump sum at the time of the event.

sightseeing tours arranged to ensure that all family members are catered for while the franchisees are engaged in conference sessions.

Nevertheless, locations are chosen with care to inspire franchisees to participate, and to make conferences enjoyable for them.

Growing franchise systems are very conscious of being family-inclusive, and many continue to have a strong family focus as they expand. They recognise the importance of family support in helping a business to grow, and the need for franchisors to engage families to engender that support. In addition, franchises are often local institutions, with franchisees upheld as public figures in the local community.

A family-friendly culture is vital to maintaining this image.

Some franchise systems only run events within Australia. If the annual conference includes a trade show or supplier exhibition, a domestic venue is often more practical and cost effective than an overseas location.

Other organisations may alternate between domestic and exotic locales on a year-by-year basis. Global instability can have a negative impact on attendance figures for overseas conferences, and can’t always be foreseen in the planning stage of an event. A conference can see a high withdrawal rate if conflict or unrest is focussed on the region where the conference is to be held.

However, warm, exotic locations generally attract high numbers. Franchisees view the conference as an opportunity to combine business with a holiday and potentially include their families who, in many systems, are encouraged to attend.

Good franchise systems build family programs for partners and children, with special activities such as shopping trips and

Barry Plant makes an effort to ensure that packages for franchisee families are affordable and attractive. Following the success of a kids club at a Dubai hotel, which hosted their conference some years back, provision of a kids club is now mandatory at all hotels that host Barry Plant’s overseas conferences.

“It allows partners to go out and enjoy themselves and the activities on offer, knowing that their children are safe and having fun,” says Mike McCarthy, CEO of Barry Plant.

“Our conferences provide networking

72 Business Franchise Australia and New Zealand

opportunities both for the franchisees and for their partners. Some partners have formed very close relationships from the conferences,” Mike says. “Building an extended family culture has been a key objective for our conferences.”

Corina Vucic has been involved in the franchising industry for more than 15 years. Corina is the 2012 FCA Woman in Franchising (Vic/Tas) and a Victoria Chapter Committee member of the Franchise Council of Australia. Corina is an experienced and highly qualified mentor, trainer and business coach.

FC Business Solutions is an integrated consultancy firm specialising in developing, growing and marketing franchise systems. A professional team provides expert service exclusively to the franchise community, in system development, marketing and communications, business health checks, and business operations. They also offer solutions in documentation, training, and human resources.

Contact Corina on: P: 03 9533 0028 E: corina@fcbusinesssolutions.com.au W: www.fcbusinesssolutions.com.au

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Before Bre aching the Fr anchising Code From 1 January, the Australian Competition and Consumer Commission (ACCC) will have new powers to ensure compliance with the Franchising Code of Conduct - the national regulations which all franchising systems in Australia have to operate under.

The ACCC will be able issue infringement notices of $8,500 and will be able to seek penalties in the Federal Court of up to $51,000 for breaches of the Code. The changes will go unnoticed by the vast majority of franchisors and franchisees who do the right thing. However, the penalties make a difference in deterring rogue operators and the infringement notices allow us to move swiftly to deal with breaches of the Code.

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Franchising Code of Conduct It is worth taking a step back to see how the new powers fit into the bigger picture. The mandatory code of conduct sets out the legal rights and obligations of all participants in the franchising industry. The Code covers the full lifecycle of a franchise. It is there to help you make informed decisions about purchasing a franchise. The Code provides certain protections during the term of your franchise and includes dispute resolution procedures. The Code also places obligations on your franchisor that impacts on the ways in which they can end your franchise agreement, and provides you with certain rights when you choose to leave the franchise system.

Franchise BUSINESS

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

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“The mandatory code of conduct sets out the legal rights and obligations of all participants in the franchising industry.”

Dr Michael Schaper | Deputy Chairman ACCC

The ACCC’s role The ACCC is an independent statutory body responsible for promoting competition and fair trading. As part of this role, we ensure franchising industry participants comply with their obligations under the Code. It is our job to investigate alleged breaches of the Code and take enforcement action where appropriate. Since the Code was introduced in 1998, we have taken successful court action against more than 20 franchisors, and annually ‘audit’ many systems to check they are complying with the Code.

Penalties In the ACCC’s eyes litigation is a last resort reserved for the worst offenders. We are more likely to take court action when the conduct is particularly serious. As a responsible regulator, many factors are weighed up before heading to court. Like any rules, the consequences of breaching that code must be sufficiently serious to deter non-compliance. In the past, we have received complaints about businesses operating franchise systems under the guise of a licensing or distributorship arrangement in a deliberate attempt to bypass the Code.

However, the previous lack of penalties meant there was little to deter these operators from continuing to engage in this conduct.

The game has now changed with penalties of

up to $51,000 per breach of the code, which will be determined by a court.

Infringement notices Infringement notices allow us to move quickly to respond to possible breaches.

They provide a way of resolving the ACCC’s concerns and avoiding legal proceedings.

For example, the ACCC receives some complaints from franchisees alleging that they received an inaccurate or incomplete disclosure document from their franchisor.

Court action would be excessive, but the payment of an infringement notice in some circumstances would make the matter public and would act as a warning to other franchisors.

When issued with a notice, the ACCC will provide the trader with information about the nature of the alleged contravention, the penalty to be paid and the period for payment to avoid court action.

Infringement notices are not issued lightly or without due consideration of all the issues.

They can only be issued where the ACCC has reasonable grounds to believe a person has contravened certain laws, and must first be considered by a full meeting of the Commission. To be valid, notices have to be issued within 12 months of the alleged contravention.

The period for payment of an infringement

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notice penalty is 28 days. A franchisor or franchisee may choose not to pay an infringement notice penalty, in which case the ACCC may decide to take court action.

Once the notice is paid, the ACCC may not take court action in relation to the alleged contravention. Payment is not taken as an admission of liability or a contravention of the Act (only the court can make such rulings). The infringement notice process is transparent, with the payment being made public via an online register and a media release.

While the power to issue infringement notices is new to the franchising sector, it is a not a new process for the ACCC. We have had powers to issue infringement notices for certain breaches of the Australian Consumer Law for several years.

You can keep up to date with these, and other developments, by visiting our website www.accc.gov.au/franchising, and subscribing to our franchising email alerts franchisingcode@accc.gov.au Dr Michael Schaper is Deputy Chair of the Australian Competition and Consumer Commission.

For franchising information, go to: W: www.accc.gov.au/franchising

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Business Franchise Australia and New Zealand 77

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what’s the hurry?

If your flight has been called and you are not yet at the gate, there is good reason to make a spirited dash to the departure gate.

There may be many examples where there is a viable reason to rush through things to get to the end. However, when thinking about self-employment and entrepreneurship, there is little reason for anything other than a planned and sometimes cautious approach.

There are many variables to consider, and each needs appropriate time and research. If franchising is the preferred route into owning one’s own business, then timely research is still the order of the day. The franchise marketplace today has literally thousands of opportunities, and the good news is that with a franchise you can invariably gather a great wealth of information to enable you to complete the appropriate due diligence exercise.

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Pursuing a franchise opportunity is, for most people, a life changing situation.

Many would-be franchisees have been in a corporate employment situation - often for many years - and stepping into a franchise might, for some, seem like stepping into the unknown.

There should be no hurry - the franchise will not take off without you. As you work through the process there are many aspects to consider, review, and research. Each aspect demands a thorough review to ensure that you are not flying ‘blind’ but have all of the appropriate data.

“There should be no hurry - the franchise will not take off without you. As you work through the process there are many aspects to consider, review, and research.”

David Banfield | President The Interface Financial Group

Some of the specific areas that you need to explore are the type of franchise, location, structure, and your own legal framework.

In reviewing the type of franchise to pursue, most people have a fairly set view of what they would like to do. Many, perhaps inappropriately, think they can turn their hobby into a business, and that business already fits an established category. Be careful. While on the face of it this makes sense, something you enjoy turning into your own business may not work for you or the franchisor. Always remember that a franchise is a tried and proven system. Turning a hobby into a franchise invariably means doing the thing you like to do in a completely different manner and time frame. Under a franchise format, what you did as a hobby becomes a business designed to operate on regular hours to make a profit at the end of the day.

Franchise location is something to explore with the franchisor. Most, but not all, franchises come with a fixed territory. The first question is naturally - is there a territory available in my immediate area? If not, then is relocation an option? The franchise review process now takes on an additional dimension as you start to consider the ramifications of relocation of, maybe, not just yourself but your entire family. The cost of that relocation must also be factored into the overall cost of the new franchise operation.

Will it now take longer to reach the breakeven point?

When examining franchises you will readily

realise that there are numerous business models to consider. Some franchises, as we have stated, are territory dependent; some require extensive premises and build-out facilities, and many will require staff and specialised equipment.

The franchise structure will also vary in terms of financial requirements. Some will require a fixed amount of capital and expenditure, and in some cases franchisors offer financing packages or arrange those on behalf of their prospective franchisees. Some franchises have an offering whereby there is only the need to pay a one-time franchise fee, and then the franchise is royalty free.

Such an arrangement usually requires the franchisee to acquire products or services exclusively from the franchisor, at the franchisor’s stated price level.

While this is at best a very brief overview of some topics that need to be on a prospective franchisee’s investigation list, and they certainly are just a brief selection, there is always help in the research area in the form of a disclosure document. This sometimes lengthy document will answer many of the basic questions surrounding the model on offer. What it cannot address is how you as an individual will fit into that particular franchise model.

This is where your own detailed and sometimes time-consuming research must take over. In looking at the relocation issue as discussed above, the disclosure document will not necessarily have the answer.

Research into the new location, not only for the business but perhaps for a family relocation, will take time and energy to pursue.

As you start to look at franchise models and types, you may become overwhelmed at the variety and sometimes complexity of the individual models. Prepare a basic plan ahead of time so that you are not easily distracted from your main line of enquiry.

The bottom line is naturally to end up in a business where you are comfortable, and where you can clearly see the profitability of the business over the appropriate time span.

Getting to the bottom line is not something that should be hurried. You can’t buy a franchise off the shelf, even if it is a proven brand. Research and then maybe some more research are the prime requirements to ensure that you end up with the right choice for you.

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.au

Business Franchise Australia and New Zealand 79

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Increasing the Success of your Franchise Business Being the owner of a franchise business can be very rewarding and satisfying. People buy businesses for a wide range of reasons including the ability to be their own boss, opportunity to gain financial independence and the capacity to involve family members.

Becoming a franchise business owner is a serious undertaking as your life savings, house and financial future is often put at risk. Business failures are all too common and owners need to be proactive in increasing their opportunity for success.

Franchisees have a range of factors to consider when determining success. It would be rare to find a business which is always successful in all areas. Even large multinationals makes mistakes. The secret is to identify the issues and develop an action plan to limit the impact, or even better still turn these issues into successes.

Financial success • Before buying the business, research the opportunity fully. Intending purchasers should spend at least one hour of investigation for each $1000 invested. This includes researching the business, its location, competition, the industry, speaking to other franchisees, accountants, lawyers, local council and other advisors. In this way you can learn from the experience and mistakes of others which may reduce your risk. • Ensure you have a profitable business. Make sure you are measuring the key aspects of your business. This will include sales numbers, gross

“Operating a well-run and profitable business can be one of the most rewarding things you will do. Conversely making losses may cost you everything.”

Steve Seddon | Senior Business Development Manager - Franchising Westpac

profit margin, controllable costs (labour costs, wastage etc.), taxes and profit. Other aspects may include tracking customer numbers and average customer spends per transaction.

• Working capital is critical for any business. Working capital is the money used to run the business, pay the staff, pay the rent etc. Franchisees need to ensure they also hold enough working capital to cover any start-up losses/costs and unforeseen circumstances.

• Compare profit and loss budgets (financial projections) to actual results at least monthly. Look at any variances (negative and positive) and develop a specific and measurable action plan. As an example, if your labour costs are higher than expected then go back to your rosters and review to reduce this cost. Make the hard decisions early before your business is put at risk.

• Keep your bank informed. Regularly meet with your bank, particularly if you have a problem. The earlier you seek advice the better.

• Limit the money you draw from the business. Don’t go and buy a new car or upgrade your house before you are certain the business can afford it. In the early stages of ownership businesses will need more money to fund expansion.

Withdrawing this money from the business will cause cash flow problems later.

• Don’t confuse profit and cash flow.

Profitable businesses have gone bankrupt due to an inability to manage their cash flow. Creditors, including the tax office etc., are able to apply to liquidate a business if they are not paid within their terms.

• Don’t take on too much debt. This applies equally to money borrowed from banks, family members or finance from the vendor (seller of the business). All borrowed money needs to be paid back with interest and this creates a risk for the business. Be careful about borrowing the maximum you are able as this will leave no room to come back if more working capital is needed.

• A business is not worth what you pay for it. It’s only worth what someone else will pay for it. Ensure you understand the franchises value and compare it to similar business both within the same system and outside. Look at remaining lease term and refurbishment requirements, particularly if the location is critical or the business would be expensive to move. All will impact the businesses resale value. At some point businesses will lose value as the remaining lease and franchise terms shorten as there is no guarantee of business continuation beyond this time.

Operational success • Buy a business that suits your personality, skill and capital resources.

Before committing, spend some time speaking to your banker, accountant and other business advisors. Also spend some time with the franchisor and in the business itself.

• Follow the franchisors system.

Purchasing a franchise business means you agree to follow the franchisors guidelines and business methods. That said, if you have an idea for improvement ensure you go through the correct channels and discuss with the franchisor. All good franchise systems encourage franchisee

input and historically this has led to a wide range of business improvements.

• Plan for expansion early. If you are looking to open a second outlet ensure you have a comprehensive and robust business plan. How are you going to manage both the new and existing businesses? Will you need to employ more staff to cover your absence? How will you ensure the original business maintains performance while you work on the new one?

• Work closely with your franchisor to ensure stock levels are optimum.

Overstocking or carrying obsolete stock will impact the business and its cash flow.

Controls need to be set and monitored especially in seasonal or fashion related industries.

• Maintain quality control and customer service. Make your employees accountable for their actions and reward those who exceed expectations. Be highly selective about who you employ as they are the face of your business. Invest in training and other support.

• Watch local competition. Your franchisor is not able to watch every aspect of your industry and it is important to keep close to your local competition. They may be independent businesses, new entrants or even another franchise group. Don’t wait for your sales to fall before acting. Be proactive.

Personal success • Once you are settled in the businesses and it is working well ensure you are able to take some time away. Although you may need to work for more than 50 hours per week at the beginning, business owners need to ensure they are able to take

Business Franchise Australia and New Zealand 81

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“Make sure you are measuring the key aspects of your business. This will include sales numbers, gross profit margin, controllable costs (labour costs, wastage etc.), taxes and profit.”

a break. If not, they risk burnout or other personal issues.

• Family support is essential to the success of any business. Without this issues can be magnified, particularly when the family’s assets are on the line. Before committing to a business ensure relevant family members understand both the risks and potential rewards. If they are not involved on a day to day basis ensure they are kept fully informed at all times.

Franchisor success • Research the franchisor. Ensure both of you have similar business objectives and values. You will have an ongoing relationship and need to understand each other’s rights and responsibilities.

• Look at the support provided by the franchisor. Including ongoing field support, training, buying power, marketing, research and development etc.

• Is the franchisor in a sound financial position? Be wary of those who rely on sale of new franchises to pay their operating costs.

• Should the franchisor’s business fail, this will impact all franchisees, suppliers and customers. This will particularly be the case if the franchisor holds a head lease over the premises. Even a profitable franchisee may lose their business in these circumstances.

In summary, do your research before you purchase, don’t rush your decision, tackle any issues early and get advice. Monitor your business and outcomes and don’t be in too much of a hurry to spend the profits.

Operating a well-run and profitable business can be one of the most rewarding things you will do. Conversely making losses may cost you everything.

Once you have everything under control you can enjoy your time as a franchisee.

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Steve Seddon, Westpac’s Senior Business Development Manager – Franchising, WA and SA, is a CPA and member of the FCA’s WA committee.

Westpac continues a long-term commitment to the franchise sector 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 Steve at: P: 0407 401 892 E: sseddon@westpac.com.au W: www.westpac.com.au/business- banking/industries/franchising/

FRANCHISING

Help Yourself while helping others get what they want in their homes today...

Renting Home Appliances is growing in popularity each and every year. Don’t miss out on YOUR opportunity to get involved. With over 100 franchisees in Australia and New Zealand, we are the largest Rentals Franchise in Australia.

You should talk to us now about buying a Local Appliance Rentals franchise because this business: Has many customers, each paying small amounts of money into your account regularly Has flexibility in terms of when and where you work.

No weekends or public holidays Is totally automated with our unique software system Is not dependent on weather, public holidays or the economy Generates income 365 days of the year!

FRANCHISE OPPORTUNITIES AVAILABLE NOW! Entry-level investment is from $29,750 + GST. Be quick to secure your territory!

Talk to us now to discuss this opportunity further or request an information pack.

1800 980 650 www.localappliancerentals.com.au Business Franchise Australia and New Zealand 83

profile : Snap- o n Too ls

The perfect job – and you’re the boss

The pleasures of being your own boss, with your own schedule, is what attracts many people to the franchise sector, and Mike Mascall from Snap-on Tools is no exception.

“I have no rent, no staff… it’s the perfect job.

A showroom on wheels!”

Mike has the Victoria Park franchise in Perth, where he has been driving his distinctive Snap-on truck for almost six years.

“I always wanted to have my own business, but not necessarily my own staff,” Mike said. “I used to have 150 contractors in my previous job as the manager of a transport company, but I’ve only got one brain, not 150, so I wanted to do something on my own.”

He has found the Snap-on system to be a perfect fit for his abilities and his interests.

“I’ve been involved in motorsport for 30 years, so this fitted with my hobby,” he said.

“I also like being outdoors and interacting with people, so it all matched up. You’d be hard-pressed to beat this.”

It’s a good life, for sure. Mike gets to drive a truck full of top-quality tools and equipment for the benefit of customers who just love to see him coming up the driveway.

“No one’s ever told me not to call in,” Mike said. “I’ve got a big boys’ toy shop.”

Mike’s day starts pretty early – he’s up and on the road by seven, ready for the first of his many visits to workshops and garages around his territory.

“I make about 15 or 20 calls a day, unless I’m calling on a dealership, which takes a bit longer. There are a lot of mechanics there who want to talk tools.

“It’s a full day, but it’s flexible too. I can chop and change my appointments, and the customers are very understanding.”

Mike Mascall (left) and a client on board the Snap-on truck

Happy customers are a joy for any salesman, and having the power of the Snap-on Tools brand behind him allows Mike to keep building on his success. Specialist help from head office, as well as admin and sales support, keeps his truck full of the latest gear and his schedule full of keen tool customers.

“It’s great, I have no regrets,” Mike said. “Its lifestyle, not a job.

There’s also the support that comes from being part of a franchise network – Snapon franchisees in other parts of the country frequently collaborate with support and advice for each other.

“I have no rent, no staff … it’s the perfect job. A showroom on wheels!”

“We often talk to each other about stock or IT issues,” Mike said. “It’s important to have that contact and back-up from the other guys.”

For anyone contemplating becoming a franchisee, the financial aspect has to stack up, but ultimately it comes down to a lifestyle decision. And for most Snappies, this is an easy call.

“It’s important to have that balance in your life and your work – you look forward to getting up in the morning and getting in the truck and hitting the road.

If you’re interested in taking on 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 six 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. www.snapontools.com.au/franchise/ discovery_tour

84 Business Franchise Australia and New Zealand

Sharp

Business Franchise Australia and New Zealand 85 SharpestTool_2014.indd 1

07/02/2014 09:27:56

sn a pshot: M a dgw icks Law y ers

finger on the pulse The key to a successful franchise is knowing the business and understanding the industry. Madgwicks’ franchising team led by Partner Ed Browne with Chris Verebes, Special Counsel and Alix Osborn, Senior Associate has experience across a wide variety of franchise industries representing both franchisors and franchisees.

Starting back in the early 1970s, Madgwicks is a progressive business law firm and part of Meritas, one of the world’s largest international affiliations of independent law firms. This alliance provides Madgwicks’ clients with access to 230 lawyers in Australia and New Zealand and 6,900 lawyers in more than 80 countries around the world.

It’s this extensive framework that franchisees and franchisors can draw upon to ensure that all areas of their business needs are met.

Franchise model expertise Madgwicks acts for and provides a full range of services to franchise systems, master franchisors and franchisees doing business in Australia.

Acting for a number of high profile franchisors with well-established systems

Ed Browne

and brand names in Australia, across a range of industries, as well as new systems and start-ups, allows the Madgwicks team to keep their finger on the pulse and abreast of industry developments.

Madgwicks’ franchising documentation is state of the art and has been developed with real life experiences in mind, tailored to suit their clients’ specific needs and business models. Despite being bespoke, they are written in plain English making them easy to understand and to work with.

Madgwicks believe in the adage ‘good agreements make for good friends’ and strive to create a balance which adequately protects the clients’ interests without imposing unnecessary and onerous obligations on the counterparties.

Full range of services Specific services that the franchise team provides include: • Preparation and updating of franchise agreements and disclosure documents; • Managing franchisee transactions including grants, transfers and renewals; • Document management; • Franchising Code of Conduct Compliance advice; • Trade practices (Competition) advice; • ACCC notifications/ authorisations; • Preparation of ACCC Trade practices (Competition) Compliance Programs; • Supplier and terms of trade agreements; • Dispute resolution including mediations and dealing with the Office of the Mediation Advisor; and • Litigation.

Alongside the franchise specific services offered, Madgwicks as a full service law

86 Business Franchise Australia and New Zealand

Chris Verebes

firm, are able to provide help in other areas including advice on branding, intellectual property and trademarks; Workplace Relations/ employment law; Corporate governance; Tax, duty and GST advice; Corporate structuring; and business acquisitions and disposals.

Why Madgwicks Lawyers?

Franchising is a unique business format that is governed by its own set of regulations, the Franchising Code of Conduct. The application of the Code is mandatory in Australia unlike in other jurisdictions.

Additionally, the sector is regulated by the ACCC. The regulatory environment is one that is constantly changing and consequently, systems operating in the sector require the advice and support of a legal firm that has a specialisation in this area and is vigilant in keeping up to date with changes that affect the industry.

A choice of legal advisor is not a decision that should be taken lightly as the relationship extends well beyond the preparation of initial franchise agreement and disclosure documentation. The relationship between client and law firm is one of importance and at Madgwicks Lawyers great emphasis is placed on establishing an open, trusting and strong relationship with their clients.

Guided by three core principles fundamental to the existing and continuing success of the firm; Madgwicks lawyers are easy to work with, outcomes focussed and connected.

If you would like Madgwicks Lawyers to help you achieve your goal, contact: T: 03 9242 4744 E: franchising@madgwicks.com.au W: www.madgwicks.com.au

JEJAK GRAPHICS

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 $PSQPSBUF TUBUJPOFSZ t #SPDIVSFT BOE nZFST t 1PTUFS BOE CBOOFS EFTJHO t &EVDBUJPOBM NBOVBMT t 4QPSUT QSPHSBNT t .POUIMZ /FXTMFUUFST t 1SPEVDU MBCFMT BOE QBDLBHJOH Artwork is tailored to your brand and focused on your message and target BVEJFODF /P KPC JT UPP CJH PS TNBMM $POUBDU NF UPEBZ UP EJTDVTT IPX +FKBL (SBQIJDT DBO NBLF ZPVS DPNQBOZ or organisation leave ‘a lasting impression’.

P: 03 8790 8006 M: 04222 676 39 E: jejak@bigpond.com www.jejakgraphics.com.au Business Franchise Australia and New Zealand 87

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Understanding Business Partnerships A comprehensive two-year study conducted

by Griffith University’s Asia-Pacific Centre for Franchising Excellence identified four critical areas in which most failed business owners were lacking in knowledge – partnerships, contractual understanding, expectations, and debt levels were identified as the critical factors.

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By allying with a likeminded associate, friend or family member/s when entering into a business, individuals can increase the amount of assets at their disposal – often in a short space of time.

Partnerships exist in almost every business sector and industry, including in accounting, in legal firms, in retail, and in professional service firms.

Traditionally, business people form partnerships to collectively benefit from one or more of the following: • Ideas • Knowledge

“Like all relationships, effective communication is essential to establishing and maintaining a productive business partnership.”

Lorelle Frazer | Director Griffith University’s Asia-Pacific Centre for Franchising Excellence

• Skills • Relationships and contacts.

discomfort. In this sense, the management of partnerships (within a franchising agreement or with others), is an area that requires further attention.

For any business partnership to be fruitful the input of resources (tangible and intangible,) from both parties, is a necessity.

In addition to the risks associated with any business, partnerships have two additional risks:

And it has been found that partnerships are relatively low cost, easy to set up, and ongoing compliance is cheap.

1. Risk of the partners’ relationship failing (this risk can be reduced through a clear dissolution process and understanding the way forward).

• Money

However, Griffith University’s 2012 ‘Survival of the Fittest’ research showed that failed business owners were more likely to be engaged in a partnership – when compared with sole business owners.

This higher failure rate found in partnerships may reflect restricted or slower decision making; reduced adaptability; confused responsibility; or poor communication often associated with poorly maintained partnerships.

In the context of operational factors, failed business owners had less decisionmaking autonomy, were less adaptable to business environmental changes, felt highly restricted by their business contracts and, as a consequence, experienced detrimental effects to their health and private lives and regretted their decision to enter the business arena. Interestingly, failed business owners were more likely to be in partnership with someone else (as opposed to sole owners) and this may explain why they felt restricted in their own decision-making and, to a certain extent, less adaptable. Therefore, it appears that by having sole discretion over decision-making may assist individuals in taking responsibility for their own decision/ actions, thus causing less psychological

2. Risk of the decision making process being slower or less effective (this risk can be reduced by clear and concise, collaborative decision-making).

So, before starting a business, all interested parties need to seek professional advice specific to their partnership, jurisdiction, and situation - then select the partnership (or other business structure) that works best for them.

Like all relationships, effective communication is essential to establishing and maintaining a productive business partnership; as is a mutual understanding of well set-out business goals. If the communication process works well, then all things are possible.

Communication between stakeholders should always be clear, timely, open and complete.

It is also essential to draw-up a partnership agreement document, prior to conducting business, which can be updated over time.

This means that, if any part of the business operation becomes contested at a later date, there is a set of documented, mutually agreed-upon guidelines that can be referred to.

This agreement is the first step in the ‘partnership cycle’. Once the agreement is completed, partners need to work to: • Actively manage and improve the partnership.

• Regularly sit down to review and update the partnership agreement document.

• Know when and how any or all partners can exit, or perhaps take the partnership through an evolution to something different and new.

So, what have we learnt about partnerships?

They have benefits and risks. They bring more assets to the business and are fairly easy and cost effective to set up, but reduce flexibility, increase complexity and the need to focus on communication.

Partnerships can change and evolve over time – depending on the business’ need.

Partnership outcomes reflect the persons, and personalities, of the partners. This means that each partnership is unique and needs to be assessed and managed on its own merits.

Building and nurturing a good partnership is more art than science.

To help business owners – both prospective and current – manage their businesses better, Griffith University have developed four free e-Classes to address the topics listed above.

Each e-Class takes less than 10 minutes – visit www.franchising.edu.au and go to the Education tab. You will find these eclasses in the franchisee area W: www.franchise.edu.au

Business Franchise Australia and New Zealand 89

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Countdown to 1 January 2015 A new Franchising Code of Conduct has been drafted by the Government (“new Code”) and it is proposed that the new Code will be effective from 1 January 2015.

In his second reading speech, the Honourable Bruce Billson, Minister for Small Business states that the aim of the new Code is to simplify and modernise the way franchising is regulated. He states that the new Code will be more effective and more responsive to the needs of the franchising sector’s unique commercial characteristics and tensions and that the new Code aims to deliver many benefits for franchisees and prospective franchisees.

At the time of writing, the final form of the new Code has not been released.

Accordingly, this article is based upon the Exposure Draft of the new Code issued for public and industry consultation in April 2014 and readers should note that the new Code, once passed into law, may be different in some respects from that outlined in this article.

At the time of writing, the new Code had not been tabled before both Houses of Parliament. It cannot become law until the expiration of 15 sitting days after it is tabled before both Houses of Parliament and during that period, it can be vetoed by a successful Disallowance Motion, although that is extremely unlikely to occur.

Penalties for non-compliance with the new Code The first and most notable change to franchising laws is that monetary penalties will be able to be ordered by the Federal Court for non-compliance with various provisions of the new Code. Such penalties will be up to $51,000 for a single offence. In addition, Infringement Notices can be issued by the Australian Competition and Consumer Commission (“ACCC”) of up to $8,500 for a company and $1,700 for individuals.

The Competition and Consumer Amendment (Industry Code Penalties) Bill 2014 (“the Bill”) was finally passed by both Houses of Parliament on 4th September 2014 and amends the Competition and Consumer Act 2010 (Cth) by enabling regulations to be made prescribing monetary penalties and requiring the ACCC to issue infringement notices.

This is excellent news for franchisees because there is now much greater pressure

90 Business Franchise Australia and New Zealand

on franchisors to comply strictly with all aspects of the new Code, including by ensuring their disclosure document is accurate, up-to-date and provided to franchisees and prospective franchisees within the time frames specified in the new Code.

Good faith The second most notable change is the introduction of an obligation for all parties to a franchise agreement, including persons who are likely to become a party to a franchise agreement, to act in good faith in respect of any matter arising in relation to the franchise agreement or proposed franchise agreement and the new Code.

A failure to act honestly, merely acting arbitrarily, or a failure to cooperate to achieve the purposes of a franchise agreement may be considered as indicators of bad faith.

Any clauses in a franchise agreement which attempt to limit or exclude the obligation to act in good faith will have no effect.

Whilst this is of great benefit to franchisees, it is also a double edged sword as the new Code also imposes this duty to act in good faith on franchisees and prospective franchisees in relation to their negotiations and dealings with the franchisor.

“The new level of transparency around the use of marketing funds benefits franchisees and should reduce the level of conflict that can occur between franchisors.”

Louise Wolf | Senior Associate MST Lawyers

Information Statement The new Code will require franchisors to give an Information Statement prescribed by the new Code to prospective franchisees at an early stage of negotiations. The Information Statement gives information about the risks and rewards of franchising and reminds all prospective franchisees to obtain legal, accounting and business advice, to read all the documents, including the operations manuals, and to know their rights.

This document contains questions and information that may not have otherwise been considered by a franchisee, especially by an inexperienced first time franchisee and business person. However, it is not a complete guide to franchising and should only be used as a first step towards gathering more information about a franchise and the franchise network.

Prospective franchisees should request the Information Statement at the commencement of their discussions with a franchisor if they have not already received the Information Statement from the franchisor.

Simplified information about master franchisors Where there is a master franchisor, the new Code will remove the need for separate or joint or combined disclosure documents to be given to prospective franchisees. Instead, the sub-franchisor must provide in its disclosure document certain details about the master franchisor and its officers, details of the number of master franchise agreements terminated or not renewed in the last three years and details of the master franchise, including details of the key commercial terms of the master franchise agreement.

This change means franchisees are provided with less paperwork, but more meaningful and relevant information about the master franchisor (where relevant).

Specific disclosure about online sales The new Code will also require disclosure about sales of goods and services online by the franchisor, an associate of the franchisor, the franchisee or other franchisees, including details of how online sales might affect the franchisee’s territory, details of whether goods and services may be made available online via a third party website, details of any agreements that might need to be made with third parties in relation to online sales and details of any profit sharing arrangements.

This is great news for franchisees who might otherwise have been unaware they could be in competition with their franchisor or other franchisees as a result of online trading.

Increase accountability for significant capital expenditure

This benefits franchisees by making franchisors much more accountable when requiring franchisees to undertake capital expenditure.

Increased transparency of marketing funds The new Code will require franchisors to maintain a separate bank account for marketing and advertising fees contributed by franchisees.

In addition, franchisors will be required to pay marketing and advertising fees for each business operated by the franchisor on the same basis as franchisees.

Marketing or advertising fees will also only be able to be used to meet expenses that are: (a) disclosed in the franchisor’s disclosure document; or (b) legitimate marketing or advertising expenses; or

Under the new Code, franchisors will no longer be permitted to require franchisees to undertake significant capital expenditure during the term of their franchise agreement, unless the expenditure is: (a) disclosed before the commencement of the franchise agreement; (b) incurred by all or a majority of franchisees and approved by a majority of franchisees; (c) incurred by the franchisee to comply with legal obligations (not those imposed by the franchise agreement); (d) agreed by the franchisee; (e) regarded by the franchisor as being necessary as capital investment in the franchised business and justified by a statement of the rationale for the investment, the amount required, the anticipated outcomes and benefits and the expected risks.

(c) agreed to by a majority of franchisees; or (d) used to pay the reasonable costs of administering and auditing a marketing fund.

Finally, if franchisees vote not to audit the marketing fund, the vote must be undertaken annually, instead of being effective for three years.

The new level of transparency around the use of marketing funds benefits franchisees and should reduce the level of conflict that can occur between franchisors and franchisees in relation to marketing fund contributions and what they are used for.

Jurisdiction and costs of settling disputes Under the new Code, clauses requiring actions or proceedings to be brought in any State or Territory other than the one in which the franchised business is located, will be unenforceable.

Business Franchise Australia and New Zealand 91

e x pert a dv ice

“The new Code will prevent franchisors from restricting or impairing the freedom of franchisees or prospective franchisees to form an association or to associate with others for a lawful purpose by imposing civil penalties.” its associate, the franchisor (or its associate) must give to the franchisee both: (a) a copy of the lease or agreement to lease; and (b) details of any incentive or financial benefit that the franchisor or an associate of the franchisor is entitled to receive as a result of the lease or the agreement to lease; or all of the following: (a) a copy of the documents that give the franchisee the right to occupy the premises; (b) written details of the conditions of occupation; and

Whether this provision will apply to franchise agreement entered into before 1 January 2015 remains to be seen.

In addition, franchise agreements must not contain an obligation for the franchisee to pay the costs of the franchisor in relation to settling a dispute under the franchise agreement.

This benefits franchisees by potentially reducing the cost of raising and being in dispute with their franchisor.

was merely a nominal amount and did not genuinely compensate the franchisee; or ii. the agreement did not allow the franchisee to claim compensation in the event that it was not renewed.

No inducement against association of franchisees

Restraint provisions will be of no effect if:

The new Code will prevent franchisors from restricting or impairing the freedom of franchisees or prospective franchisees to form an association or to associate with others for a lawful purpose by imposing civil penalties.

a. the franchisee had sought to renew the agreement on substantially the same terms; and

Disclosure regarding lease and occupancy licence

b. the franchisee was not in breach of the agreement; and

If a franchisee leases a premises from the franchisor, the new Code will require the franchisor to provide to the franchisee, within one month after the signing of the lease or agreement to lease, a copy of the lease or agreement to lease as well as details of any incentive or financial benefit that the franchisor or an associate of the franchisor is entitled to receive as a result of the lease or agreement to lease.

Restraints of trade and nonrenewal of franchise agreement

c. the franchisee had not infringed the intellectual property of the franchisor during the term of the agreement; and d. the franchisor does not renew the agreement; and e. either: i. the franchisee claimed compensation because the agreement was not renewed, but the compensation given

If a franchisee occupies, under license, premises which are leased by a franchisor or

92 Business Franchise Australia and New Zealand

(c) details of any incentive or financial benefit that the franchisor or an associate of the franchisor is entitled to receive as a result of the lease or the agreement to lease.

The copy documents and details must be given within one month after the earlier of that date on which the occupation commences or the licence to occupy is signed by all the parties.

It is of benefit to franchisees to be aware of any financial incentives received by the franchisor from the landlord at an early stage, to give them an opportunity to better negotiate the terms of their franchise with the franchisor.

Entitlement to disclosure document on renewal Franchisors are already required to provide notice to franchisees, at least 6 months before the end of the term of their franchise agreement, of the franchisor’s decision whether or not to renew the franchise agreement or enter into a new franchise agreement.

The new Code will require that the franchisor’s notice include a statement that the franchisee is entitled to request a copy of the franchisor’s current disclosure document, provided they have not already made such a request in the previous 12 months.

Conclusion In summary, the changes to the Code will provide greater transparency between franchisors and franchisees. It will assist franchisees with their pre-purchase research and will increase transparency and disclosure in relation to marketing and capital expenditure. Franchisees should not assume the new Code only imposes additional obligations on franchisors as the new Code includes an important obligation on franchisees, as well as franchisors, to act in good faith.

The ability for the ACCC and courts to impose monetary penalties on franchisors and franchisees will give the new Code serious clout and new force which should ensure a better level of compliance by all parties.

However, these benefits do not remove the need for franchisees and prospective franchisees to undertake the task of reading all relevant agreements and conducting their own research. It is also still imperative that franchisees seek advice from lawyers, accountants and business advisors who are experienced in franchising.

Louise Wolf is a Senior Associate in the Corporate Advisory and Franchising Team at MST Lawyers. She is one of several experienced franchising lawyers at MST Lawyers who advise franchisors, franchisees and suppliers to the franchise sector on all aspects of franchising, including providing pre-purchase and ongoing advice to franchisees.

Located in Melbourne’s industry heartland, MST Lawyers has strong commercial law skills and provides clients with sensible solutions.

For more information contact MST Lawyers at: Phone: 03 8540 0200 Email: franchise@mst.com.au Web: www.mst.com.au

Business Franchise Australia and New Zealand 93

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h ot to pics

Behind the

headlines Ice cream chain Wendy’s sold for $10m The intellectual property rights for Adelaidebased ice cream chain Wendy’s has been sold to Singaporean-based company Global Food Retail Group (GFRG) in a deal worth AUD$10 million.

GFRG is a subsidiary of listed Singaporean company Global Yellow Pages, which is a specialised publisher of directories and databases, but which has recently commenced on a diversification strategy with a focus on retail food. This is the company’s second foray into Australian franchising this year, following its announcement last January that it would buy Gloria Jeans, however that sale did not complete.

GFRG intends to expand the Wendy’s chain from its existing base of 200 stores in Australia and 30 in New Zealand throughout Asia, particularly China, under a licensing agreement with privately-owned company Asia Food Retail Group Pte Ltd. (Asia Food has separately acquired the retail business and ice-cream manufacturing operations of Wendy’s from its parent company Navis Capital Partners who have owned the business since 2006 for an undisclosed sum).

The Coffee Club parent to buy Melbourne coffee and restaurant chain Parent company of The Coffee Club, Minor DKL, has entered into a number of conditional share purchase agreements to buy a controlling stake in Melbourne-based

VGC Food group, which operates Veneziano Coffee Roasters, The Groove Train and Coffee Hit. VGC Food Group will continue to be operated by its founders, Craig Dickson and Rocky Veneziano, but will be supported by the infrastructure and resources of Minor DKL, particularly through supply chain economies, property, leasing, training and information technology infrastructure.

A purchase price has not been disclosed.

Legislation passed to enable fines for breaches of Franchising Code The bill to change the Competition and Consumer Act (CCA) to allow for the introduction of financial penalties for mandatory industry codes such as the Franchising Code of Conduct has passed both houses of Federal Parliament.

Jason Gehrke | Director Franchise Advisory Centre

In an announcement that also included the release of the company’s F2014 record profit of $36.9 million (a 15% increase on its F2013 profit of $32 million), RFG stated that it expected to complete the two acquisitions by the end of October.

While the individual price for each purchase was not disclosed, RFG will acquire the 236outlet Cafe2U chain to join its existing The Coffee Guy mobile coffee business, while the 70-outlet La Porchetta chain will join RFG’s two existing gourmet pizza brands Crust and Pizza Capers.

Both Derek Black, managing director of Cafe2U, and Sara Pantaleo, CEO of La Porchetta, will continue to direct their respective businesses following the acquisition by RFG.

Pizza Hut franchisees launch class action in response to price war

The Bill creates the platform for the introduction of the new Franchising Code of Conduct which is due to come into effect from 1 January 2015, but which has not yet been released in its final form since the first draft was unveiled in April this year.

A Pizza Hut franchisee has launched an “optout” class action against its franchisor Yum! for introducing price cuts to match Dominos’ discount pricing strategy, but which is alleged to be destroying the profits of Pizza Hut franchisees.

RFG to buy La Porchetta and Cafe2U in combined $31m deal

The opt-out action can potentially include all Pizza Hut franchisees in the network, and follows a previous attempt by 80 franchisees to obtain an injunction to prevent Yum!’s aggressive discounting.

Listed multi-brand franchisor Retail Food Group (RFG) has announced it will add pizza restaurant chain La Porchetta and mobile coffee franchise Café2U to its existing stable of nine food brands in deals collectively worth an estimated $31 million.

The class action alleges that Yum! has breached its franchise agreement and engaged in unconscionable conduct by cutting pizza prices.

Business Franchise Australia and New Zealand 95

h ot to pics

The previously unsuccessful injunction claimed that Pizza Hut’s discount pricing strategy would cost the 80 claimants $10 million and risks putting many of them out of business. However YUM! executives refuted the argument and stated that the pricing strategy was necessary to respond to “a downward trend in financial performance” and the steady loss of customers over the last 10 years, and had been successfully implemented in New Zealand and in the United States.

US labour board considers McDonald’s as employer of its franchisees’ staff The National Labour Relations Board in the United States will consider treating fast food giant McDonald’s as the ultimate employer of staff who work in its franchisees’ outlets

for the purpose of dealing with dozens of charges serious enough to pursue out of an initial log of 181 claims, according to a media report.

The notion that franchisors could be ultimately responsible for the employment practices of their franchisees has raised concerns in the US franchise sector, and could set a precedent that has implications for Australian franchisors.

However legal experts highlight that the Labour Board’s action does not immediately make franchisors liable as joint employers with their franchisees, but rather that for the purposes of dealing with complaints alleging unfair labour practices such as coercive statements to prevent the formation of unions, and retaliating against employees for engaging in protected activities.

96 Business Franchise Australia and New Zealand

OPSM parent loses $33.5m defence force optical contract The parent company of franchise optometry chain OPSM has had its $33.5 million contract with the Australian Defence Force (ADF) cancelled after it was revealed that the optical records of service personnel had been sent overseas in breach of ADF security requirements.

The exclusive contract with the Australian operations of Italian-owned Luxottica to provide optical services to the ADF’s 80,000-plus personnel was delivered primarily through OPSM stores. The contract was cancelled after optical claims by ADF personnel were revealed to have been sent overseas for processing. It is unknown how the loss of the contract will affect individual OPSM franchisees.

9

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E pt@ivanpoolelawyers.com.au www.ivanpoolelawyers.com.au

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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.

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Madgwicks Lawyers

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97 Business Franchise Australia and New Zealand

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FRANCHISE LISTINGS FRANCHISE APPLIANCE TAGGING SERVICES

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

AUSTRALIAN SKIN CLINICS

87/89 Upton Street, Bundall QLD 4214 Ph: 1300 303 014 | 07 55 090 000 Email: info@ozskin.com Website: www.ozskin.com

BATTERY WORLD AUSTRALIA

PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: admin@batteryworld.com.au 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: info@franchiserecruitmentsolutions.com.au Website: www.bodiez.com.au

BUCKING BULL

5 Henry Street, Loganholme QLD 4129 Ph: 07 3423 0555 Fax: 07 3423 0600 Email: franchise@buckingbull.net Website: www.buckingbull.net

BUY AUSTRALIAN PROPERTIES

Franchise Support Office, 2/492 Christine Ave, Robina QLD 4230 Ph: 1300 99 55 12 Email: franchise@buyaustralianproperties.com.au Website: www.buyaustralianproperties.com.au

CAFE2U

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

CITY FARMERS DOGWASH

190 Main Street, Osborne Park, WA 6017 Ph: 08 9345 7200 Fax: 08 9440 1065 Email: scott.mcintosh@cityfarmers.com.au Website: www.cityfarmers.com.au/dogwash

CREMA ESPRESSO

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

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

ELECTRICAL TEST AND TAG

40

FCA

$35,000

$47,000 + GST + Vehicle

LEADING COSMETIC AND AESTHETIC BRAND

14

-

$50,000

$310,000

RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES

82

FCA

$49,900 + GST

$250,000 + GST

FITNESS & PERSONAL TRAINING

1

FCA

-

$250,000

BOUTIQUE CARVERY FRANCHISE

36

Franchise Council of Australia

$60,000 + gst

$200,000

FRANCHISED PROPERTY INVESTMENT COMPANY

1

FCA

$60,000 plus GST

$100,000 plus GST

MOBILE COFFEE VANS

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MOBILE DOG WASH

34

Franchise Council of Australia

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PREMIUM CAFÉ FRANCHISE

13

Franchise Council of Australia

$50,000 + GST Incl. Training

Dependent on Site conditions $300k-$600K

PIZZA FRANCHISE

611

-

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$100,000

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DAY SPA FRANCHISER

89

-

$62,000

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MOVIE RENTAL VENDING

47/590

-

$10,000

$30,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

34

Franchise Council of Australia

$50,000 + GST

$650,000 $950,000

COURIER SERVICE

650+

FCA & FANZ

From $25K+GST

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LEATHER, PLASTIC & VINYL RESTORATION

225

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DOMINOS PIZZA ENTERPRISES LTD

Level 5 KSD1, 485 Kingsford Smith Drive, Hamilton QLD 4007 Ph: 1300 131 888 Fax: 07 3633 3399 Email: Franchise.Recruiting@dominos.com.au Website: www.dominos.com.au

DREAM DOORS

Suite 3, 203-205 Henley Beach Road, Torrensville SA 5031 Ph: 08 8351 8588 Email: cam@dreamdoors.com.au Website: www.dreamdoorskitchens.com.au

ELLA BACHÉ

2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5000 Fax: 02 9439 6267 Email: franchise@ellabache.com.au Website: www.franchise.ellabache.com.au

ENDOTA

475 Moorooduc Hwy VIC 3933 Ph: 03 5971 8700 Fax: 03 5971 8798 Email: emma.stewart@endota.com.au Website: www.endota.com.au

EVOLVE ENTERTAINMENT

S5, L9, 1 Rider Blvd, Rhodes NSW 2148 Ph: 02 8833 2111 Email: franchise.enquiries@fegroup.com.au 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: reception@fastapasta.com.au Website: www.fastapasta.com.au

FASTWAY COURIERS AUS

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

FASTWAY COURIERS NZ

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

FIBRENEW

1/47 Sunnyside Rd, Scarborough, Brisbane QLD 4020 Ph: 1300 954 812 Fax: 07 3203 4178 Email: info@fibrenew.com.au Website: www.fibrenew-franchising.com.au

FROG RENT

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

GOLD’S GYM

81 Gozzard St, Gungahlin ACT 2913 Ph: 02 6280 4987 Email: ckyrgios@goldsaustralia.com.au Website: www.goldsaustralia.com.au

HAIRHOUSE WAREHOUSE

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

INXPRESS

Unit 1/26 Flinders Parade, North Lakes QLD 4509 Ph: 0418 600 919 Fax: 1300 030 066 Email: sales.au@inxpress.com Website: www.inxpress.com.au

98 Business Franchise Australia and New Zealand

FRANCHISE JUST CUTS™

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

JUST LASHES

PO Box 592, Warners Bay NSW 2282 Ph: 0414 491 977 Email: franchising@justlashes.com.au Website: www.justlashes.com.au

LOCAL APPLIANCE RENTALS SOUTHERN GROUP

807, 1 Queens Rd, Melbourne VIC 3004 Ph: 1800 980 650 Fax: 07 3396 8311 Email: sacha@localappliancerentals.com Website: www.localappliancerentals.com.au

PRIMAL PANTRY

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

SCROOZ

5-11 Jardine Drive, Redlands Business Park, Redland Bay QLD 4165 Ph: 07 3829 1993 or 1300 794 499 Fax: 07 3829 1283 Email: franchising@scrooz.com.au Website: www.scrooz.com.au

SEVEN SEAS SEAFOOD CAFÉ

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

SKEWERZ KEBABZ

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

SNAP-ON TOOLS (AUSTRALIA & NEW ZEALAND) PTY LTD 80 Holbeche Road, Arndell Park NSW 2148 Ph: 1800 762 766 Email: les.coppin@snapon.com.au 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: alistairb@snooze.com.au Website: www.snooze.com.au

SPRAY PAVE AUSTRALIA

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

TACO BILL MEXICAN RESTAURANTS

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

THE DRUG DETECTION AGENCY PTY LTD

PO Box 301678, Albany, North Shore City 0752 NZ Ph: +64 9 479 4332 Email: glenn.dobson@tdda.com Website: www.tdda.com

THE INTERFACE FINANCIAL GROUP

Level 19, 1 O’Connell St, Sydney, NSW 2000 Ph: 1300 940 908 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.com.au

TOP SNAP PROPERTY PHOTOGRAPHY

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

V.I.P. HOME SERVICES AUSTRALIA

Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au

XPRESSO MOBILE CAFÉ

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

YELLOW EXPRESS PTY LTD

57 Victoria Rd, Rozelle NSW 2039 Ph: 1300 935 569 Fax: 02 9810 0111 Email: mail@yellowexpress.com.au Website: www.yellowexpress.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

HAIRDRESSING

180 across Australia & New Zealand

FCA

$38.5K

$160K-$240K

EYELASH EXTENSIONS, THREADING & MORE

5

NEESA

$25,000

$40,000

APPLIANCE RENTAL

100+

-

-

$29,000

HEALTHY EATING CAFÉ

3

-

$60,000 + gst

$200,000

FIXINGS AND FASTENER TRADE SALES

1

-

$150,000

$350,000 Incl. stock

MODERN SEAFOOD CAFÉ

2

Franchise Council of Australia

$60,000 + gst

$200,000

MEDITERRANEAN FAST FOOD CONCEPT

10

Franchise Council of Australia

$60,000 + gst

$200,000

MOBILE TOOL AND EQUIPMENT STORE

164

FANZ, FCA

$50,000

-

BEDDING RETAILER

71

Franchise Council of Australia

$50,000

$450,000+

SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE

80

-

$15,000 (Licence Only)

$75 P/W

MEXICAN RESTAURANT, BAR AND TAKEAWAY

35

Restaurant Catering Victoria

$50,000

$450.000

DRUG TESTING & EDUCATIONAL SERVICES

20

FCA (pending)

Circa $150K

+ mobile testing unit

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

150+ worldwide

FCA, IFA, CFA, Irish FA

$24,500

$50,000+

REAL ESTATE PHOTOGRAPHY

N/A

FCA

$39,950 plus GST

$39,950 - $60,000

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$17,500

$25,000

DI BELLA COFFEE MOBILE ESPRESSO VAN

28

FCA

$119,500 + GST (incl. FAST TRACK program)

$119,500 + GST (incl. FAST TRACK program)

COURIER, DELIVERY, FREIGHT, REMOVALS, RELOCATIONS

-

-

Vehicle only

Less than $50,000

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 99

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

With over 12 years’ experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

AUSTRALIAN SKIN CLINICS Established in 1996, Australian Skin Clinics is widely recognised as a leading cosmetic and aesthetic franchise business currently operating in Victoria and Queensland, with imminent presence in other Australian states.

With treatments to suit a wide spectrum of customers both in age and gender, Australian Skin Clinics offers a range of results-driven cosmetic treatments including laser hair removal, cosmetic injectables, microdermabrasion, acne management, treatments

BATTERY WORLD AUSTRALIA Count the number of households in Australia? (Currently 9,117,033 private households in Australia - 2011 Census Data). Now count how many batteries each household will need over the next year?

That’s the potential of a Battery World Franchise.

Offering a world of batteries for everyone, the Battery World network is national and sells a range of portable power products and accessories throughout Australia.

Battery World Australia Pty Ltd, as franchisor, provides

BODIEZ 24/7 FITNESS Bodiez 24/7 Fitness is all about making health and fitness fun, enjoyable and affordable to all walks of life by delivering a 24/7 concept combined with an exclusive interactive personal training system.

Bodiez has a low overhead business structure which enables it to meet the market demand and offer no lock in contracts or hidden extras.

Bodiez uses the traditional personal trainer system

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

100 Business Franchise Australia and New Zealand

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, email steve@ats.com.au or visit www.appliancetaggingservices.com.au

for rosacea, pigmentation, scarring, sun damage and skin care.

It is the mission of Australian Skin Clinics to make its customer’s look and feel good about themselves.

Australian Skin Clinics has spent over 18 years honing its skills, experience and systems to develop an easily replicable model with the specific purpose of becoming an international franchise network.

Franchising Opportunities www.ozskin.com/franchise Careers: www.ozskin.com/careers

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.

82 stores Australia-wide and growing! After 15 years of operation, Battery World continues to be one of Australia’s most powerful retail battery franchises.

For more information about Battery World contact 07 3373 1764 or visit www.batteryworld.com.au/ franchising

just like all other Gyms and fitness centres, however where they stand out from the crowd is in the use of their state of the art technology whereby every client has their own virtual personal trainer that communicates with the Gym equipment meaning they can get personal training at all hours of the day or night.

For more information contact James or Nick at Franchise Recruitment Solutions on 1300 642 575.

strong brand awareness, a unique positioning and a proven business model. As part of the Aktiv Brands portfolio, Bucking Bull franchisees benefit from comprehensive training, detailed operational procedures and marketing tools and assistance to assist in reaching their business goals.

For more information regarding Bucking Bull franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: franchise@buckingbull.net W: www.buckingbull.net

BUY AUSTRALIAN PROPERTIES Buy Australian Properties is the first professional franchised property investment company in Australia. We are leading the industry with safe, ethical and proven ways of investing in residential property with integrity. We supply quality approved direct property investments in brand new full turn key house and land packages, apartments, townhouses, units and row houses Australia wide.

its kind property investment business in Australia.

• great work-life balance • work from your home office • a team of highly motivated and dedicated professionals • excellent company culture • comprehensive initial and ongoing training

We have created a simple yet very effective 4 step client engagement process incorporating proven systems and procedures designed to produce outstanding results and highly satisfied clients every time we use them.

• unlimited growth and earnings potential

Franchisees have the opportunity to operate a very unique, first of

www.buyaustralianproperties.com.au

CAFE2U

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.

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.

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.

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.

• vendor finance available for foundation members Email: franchise@buyaustralainproperties.com.au

If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny.

Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or email: jstanton@cafe2u.com www.cafe2u.com

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

Australia, 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

Crema Espresso

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

AUSTRALIA AND NEW ZEALAND

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: antony@cremaespresso.com.au www.cremaespresso.com.au

Business Franchise Australia and New Zealand 101

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

Dream Doors is looking for people with managerial, organizational/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 remodeling business that has a proven track record internationally.

Established in 2000 in the UK, Dream Doors takes the hassle, and the cost, out of remodeling outdated home interiors. Now with 50+ locations in the UK, 10 in New Zealand since 2009 and now with 7 locations 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 “A place where together we can grow through greater knowledge and endless possibilities.”

1300 131 888 Franchise.Recruiting@dominos.com.au www.dominos.com.au/franchising www.dominospizza.co.nz/franchising

For more information contact Derek Lilly on: T: 1 800 373263 E: del@dreamdoors.com.au 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: franchise@ellabache.com.au P: 02 9432 5000 W: www.franchise.ellabache.com.au

ENDOTA SPA

AUSTRALIA AND NEW ZEALAND

The first endota spa was opened by friends Belinda Fraser and Melanie Gleeson on Melbourne’s Mornington Peninsula in 2000.

There are now fresh, understates endota day spas in almost every Australian state and territory.

Endota spa is the fresh, soothing, all-Australian day spa brand. Flawless walls, timber benches and essential oils meandering on the air.

Please contact Emma Stewart on 0434 771 741 for new opportunities.

business franchise australia and new zealand

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

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

102 Business Franchise Australia and New Zealand

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.

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: franchise.enquires@evolveentertainment.com.au P: (02) 8833 2111

FASTA PASTA

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

FASTWAY COURIERS AUSTRALIA

Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills.

For more information on joining a successful franchise call 08 8304 8600, email reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au

• Low start up costs

• Ongoing business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people.

So, if you’re ready for a positive change, we’d love to hear from you. Call 1300 FASTWAY or visit us at www.fastway.com.au

• No weekend work

*Conditions apply

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

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

Business Franchise Australia and New Zealand 103

A-Z FRANCHISE DIRECTORY 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

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

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

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

104 Business Franchise Australia and New Zealand

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 admin@frogrent.com.au or phone 1300 783 658 or visit www.frogrent.com.au

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

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.goldsaustralia.com.au https://www.facebook.com/goldsgymaustralia

• Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockist of world leading brands with the most lucrative merchandise trading terms worldwide A belief in your ability to change your life and courage to do it is all you need. Work for yourself, not by yourself.

Come and join our community of leaders and start your new future today. We’d love to hear from you.

For more information call 03 9234 2200, email franchising@hairhousewarehouse.com.au or visit www.hairhousewarehouse.com.au/franchising

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

JUST CUTS™ Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”.

Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores.

Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you.

Just Lashes The leaders and only Franchise in Eyelash Extensions in Australia. Clients making an appointment at a Just Lashes lounge expect consistent, professional service and rely on our reputation for delivering the most beautiful results. We help you become an administrator of this truly profitable business ethic!

It’s not just the superior workmanship that Just Lashes has mastered, but our exclusive premium products that are manufactured just for us.

• 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 sales.au@inxpress.com, www.inxpress.com.au

At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ cuts a week!

Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price.

Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere.

Contact: Luke Manning 1800 334 498 Website: www.justcuts.com

turnkey system, you don’t need any formal business experience as our Business Coach will guide you, or prior education in Beauty Therapy as our Lash Expert will train you the right way. We provide everything you’ll need to run this highly flexible, uncomplicated enterprise.

Rely on the ongoing professional support supplied by the Just Lashes network and experience the benefits of a rewarding working lifestyle! e: franchising@justlashes.com.au m: 0414 491977

With the support and encouragement of the Just Lashes

w: justlashes.com.au

local appliance rentals

outdoor furniture, fitness equipment and kids’ play equipment, Local Appliance Rentals helps their customers get what they want.

Local Appliance Rentals are the largest rentals franchise in Australia today. Since franchising five years ago, there are now more than 100 franchisees in Australia, New Zealand and the United Kingdom.

With a wide range of products including TVs, computers, game consoles, home entertainment systems, stereos, coffee tables, dining tables, fridges, freezers, microwaves, washers, dryers, air conditioners, beds, baby furniture, BBQs,

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

As a home based franchise, Local Appliance Rentals is ideally suited for people looking for that elusive work/life balance. The only requirement is a basic home office and funds available to purchase the rental goods on behalf of the customers.

Don’t miss out on your opportunity to join the largest rental franchise company in Australia, visit www.localappliancerentals.com.au/franchising

begin franchising in 2014. Backed by the awardwinning Aktiv Brands franchise system, all aspects of the Primal Pantry business and operation are supported by the category leading marketing, training and operational systems that Aktiv Brands provides.

If you are genuinely passionate about the positive difference that clean-eating can make, then please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.primalpantry.com.au

Business Franchise Australia and New Zealand 105

A-Z FRANCHISE DIRECTORY scrooz

scrooz f a s t e n e r s

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

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: dean.vella@aktivbrands.com W: www.aktivbrands.com

been strategically designed to ensure the concept will thrive in the competitive food court environment.

Skewerz Kebabz is part of the Aktiv Brands group of franchise brands, which means that the model has been developed based on years of experience in the retail fast food franchising sector.

For more information regarding Skewerz Kebabz franchise opportunities, please contact Dean Vella: P: 07 3175 0640 E: dean.vella@aktivbrands.com W: www.skewerz.net

SNAP-ON TOOLS

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

business franchise australia and new zealand AUSTRALIA AND NEW ZEALAND

• 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 franchising@scrooz.com.au

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

106 Business Franchise Australia and New Zealand

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

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

SNOOZE™

• NAB & ANZ accreditation

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

• Sales and product training

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

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

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

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

• Vendor finance assistance

Email: alistairb@snooze.com.au

business franchise australia and new zealand

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

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

SPRAY PAVE AUSTRALIA Pty Ltd Earn up to $3,300 per week.

That’s right, up to $170,000 per year!

Our service decorates concrete. We Spray Pave, Polish, Epoxy and Stain. Jobs are inside and outside.

Customers are domestic, commercial and Government.

Our license structure allows you to choose when, where and how you want to work!

This is a sincere “Be Your Own Boss” system.

You genuinely keep all the profits!

Taco Bill Taco Bill is the longest established Mexican family restaurant in Australia and has built a loyal following since its inception in 1967. Taco Bill’s Mexican food is fun, fresh and affordable and presented in a casual, relaxed environment.

The menu consists of a variety of fresh, authentic Mexican cuisine cooked daily on site, including Taco Bill’s special salsas, quesadillas, fajitas, rice and frijoles, enchiladas, burritos, nachos and tacos.

Thirty brands of tequila are on offer at the various

• Learn a range of new lifelong trades.

• 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.

• From $7,000 deposit + Support Payment Plan.

Established in 1991, Security with Australia’s largest and oldest network. The name of the industry.

Phone or email now, for a FREE information pack: FREE CALL 1800 688 888 Website: www.spraypave.com

restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity!

With 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas.

If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au

The Drug Detection Agency (TDDA)

training program; Australasia wide business networks; State Office support and large-scale clients that need services in your area.

The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients.

TDDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model.

With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses.

You will also benefit from a comprehensive 100 day

AUSTRALIA AND NEW ZEALAND

If you are seeking a next generation business opportunity with huge potential then contact us now to find out more.

Phone: +61 439 222 422 (AUS) / +64 21 917 148 (NZ) Contact: Glenn Dobson Email: glenn.dobson@tdda.com Website: www.tdda.com

Business Franchise Australia and New Zealand 107

A-Z FRANCHISE DIRECTORY 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

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.

small business, and employs its franchise network in Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, the United States, and Mexico.

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

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

As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for professional property photography and marketing tools.

Our franchise start-up costs are competitive, and no photography experience is needed, as comprehensive training and ongoing support will be provided, along with ongoing marketing and technical support.

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

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

V.I.P. Home Services australia

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

by Financial Review Smart Investor.

V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand.

V.I.P. is a professional Home Services franchise with opportunities available in Home Cleaning, Commercial Cleaning, Carpet Cleaning, Window Cleaning and Lawns and Garden Maintenance.

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

XPRESSO MOBILE CAFE

grind beans from a dedicated bean display cabinet and then weigh, heat seal the bag and retail with Eftpos. We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia.

Xpresso Mobile Cafes operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts.

We supply premium Di Bella Coffee products – both hot and cold. Frappes, energy drinks, bottles of water and light food options such as gourmet cookies that are designed to complement the enjoyment of an awesome espresso coffee.

Xpresso Mobile Cafés also have the ability to custom

yellow express Established in 1926, Yellow Express has a proud history servicing the transport needs of a growing nation.

We need dedicated people to assist in expanding our delivery fleet.

We are looking for customer service focused individuals to become DSOs (Delivery Service Operators) with Yellow Express. Yellow Express provide the call centre and support to handle all phone calls, enquiries, bookings, customer invoicing, weekly payments and IT development. Yellow Express advertises for delivery

108 Business Franchise Australia and New Zealand

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

Franchisees are supported nationally by Di Bella Coffee, a fully integrated website, social media and Internet presence as well as the Xpresso Mobile Café call centre.

We’re setting the benchmark for coffee vans – will you join us? Contact Jonathan Payne at jonathan@xpresso. com.au to register your interest today.

and relocation work in the commercial and retail market.

You as a DSO simply complete the allocated work, so you focus solely on your main role. DSOs also have a commission structure on top of their income for new account customers they bring to Yellow Express.

There are no franchise fees or buy ins with becoming a DSO, you only need purchase the vehicle in which you operate, which you retain ownership of.

For more information call 1300 935569, email mail@yellowexpress.com.au or visit www.yellowexpress.com.au.

JOIN THE

DREAM TEAM

Vendor finance now available* *Available to approved applicants.

We are looking for dynamic people who love dealing with others and are passionate about retailing.

The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system.

We provide franchise partners with a stable platform to start their business and offer support across the entire business including: ࠮ Marketing and Promotional Support ࠮ Product Development and Buying Power ࠮ Proven operating system that includes comprehensive product and sales training ࠮ Business Management support from our on the ground field team ࠮ Assistance in site selection and property negotiations ࠮ Business finance available to approved applicants

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

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