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$7.95 AUD (INC. GST) VOL 05 ISSUE 03 march / april 2011
5 TOP LEGAL QUESTIONS protect your territory CHILD FRIENDLY, PETS & GREEN FRANCHISES Rashay’s - a brand that works
CONTROL YOUR COSTS LATEST NEWS
FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
9Guaranteed income package*
9Low start up costs
9Perpetual Franchise Agreement
9Award winning system for over 25 years
9No weekend work
9Easy to operate - no experience required
9Unparralleled business support & training
9Enjoy the freedom of working for yourself
The name that’s on many franchisor’s lips To run a successful franchise operation you need vital, up-to-the-minute information. Without it you are simply guessing. RedCat’s advanced Point of Sale and Management System gives you crucial information enabling you to make prudent management decisions. That’s why some of Australia’s leading franchises, such as Boost Juice, Nando’s, Souvlakihut, Grill’d, Outback Jacks and Easyway Tea, have chosen RedCat.
Find out what RedCat can do for your franchise operation. Call 1300 4 REDCAT or visit www.redcat.com.au
63 On the Cover 11 Cover Story
Rashays â€“ a brand that works
30 Territory Protection â€“ More than just
a primal urge?
Esther Gutnick, Mason Sier Turnbull
63 Feature Article: Child Friendly,
Pets and Green franchises
72 The first 5 questions your lawyer
will ask you
Robert Toth, Wisewould Mahony Lawyers
104 Keeping value in your business
Jack Sakalis, BDC
Franchises in Focus 28 Fastway Couriers
march / april 2011 Expert Advice
14 Bank Accreditation – How it can help your franchise system grow Darryn McAuliffe, NAB
102 Maximising staff efficiencies via the roster Colin Mackie, Enterprise 21
20 Franchising in a changing market Kevin Bugeja, Franchise Selection
106 Join the solar revolution Danin Kahn, Todae Solar
50 At least the snake didn’t eat the cat! Phil Blain, Business Development Company
110 Book Review: The Invisible Partnership
56 Write it down: The importance of a business plan Phil Smith, Westpac 60 High morals and high morale. Running and promoting a business with heart Katherine Grace, ActionCOACH 68 Moving your old Christmas stock Bob Way, Retailplanners 74 Franchising sector in good hands Steve Wright, Franchise Council of Australia
In every Issue 06 Franchise News Announcements from the industry 38 Janine’s Tips: Doing it for the kids Janine Allis, Boost Juice 44 Franchisor Profile: Beaumont Tiles
PACK & SEND
AllSafe Energy Efficient Products
Body & Health Solutions
B&S Mobile Sharpening
75 2011 FCA Focus: Credibility and Engagement Stephen Giles, Franchise Council of Australia
98 Franchisee In Action: Stufflers
76 Benchmarks help franchisees comply with tax obligations Australian Taxation Office
111 Professional Services Listings 113 Franchise Listings
114 A-Z Directory
Animals on the Move
Aussie Farmers Direct
Read and Exceed
82 Safety in your franchise business John Tregambe, MindAtlas 86 Pre-entry franchise education – Learn what?! Due diligence – Do what?! Julia Camm, Corven 90 The simplistic view to site selection Peter Buckingham, Spectrum Analysis 96 Secrets of a successful business sale Marcus Salouk, Scancorp
BUSINESS FRANCHISE VOLUME 5 ISSUE 3 march / april 2011 CGB Publishing Pty Ltd TEL: (03) 9787 8077 FAX: (03) 9787 8499 publisher: Colin Bradbury firstname.lastname@example.org EDITOR: Louise Mitchell email@example.com SALES DIRECTOR Vikki Bradbury firstname.lastname@example.org SALES MANAGER: Sue Thompson email@example.com SALES EXECUTIVE: Kathleen Lennox firstname.lastname@example.org PRODUCTION: Emma Malone email@example.com ACCOUNTS: Joanne Tuffy firstname.lastname@example.org DESIGN: Jejak Graphics (03) 8790 8775
From the Editor Two steps forward – one step back. That seems to be the way of the economy at the moment. The floods and cyclones have devastated Queensland and many small businesses have been destroyed. With Queensland being such a hub of franchise systems, it has affected our industry enormously. However, franchises have a major benefit over ‘stand-alone’ small businesses in times such as these. They have the back up and support of the franchisor and also other franchisees in the system – and we have been hearing some amazing, heart-lifting stories of how the franchise community is working together to make sure flood and cyclone affected businesses are getting back up and running. A great example is in Fastway Courier’s article ‘Determined to Deliver’ (Page 28.) In this issue Kevin Bugeja from Franchise Selection looks at the changing market that is facing franchise systems at the moment (Page 20). With the post-GFC retail slump adding further stresses, it is imperative that new and potential franchisees choose a system that is ‘future proof’. Our feature this issue is trifold focussing on Child Friendly, Pets, and Green franchise systems. Collectively we call these systems ‘the caring franchises’. Generally, they are lifestyle-based businesses that suit people who not only want to run a successful business, but also contribute to the community or the environment in a positive way . Some of our top writers including Katherine Grace of ActionCOACH (Page 60) and Phil Blain of BDC (Page 50) share their experiences and provide an insight into the day to day running of pet friendly franchise systems, while Janine Allis of Boost Juice), talks about the challenges of mixing motherhood with building a business in her article ‘Doing if for the kids’ (Page 38). As always we have a comprehensive round-up of expert advice and opinions from legal and financial experts and business coaches – all committed to the advancement of Australia’s ever expanding franchise community.
COVER IMAGE: Rashay’s Café & Restaurant TO SUBSCRIBE: PLEASE CONTACT CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: email@example.com www.businessfranchiseaustralia.com.au or www.isubscribe.com.au
Louise Mitchell Editor
“Before people invest in a franchise, they should know if the business is willing to change with the times. Obviously by the nature of franchising, certain elements stay the same in the system. Yet business ventures have to keep up-to-date with the mood and direction of the marketplace.” Kevin Bugeja, Franchise Selection.
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.
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What Angus & Robertson has to offer you: t
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Angus & Robertson is looking to continually grow its network of Franchise stores in all states in places such as Gladstone, Freemantle, Geraldton, Port Lincoln & Bendigo to mention a few.. To find out more about becoming an Angus & Robertson Franchise Owner please call David Hawthorn 0412 198 941 or email firstname.lastname@example.org
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0782 - Franchise department LAM.indd 1
11/02/2011 2:51:38 PM
Franchise NEWS Burger Edge rebuilt by former franchisees In just two years, franchisees turned franchisors, Issam and Enza Soubjaki have successfully rebuilt Burger Edge to become one of the fastest growing franchises in Australia. In 2005, Issam and Enza were Burger Edge’s first franchisees , later becoming the first multi-store franchisees. They then became Victoria’s master franchisees in 2006, and now, as franchisors, the pair have used their experiences and business skills to turn around the struggling franchise. “When we took over the business we immediately closed three stores that were performing badly. That was when the real work started,” said Issam. The pair then rebuilt the gourmet burger business from the inside out including: rewriting the operations manual, restructuring the business’ strategies and principals, and focusing on existing strengths and those that needed to be further developed. It is expected Burger Edge will have at least a 24-store network across Victoria, Queensland, Western Australia and potentially New South Wales and South Australia by June 2011.
CAFE2U award top performers Cafe2U has announced that Andrew and Mandy Lynch, who own and operate the Kenwick-Maddington franchise in Western Australia, are the 2010 Franchisees of the Year. “Andrew won the award because he utilises all of the strengths and flexibility of the business brilliantly, he understands his customers as well as the business, adapting products, marketing strategy, and sales techniques to suit different people,” Cafe2U Chairman Andy Simpkin said at the second National Leadership Conference held recently on the Gold Coast. The New South Wales prize was handed to Michael Dolahenty from Cromer, who is also renowned as Cafe2U’s 100th Franchisee. “This is actually a remarkable result since he only started his business exactly 12 months ago. He was the first person launched in 2010,” said Andy. The other state awards were taken home by Rob Clark from South Australia’s Regency Park for the second year running, Michelle Harper from Queensland’s Townville, Oleg Vaksman from Cheltenham, Victoria and the Western Australian state award was taken home by the 2010 Franchisee of the Year winner Andy Lynch.
Price Attack Karrinyup support Breast Cancer Everyone that got their hair cut at the new Price Attack store at Perth’s Karrinyup Shopping Centre on Thursday 3 February helped to support Breast Cancer Care WA, with 100 per cent of haircut proceeds going directly to the charity. Breast Cancer Care WA (formerly the Breast Cancer Foundation) provides those affected by breast cancer with services and support. Angelique McAvoy, Event & Sponsorship Coordinator at Breast Cancer Care WA, said fundraising days like Haircuts for a Cause provide Breast Cancer Care WA with the essential funds required to operate. “As we don’t receive government funding, we rely on donations from the community to be able to provide support and services,” she said. Ms McAvoy added that Breast Cancer Care WA provides practical, emotional and financial assistance to those affected by breast cancer. “We offer a range of support to those affected by breast cancer including counseling and support groups, financial assistance and pamper days for those undergoing treatment.”
IFG leaps ahead in Franchise 500 rankings The Interface Financial Group (IFG) has outdone itself yet again in the 2011 Entrepreneur magazine’s Franchise 500 rankings. IFG has made a significant jump in the area of home-based franchises, going from number 82 in 2010 to number 67 this year. Entrepreneur’s Franchise 500 is the world’s first franchise ranking system based on objective, quantifiable measures of success in North America. All franchises must adhere to the strict guidelines set in place for ranked franchises and complete the detailed survey.
The Interface Financial Group (IFG) provides short-term working capital funding in the form of a unique invoice discounting service. Unlike other services, the IFG option allows clients to access funding on an as-needs basis. IFG is one of the largest alternative funding sources for small business in North America and New Zealand and commenced trading in Australia in August 2009.
the United Kingdom and Ireland. IFG’s innovative invoice discounting service is a fast and easy way to turn receivables into cash.
The company serves clients in the manufacturing, service, and construction sectors. Interface operates from a base of more than 140 offices in the United States, Canada, Australia, New Zealand, Singapore,
Big boy franchisees show how to grow The high fliers of global and Australian franchising are converging in Melbourne this month to share tips on how to avoid costly errors when building successful multiple enterprises. The Franchise Relationships Institute is hosting its third annual MultiUnit Summit for franchisees and franchisors on March 10-11 featuring keynote speaker David Ostrowe who owns 12 top-performing
Burger King stores in the US. Other speakers at the event include franchisors and multi-unit franchisees from Telstra, National Australia Bank, Banjo’s, LJ Hooker, KFC, Pizza Hut and McDonald’s, along with experts in multi-unit operations. “Franchisors wanting to use multi-unit franchising as a growth strategy need to look at fresh and innovative ways to support their multi-unit franchisees and engage them constructively in the franchise system,” says Greg Nathan, Managing Director of the Franchise Relationships Institute. For further information go to www.franchiserelationships.com.
Franchise NEWS State-based franchising legislation: no benefit, all risk The Franchise Council of Australia (FCA) has called on the Western Australian Parliament to abandon unnecessary and potentially damaging franchising legislation that would duplicate national regulation and cost the WA economy. The FCA made the representations, on behalf of the industry, in its submission to a Parliamentary Inquiry into a Private Members’ Bill introduced to State Parliament late last year. FCA Executive Director, Steve Wright said that while he welcomed the opportunity to represent the strong views of the industry to the Economics and Industry Standing Committee, the need for state-based
legislation had already been canvassed and rejected by five inquiries since 2007/08. “There is simply no need for this legislation. “Regulation of the franchise industry is already covered by a National Code of Conduct that was strengthened just six months ago, the Trade Practices Act and the Australian Competition and Consumer Commission,” Mr Wright said. “Both franchisors and franchisees are telling us they don’t need or want this legislation. With increased compliance costs, a disincentive to investment in WA and duplication of the national regime, this approach is all risk with no benefit.”
North Queensland to host franchise expos forum for existing and developing business people to gain valuable information and advice from a range of experts for free – something that has never before been offered in the north. NQSBDC chief executive officer Brian Arnold said the March 25 to 26 event at Townsville’s Riverway would be different to expos where attendees just collected flyers and left. The response to North Queensland’s first small business and franchise expo has been so strong that all 58 sites have sold ahead of the March event that is expected to attract more than 1000 visitors. The Yellow Pages North Queensland Small Business and Franchise Expo is the brainchild of the North Queensland Small Business Development Centre (NQSBDC) and will provide an engaging
“We will have two specialist franchise workshops with one aimed at franchisees and another at franchisors, which will be followed by free one-on-one advice,” he said. “Plus many of our exhibitors will also be offering free advice about issues like business legalities, intellectual property, employment law, data protection, competitive IT structuring, and how to smooth out cash flow humps and bumps – essentially everything a business person needs to know under one roof.”
Noodle Box lifts lid on new strategy for growth for 2012 and beyond Noodle Box is setting the foundation for major growth, with a new strategic direction and investment in a new, highly credentialed team. Cutting their teeth on various hospitality projects for a number of years, it wasn’t until 2000 the Noodle Box concept became the focus for co-founders and co-managing directors Dave Milne and Josh James. “Josh and I now see 2011 as an opportune time to evolve our culture, strengthen internal processes and invest in people
who will allow for a new phase of growth on FY12 and beyond.” said Milne.
record with 75 per cent of the network owned and run via this model.
Starting the business from a single store in Melbourne’s busy fashion and cafe strip of Chapel St, the chain has grown to over 80 stores, with a strong presence in Queensland and a buoyant franchising
The goal is to not only be recognised as a leader within the Asian fast food category, but as a brand which represents a healthy and more sophisticated ‘gourmet’ meal option.
Eagle Boys open 25th Sydney store Despite entering the Sydney market a little over 24 months ago, Eagle Boys Pizza will this week open its 25th store in the city, demonstrating the growing demand for quality value pizzas. And Australia’s second largest pizza maker has plans for another 40 stores in the city during the next two years. Eagle Boys Pizza first opened in Sydney at St Mary’s at the end of 2008 following the acquisition and conversion of Pizza Haven stores. The 25th store is located in Richmond. Eagle Boys CEO Todd Clayton said Sydneysiders had embraced the company’s menu of pizzas and complementary sides, delivering double-digit sales growth and a spike in inquiries from potential franchisees. “Eagle Boys has created a new middle ground in Sydney where pizza lovers can get quality gourmet pizzas without the hefty price tag,” he said. Eagle Boys Pizza is Australia’s second largest pizza maker and is 100 per cent Australian-owned. It operates more than 335 franchised stores throughout Queensland, New South Wales, Victoria, South Australia, Western Australia, the ACT, and the Northern Territory, employing more than 8,000 staff and making more than 17 million pizzas a year.
GroutPro seals the deal in WA and SA The Franchise Shop is thrilled their Kiwi client GroutPro has consolidated their expansion into Australia by selling the master franchises for SA and WA. “What a fantastic time for Joe and Rob. Their success really is built on a quality business with endless opportunity,” says Grant Garraway, Senior Consultant. The Franchise Shop successfully converted New Zealand based GroutPro franchise to Australian law and practice this year. Rushabh Shah, proud new Master Franchisee of SA and WA said the deal is a fantastic opportunity for him. “I look forward to working with Joe and Rob and building on their already successful International franchise.” GroutPro is New Zealand’s largest Specialised Tile & Grout Restoration Company, with fully trained and certified Specialists across the country. They commenced franchising in Australia August of 2010.
COVER S TORY
leads to new franchising opportunity Rashay’s Restaurant & Cafe is a brand that works.
ashay’s are preparing to open the doors to their fourth Sydney-based café and restaurant as the company prepares to expand even further with the launch of its franchise operations nationally.
from a range of seafood, steaks, chicken, pizza, pasta and café meals. It embraces the systematic approach of fast food without sacrificing the quality expected of restaurant meals.
The fourth company-owned store is due to open in Bankstown in June.
Rashay’s dishes are made from the highest quality Halal grain fed meats and chicken as well as top quality seafood products.
The original Rashay’s Café, located on Elizabeth Street, Liverpool was opened in 1998 and relocated to Macquarie Street, Liverpool in 2003. In May 2001, Rashay’s Hume Highway, Liverpool opened its doors under the name Euro Bar & Restaurant. However the owners, realising the popularity of the Rashay’s Brand, renamed the restaurant in May 2005 to Rashay’s Licensed Café, now known as Rashay’s on Hume Highway. In September 2010 the Campbelltown restaurant opened making this the third Rashay’s location.
About Rashay’s Rashay’s Café & Restaurant is an Australian owned business that models itself on the principle of ‘food fast’, offering low to moderately priced a-la-carte menu items
An excellent franchising opportunity Offering new franchisees an operation concept that challenges the major players in the fast food business. Despite the comprehensive ‘menuzine’, all Rashay’s menu items have been created in a manner to allow the preparation of many recipe ingredients to be done ahead of time. Most of the ingredients are produced in a central kitchen or are otherwise available from local suppliers that meet high standards. Rashay’s restaurants are designed to assemble meals without losing the authenticity that is expected from a restaurant. The tried and tested systemisation of the business assures that the kitchen can conduct
the day to day operations without formal chef qualifications allowing complete control in the hands of the operator (franchisee). This means that no experience in the food industry is required for franchisees, as all the training and systems are provided. Front of house operations are also provided with comprehensive training and tools, as well as a well-branded fit-out to ensure that the unique atmosphere and service can be recreated time and time again. Franchise opportunities currently exist in most locations in and around Sydney. Interstate inquiries accepted via expression of interest. Rashay’s have an experienced operations team to assist with set up, training and ongoing support. Rashay’s will provide full assistance to help choose sites and to negotiate site locations. Investment requirements starting from $300K+GST. v For more information on becoming part of the Rashay’s family – go to www. rashays.com.
Signature Dish: Rashay’s chicken – chicken fillet with a creamy mushroom sauce has been one of the restaurant’s most popular dishes for over 12 years
profile: pack & send
Pack & Send With more goods being moved than ever before, PACK & SEND continues its dynamic growth corporations, need solutions for the packaging and safe delivery of fragile, large, awkward and valuable items. This service extends to a number of major freight companies and furniture removalists who use the PACK & SEND packaging service to add value to their own client’s experience. Many small businesses also use PACK & SEND to outsource their packaging and dispatch departments. Among the needs of households are gift sending, shipping personal effects, furniture removals, returning goods on warranty and purchasing packaging supplies.
ACK & SEND has created a unique retail business system offering customers a one-stop shop for personalised packaging and freight solutions which services gaps in the logistics market that other companies are unwilling or unable to service. PACK & SEND provide customers with an unmatched level of flexibility, reliability and convenience. PACK & SEND has prospered because there is always a need for goods to move. However, with the advancement of technology and the development of the internet, the logistics industry has dramatically changed - with more goods being moved than ever before. The growth of sites such as eBay have been phenomenal and with each item purchased, it must be shipped!
Why customers choose PACK & SEND PACK & SEND customers include a broad spectrum of the community including small, medium and large businesses, e-commerce buyers and sellers, households, tourists and international students. Small to large businesses, including government departments and large
PACK & SEND also assists the tourist market, making it easier for tourists to send items (particularly art and antiques) back home. As a result, this has improved logistics solutions for major hotel chains and backpacker hostels. These solutions flow on to international students needing to send boxes of personal effects back home.
PACK & SEND stands out from the pack Logistics management services are offered to individuals as well as businesses. This is available to the family with a need to move their furniture and belongings overseas, as well as for the large corporation that may already have a freight account with a major company, but needs the packaging and project management expertise of PACK & SEND to send an exhibition around Australia. At PACK & SEND, peace of mind and convenience hold great importance. Customers are offered loss and damage protection warranty, track and trace, and have no need to establish an account – payment can be made via cash or credit card. The core philosophy underlining the PACK & SEND culture is ‘No Limits’. No limits to size, value or weight. PACK & SEND focuses on customer convenience along with personalised, value-added solutions. v To find out more, visit www.packsend.com.au or call (02) 9822 5622.
Darryn McAuliffe, National Manager, NAB Franchise Banking
HOW IT CAN HELP YOUR FRANCHISE SYSTEM GROW T
hrough the process of ‘accreditation’, a bank examines a franchise system to gain a better understanding of the system and how it operates to assess business risk. This helps it to streamline financing processes and provide consistency across the franchisees within the same system.
• the strength and liquidity of the secondary
The accreditation process is detailed and looks at four core elements:
Systems refer to ongoing support and training for the franchisee and processes such as recruitment, benchmarking, marketing and territory definition. As part of the system review during accreditation, banks often investigate franchisee satisfaction by asking existing franchisees questions such as:
• stability • scale • systems • strategy. The stability of the system includes the franchisor’s background, their industry knowhow, financial position and trading history. We investigate activity within the system such as the number of franchisee transfers, terminations (initiated by franchisor and franchisee) and franchisee outlets bought back by franchisor. An attractive feature of a stable franchise system is the achievement of scale (size and number of outlets). Scale can provide important insight into:
• the acceptance of the system across different states and territories
• a franchisors ability and willingness to
support franchisees (particularly those trading below expectations)
market (for onselling a franchise business), and
• the historical financial performance of
existing franchisees and their loan servicing capacity.
• How well does your experience as a
franchisee meet the expectations you had when you bought the franchise?
• Would you invest in the franchise system again?
• Would you recommend others to purchase a franchise within this system?
Strategy relates to the future plans for the system including growth strategies. In particular, is the growth strategy realistic, sustainable and underpinned by a clear understanding of the current marketplace, the industry outlook, the system’s competitive advantage and effective back office/support mechanisms? The process is similar to the franchisee’s own review process on evaluating a franchise opportunity as the bank asks ‘why should
I invest in this system?’ The accreditation process may uncover issues such as prior litigation and trademark issues that are also relevant to a new franchisee but run the risk of being overlooked. This may offer a certain level of comfort for new business owners, particularly those buying their first franchise. For franchisors accreditation is a value-add for franchisees as it makes it easier for them to work with banks for their franchise finance needs and also greatly enhances a bank’s understanding of the business. Once a system is accredited applications for finance do not centre on a review of the business but more so on the applicant and their plans. The accreditation process is ongoing, we review formal accreditations on at least an annual basis and as part of this process will increase or decrease lending ratios and conditions based on the system’s track record and apparent risk profile. Banks continually look to fine tune and improve accreditation processes to promote a more efficient and predictable process flow with each transaction. A common misconception is banks are not interested in working with emerging systems - most are keen to develop a relationship and understanding of both parties. This assists understanding of what it takes to become accredited if that is part of the franchisor’s strategic growth and system development.
“A common misconception is banks are not interested in working with emerging systems.”
The franchisee package Based on the bank’s investigation, a ‘franchise package’ is created for all franchisees that are aimed at making their life easier by offering a package of financial solutions tailored to the needs of the business owner. The bank will already understand the franchise system and the financial and operational requirements of the franchisee and can therefore tailor a cost-effective and complete financial package. Accreditation can also lead to group deals on products by setting pricing at a group level rather than individual so franchisees benefit from more cost effective products such as merchant and business protection facilities. Not only can the franchisee take advantage of some great ‘group deals’ and obtain lending packages against the value of the franchise system, they can immediately focus their time on actually running their business, comforted by the fact that the bank has already established both their set-up and ongoing finance requirements and put together a standard package to meet those needs. At the NAB we aim for franchisees of the same system to receive consistent treatment regardless of their location and also, responsible lending that allows them to grow at a sustainable rate. If the bank has specialist franchise bankers as well, they will benefit from the shared knowledge and experience from a financial partner that understands their business model.
working capital needs
• business transaction accounts • EFTPOS, merchant and card facilities • business insurances and superannuation plans
• online banking services. What benefits does purchasing from an accredited system provide in dollar terms? Joining an accredited franchise system means that you may be able to borrow* 40 to 70 per cent of the total set up cost of a new franchise, or purchase cost of an existing franchise, without necessarily providing your home as collateral for the loan. As an example, if you were to purchase a bakery business from a NAB accredited franchise system, which has been approved for a maximum ‘loan to franchise business value’ of 70 per cent, and you need to borrow as much as possible of the total set up cost, the NAB franchise loan amount can be calculated as follows:
New Business Set Up Costs Equipment, Fixtures & Fittings
Legals & Accounting Fees
Opening Advertising Levy
Opening Raw Materials
Your banker can also discuss and recommend appropriate products to help run your business smoothly, such as:
Total Investment / Setup Cost*
• business loans to acquire your franchise
Cash you are contributing
Balance of Loan Required
• overdraft facility to assist with daily
% of loan to franchise business value 70%
Calculation of Loan Required
Are you ready to buy a franchise? While the initial set up costs of buying a franchise are higher than normal, you are typically buying into an established brand, defined processes and proven model and if you’ve picked a good system, then you will benefit from ongoing support of your franchisor. Once you’ve decided franchising is right for you, make an appointment with your business banker who can guide you through the process and put you on the right path to achieving your personal and business goals. Franchisors operate in a dynamic, complex and heavily regulated sector. Successful systems run a cost effective business while successfully promoting their brands and services. Crucial to their success is the strategic and timely expansion of their system to meet demand, while keeping their franchisees engaged, motivated and profitable. v For more information go to www.nab.com.au/franchising Darryn McAuliffe is National Manager, NAB Franchise Banking. He is responsible for the NAB team of accredited franchise bankers, the ongoing accreditation of franchise systems across Australia and managing key relationships. NAB Franchise Specialist Bankers understand franchising and can offer you a flexible and competitive finance solution to help your business prosper. You can contact Darryn at Darryn.McAuliffe@nab.com.au or 0412 789 027. Important note NAB has not taken into account your objectives, financial situation or needs and recommends that you consider whether any advice in this article is appropriate for your circumstances.
PROFILE: Aktiv group
se7en GROWS THEIR BRAND THE ACTIV WAY
or the Aktiv group, the past year has been one filled with major brand developments, acquisitions and most importantly - success. 2010 also hosted the introduction of se7en Gourmet Takeaway – one of Australia’s newest and most innovative operators in the fast food franchise sector.
“We’ve invested a lot in this new brand – resources, time and money. We are confident that se7en now provides an organised, stable and supportive system and are now in a position to start franchising and expanding into key metro and regional locations across Australia,” says Dean.
The se7en brand recently unveiled their third store in the busy food court of Indooroopilly Shopping Centre in Queensland. As a result of months of market research, brand development and product testing by se7en developer and manager, Aktiv Brands. The stunning new food court model is the first of its kind for se7en and celebrates the brand’s successful entry into the world of franchising and the competitive takeaway market.
The se7en franchise model has been carefully designed to ensure it can thrive in a broad range of locations including food courts, outdoor dining precincts, stand-alone locations on a coastal esplanades or the main street of a country town.
se7en Managing Director, Dean Vella, says se7en is all about innovation, high-end delicious gourmet takeaway meals and cheeky fun. “We wanted to create a brand that feels like, looks like and tastes like a breath of fresh air and we think the new Indooroopilly store reflects that.
The se7en brand encompasses a passion for many things including the environment, nutrition, rewards for loyal customers and creating and maintaining a positive work environment. “We are also passionate about delivering on the promise,” says Dean. “Our corporate team goes to great lengths to ensure that we carefully balance store design, menu design, brand personality, service quality and operational efficiency to make delivering on the promise a constant.”
se7en’s all day menu, displayed on a series of menu display LCD screens, lures customers with a modern offer that includes all day breakfasts, gourmet grills, seafood, freshly made salads, kid’s meals, coffee and seasoned chips and wedges. From the stunning use of digital menu screens to their cheeky loyalty rewards club named ‘Friends with Benefits’, se7en has fun breaking new ground in everything they do. “Our Friends with Benefits loyalty club members receive a 10 per cent discount se7en days a week. Each time their card is scanned in store they are automatically entered into the monthly prize draw. The unique monthly prizes consist of carbon credits purchased on behalf of the se7en winners. These carbon credits are purchased from forestry and greenhouse gas schemes around Australia and offset the equivalent of 1 tonne of carbon emissions,” says Rob Sawkins, General Manager of se7en. “Our commitment to the environment is possibly what we are most proud of. The use of energy efficient building materials and ecofriendly cutlery and napkins is just the tip of the iceberg,” said Rob. With an investment in the se7en franchise, the Aktiv group provides the freedom of running and owning a business, with the security of working within an established franchise system. v For more information on the se7en brand and current franchising opportunities, visit www.se7en.com.au. se7en Gourmet Takeaway is part of the Aktiv group along with Bucking Bull Roast & Grill, Skewerz Kebabz and The Kebab Co. To become part of the Aktiv Brands Group, please contact Dean Vella on 0414 187 940 or email dean.vella@ aktivbrands.com. For more information, visit www.aktivbrands.com.
Profile – Ozzy K leen
Join the Franchise Family
en Patterson started his cleaning business four years ago with a carpet cleaning machine and a trailer. At the time, Ken was working for the railway and supplementing his income by doing part-time residential carpet cleaning. As Ken’s cleaning job became busier, he decided he would take the plunge, quit his job and start his own cleaning business. “I had previous experience in the franchise industry as a cleaning franchisee. I didn’t like the way they operated and always had in the back of my mind I could do better,” Ken stated. He believes the franchisor/franchisee relationship should be one of mutual trust and respect. The relationship should be based on the desire to help each other succeed. “I am looking for franchisees who want to work like a family, people who are happy, motivated and willing to work together.” After leaving the railway, Ken began building his business. Initially, he was only doing carpet cleaning, but the scope of the job started expanding. “Some of my clients started asking if I could do more.” Always eager to accommodate his clients and
maintaining a can-do attitude, he continued to expand his services to meet the demands of his customers.
Ozzy Kleen is based in Newcastle. Ken would like to have some new franchisees in this region.
Now, with Ozzy Kleen in full swing, Ken offers a huge range of cleaning services for a large and varied market. He states Ozzy Kleen is unique because it offers the full package in regards to cleaning. No job is too big or too small.
“I could work closely with them and they would benefit from the contacts I have established already.”
This full service approach appeals to both the client and the franchisee. Clients can call Ozzy Kleen and be assured the entire property, or 20 rental units, or school, will be cleaned from top to bottom. Franchisees benefit because they are not limited to just carpet cleaning or window cleaning, or just residential cleaning or commercial work. Ken believes with the scope of services available and the large territory consisting of 50,000 homes/ businesses, there is plenty of opportunity to be extremely successful. “The territory is five times the size of other such franchises I know of now.” He believes with effort you reap rewards and the more hard work and the more time you put into the franchise, the more you will succeed. However, he also states this can be an opportunity for people who want to work part-time as well.
However, Ken has big plans and is open to establishing franchises throughout Australia and already has systems in place to support new franchisees regardless of their location. “We have a good presence on the web and dedicated websites throughout Australia. New franchisees would receive training from Ken either in Newcastle or their chosen location.” Ken is looking for franchisees who desire to work as a team and become part of the Ozzy Kleen family. “Too often, franchises are about competition. I am starting a franchise system that works like a family. We offer support to each other. It’s about teamwork.” Ken’s favourite quote is “together, everyone achieves more.” “I am prepared to work side by side with my franchisees to help them succeed. It is a big step for new franchisees and I want to be there to help them.” Ozzy Kleen offers franchises for $49,000 including:
• all necessary equipment • 50,000 home/business territory • dedicated website • central answering service for all incoming calls – redirected to your franchise
• one on one training with Ken • open door policy for the franchisee • close working relationship with the franchisor.
For more information about franchise opportunities contact i-Franchise-You on 03 9703 1135 or visit www.ozzykleen.com.au.
A CHANGING MARKET O
ne certain thing about franchising in 2011 will be change. Indeed, successful franchises must change to meet the current market conditions. A business without growth is a stalled venture or one that is possibly in decline or losing market share to its competitors.
What are the hot franchising trends and how do you successfully anticipate future trends? Predicting and anticipating trends in franchising is not easy. Sometimes it seems that successful franchises just appear overnight while others mature over time. In fact, there are a wide range of factors – some predictable, some not so predictable, that help determine which franchise will make it big, while others flop. One of the factors that are frequently relied upon to predict a trend in franchising is the use of demographics. Demographics analyse what is happening in various segments of the population. By studying the demographics of the local market, you can gain a general sense of buying trends that will affect the demand for certain types of products and services – changes in our economy such as increased unemployment or higher interest rates will
also have an effect on the success or failure of businesses as these changes may impact consumers’ need or buying habits. So how do you find the franchise that is right for you in a changing market? To do this we need to understand what is happening in the franchise world, and where it’s all headed. As per usual the forecast includes growth, and that’s exciting. But today’s environment also provides many challenges. Yesterday’s successful product/service offering and marketing campaign won’t necessarily work today, as many leading franchise systems have found in the retail slump that began after the Global Financial Crisis (GFC). With franchising, change is needed for growth. Franchising is based on methodologies and processes, businesses need to move forward into the future. A thriving franchise grows throughout all of its years of operation. Different delivery methods come on scene and new technology makes an appearance. In addition, the consumer changes over time and businesses need to be aware of market trends and to keep ahead of what customers will be wanting next. Customer preferences and demands do not
Kevin Bugeja, Managing Director, Franchise Selection
stay the same. For example, restaurateurs in the 1970s might not have served many customers requesting vegan menus or expecting a variety of international flavors. Franchises must continue adapting to the marketplace. Before choosing a franchise in 2011, potential franchisees should ask franchisors a few vital questions
Choosing a franchise - 5 questions to ask franchisors 1. What time is devoted in this franchise to developing systems and markets? Franchisees want to know how much time a franchise allows for research and development purposes. Ask the franchisor for examples of what they have done in the past to change their model to suit the market or changes in their industry, and ask if the business is future proof? 2. Does the franchisor plan any innovations? Before people invest in a franchise, they should know if the business is willing to change with the times. Obviously by the nature of franchising, certain elements stay the same in the system. Yet business ventures have to keep up-to-date with the mood and direction of the marketplace.
“So how do you find the franchise that is right for you in a changing market?”
As well, franchisees should be prepared for the degree of change. Does this franchisor hardly ever make changes or do they modify processes, colours, or flavours on a regular basis? No franchisee can be prepared, however, for everything that lies ahead in a franchise.
learn plenty about the business from the answer to that question. Potential buyers can get a better idea about whether or not this franchise is right for them. Keep in mind during 2011 and beyond that there is one ‘constant’ you can always expect in franchising - constant change.
Even franchisors have no control over external factors such as the economy or changing governments and different regulations. Yet franchisees should arm themselves with as much information as possible before they buy a franchise. Franchisees must perform ‘due diligence’ (researching the franchise from every angle).
Finally, how do you buy a business that is future proof?
3. Does the franchise allow franchisees opportunities for creativity? One basic fact about franchising is that each franchise has systems and processes and franchisees are expected to follow them. Of course, franchisors can allow franchisees to express their individuality. Since buyers will be working within the framework of a franchise, they should be aware about the requirements of a specific business. Is this franchisor very rigid in their approach? Will the franchisor welcome a franchisee’s creative spirit? Potential buyers need to know the score. The franchise has to suit you. 4. Does the franchise have good analytical systems? The franchise should have a system capable of analyzing the customers and current marketplace - even franchisees. A franchise cannot be effective if its leadership and management are not in touch with the entire business. A trained and friendly staff, as well as customer satisfaction, also plays a huge part in the success of any venture. 5. What is the company’s vision? A franchisee should ask the franchisor about their vision for the company. Franchisees will
To me the definition of a future proof business is a business that continues to thrive, grow, and make money in any economic condition. But first we need to look at the differences between needs and wants. Needs are things that we as consumers need to maintain our lifestyles and the daily activities, in other words ‘NECESSITIES’. Things like food, clothing, a roof to live under etc. Wants are things we want to have, but are not necessary to maintain our lifestyles or daily activities. Things like a 50” plasma TV, fancy car, diamond rings etc. When the economy is good and people are making money, we tend to spend on our wants, however when the economy is bad, we tend to cut down or even eliminate wants, however our NEEDS never go away. Future proof franchises are businesses that traditionally offer products and service that consumer and business owners just can’t (or wont) live without. The demand for these types of non-discretionary products and services is fairly consistent because they are considered necessary to run a household or successful business even during a major economic downturn. Still, in spite of the downturned economy in the larger scheme of things, franchises have proven to be very resilient in the face of economic adversity and are more likely to succeed than non-franchised businesses. This is mostly due to the essential nature of franchise business. One of the hardest things for a non-franchised business owner to do
is adapt the business plan to account for the shifting economy while successfully operating the business. Franchisees don’t have to worry about that, because as they continue to perform daily operations, the franchisors and their team takes responsibility for adapting business plans to the changing market, and with the long history most franchise operations have, those adaptations are made with a wealth of knowledge and experience behind them that most non-franchised businesses simply do not have. Another huge benefit that a franchise opportunity brings to the table that no ordinary small business can compete with is a comprehensive marketing plan and marketing dollars that can be adapted for the best strategies for local and national advertising, these marketing funds constantly grow in size from franchisee and franchisor contributions and having availability to marketing dollars constantly allows for franchised businesses to adapt their market strategies to suit changing markets. Many small business owners of nonfranchised businesses don’t have the same disciplines to put a percentage of their weekly turnover back into the business for marketing activities. The problem with this is when there is a downturn in the business they usually don’t have the resources to adapt and change their marketing position. Because marketing is something that the average self-starting entrepreneur is not well versed in but is one of the most important tools for maintaining a business through any market condition, having that professional staff of marketers doing the work on your behalf is a huge plus for any business owner. Kevin Bugeja, Managing Director, Franchise Selection, Level 5, 530 Collins Street, Melbourne, Vic 3000. Phone 1300 FRANCHISE (372 624) or 0412 511 630, email email@example.com or visit www.franchiseselection.com.au.
Be part of the fastest growing industry on the planet A bright idea has sparked an unmatched franchise system that provides energy efﬁcient solutions for the 21st century. ALLSAFE director Mark Hawley says AllSafe is unique in that people refer it as a ‘one stop energy efﬁciency shop’. “When we get asked who our competitors are, we often ﬁnd it difﬁcult to answer,” Mark says.
With ten franchises currently operating, AllSafe is on target to expand its network to 52 franchises across Australia and New Zealand. Head ofﬁce based training is provided by the AllSafe Team and specialised product training is provided by their supportive manufacturers.
A turnkey operation with AllSafe begins with the franchise fee of $95,000 +gst, plus an estimated setup cost of $100,000 +gst which includes leased vehicle, stock, IT system, signage, uniforms, stationery and training. Mark says AllSafe offers individuals the opportunity to own their own business in an exciting new market. “Making homes and workplaces more energy efﬁcient is the future and when you have a growing business which has a great product mix of National Branded products, it is reassuring to have the support of these suppliers behind you”, says Mark.
Allsafe Energy Efﬁcient Products offers consumers a complete sales, advice and installation service on a wide range of energy efﬁciency products and is recognized as one of the leading and fastest growing energy efﬁcient products’ provider in Australia “The AllSafe concept has been well received by the building sector and homeowners who are constantly telling us that it’s about time someone came up with this idea”, says Mark.
All franchisees also gain accreditation as HIA Greensmart advisors and ABSA (Australian Building Sustainability Assessor) that allows them to assess thermal performance and energy star ratings of homes, factories and ofﬁces.
For further information about AllSafe Energy Efﬁcient Products franchises contact Head Ofﬁce on 07 3855 8733, or visit www.all-safe.com.au and click the Franchise link.
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Solar Hot Water
5IJTNFBOT.03&PQQPSUVOJUJFT for you to increase your profits! BE PART OF THE FASTEST GROWING INDUSTRY ON THE PLANET If you have drive, enthusiasm and commitment and are interested in energy efficiency, this could be the business of your dreams. As an Allsafe franchisee you will have access to a leading product range that appeals to energy conscious buyers, both builder and homeowner. Our full range of Solar power systems, solar and gas hot water systems, water and energy saving devices, insulation, skylight and ventilation systems is unique. As the cost of energy rises and the growing demand for Energy Efficient products spirals you will be at the forefront and will become the local ‘one stop’ Energy Efficient shop in your area as part of an ever increasing network of stores across Australia.
The NEW‘SuperGreen” iPhone app 5IJT'SFFJ1IPOFBQQMJDBUJPOJT a real breakthrough, allowing people to roughly calculate their payback, dollar savings BOE DBSCPO FNJTTJPO $0 savings if they were to install a solar power, wind power or a solar hot water unit. It’s easy to use and is a great tool to help consumers decide which energy efficient products best suit their home or business location.
For further information about AllSafe Energy Efficient Products franchises contact Head Office on 07 3855 8733 or visit www.all-safe.com.au and click the Franchise link.
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franch for sale ise in Que en Ipswic sland h/Loga n area
Profile: Snap- On tool s
treasure their annual conference E
very January Snap-on Tools hold their Annual Franchise Conference and it is the most important event in the calendars of both Snap-on and their franchisees.
on has grown to include 160 franchisees who are undoubtedly our greatest asset. We congratulate each of them for their hard work in 2010 and their individual contributions to our achievements as a business.”
Attended by more than 150 franchisees and their families, the 2011 conference - that was themed ‘There is a difference- Treasure it’ - included a mix of business development, extensive trade shows and spectacular social events.
The conference finale – an island dinner in pirate fancy dress – was a perfect way for franchisees and their families to engage in the ‘Treasure it’ theme and dance the night away.
Managing Director, Ajit Ponnambalam, who opened the conference said: “I specifically want to acknowledge the spouses and partners who work hard behind the scenes, to support the Snap-on system.” “And during 2011 we will work to further improve our support to our franchisees and we will continue to make a difference in our customer’s lives.” The trade show, presented exclusively for their franchisees, showcased new tools and equipment, live demonstrations as well as guest presenters from Snap-on USA who shared their knowledge. There were ‘show specials’ to make sure every franchisee could start the New Year with their mobile stores full of new products and some great deals for their customers. This year Snap-on launched their most ambitious competition yet with every participating franchisee having a magnificent toolbox valued at $10,000 to be won by a lucky customer in their territory.
New franchisee recognised as top achiever The top achieving franchisees were recognised for their outstanding performance in 2010. The coveted ‘New Franchisee of the Year Award’ was presented to Paul Woosnam from Christchurch, New Zealand for his very impressive first year of business and Brad Watts from Central Queensland received the Highest National Sales and Top Business Unit awards. Nick Hudson, National Franchise Manager for Snap-on Tools said: “Over the last 23 years in Australia and New Zealand, Snap-
About Snap-on Snap-on Tools is the world’s largest independent tool manufacturer and is renowned for its high quality and innovative products. With more than 90 years of manufacturing and distribution experience globally, which includes over 22 years in Australia, Snap-on is also one of the longest running franchise systems in the world.
Become part of the Snap-on family Potential franchisees are not required to already be familiar with tools. Snap-on supply all the training and support, but suitable franchisees must provide the correct character traits. “You need to be a people person; you need to enjoy the sales and customer service environment; you need to be somebody who’s really enthusiastic, who wants to get ahead, and is excited about being in business
for yourself,” Nick said. After a franchisee selection process, Snap-on training and support is provided from day one. New franchisees initially experience the business first-hand in mobile stores with existing franchisees, visiting their weekly clients. Training also includes a six day intense course in Dallas, Texas, followed by two days in the Corporate Offices in Sydney where franchisees can meet the teams who will support their business. “You are never alone in this business and we have a team of over 100 to support our 160 franchisees – that’s an attractive ratio!”, Nick said. Well established in QLD, WA and SA, Snap-on is aggressively searching for franchisees to take advantage of NSW and VIC territories. There are also many opportunities available in New Zealand. “We have more customers than we can service”, says Nick, “which is a strange statement to make! However we know we have lots of customers out there who want to buy our product - we just need franchisees to sell to them.” v For further information visit www.snapontools.com.au.
So, what does think of us? 2009 Best Value Franchise in Australia 2008 #1 Franchise in our category 2006 1 of Top 7 Franchise Systems
Profile – Lenard’s
COMING OF AGE The evolution of the Lenard’s brand.
010 has proven to be a milestone year for nationally-recognised and loved chicken retailer Lenard’s, celebrating 200 stores in September. Since opening its first store in Queensland in 1987, Lenard’s has served more than 200 million customers to become Australia’s largest specialty chicken retailer, selling over 13 million chickens each year. Lenard’s has carved out its own market providing fresh, convenient, quality meal solutions every day. With a range of approximately 150 fresh and value added chicken products available, franchise owners select the products they sell based on their individual market and customer demand. Lenard’s remains a privately owned company with 200 franchised stores, employing more
than 2,000 staff and achieving an annual turnover of $147.8m in the 2009/10 financial year. Len Poulter founded the Lenard’s concept after observing a gap in the market. In his butcher shop in the mid 1980s, he noted that at the time, 46 per cent of his sales were for value-added and chicken products. There was nothing like it on the Queensland retailing landscape. The uniqueness of the concept, underpinned by an obvious passion for freshness, quality, innovation and service, generated overwhelming customer support. On the back of this successful formula, the brand quickly grew throughout Australia. In 2001, Lenard’s launched a new chapter in its history with the opening of the first Lenard’s store-in-store concept in Australia, at Ritchies IGA Dromana. Lenard’s also recently formalised an alliance with grocery and liquor wholesaler Metcash Limited to expand this concept through the Supa IGA network. After 23 years of business growth and development, Lenard’s celebrated the opening of store number 200 in Darwin in September 2010. “The 200 store target is one that we have been looking forward to for a while now. And we are so pleased for Lenard’s Hibiscus in Darwin to draw the lucky number. The franchise owners, Fernando and Melissa Lay, are experienced and fantastic business operators,” said Len. Lenard’s Hibiscus is the second Lenard’s store for Fernando and Melissa Lay, who have also operated the Lenard’s store in Nightcliff since 2006. Lenard’s Hibiscus represented a significant milestone for the national franchise and is a tribute to the success of Lenard’s in the highly competitive fresh food market, satisfying the needs of today’s time-conscious consumer. To capitalise on Lenard’s niche, the franchise business recently launched a multi-channel, quirky marketing campaign including a series of national television commercials as part of a brand ‘revolution’ to reflect the changing retail and customer landscape post the GFC. The campaign provides an easy answer to the
perennial question asked by every Australian family – “What’s for dinner?” “Our mission was to dissect and evaluate our brand to ensure we are clearly projecting what Lenard’s stands for internally and externally and the ‘What’s for Dinner’ concept was really resonating with shoppers,” Len explained. “The retail landscape has changed and customers have changed as a result of social, economic and technology factors and we decided this would be the perfect time to give the Lenard’s brand a health check to ensure we are meeting the needs of our customers and remain competitive in the new landscape.”
So, where to from here? Today, Lenard’s is considered to be one of Australia’s leading fresh food retailers and a pioneer in the kitchen-ready market. The next major challenge is to continue to develop nationally and to expand the franchise into lucrative overseas markets. Lenard’s will look at avenues that may better distribute the Lenard’s product and brand to a wider audience of consumers. “As far as the US, UK, Asia and Europe, there is a gap in the market for our type of offering and we are very interested in developing ourselves in some of these overseas markets,” Len said. Lenard’s is currently investigating entry into the overseas markets of Singapore and the United States of America. There are plans to expand into the retail markets of both countries with Singapore being the primary focus at this time. The franchise business is currently in discussions with retail contacts in Singapore with a view to having an agreement in place inside this calendar year. v To find out more about franchising opportunities with Lenard’s, contact Chris Booth on 0434 600 470 or at firstname.lastname@example.org.
What’s so unique about a Lenard’s franchise opportunity? Our spectacular range of products sets us apart. Over 23 years we have proven that our offer can’t be matched... and Australia loves us for it.
Comprehensive and innovative training Serving a growing staple market A proven system for over 23 years We’re one of a kind Visit us at: www.lenards.com.au Sites now available Australia wide To ﬁnd out more contact Chris Booth on 0434 600 470 or at email@example.com
FOCUS: FAS T WAY COURIERS
TO DELIVER L
ike countless members of the franchising community, a significant number of Fastway Courier franchisees are still reeling from the impact of the devastating floods across Queensland, Northern New South Wales and Central Victoria. As over 150 Fastway franchisees embark on the recovery phase of one of the country’s worst ever natural disasters, franchisees and staff from flood affected areas share their insights on a team determined to move forward.
Extraordinary Times Philip Jeffrey, Fastway Toowoomba “The Toowoomba and Lockyer Valley region was one of the areas hardest hit by flood waters and tragically it was here that the greatest loss of life was felt,” says Fastway’s Toowoomba regional franchisee, Philip Jeffrey. “We’re so very grateful that nobody in our team was injured when the wall of water hit.” For Philip and his team of seven courier franchisees servicing Toowoomba and its surrounding towns, extensive road closures
from the flooding, meant that no freight could move in or out of the major regional centre. “With our main bridge closed, our customer’s freight was literally stranded in our interstate truck some 60km out of town,” says the Toowoomba local. “Our truck driver, Tim, had no choice but to pull up on the roadside and stay in his truck for a week.” In the days following the event, the need to get essential supplies into the hands of local customers became increasingly important. “The issue faced by our franchisees, was a feeling of total frustration,” he says. “Unlike many other business owners in the area, our guys were ready and able to work – they just had no freight deliver.”
and one-by-one made their way across the bridge. With no fork lifts to unload the 14 cages of freight weighing a massive one tonne each, the team spent the next six hours hand unloading each and every parcel from inside of the balmy truck (nearly 1,000 packages in total), before making the slow journey back to Toowoomba - at last with customers freight on board. “It was the look of the faces of the guys as they drove back into the depot that really moved me,” says Philip. “It was a combintaion of relief in finally being able to offer some semblance of order to a town in chaos, pride in being part of a loyal team and determination to move forward.”
All Hands on Deck
Finally, on day four after the horrendous flood waters began to recede, the main bridge was reopened – but only to cars and only one at a time.
Warrick Peake, Fastway Bundaberg
“The bridge was just too unstable to handle the weight of a truck,” says Philip, “so I called our team together to see if we could get our courier vans across.”
“Our community in Bundaberg suffered over $30 million worth of damage, but our neighbouring customers and franchisees in Rockhampton were literally cut-off. That’s a major city of 75,000 people with no airport, rail or road.”
After a slow journey, the Fastway convoy arrived at the site of the stranded truck
“It was a case of helping those most in need,” Fastway Bundaberg Regional Franchisee, Warrick Peake, reflects.
Having been part of the Fastway network for just 13 months when the flood waters hit, Warrick took it upon himself to ensure that as much freight as possible was transported north into the stricken Rockhampton region. “No heavy vehicles could make it through to Rocky, so we started a ‘shuttle service’, using my van to get parcels to Rockhampton’s neighbouring town of Gladstone.” People familiar with the Wide Bay and Capricorn Coast regions will know that undertaking this daily trip, even in good weather conditions, is no mean feat. It is, in fact, a 600km round trip, at the time taking over three hours in each direction to complete. “It is a bit of a hike,” says the humble Queenslander. As well as the daily six hour trip, as owner and operator of the Bundaberg depot, Warrick had the responsibility of keeping his team of six courier franchisees functioning throughout the crisis. “I have to be there for my team. They needed my support more than ever, so I just had to make it work,” he says. And make it work he did. Throughout the
weeks of the flooding that first hit Northern Queenslanders in late December 2010, Warrick rose each day in the wee hours of the morning to complete the arduous trip north, before returning to the depot to provide on-the-ground support to his team of franchisees during business hours.
Getting Back to Business Fastway Australia CEO, Richard Thame said that providing support to the affected Fastway franchisees was paramount during the flood crisis. “As a franchisor, our most important responsibility is to deliver practical, relevant support to our franchisees. This has never been truer than in the wake of this unprecedented event. For the leader of Fastway’s network of 700 franchisees across Australia, the only way to understand the level of support needed by individuals was to see first hand, the impact that mass flooding had on businesses and communities. “Our Global Chairman and I spent time in a number of flood affected franchises across Queensland. It was critical to personally see how our people were coping and to work with them to deliver tangible assistance and
investment to rebuild their businesses.” Since the onset of flooding in late December 2010, Richard says he has seen untold accounts of strength and kindness amongst Fastway customers and franchisees. “From our franchisees donating from their own pockets to support their affected colleagues, to scores of couriers providing free delivery of relief goods, to the continued patience of customers in times of road closures; you can’t help but to be inspired by the incredible spirit and generosity of people within communities who have endured so much,” says Richard. Richard believes that whilst this iron spirit will continue to drive local recovery efforts, it is ongoing support that will be crucial in rebuilding businesses. “There is obviously no quick fix to an event of this magnitude,” he says. “Initial emotional and financial support for franchisees has been vital, however, it will be equally as important for us to continue to work closely with our people to ensure that they are genuinely supported to move forward.” v www.fastway.com.au
TERRITORY PROTECTION More than just a primal urge?
Esther Gutnick, Associate Mason Sier Turnbull
t is one of humankind’s most innate and primitive instincts - to defend your territory against intruders who enter the area that you consider to be your own and compete against you for the benefit of whatever resources lie within. This territorial impulse is just as prevalent and relevant in the commercial sphere as it is in the domestic realm, because a business territory can often be the key to your financial survival or indeed your fortune. This article will consider various types of franchise territories, why they might require protection, and outline some tools with which franchisees can better arm themselves in the quest to safeguard their territories. Let’s start with the basics - What is a ‘territory’ in a business, and specifically in a franchising context? In general terms, it is the area within which you are granted the rights to promote and conduct your franchised business. What types of territories commonly arise in franchise systems? A territory, assuming
that one is granted at all, may be completely exclusive or non-exclusive, partially exclusive, large or small, limited to a particular site or premises, determined by geographic size or by reference to demographic or other criteria, relevant to operational activities or only promotional activities, and may provide limitations as well as opportunities. What are the differences, and benefits or detriments, between the various types of territories? In granting an exclusive territory (where the franchisor agrees not to compete with your franchised business by operating itself or allowing other franchisees to operate similar businesses within a specified proximity to your business), a franchisor simultaneously offers you both the attraction of being able to enjoy a protected working area, along with the challenge of being solely responsible for the development of your business and the franchise brand within that area. The territory in this scenario operates as an ‘exclusion zone’ within which other franchisees may not be able to market or conduct similar businesses. However,
this comfort is balanced by the equivalent restrictions placed on you in preventing you from marketing or conducting your business outside the confines of the territory. Exclusivity also often comes with conditions attached. Franchisors must ensure that, in granting territories, they do not limit the potential market saturation of the franchise system. They may therefore reserve rights to change the territory, or encroach upon the franchisee’s exclusive rights if they believe there is sufficient market demand to support other franchises in the territory, or if the franchisee does not generate adequate market penetration or meet certain performance criteria. In a non-exclusive, or partially exclusive territory, the franchisor or other franchisees may have certain rights to market and/or to operate similar businesses within your territory. Sometimes (most commonly in serviced-based franchise systems), the territory operates such that the franchisor receives leads or referrals from a central repository and, in allocating the work, the
“Analyse whether territorial protection is in fact critical to the success of your business at all.”
franchisor offers the franchisee in the territory where the work is to be performed a first right of refusal to undertake the job. If the franchisee cannot or elects not to perform the work, the franchisor or the franchisee may direct the work to another franchisee. How do you know what territory, if any, is yours? When purchasing a franchised business, you must ensure that you are aware of whether you will be granted a territory, and if so, what that territory is and what rights will be granted to you within it. Under the Franchising Code of Conduct, a franchisor is obligated to disclose the following information in its disclosure document: 1. Whether the franchise being offered is for an exclusive or non-exclusive territory or whether the franchise is limited to a particular site. 2. Whether, within the territory of the franchise: (a) other franchisees may operate a business that is substantially the same as the franchised business; (b) the franchisor or an associate of the franchisor may operate a business that is substantially the same as the franchised business; (c) the franchisor or an associate of the franchisor may establish other franchises that are substantially the same as the franchised business;
(d) the franchisee may operate a business that is substantially the same as the franchised business outside the territory of the franchise; (e) the franchisor may change the territory of the franchise.
disclosure document provides valuable information in relation to a territory, it is from the franchise agreement that both the franchisee and franchisor derive contractual rights and obligations which they are bound to observe.
A franchisor must also provide a current disclosure document to an existing franchisee if it is proposed that the scope of the franchise is to be extended. This includes situations where a territory is to be expanded, and perhaps even where the territory is to be reduced or altered.
Now that you know your territory, exactly what are you protecting it from? Identifying the threats against which you are protecting your territory is a key element to the implementation of a successful defence strategy. You should carefully assess the nature and location of your business, the type and location of your target customer base, the catalysts that drive your business sales and the threats and opportunities your business faces both from within and outside the territory. Analyse whether territorial protection is in fact critical to the success of your business at all. Consider whether you need to protect your business mainly against competition from other members of your own franchise network, from external competitors, from changing environmental, economic or technological conditions, shifting customer preferences, or damaging publicity. Examine how your territory affects these factors and vice versa, and be prepared to use whatever tools are at your disposal to make your territory work for you.
In addition, the franchise agreement should contain provisions which stipulate the precise description of any territory, as well as the franchisee’s rights and restrictions in connection with the territory. Whilst the
What mechanisms can assist you to protect your territory? Firstly, remember that knowledge is power. From the outset, know your territory and be familiar with your rights and the franchisor’s obligations to you.
3. The policy of the franchisor, or an associate of the franchisor, for the selection of the territory in which the franchised business is to operate. 4. Details of whether the territory or site to be franchised has been subject to a franchised business operated by a previous franchise granted by the franchisor and, if so, details of the franchised business, including circumstances in which the previous franchisee ceased to operate. 5. Circumstances in which the franchisor has, or may in future, unilaterally vary the franchise agreement (for instance by changing a franchisee’s territory).
Thoroughly read the sections of the disclosure document and your franchise agreement that deal with territorial matters and seek professional advice to ensure you understand them. Don’t be afraid to take legal or other action to enforce your rights if necessary. A well-drafted franchise agreement is a strong foundation for protection. Check that your territory has clearly defined boundaries and is determined by parameters that won’t change (postcodes and municipal borders may shift over time). Ensure that the clauses unequivocally express your rights and prohibitions within and outside the territory and the franchisor’s rights to compete in your territory either by a physical presence or indirectly, for instance via the internet. Choose a franchisor you can rely on. Ascertain whether your franchisor has shown willingness to intervene and enforce the terms of its franchise agreement to uphold its franchisees’ territorial protection and settle any border disputes. Take responsibility for your own success. No franchisor or franchise agreement can protect you against external influences and third party competitors. The best defence is usually to strengthen your own business to ensure that it withstands the pressures of competition or changing market conditions. Build up your presence in your territory and preserve your market share utilising effective local area marketing techniques, realistic budgets, comprehensive business and marketing plans, and by providing value and focussing on excellent customer service to enhance your competitive edge. Flexibility is your friend. Try to negotiate with your franchisor so that you have options to change your territory if in future you have the capacity to expand or if you need to narrow your business focus. You may also attempt to exercise some degree of control over surrounding territories by procuring a first right of refusal for any franchises which the franchisor grants in the areas neighbouring your territory, or by striking a deal which gives you certain rights to market your business beyond the confines of your territory or even to perform work outside your territory, for example in an area where a franchise has not yet been established. Finally, irrespective of the type of territory granted to you, be sure to understand your rights, negotiate the contract terms and craft detailed protection strategies before you sign on the dotted line. And be prepared to work hard to grow your business and develop your territory. v Esther Gutnick, Mason Sier Turnbull Lawyers, 315 Ferntree Gully Road, Mount Waverley, Vic 3149. www.mst.com.au.
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PROFILE: BODY & HE ALT H SOLU T IONS
A HEALTHY BUSINESS approach to losing weight Burns up to A
new franchise opportunity is available in the Health and Beauty industry that would suit women, particularly stayat-home mums, with an interest in helping people look and feel good.
best treatment to lose ‘fat weight’ which is different from kilogram weight,” explained Trinh.
Trinh says her franchise system includes a full week of training including an online component as well as hands-on. The training covers all areas from being able to carry out a comprehensive consultation, to providing the treatments, to marketing and administrative support.
1200 calories in one session All you need is a spare room and a mobile phone, and Body & Health Solutions will provide everything else. The Formostar Body Wrap machine, treatment bed and full training and support in all areas, from consultations to marketing.
The Body & Health Solutions franchise system was created at the “Watergarden’s Wellness Centre” in the Melbourne suburb of Taylors Lakes.
“Some of my clients come to me and say they have been working out in the gym and exercising but they can’t shift the kilos. Following a consultation I can work out what their body fat percentage should be, and how much weight they really need to lose, or maybe they are retaining fluid. We then target the specific problem areas with Formostar and they see amazing results, usually 3-8 kilograms in a month.” “The best thing is the treatments are very economical. The treatments are as relaxing and beneficial as a massage – the FAR infrared rays are stimulating to the red blood cells and following a treatment you feel immediately lighter.”
Why choose Body & Health Solutions franchise:
• the overweight population is growing • lots of people exercise but see no result • BAHS (Body and Health solutions) will help them to see a much faster result
• Watergarden’s Wellness Centre has 7 years’
• TARGETED FAT AND CENTIMETRE LOSS Following seven successful years in business, and seeing amazing fat reduction results with their Formostar treatments, Watergarden’ s Wellness Centre owner Trinh recognised the potential of franchising the system.
experience in the fat loss industry and is now franchising with the name BAHS
• BAHS choose the best equipment for
pain relief, fat loss and weight loss, TGA approved and manufactured in Germany
“The Formostar Body Wrap system converts stored fat into energy, reduces fluid retention, relieves pain and tightens the skin especially post natal tummy. It is a wonderful machine, however not many people know about it. This is one of the reasons why my team and I created the Body and Health Solutions Franchise,” Trinh says.
• No extra staff needed • Franchisee can work from home or at shop • Fully trained on how to do a consultation
The Formostar Body Wrap machine is designed to assist in:
• 3 Levels of entry. Level 1, which is for the
• • DETOXIFICATION, CELLULITE REDUCTION “After having two children, my body has changed a lot. I joined the gym, exercising three times per week, but still could not get the body that I wanted to have. I always felt tired with no energy to play with my children. I am a person who loves to look good and feel good but do not want to have surgery or to take diet pills because I know all diet pills have side effects. I spent lots of time researching alternative treatments which were safe, with no side effects that were effective. Finally I found the Formostar Body Wrap System and loved it so much I decided to create the Watergarden’s Wellness Centre around it,” Trinh explained.
• AND MUCH MUCH MORE...
“We definitely see results with the Formostar body wrap. From my experience, and I have seen a lot of technology, this is the
• weight and centimetre loss • detoxification • pain relief • increased blood circulation • improved skin condition • sports recovery
BAHS in created with an ambition to help our community to have a healthier lifestyle
and how to provide a treatment
stay at home mum, up to Level 3 for the entrepreneurial person who would like to work from a shop frontage. v
Body and Health Solutions is looking to franchise nationwide during 2011. If you are interested in joining this new, start-up franchise, please contact Karen at i-Franchise-You on 03 9703 1135.
Safe and effective 50 minute sessions
FORMOSTAR FAR INFRARED BODY WRAP
PROFILE: ANY T IME FITNESS
anytime fitness: A MODEL THAT WORKS, EVEN WHEN YOU PLAY
Anytime Fitness’ Australian master franchisor Jacinta McDonell Jimenez explains how franchisees with a passion for fitness, and a desire to succeed, are able to run their franchise (or franchises) at anytime from anywhere.
acinta, in partnership with her brother Justin McDonell, established Anytime Fitness in Australia almost three years ago. She explains that Anytime Fitness’ low staffing requirements has been one of the major drawcards for those seeking a ‘lifestylefriendly’ business. “With any business, staffing is probably one of the hardest things to manage. At Anytime Fitness, only one key staff member is required for each club. This makes it a good option for husband and wife teams or other partnerships,” she says. Jacinta also says that Anytime Fitness clubs’ state-of-the-art security and IT systems are the basis for their franchise model. “With our technology you can literally manage the business remotely from your home, or wherever, checking in online to make sure everything is running efficiently. “Our members can come in and train 24/7 and our clubs are able to run smoothly and worry-free even during the non-staffed hours. This enables franchisees to open multiple sites, which has been one of the major successes of the brand,” Jacinta explains. Anytime Fitness was founded in the US in 2002, and has become the fastest growing 24-hour fitness club franchise for men and women in the world with more than 1,500 gyms worldwide. “We have been lucky to have a great working relationship with Anytime USA and the founders of the business have had a great impact on us. To manage the growth as they have and still be passionate about the brand is inspiring,” Jacinta said. One of the founders, Chuck Runyon, recently visited Australia to check on the ‘down under’ operations with Justin and Jacinta and to attend the 2nd Australian conference.
“Justin and Jacinta are doing a marvellous job – it’s about putting the right people in the right franchises and they are doing this well. I give them a great deal of credit for their success. “The franchisees are very connected. There is a high degree of rapport with each other they engage and know each other. This was all evident at the conference.” Chuck believes the optimism of the people and the healthy lifestyle here are very similar to the US, which is why the Anytime Fitness system has been so successful. “An interesting fact about our growth is that nearly 50 per cent of it comes from Anytime Fitness members who loved the concept so much that they decided to purchase their own Anytime Fitness franchise. In addition, four out of five franchisees are now looking to purchase more clubs.” Jacinta says this is also true for the Australian marketplace with many franchisees purchasing multiple clubs, and new franchisees coming from internal referrals such as employees or friends of current franchisees. She said it’s also interesting to note that many new Anytime Fitness franchisees have previously owned franchise
businesses in other industries, particularly the food sector. “Over 25 per cent of Anytime Fitness clubs are owned by franchisees with previous franchise experience. “These are people who believe in the principles of franchising, but when faced with the realities of running a business - such as a food franchise - with long hours and staffing issues, they begin to look for a better way of owning a business. They recognise that Anytime Fitness has a model that works.” Justin added that the concept of ‘freedom’ is what the Anytime Fitness franchise model has been built around. “Freedom is what sets Anytime Fitness apart from our competitors. We offer franchisees the freedom to operate their business to suit their lifestyle, freedom to grow within the system and the freedom that comes with knowing they have the support and back-up of the world’s fastest growing fitness club franchise.” v For more information about Anytime Fitness franchising, visit www.anytimefitness.com.au or call 1300 766 202.
Janine’s T ips
FOR THE KIDS! T
he main feature in this issue focuses on Pets, Children and Green franchises, which are all interesting topics considering that in business if you can avoid it they say you should never work with animals and children, but these topics are more business orientated for business owners than people realize. The reason for this is that one of the main motivations for people deciding to start their own business is to spend more time and to have greater flexibility with their children (I don’t think the pets got as big a mention!). Whilst I was working full time, before we started Boost Juice, our first child Samuel was in before and after school care and even though he enjoyed playing with his friends and the local school was good, I was missing out. I was tired when I got home from work, had to then make dinner, make sure he did his homework, tidied his room, etc. etc. etc. There was no time for simply having fun with him and then once we had two more children, it only made things more complicated. Without question, the main reason for starting my own business was because of my kids. I wanted to have the flexibly to be with them, attend the school sports, etc., but also, I wanted to have strong creative pursuit and do something that I was passionate about. So when I was on maternity leave, my husband Jeff and I started to look for solutions and one solution was to be my own boss, work from home, have flexibility and do
something that I loved. Yes, I achieved this, but let’s not kid ourselves, it is hard work and stressful knowing that you have the family home and everything you have on the line and yes there were days that I could have rocked quietly in the corner, but I knew that would not change a thing! For all the negatives, the positives outweigh them by 10. I look back at the Janine that started Boost in 2000, thinking that I could do it part time and have flexibility – 80 hours a week later I realized that starting a business and making it work means you have to give it everything. It did, however, give me some flexibility, for example I travelled interstate every couple of weeks and I rotated which child I would take with me which enabled me to have some great one on one time with each child. I had a toy box in my office (and still do as I now also have a two and half year old), so I could take the kids to work with me. But I was particularly lucky that I had my mum who helped me enormously; she would drive 30 minutes (each way) every day to help me with my kids so that I could drive Boost forward. Now I did not realise it at the time because I only have one mum, but talking to other people, this is a fairly unique situation to have this sort of help, not only did I get the help, I achieved this guiltlessly as I was leaving my children with my mum, who is a wonderful loving grandmother. There is no question that having this sort of help has assisted me in being successful, I am no super women
Janine Allis, Director/Founder Boost Juice
and yes I have taken my kids to school in full uniform and there has been no school on (OK… more than once!), but any person needs strong support around them to be successful, in every way. At the end of the day when you are looking at starting your own business and if some of the reasons for doing so are to give your life some balance and spend more time with the kids, understand that it may not be the case in the early days. You need to make sure you do have good solid support because whatever time you think it will take you to start your own business, times it by 10. For you to be reading this article in a franchise magazine, you must be ready for a change, remember life is an adventure and there are always going to be obstacles in the way, but there is a solution to everything. v LOVE LIFE! Janine Janine Allis, Founder – Boost Juice Bars. Janine Allis opened the first Boost Juice Bar in Adelaide in 2000. Boost is in more countries than any other juice bar in the world. Janine’s company, The Retail Zoo, also runs the exciting new concept Salsa’s Fresh Mex Grill, which they are now franchising. Details: www.boostjuice.com.au or www.salsas.com.au.
AUSTRALIA’S 1ST MEN’S SALON & SPA is now franchising the “FUSS WAY” TERRITORIES AVAILABLE Melbourne 16 locations Brisbane 6 Locations Sydney 11 Locations Perth 3 CBD Adelaide 2 CBD Tasmania 1 CBD
SO WHAT IS THE “FUSS WAY”? t%":4"8&&, t4JNQMJTUJDCBDLPGmDF104NBOBHFNFOUTZTUFN t5SBJOJOHNBOVBMTUIBUNBLFTFOTF t6QNBSLFUXPSLFOWJSPONFOU
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THIS NEWLY DEVELOPED FRANCHISING OPPORTUNITY IS SEEKING INTEREST NOW! For all Media/Advertising/Franchise enquiries please contact Kate Allen, Franchise Manager “Man, What a Fuss” 17 McKillop Street Melbourne 3000, p: 07 5520 4166 m: 0417 007 560 e: firstname.lastname@example.org
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PROFILE: B& S MOBILE SHARPENING
Sharp business opportunity
gives you the edge
B&S Mobile Sharpening offers flexibility, variety and an outstanding return on investment.
&S Mobile Sharpening provides a cutting edge service to a vast range of clients, including households and commercial businesses that require a sharpening service for knives, scissors, garden equipment, and trade tools – in fact, anything that requires a razor sharp edge. Franchisors, Bill and Sue say that there are unlimited opportunities to expand this business. “All homes, and most businesses and trades have items that need constant regular sharpening. Any commercial business, whether it is in a shopping centre, a factory with a canteen, or even a school, requires this service on a regular basis. There are many types of businesses where B&S franchisees are taught to obtain work,” Bill said. Bill and Sue believe the earning potential for franchisees is almost unlimited - providing they are committed to working a five day week, follow the company system, not be afraid to ‘cold call’, and be actively involved with the other franchisees in the growth of ideas within the company. New franchisees are expected to attain an income of $70,000 plus, within the first year,
and achieve a steady increase from then on. Regular meetings with the franchise group, together with on-going training will help franchisees reach their goals. B&S have also introduced, for the first time, a scheme where an existing franchisee is involved in the training of a new franchisee, and acts as a ‘buddy’ in the initial stages of operation. This is proving to be a learning opportunity for both parties.
them in advising the best system that will suit their operation,” he said.
Each B&S franchisee is unique. They all come from different backgrounds, with different ways of operating.
“The up-front low purchase fee covers just about everything including car signage, equipment, uniform, stationery, dedicated area and web-site, and of course all the training and support needed to make your new business a success. There is, of course, a renewal fee payable at the end of your fouryear term, when you hopefully renew your franchise.
“We listen to the ideas of our franchisees, and have instigated many changes in the short time of franchising. These ideas have not only assisted in obtaining more business for our franchisees, but have also enabled the parent company to grow. We can all learn. If we are prepared to listen,” Bill added. Bill said that many franchisees have built their areas from a ‘nil’ base to over 300 regular customers in less than twelve months. “This is great motivation for an even bigger growth down the track. The majority of our new franchisees have had no accounting or business experience. We are there to assist
“Economic conditions play little if no influence on the business. When things get tough, most people will maintain equipment, rather than replace it. Equipment goes blunt regardless,” he added. Bill explained that there are no ‘royalty’ fees with a B&S Mobile Sharpening.
“Where else can you start a new business with this minimum amount of outlay and maximum amount of support?” he asked. B & S Mobile Sharpening are looking for applicants who possess the following:
• self-motivation • great communication skills • desire to succeed • ability to work with likeminded franchise team and share ideas
• ability to ‘cold call’ • adequate funds • and the most important thing, a sense of humour.
“All you need is the enthusiasm and be willing to get out there, talk to people, and build your own individual business to the maximum.” v For more information or to join our growing team, contact B&S Mobile Sharpening, visit www.bssharp.com.au or contact I-Franchise-You on 03 9703 1135.
PROFILE: RP VENDING
RP Vending Supports Operators 24/7
The beauty of owning a vending machine business is that your machines work for you full-time, whilst you only need to work part-time.
trategically positioned machines in locations such as leading hotels are working even harder, around the clock and, consequently the support network at RP Vending is also on call 24 hours a day, seven days a week. RP Vending’s Nick Hull says this is so the machine owners have the complete peace of mind that help is always at hand. “A 24/7 business requires 24/7 support and RP Vending’s offices and technicians throughout Australia give you complete operating backup.” “Our internet support is of fantastic benefit in your long term growth. Operators are also able to call the RP Vending hotline which provides over the phone assistance for anything operators may need help with.” RP Vending Systems has been in operation for 16 years. It has over 1200 operators across Australia, making it the country’s largest and longest established vending machine supplier and manufacturer. Nick explains why RP Vending has been so successful. “Ninety per cent of all Australian businesses are small with up to 30 employees. These employees enjoy being able to grab snacks and drinks without having to leave the office and this benefits the owners of these businesses as their employees are satisfied and more productive. For these businesses a compact vending machine is the answer. There are thousands of these locations available and our machine range is tailored to suit them, creating convenience for staff and customers in all types of workplaces.” According to Nick, the type of person who
would suit owning a RP Vending business would be a friendly, outgoing person who takes pride in their work. “This type of person would thrive in an RP Vending business opportunity.” RP Vending currently has locations available across Australia with owners operating in every state.
For readers in and around the Sydney area, be sure to visit the RP Vending stand at the Sydney Franchising & Business Opportunities Expo at Convention & Exhibition Centre, Darling Harbour April 1-3. v For more information visit www.rpvending.com.au.
“Our available locations are very flexible; if we do not have an available location in your area we can have one setup in your area in a couple of weeks.” Nick believes the freedom and flexibility an RP Vending business opportunity provides is unmatched. “RP offers many different business packages which allow an RP Vending business to be operated to earn a full-time income on parttime hours, or as a supplement to an existing income,” he said.
RP’s Buying Network With an RP Vending Systems Network membership you get access and benefits from leading suppliers. You enjoy the benefits of RP Vending’s wholesaler partnerships with companies including Smiths, Coke, Nestle, Cadbury Schweppes etc. This provides considerable savings for all RP operators.
RP’s Vending Machines RP’s complete range of machines is at the cutting edge of technology. All machines are designed for individual needs and they offer a unique solution for customers, making them great machines for corporate locations. Features such as the Back-to-Base stock monitoring systems ensure stock levels can be monitored, saving operators time and money.
HOW SWEET IT IS! Over 1200 independent business owners know just how sweet it is to be part of Australia’s greatest vending success story!
• Be your own boss and control your future • Boost your income in a safe and simple excellent cashflow business • Over 40,000 machines nationally and the largest network of business locations for your ongoing support • Over 2,000,000 people per day have access and enjoy convenience from an RP Vending machine • Start your own vending business from as little as $9,000 • What other business requires only 10-12 hours per month work? Consistently gives 30 to 70% returns and is nationally advertised for FREE • With over a decade of remarkable success we can get you started in quite literally Australia’s greatest business - RP Vending
1800 066 112 AUSTRALIA AND NEW ZEALAND WIDE
www.rpvending.com.au VISIT US AT: THE SYDNEY FRANCHISING & BUSINESS OPPORTUNITIES EXPO
RPV_Franchise Business FPA_210x 297_1.11.indd 1
SYDNEY CONVENTION & EXHIBITION CENTRE
1-3 APRIL 2011 - STAND C10
27/1/11 11:06:18 AM
FR ANCHISOR PROFILE: BE AUMON T T ILES
Beaumont Tiles are HOT
Beaumont Tiles franchisees are COOL!
eaumont Tiles, Australia’s leading ceramic tile company, are a family owned and operated group. They design, commission, import, distribute and supply ceramic tiles and bathroom ware through their network of stores and distribution warehouses across Australia. “In effect we control our own distribution chain to maximise efficiencies, reliability and profitability. We currently import around 52 containers of tiles into Australia each week,” says Peter Kurtze, Marketing Manager. “Our group culture is based on open communication and a family spirit of cooperation. Regardless of the ownership
(franchise or corporate ownership) every store and all staff are treated equally and we work hard to ensure success for every branch,” he said. 2011 is set to be a huge year for Beaumont Tiles, with the company celebrating its 50th anniversary. Peter says the company began the process of evolving into a franchise system around 25 years ago. “We fell into a ‘distributor’ arrangement with a number of regional stores in the mid 1980s and decided to accept franchises in 1990, when we entered the Victorian market. We
purchased a group called Crosby Tiles and inherited eight stores, but quickly grew that to over 20 stores by 1991.” Beaumont Tiles now boasts a total of 80 branches, 40 of which are franchised. Beaumont Tiles stores are located in Queensland, Victoria, South Australia and New South Wales, in the capital cities and major regional centres. “We are keen to grow our group further in Sydney, regional New South Wales and Queensland,” said Peter.
The tile business is hot The tile business is hot at the moment”, says Peter. “The pulse of the Australian economy is primarily around the health of the building industry. Ceramic tiles are an essential product in every home, and central to the style of our homes; - it is certainly a dynamic and exciting industry to be involved in. As the only major group in Australia, our strength, buying power and systems mean that we are the leaders in our market.” Peter says that for potential franchisees, the difficulty can be to understand that the industry is actually growing strongly and that it has much to offer. “Quite often, people looking for a business opportunity head straight for a something that they may consider as easy or ‘sexy’. The general opinion would seem that ceramic tiles are not an option. Truth is, that a Beaumont Tiles store can be fun, rewarding, and can build a secure future for a franchisee.”
Could you be a Beaumont Tiles franchisee?
ownership types,” Trevor said.
The company’s franchise manager Trevor Dixon says franchisees come from all walks of life and different working backgrounds; however they all have positive character traits in common.
The sexy and edgy ‘tiles are hot’, ‘tiles are cool’ ads for Beaumont Tiles are currently screening on our TVs.
“Basically, a Beaumont Tiles franchisee must be honest, reliable, motivated, friendly and keen to grow their business. Although many of our franchisees have a building industry background, some of the best have no such history. Many of our franchisees and corporate stores are run by women who have no trade history,” Trevor said. “An interest in colour, fashion and style certainly helps. And, a willingness to meet new people and to help them to bring together colour, texture and finishes for their new home or renovation. “We have an excellent support system that ensures all stores, company and franchised, receive ongoing training, and assistance. For franchisees, they are reassured by the fact that we are behind them all the way. We have much more to lose (40 stores) than they do, and our systems are uniform for both
Massive marketing support
“Our marketing and advertising is very effective,” says Peter. “We lead the industry with our advertising, as we do in all fields. We invest heavily in television advertising, and support that with radio, press, magazines, direct mail and a number of other initiatives.” Peter says the company’s merchandising support is also outstanding. “All our brochures, ticketing, and other promotional material is designed and produced exclusively for the group. Beaumont Tiles have a hands-on approach to marketing and advertising. Indeed, our marketing department work closely with all stores to target any specific, local needs and issues. Input from all stores and divisions is encouraged. “At Beaumonts, we base our marketing on strong offer based promotions, backed up by strategically placed corporate messages. As
with everything we do, our advertising and marketing is quite transparent, and the group fund is administered and audited from a separate and dedicated marketing account. Security, financial independence, job satisfaction, and a bright future are all fundamental goals for our franchisees.”
Achieving business success through franchising Beaumont Tile’s expectation for franchisees is that they develop and build a profitable business. “We also want all our staff and franchisees to enjoy their time with us. If we can achieve a good balance between family and work life, have some fun, grow the business and ensure that every branch is profitable, then we have achieved our goals. “As a franchisee we want your business to grow in capital value.” Peter explains that the business should have a true resale value if and when the franchisees decides to move on, or pass it to others in their family. “A franchise owner has the option to own and manage their branch as a ‘hands on’ business
FR ANCHISOR PROFILE: BE AUMON T T ILES
or to run it at arm’s length, as an investment. As a Beaumont Tiles franchisee, you become an integral and valued part of our group.”
A business model that is proven to be successful
• a comprehensive business system • proven marketing and advertising strategies and activities
• a complete and diverse product range,
and group buying power to ensure the absolute best rates
• efficient, effective central warehouse and distribution centres mean that all stores carry minimal stock
• custom IT systems ensure true, ‘live’
access to stock and all product details and information.
Beaumont Tiles also provide accounting and management support to all branches. The group’s strength and volume is used to maximise its buying power and improve the bottom line for all stores. “That buying power works for our product range, media and advertising, plus general operating costs. Bank charges, credit card charges, insurance, national fleet, freight and many other areas. All divisions and branches benefit from the volume negotiations that we are able to secure.” Peter says security, financial independence, job satisfaction, and a bright future are all fundamental goals for our franchisees. “Of course there is more to success than just joining our group. Hard work, dedication and commitment are also necessary. Plus we have an expectation that all our staff and franchisees are genuinely nice, friendly, helpful and enjoy life.” v For further information on becoming a Beaumont Tiles franchisee, please contact Trevor Dixon on 0418 239 875 or email email@example.com.
LADIES! Do you want to be your own boss and make a difference in the lives of children?
crepe + coffee catering
If you can work with children from age 3 onwards and are not afraid to get your hands dirty, then
at home and elsewhere
THIS IS FOR YOU.
A well established International Franchise System is starting in Australia and if you always wanted to be a Franchisee (in business for yourself but not by yourself, as you will have the support and experience of this highly successful Franchisor), it is as easy as sending us an email requesting more information.
everyone loves crepes
For attention: Linda or Eddy.
and youâ€™ll love this business because it ticks all the boxes
Please see our web page: www.bacreate.com
For more details â€“ concerning Australia and New Zealand
call 1300 CREPES (1300 273 737) or visit www.crepeaffair.com.au
13/10/10 4:46 PM
TeleChoice embraces diversity of franchisees
hen Joe Yeo and Ben Chin were friends at university, like many students, they worked part time selling mobile phones.
into at first,” laughs Joe, “however it’s been a really good decision.”
They didn’t realise then, that following graduation, and working in the property and accounting sectors, that the mobile phone business would become their future business.
“We did a lot of research into mobile phone shops – we looked at all of them and TeleChoice really stood out. One of the reasons is they are the Number One Premium Dealers for Optus, which offers great security and credibility.”
The friends became business partners and purchased a TeleChoice franchise just over 12 months ago and in January 2010 their Morley Galleria outlet in Western Australia was up and running.
“One of the best things about TeleChoice is that you have the franchisor taking care of all the franchisees. Plus you get a lot of help and support to build and grow your own business.”
One year later their business is going so well they have decided to become multi-unit franchisees and hope to establish another two to three outlets in and around Perth during 2011.
Joe said that the help received when choosing a location was very important.
“We didn’t really know what we were getting
“We knew we were getting a good location which the National Franchise Manager, Borge Prinsloo helped us with. Morley Galleria is a busy shopping centre with more than
230 shops, so we are doing well.” “I would definitely recommend TeleChoice to others thinking about buying a mobile phone franchise,” Joe said.
Join a TeleChoice franchise today! After having a huge success with their 2009 expansion TeleChoice are expanding again in 2011 and are looking for potential franchisees to join the TeleChoice team and experience success like that of Joe and Ben. If you are passionate to succeed, have a love of customer service and want to start a business with a bang and never look back then a TeleChoice franchise could be for you! TeleChoice offer franchisees:
• Great buying power with key suppliers • Excellent capital growth • High cash flow and earning potential • Great brand recognition • An opportunity to own your own business • Continuous training and support • ANZ finance for up to 50 per cent of all set up costs for approved applicants
TeleChoice are the first choice for thousands of customers looking for mobile phone, internet and telecommunications products. They also cater for a large part of the small to medium business market in Australia and continue to grow their market share. This is why they’re the first choice for the entrepreneurial Australians who’ve become TeleChoice franchisees. v For further information contact TeleChoice Head Office on 03 8699 2555 or visit www.telechoice.com.au for more details.
WELL, NOW THE CHOICE HAS NEVER BEEN EASIER
SO WHICHEVER WAY YOU LOOK AT IT - NOW IS THE TIME TO MAKE THE RIGHT CHOICE AND CALL TELECHOICE TODAY!!
E XPERT ADVICE
At least the snake didn’t eat the cat!
Phil Blain, Principal, Franchising, Business Development Company
Phil Blain of BDC interviews sisters Liz Quinn and Deborah Minter, franchisees of Lonely Pets Club.
t never ceases to amaze me how many franchises exist that many people have never heard of. It also amazes me how ingenuity and enthusiasm give birth to so many new business opportunities in Australia. Over the last Christmas break, I had the very pleasant experience of dealing with such a franchise, Lonely Pets Club. I was so impressed with the service; they were an obvious choice to write about in this edition.
PB: What does Lonely Pet’s Club do? It sounds like an RSL for Dogs! LQ: We provide premium mobile pet care and dog walking services which are a fabulous alternative to kennels and catteries so animals can relax in the comfort of their own environment whilst their owners are away. As well as tending the animals we bring in the mail, water gardens, put bins out and other duties that make it appear someone is home.
What’s a typical day in the life of a Lonely Pet’s Club franchisee? At this question both Liz and Deb could only laugh out loud. LQ: We are always busy especially at Christmas when it’s hectic. We have to be organised the night before, so designing our run to avoid backtracking yet satisfying customer’s requested call times for their animals. We have to organise the keys for each of the premises we are calling on too. We try and walk the dogs in the cool of the morning (for their sake and ours) but this is not always possible. The days can be long, 7.30am to 7.30pm but that goes with the role and we do get a chance to duck home as our territories are close to home. Deb does St Kilda, Elwood and Caulfield and Liz covers South Melbourne, Port Melbourne and Docklands.
When did you join/become a franchisee?
How many clients do you have and where do they come from?
LQ: I was the very first franchisee of Lonely Pets Club back in 2008. However, I had been working for them as a Carer, as we call them, since 2005. I had been working in my corporate life and carrying out my pet care duties after hours and at weekends and I had enjoyed it so much when the company franchised I decided this was the life for me.
LQ: We have about 350 clients in each of our franchises, so 700 to 800 in total. Most clients are professional people, some elderly or incapacitated and many are regulars and we do about 60 regular dog walks a week.
DM: I was also a part time Carer and made the move to franchisee in 2008 so we own two franchises now.
I understand there is a very good support program called PetsitR? DM: Yes, this is the computer program written by Jo in our support office. It is a fantastic booking and client management system so we can print reports, measure our KPIs
and its transparency enables us to see how other franchisees and Carers are going which encourages our competitive natures. It is a very simple system, so flexible and easy to use and Jo is constantly updating it as franchisees make good suggestions. Clients can book our service on-line directly which is also tremendous.
When are the peak times? LQ: Christmas and Easter are the busiest times of the year. We are also in high demand over any long weekend and public holiday. We are genuinely busy all year round.
What effect does the weather have on your calls? DM: We actually prefer the cold weather to the hot – as that can be very draining and make you tired, but when you go into this you have to accept the service operates rain, hail or shine.
When do you get holidays? “Ho, Ho, Ho – what are they?” chorused the girls! LQ: It is possible to plan clients so a break around February or October is manageable and now we have three part-time Carers helping us too so if they are too busy our support office may also be able to provide cover for us if we have a holiday.
What support do you get from your Franchisor? LQ: The girls in our office are simply fantastic.
They provide superb customer service and are a wonderful first touch point for clients. Our web site is also really good and very informative. Customer feedback shows the physical presence of our support office, plus our professionalism and uniforms make us stand out as the industry leaders. Our clients take much comfort in this; after all, they trust us with their most valued possessions – their homes and their pets!
Are you happy with the decision to become a franchisee? LQ: Absolutely, we are currently negotiating with Justin Cofield our franchisor to buy a third business. We are in this for the long haul and are looking to build a strong business and asset.
and we pay a 20 per cent management fee and five per cent marketing fee.
Tips for someone looking to become a franchisee? DM: Say goodbye to conventional holiday periods but have fun whilst you get fit and build a business. It is important to have some money behind you when you first start until you have built up clientele and there are the unseen costs of getting into business such as forming companies and the solicitor’s costs so it is advisable to really plan your finances. It’s also important to eat well and look after
yourself as this is by nature a very physical job. But very rewarding and great for anyone who is an animal lover! v Phil Blain has been a franchisee, franchisor and a highly respected franchise consultant for the past two decades. He now heads up the National Franchise Division of Business Development Company. Phil can be contacted direct on 0419 044862. For further information about Lonely Pets Club contact Justin@lonelypetsclub.com.au.
Have you had some funny moments with the animals? DM: We did once have a client that asked us to mind his cat but on arrival showed us his ‘other pet’ a big python enclosed in a glass case which was covered in books. We told him we didn’t particularly like snakes, and he said it was no problem as the snake would be fine in the case until his return. We looked after the cat, as requested, and when the owner returned from holidays he rang to thank us. He also mentioned he was surprised to find the snake curled up under the coffee table. He actually thought we had overcome our aversion to snakes enough to get it out of the case for a pat! We can only assume on the last night the cat had knocked the books off the cabinet and the snake had escaped. At least the snake didn’t eat the cat – that would have been a disaster!
What happens if there is a problem such as a break in discovered at the premises or a sick or dead animal when you arrive on site? LQ: These things are inevitable but we have authority in our terms to use veterinary assistance where required and we have written procedures to follow for these events if they do occur.
What’s the weirdest pet you have been asked to look after? DM: Definitely the yabbies. But then again the bearded dragons had to be separated whilst fed so we bathed the female whilst we fed crickets to the male!
What did it cost you to start up and what fees do you pay? LQ: Franchises are now at $25,000 to $99,000 depending upon the potential of the territory
Profile: shed boss
JOIN OUR SUCCESSFUL & DYNAMIC STEEL SHED NETWORK Shed Boss sells a premium product with proven professional building systems.
here is one simple philosophy at Shed Boss - it doesn’t matter how little or how much customers spend, they all deserve the very best. Shed Boss is a business that has been built from passion and vision, earning a solid
reputation of producing a reliable and high quality product, combined with great customer service. Using modern steel fabrication technology, their first class Australian made materials and designs, together with the most qualified trades-people, means Shed Boss consistently deliver a quality product. Constructions include garages and sheds, patios and awnings, workshops, commercial sheds and factories, rural sheds and barns. In addition to domestic customers, commercial work has extended to include warehouses, indoor riding schools, aircraft hangers, gymnasiums and storage facilities. All outlets are independently owned and operated by family businesses, using local products, which supports local industry. Shed Boss is now actively taking applications from builders and business people to operate their own outlets. Currently with a network of 45 independently owned and operated businesses throughout Australia and New Zealand, licences are available across all States and Islands in both countries. To that end, Shed Boss is highly innovative and is one of the only industry providers that have developed their own patented product
- the ‘Morinda Glove Section’. In recent years, such inventions as this have led Shed Boss to prominence. The business is now considered one of the main national network players in Australia and New Zealand. These licensed businesses are immensely beneficial to a wide range of people, particularly builders who want to ‘get off the tools’ and own a saleable business. A Shed Boss business would also suit sales and marketing people, or husband and wife teams. Shed Boss offers economical entry into the home improvement and commercial building sector, and provides advertising support and an easy to use quoting and project management software developed by their in-house technical team. If you are a business savvy individual, or a couple who are interested in building a nest egg for yourselves, owning your own Shed Boss outlet is a great business opportunity that you can expand with. v For more information on licences within Australia & NZ, telephone (AUS) 07 403 11911 or 1300 743 326 or visit www.shedboss.com.au or www.shedboss.co.nz .
YOUR CHANCE TO ENTER THE GARAGE AND SHED BUSINESS UNIQUE FRANCHISE OPPORTUNITY Join Australia’s most dynamic quality shed building network. Kit buildings from Shed Boss are in a league of their own and are proven best sellers. Economical entry to the shed and garage industry Patented systems make our sheds the strongest on the market Full support for design, engineering and building materials We are currently taking applications for new start-up operators. Prime territories are still available in most states. If you have experience in building, sales or marketing, with the capital and ability to run your own business, this could be the opportunity you’ve been waiting for. 1300 743 326 (1300 SHED BOSS) Or register your interest on-line www.shedboss.com.au Morinda Australia Pty Ltd ABN 34 082 051 287 Trading as Garage World and Shed Boss. A member of the Fletcher Building Group.
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CONNECTING PEOPLE TO OPPORTUNITIES WWW.FRANCHISESELECTION.COM.AU CHOOSE FROM AUSTRALIAS BEST SELECTION PHONE 1300 FRANCHISE (1300 372 624)
WRITE IT DOWN:
Phil Smith, National Manager, Franchising, Westpac
The importance of a Business Plan
ne of the main reasons many businesses (including franchises) fail is because they either do not undertake enough planning before they start or they do not maintain a solid planningreview process as their business grows and matures. It is vital for the survival of your franchise to take the time to develop your business plan. This should outline your goals, your strategies, your prospects and also the method by which you will achieve these. Each business should have its own, unique plan. While it’s good (and often much easier) to work from a template, start out the right way by making sure that you delete any headings which do not specifically apply to your individual business. Don’t consider this as homework but instead as a serious analysis of how your franchise business will work. Your plan will not only help you test your ideas, but decide on strategies to reach your goals.
It’s all about quality. Your business plan doesn’t need to be a ‘War and Peace’. In fact, the more concise but straight to the point it is the better it is likely to be. A five-page document can be sufficient, if it’s five pages of solid content and strategy. You do need to make sure that you cover all areas of your business and that your plan is manageable and contains enough flexibility to be revised as conditions in
and around your business change. Your plan should reflect your business life cycle - whether you are starting up, supporting a business-loan application or providing ongoing management. A business plan prepared to accompany a bank-loan application should show the loan requirements, describe how the borrowed money will be used, list what collateral will be provided and propose the repayment plan. Your business plan is your roadmap to success. It needs to be fluid and flexible and it needs to be reviewed and revised at regular intervals throughout the business year. If at any time you are forced to diverge from your strategy, your business plan will help you find your way back to more familiar ground.
Suggested structure for your business plan
• Executive summary This is a summary of the highlights and main points of your plan. Write this last.
• About the business This section should include detail about the location you will be operating from, the history of the franchise systems, facilities and equipment you will be using; as well as the legal structure; set-up costs, funding and insurances you will choose.
This section paints a picture of your business and describes the legal entity and ownership structure, as well as giving an overview of start-up costs and initial funding. • Industry and market analysis Here you want to describe the products or services you offer. Make sure you emphasise why buyers will purchase those things, and what benefits they will receive by doing so. Show how much it costs to deliver what you’re selling. You should also review current trends in the wider industry or sector, and assess your competition. • Strategies Here you need to document your overall mission strategy, objectives and milestones. You can also include your marketing strategy, outlining any plans for advertising and promotions as well as a sales forecast and the cost of sales. It’s a good idea to also detail your distribution method/s and plans for growth. You should also describe the target market and segment you will be focusing on, including market demographics, market growth, trends and forecast. Finally, describe the nature of your industry and sector as well as your competition, and define your milestones with dates, budgets and specific responsibilities.
• Management structure Outline staff positions, costs, facilities, and also include an organisation chart. You should identify and describe the key members of your team, list managementteam gaps (if any) and show how they will be addressed.
• Financials Here you must include a financial plan and needs summary. Other components of this section should include sales forecasts, assumptions, annual income expenditure, a profit-and-loss statement (P&L), a cash flow statement and a balance sheet.
• Information systems and controls This is a summary outlining the operational aspects of your business. Here you should define the systems, processes and controls which have (or will be) put in place. Also, identify any gaps and plans for the future.
• SWOT analysis This helps you define your strengths (for example reputation, latest technology, good location), your weaknesses (lack of experience; difficulty finding staff, high overheads), any opportunities (local market growing fast, an unfilled niche in market, the possibility of a joint venture) and threats (a competitor opening up, overreliant on one supplier, raw-material costs rising).
• Exit Strategy Knowing how and when to exit your business is as important as knowing how to start it. Many owners build their business to sell when the time is right. If this is your strategy, make sure that you understand how to do this. There are many books available which explain the details; alternatively you can speak with your accountant, solicitor or bank.
Other considerations and watercooler topics:
• Share your business plan with your staff
and summarise it into a one- or two-page document. You need their commitment to help you get there!
• Share performance outcomes with your
staff regularly. Highlight key successes and learnings and pinpoint where results are not on track, to focus everyone’s attention.
• Demonstrate key performance measures graphically…a picture really is worth a thousand words.
• Consider outsourcing and obtaining
professional assistance during all stages of the planning process.
• Ensure the analysis is ‘non-emotive’,
particularly in terms of what has been achieved to date and the successes and reasons for this. These reasons may not
necessarily work into the future.
• Update your plan every quarter. Even if the
final outcome is that there are no changes required, the discipline of holding quarterly planning-review meetings is important.
• Set key milestones which identify what you intend to achieve in set time periods. For example the first six months, second six months, second year and so on.
• Business plans are as important for new
companies as they are for established businesses which have been trading for ten years… would you invest in a business that had no plan?
• Your business may require you to share
the plan with shareholders and other stakeholders at monthly board meetings perhaps even prospective investors. v
Phil Smith is National Head of Franchising at Westpac. www.westpac.com.au.
PROFILE: ANIMAL S ON T HE MOVE
Animals, Freedom & Income a great franchise opportunity Want to use your passion for animals to be independent and financially free? Animals on the Move, a successful Mobile Farmyard Nursery franchise, would like to share their success and lifestyle.
s a proven marketplace leader throughout Melbourne, Animals On The Move has been a unique mobile animal farm in operation since 1994 and, once established, expanded into a franchise from 2005. Animals On The Move is excited to spread their wings into New South Wales and welcome, Debby and Stew, to their first Sydney franchise in April 2011. Animals On The Move wants to continue to share the love of animals, children and an independent lifestyle with passionate animal-loving people, all across Australia, within the next three years. Animals on the Move’s business model and values, bring smiles to the faces of young and old, whilst helping children to develop a caring attitude toward all creatures. Their priority is to deliver the happiest and healthiest variety of farmyard animals and highest quality of service, presentation and customer satisfaction to all who experience their Mobile Animal Farm. What does it take to be a successful Animals On The Move franchise? Our most successful franchisees have:
• A genuine love of animals and children.
• An ambition for success, integrity, excellent communication skills and financial capability to purchase and operate their business.
• Strong work ethic - animal care and welfare is of paramount importance to the Animals on the Move brand.
• Capacity - the animals must be looked after on the franchisee’s property, therefore, enough space to keep the animals safely and securely.
• A desire to become a member of the Animals On The Move Family.
To benefit, equip and support their franchisees for success, Animals on the Move provide:
• Initial and ongoing - training,
comprehensive manuals, a central booking office, debt collection, an up-to-the-minute website with online bookings/enquiries and strong brand marketing material.
• A 24 hour helpline (after all animals don’t know when office hours are open!) is provided for constant contact, they are always happy to help.
The founders and franchisors Leonie and Trevor, office staff, animal carers, and of course all the franchisees work together to ensure the company maintains its strong and highly regarded presence in the marketplace. “We are one huge family and we all help each other whether it be with advice, training, animal husbandry or book keeping,” says Leonie, a qualified animal technician and wildlife carer with more than 20 years’ experience. The reputation of Animals on the Move was built on, not only the quality of their animals, but also their high standard of maintenance, animal care and expert delivery of educational programs.
Colleen becomes her own boss After seven years as a staff member for Animals on the Move, Colleen Lewis decided to take the plunge, become her own boss, and in August 2010 she bought her own franchise. “Now I can have the animals I like. I love working with animals and kids, so this is perfect for me.” Before being able to combine her love of animals and children, Colleen had a varied work history. “My employment background is working as a sander in a furniture factory also a cashier at Coles, I’ve worked at a butcher’ s shop that my dad owned and I’ve also working at a bingo centre.” Colleen’s proven adaptability and willingness to try a range of different things has stood her in good stead for the challenges of working with animals and children. Colleen said the training she was given has helped make the move from staff member to franchisee run smoothly. “I was given full training at the start of my job at Animals on the Move and the support and job training I still get now helps me improve my franchise in all aspects, either in the field or office duties,” she said. v For further information on the Animals On The Move franchise mooooving all around Australia, please visit www.animalsonthemove.com.au. If you are interested in becoming a franchisee, please call 1300 760 354 or email firstname.lastname@example.org.
HIGH MORALS AND HIGH MORALE
Katherine Grace, Certified Business Coach, ActionCoach Melbourne
Running & promoting a business with ‘heart’.
hen I was asked to write an article about pet businesses, it brought back no end of memories (good, bad and ugly!) from my days several years ago building the Jim’s Dog Wash brand in Melbourne’s east. Many a night I would come home tired, upset, wet and smelly after a day spent fighting with someone’s stressed-out pooch - trying to give them some care they desperately needed. The more I thought about it, though, it occurred to me that businesses based on caring - for kids, pets or the environment – may be among the very most challenging, but also bring their owners some amazing rewards. This applies equally to other altruistic businesses such as special needs, nursing and charities. My own interest in business meant that I finally grew out of the dog grooming game, to go and care for their human counterparts as a business coach. Meanwhile, many others I know found it the perfect lifelong career for fun, balance and the chance to make a difference. To find out what counts to succeed in these sorts of businesses, I hit the road and visited some old friends to get their opinions. And it turns out that they agree with me about two things – one, have unending passion for your field but two, temper this with professional ethics and business skills to care for your own wellbeing, as well as your charges. (NB: Throughout my travels to build this article,
I was reminded of several great marketing strategies I once used to build a loyal following of customers. If marketing your business is of interest to you, I have made notes about these at the end of the article).
What makes a great pet business owner? (Meaning a business in the $4 billion pet industry, not a business owner that fetches your slippers!) Day one of my research trip I reconnected with Justin Cofield, the director of Lonely Pets Club, who graciously became my first strategic alliance partner1 almost 10 years ago when he agreed to share expo space, newsletters and reciprocal website links with my Jim’s Dog Wash business. Now LPC is a successful pet care franchise in three states and counting, Justin gave some advice that I wish I’d had when I started out! “You need more than to simply ‘love pets’ to succeed. Everyone who works in the pet industry loves pets! Like any business, you need to have a great product to sell, have the systems and the support behind you and lots of time, motivation, dedication and most importantly the belief to build up your pet care business.” Systems featured heavily in the feedback I got, which is why I believe that franchises in the children and pet sectors do so well. Buying into existing systems means that the how to, legalities and branding are taken care of, leaving you to simply throw your heart and
soul into servicing your clientele. Lynn Siddle, the PETstock franchisee in South Melbourne, helped me to get my dog grooming business booming by becoming a referral partner and later a host for a host beneficiary Hoevent2. She agreed wholeheartedly with the idea of enthusiasm combined with business know-how: “You must have a passion for the industry and be very empathetic towards people and their pets. You will not always be dealing with the customer so the ability to choose and train good staff is very important. The [other] key elements are service, product knowledge and an effective supply chain.” So the message is – be passionate about what you do, but do it with good structure, systems and sense. This is also the case when looking for people to join your team as staff or franchisees – look for the passion, certainly, but also strongly consider skill sets, attitude and what the person will bring to your business.
‘Mean it’ in a green business In ethically sensitive businesses I always say that it is important to remember that ‘charity begins at home’ – meaning only once you are financially sound yourself, can you guarantee you will be around to deliver your difference in times to come. Once again, the idea is to combine your personal passion with a business plan that will last.
Fast forward several years from my Jim’s days and I am now honoured to coach a business doing more for the environment than the rest of us put together - but doing it within a sound business model. I asked Bianca Donnelly and Daniel Mitchell from Clean and Gone demolitions about what led to their success.
message into a benefit to the customer as well. And remember – in all these cases the beneficiary of the business is NOT the person paying the bills – so you have two customers to attract and then keep happy (the kids/ pets/environment AND the parent/owner/ customer).
Don’t get too creative
“We have several areas in which we hold a competitive advantage in our industry, including commitment to sustainability (by salvaging or recycling waste) and deconstruction – instead of using large excavators and other machinery we do most of the demolition work by hand which allows us to salvage as much as possible.”
You will soon find in a ‘fun’ business that friends, parents, aunts and uncles come out of the woodwork to suggest some awesome promotional ideas. Marketing people selling everything from stress balls, to billboards, to radio, to a squillion publications will descend upon you sensing fresh blood and offer you ‘unmissable’ this-time-only deals.
By providing environmental reports after jobs, Clean and Gone soon earned a reputation for the socially conscious development sought after by today’s corporates. It turns out that ‘being green’ can be a massive market advantage – but only if you mean it.
The trick is to spend the majority of your marketing budget – say 80 per cent - doing things that are tried and tested to promote your business. This might be as simple as signage or as complicated as a layered google campaign (I can recommend a great contact for that one). But most importantly, you will know it gets results. Invest the remaining 20 per cent in trialling the fun stuff. Still do your research though – my dirt simple method is to get a past copy of whatever it is and ring advertisers to see how they went.
“Our core business is built around reducing as much waste as possible for as many people as possible. Our company vision is long term – we have a 200 year plan,” says Bianca. “Clean and Gone is committed to environmental stewardship in an industry that has a poor sustainability track record. We will be at the forefront of the innovation of new machinery and equipment to deconstruct and salvage buildings rather than demolish and will plant millions of trees to compensate for some of the environmental damage done by our industry.” Their fervour and smooth business operations are being received so well that they are now planning to franchise the business in the next year or so – meaning many more people will be given a chance to do good for their personal life, as well as for the environment.
Marketing a ‘caring’ business With marketing (especially relationship-based marketing) being my bag, I’ve had no end of fun promoting businesses that work with kids, animals or great causes. At the moment I am working with a toy shop, kids’ parties, environmental deconstruction (above) and a non-profit sports association. Naturally there are a heap of opportunities to really reach people when you market these businesses. However I have found in the past that it’s still very important to present yourself as an organised, efficient and value-adding business – in other words, avoid being cheesy! This is a lot easier in a franchise with a known brand but can be done by anyone able to package their ethical or ‘caring’
Take advantage of what others are doing Any business will have community groups founded on a special interest in whatever you’re peddling, and this is especially true of the altruistic types. Investigate local and global pet clubs, parents groups, auxiliaries etc as well as on and off line communities and support groups. You will find a treasure trove of people in love with what you do and just dying to do business with you. Another great opportunity is community events. I used to make my best sales and pick up scores of customers promoting dog grooming at local pet days and festivals. A simple marketing tool is a big wall calendar so that you can mark any special events happening in or around your business – local fetes, health weeks, school holidays etc. Don’t forget to also include some holidays for you in there!
Look for the corporate dollar Big business knows that being seen to help the community or environment wins them brownie points with customers. Actively seek out businesses you know could benefit from an association with you and where you see a synergy between yourself and their products or principles.This can be as simple as inclusion on their website or as big scale as licensing,
corporate sponsorship or even a service or reseller contract. At Jim’s Dog Wash, we set up an alliance with Pal dog food and promoted it on every trailer. Who could be helping to support you?
Get your customers involved No customer loves you like the one that looks after their favourite possession or values. I know I spout database marketing constantly but here you can really draw your customers into your business and make them feel a part of it. Newsletters (constantcontact.com is cheap and easy to use) keep them updated on where you are and hopefully some personal stories and pictures. Run event and red light sales that only your VIP members can come to (but bring a friend). And finally - have a super strong referral scheme because a referred customer is better and cheaper than a marketed one. Brad Sugars still has the best one with his former dog food company – refer someone and get a month of food for free. One lady never paid for her food in 3 years!
Give raving fan service And charge accordingly. Like a heart surgeon, no one wants to pay bottom dollar for someone caring for something they love. And no one asks for a second opinion when you give your expert advice! You are in a business that holds the moral compass for the rest of us so make sure you get good advice, run things well and continue to be around well into the future. v
Marketing case studies from my interviews 1. A strategic alliance is any win/win partnership between two businesses with like values, customer bases and attitudes. It can be anything from a simple mutual referral understanding to contributing to each other’s VIP events, newsletters or websites (I have heaps more information on these if you are interested). 2. Host beneficiaries involve you giving another business some special deal or prize to pass on to their customers. In the case of PETstock, Lynn kindly agreed to invite her customers for special PETstock discounted grooming services, at the store on a particular day. A good host then makes both of the businesses look great, as well as giving the customer an awesome deal. Katherine Grace can be contacted on 0413 839974 or email@example.com.
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