ma g a z ine
VOL 06 ISSUE 03 march / april 2012
AUSTRALIA and NEW ZEALAND
4 STEPS TO
$4.95 (AUD), $6.95 (nz) inc. gst.
SOLO LATEST NEWS
hit the road FINANCIAL ADVICE FROM THE BANKS
TOP LAWYERS’ ADVICE
D T Take control of your future... ...and be your own boss. Fastway Couriers now has a number of exciting opportunities to join our award winning team! Low start up costs
Guaranteed income package*
No weekend work
Perpetual Franchise Agreement
Unparalleled business support & training
Easy to operate - no experience required
Award winning system for over 25 years
Enjoy the freedom of working for yourself
To ﬁnd out more contact us: Australia:
1300 FASTWAY fastway.com.au
* For a deﬁned period. Conditions apply. Fastway Couriers (Australia), ABN 38 057 389 769. | Fastway Couriers (NZ) Ltd. Fastway Couriers is a franchised courier network and its businesses are independently owned.
0800 4 FASTWAY fastway.co.nz
A new way to connect with your customers RedCatâ€™s new mobile phone application allows hospitality and franchise outlets to have their own branded iPhone application as well as working as a web application on other mobile devices. It also offers the ultimate in convenient ordering, allowing customers to prepay and pre-order food at their desired time directly from the application. Purchases can be paid for using points, pre-paid gift cards or credit card. Orders will be sent direct to the Point of Sale at the store and will print out automatically, at the correct time, without the need for any interaction by the staff. The application can also be configured to be used as a self ordering kiosk at store level. Not only will it streamline the ordering process, it will allow you to take advantage of the dramatic increase in popularity of coupons. Research shows that globally, mobile coupon redemptions will exceed $6 billion by 2014*. Hospitality outlets can also use the application to deliver targeted and relevant advertising offers directly to their members which can be redeemed and tracked seamlessly through the RedCat Point of Sale system. * Jupiter Research
Existing members can login, or new members can register their details directly within the app.
Targeted marketing sent directly to your members. Relevant. Immediate. Redeemable at POS.
Customers can search for their nearest site by using integrated GPS, or postcode search.
Save favourites, pay using points, vouchers or credit cards and send orders to the store.
Once registered, members can display their points balance, member status, and a barcode for identification.
To find out how you can take advantage of RedCatâ€™s Mobile Applications, call 1300
4 REDCAT or visit www.redcat.com.au
Get in on the ground level and become a pre-approved franchise partner now. CONTACT THE FRANCHISING TEAM ON: E: email@example.com or call (03) 9508 4417.
*Based on established franchisees trading for 12 months to June 30, 2011.
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
“If you would like the support and guidance and experience of being part of a franchise – go for it. Just make sure you do your research and understand exactly what you are getting from your franchisor.” Emma Malone, Editor, CGB Publishing.
From the Editor I
n speaking with franchisors, franchisees and the professional service providers who lend their expertise to the franchise industry – the common thread that runs through the fibre of the industry is SUPPORT. Support encompasses many aspects of the franchise business and includes things such as initial and continuous training, operations manuals, call centres, marketing strategies and professional advice. Each franchise offers different levels of support and it is good to research exactly what is on offer for the particular franchise you hope to join, but the key is that you do indeed have support.
It often makes me wonder why someone new to business wouldn’t choose a franchise. Why go it alone? It would be like buying a build-it-yourself shed and not getting any instructions to go with it. Could you do it? Probably. But it would take you ages to sort out which pieces go where and in which order you should put things together. And once the shed is built, you would most likely find you have a few extra pieces lying around. Where were those supposed to go? When the first strong wind hits and the window falls out – you discover the location for the missing bits. It is the same with franchise businesses. It is your shed, but with instructions. Someone has built the same shed (business) over and over again. They know the most efficient way to put it together. They have made all the mistakes already and so can provide you
BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 6 ISSUE 3, march / april 2012
with the complete handbook on how to build your business. This holds true for any franchise system. Yes, it is nice to consider going out on your own, being a true entrepreneur, learning the business….but this takes time AND money. Statistically, it is a big risk as many small businesses never make it to their fifth year. If you would like the support and guidance and experience of being part of a franchise – go for it. Just make sure you do your research and understand exactly what you are getting from your franchisor. This issue focuses heavily on Mobile franchise systems. Our Expert Advice writers cover the vital issues you need to know before you sign.
publisher: Colin Bradbury. firstname.lastname@example.org EDITOR: Emma Malone. email@example.com SALES DIRECTOR: Vikki Bradbury. firstname.lastname@example.org SALES MANAGER: Kathleen Lennox. email@example.com PRODUCTION: Joanne Tuffy. firstname.lastname@example.org ACCOUNTS: Di Mannes. email@example.com DESIGN: Jejak Graphics (03) 9772 2571
The Franchise Council of Australia (FCA) keeps us up to date on what is happening with legislation issues within the industry and also their plans and goals for the year, while the Franchise Association of New Zealand (FANZ) highlights their upcoming awards event and annual conference. If your interest lies outside of a mobile franchise – don’t miss our articles on getting a loan, using social media and simple ways to build business success. And, of course, dive into the Profiles – to discover more about some of the top franchises in Australia and New Zealand.
COVER IMAGE: total tools TO SUBSCRIBE: www.businessfranchiseaustralia.com.au or www.isubscribe.com.au CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: firstname.lastname@example.org www.businessfranchiseaustralia.com.au
Emma Malone Editor
CAB Membership Application Approved June 2011.
The information and contents in this publication are believed by the publisher to be true, correct and accurate but no independent investigation has been undertaken. Accordingly the publisher does not represent or warrant that the information and contents are true, correct or accurate and recommends that each reader seek appropriate professional advice, guidance and direction before acting or relying on all information contained herein. Opinions expressed in the articles contained in this publication are not necessarily those of the publisher. The publication is sold subject to the terms and conditions that it shall not be copied in whole or part, resold, hired out, without the express permission of the publisher.
Business Franchise Australia and New Zealand 3
busi n ess fr anch ise aust r a l i a an d n e w ze a l an d
Contents March / april 2012
On the Cover Cover Story
Total Tools – Join Australia’s Strongest Tool Retailing Brand
24 4 Steps to Success
In Every Issue 06 What’s New!
Announcements from the industry
FCA – SA Small Business Commissioner Appointment & Retail Lease Issues
FCA - Big Plans and Big Initiatives
FANZ – Gearing up for 2012
John Di Natale, DC Strategy
80 Flying Solo
Julia Camm, Corven
Tania Allen, Vision Alliance
Franchise in Focus 34 Plus Fitness 24/7
Steve Wright, FCA
Stephen Giles, FCA
Graham Billings, FANZ
20 FANZ – FANZ membership makes sense David Foster, FANZ 74
52 Hit the Road Jack
Feature Article – Mobile Franchises
98 Ask George? – Questions from our readers George Yammouni, BathroomWerx 104 Behind the Headlines Jason Gehrke, Franchise Advisory Centre 106 Professional Services Listings 107 Franchise Listings 109 A-Z Directory
28 Resicert Property Inspections 60 Read and Exceed
Franchisor in Depth
Profiled Franchises Anytime Fitness............................................ 58
94 The Leather Doctor Austvending.................................................... 76
Franchisee in Action 44 Taco Bill 70 Little Kickers
Franchise Selection.................................... 50
Reliance Roof Restoration...................... 48
Expert Advice 32
Getting a Loan? â€“ What you should prepare before you ask for a loan
RP Vending...................................................... 84
Steve Seddon, Westpac
37 Top 7 Steps to Keep Your Business Moving Tim Kilham, Lanyon Partners
Snap-on Tools............................................... 26
40 Have You Considered your Legal Obligations? Esther Gutnick, Mason Sier Turnbull
66 Get Your Marketing Moving! Michelle Gamble, Marketing Angels 78 Maximising your Audience and Client Base with Social Media Linda Coles, Blue Banana 86 Whatâ€™s Mine? Territories for Mobile Franchises Peter Buckingham, Spectrum Analysis
Thexton Armstrong..................................... 64
54 The Evolution and Advantages of Mobile Based Businesses Estelle Logan, V.I.P. Home Services, NZ
V.I.P. Home Services. ................................ 68
what’snew! NEW VEHICLE TRAFFIC WEBSITE GOES LIVE
Lattouf Hair & Day Spa Launch Product Line Lattouf Hair & Day Spa has launched their own range of skin care products to satisfy the demand for a simple yet result driven skin and body care line. Spa Director, Anita Lattouf, established this product line to ensure everyone could add some luxury to their life at an affordable price. Anita said, “Our mission is to provide a unique and luxurious product, using the highest quality natural ingredients and essential oils.” With over 20 years industry experience,
Lattouf Hair & Day Spa are well aware of how informed and environmentally savvy consumers are today. With this in mind the Pure Lattouf range of cosmeceuticals have been expertly engineered with the latest cutting edge, optically pure, actives from medical science and nature to protect, nurture, revitalise and cosmetically restructure their clients’ most precious asset. Lattouf is confident the addition of their own product line will benefit their clients, their franchisees and their brand.
Spectrum Analysis, in conjunction with Veitch Lister Consulting and Harvest Digital Planning, have just released a new website to allow businesses to download traffic estimates information. Peter Buckingham, Managing Director of Spectrum Analysis said, “This is the first time in Australia you can readily access consistent traffic information from one source. The new website www.zenithtraffic.com. au allows you to look at roads in all major capital cities and many large towns. This is ground breaking technology which can significantly assist companies to assess the viability of future proposed locations and monitor current conditions for existing businesses. So far this data has been licenced to Shell, McDonalds and Caltex and is now available to all companies via the website.
HIRE A TRADESMAN IS NOW FRANCHISING Tradesman, back in 2007, the aim was to give local communities a convenient ‘onestop shop’ for all trade-related work – from carpenters and cleaners, to painters and plumbers. Hire A Tradesman is a boutique service specialising in the organisation and coordination of a huge range of different types of tradespeople. When UK-born architect, Rob Harris, launched the trade referral service, Hire A
The company offers a truly personalised service, giving its growing customer base peace of mind knowing all tradesman are personally hand-picked for their proven track record of being reliable, reasonable priced, professional and fully insured. The company has been so successful , they
6 Business Franchise Australia and New Zealand
are now franchising. Hire A Tradesman has developed a system that makes it easy for the customer, the tradesman and the franchisee to connect. Franchise opportunities are available in in Victoria, with 22 territories left in Melbourne and surrounds – including St Kilda, Frankston, Melbourne Central and Geelong. Harris is proud to see the Hire A Tradesman grow as one of the country’s fastest trade referral businesses and looks forward to a growing network of successful franchisees.
LOOKSMART ALTERATIONS SEWS UP A SUCCESSFUL SUMMER LookSmart Alterations is one business making the best out of the difficult retail economic environment by leveraging the trends within the market to their advantage, and reporting growth as a result. In fact, LookSmart had 11 per cent business growth during December 2011, and even more in January 2012 with 12.9 per cent, an unprecedented amount during this typically quiet time for the business. “We are focused on owning this market in Australia and New Zealand. One way we will be doing so is by forming relationships with key online retailers to provide their customers with a service that is affordable and efficient. LookSmarts’ goal for 2012 is to continue to grow at a rate of 10 per cent per annum. As of March 2012, there will be 102 LSA shops across Australia and New Zealand with a global expansion plan to have 1000 shops in place globally by 2020. With an annual turnover in excess of $28 million per annum, and over one million customers served to date, LookSmart is a major player in the tailoring industry. In addition to their consumer-based business, LookSmart’s corporate client portfolio consists of over 4,500 brands. With strong foundations and strategic vision LookSmart is looking to grow one stitch at a time.
MINUTEMAN WINNER GAINS CUSTOMERS FOR LIFE Minuteman Press Brisbane recently won the award for Best Customer Service on the Eastern seaboard. Anita Lennox, the 28-year-old franchise owner who won the award, shares her approach to attracting and retaining customers.
ways to make it work,” Ms Lennox said.
Anita Lennox’s Minuteman Press Brisbane franchise has only been in operation for three years, but has survived the Global Financial Crisis and the worst floods to hit Brisbane in 118 years. Now generating solid returns, Anita attributes her early marketing efforts as one of the key reasons why her business is still around today. She believes building strong relationships with customers, and suppliers, in the first stages of business is critical to ensure its longevity.
When the storms hit in January 2010, Minuteman Press converted their premises into a drop-in centre and gave away simple services and products to make people’s lives easier.
“I started Minuteman Press with my father Duncan in October 2008 – right at the beginning of the Global Financial Crisis. Some people say it wasn’t the best time to go into business, but we did, so we had to find
To establish a good client base, Anita and Duncan worked hard to establish quality relationships by door-knocking local businesses and regularly attending networking events.
Anita said although creating the drop-in centre during the floods wasn’t intended as a way to attract new business, the flow on effect has been great for Minuteman Press long-term. “By building relationships and helping people out during this time we connected with a lot of our current customers. A large majority of the businesses we helped have now become long-term clients,” Anita concluded.
Business Franchise Australia and New Zealand 7
NANOTEK launches ‘Flagship’ site in Athens’ Golden Hall After years of negotiations and planning, Nanotek Car Cleaning has launched it’s ‘flagship’ fixed site for Greece in Athens’ premier luxury mall, the Golden Hall. “This facility is the new template for our fixed site operations in Europe,” said Michael Curry, General Manager, Nanotek Middle Eastern Europe. “The operation is centred around our core Nanotek car cleaning and detailing services, which are perfectly suited to the requirements and expectations of Golden Hall’s clientele,” said Michael. Michael Curry was formally the General
Manager for Lamborghini, Bentley, Bugatti and Ducati in Saudi Arabia and is therefore well placed to understand the premium positioning of Nanotek. “I first came across Nanotek when they looked after the detailing at our launch of the new Lamborghini/Bentley showroom in Al Khobar in Saudi Arabia,” said Michael. “I was so impressed with the quality of the service that I joined the company!”
“Europe is a fantastic market for Nanotek. It is technology focused, the car culture is very strong, and space is at a premium – a perfect combination for the benefits of the Nanotek service.” said Jim Cornish, Nanotek CEO.
Since launching in Europe in 2007, Nanotek has expanded to include operations in France, Greece, Romania and Russia and has further plans to expand both its mobile and fixed site operations.
Based on the success of current fixed site operations, Nanotek already has plans for further expansion in the Middle East and the launch of its first fixed site in Moscow, Russia, in the coming months.
HOOTERS COMES TO TOWN The newest Hooters Australia store has opened in Campbelltown! Campbelltown is a further example of the growing success of Hooters in Australia and is the second new restaurant to open in just six months, following on from Hooters in Penrith opening in June of 2011. “I am very excited about the continuing expansion into the Australian market. Campbelltown and the whole of Sydney’s South West is an incredible area and is growing rapidly,’ said Morney Schlebusch,
CEO of Hooters Australia. Morney Schlebusch took over the Hooters license in 2009 and has turned the worldwide famous brand into a major success in Australia. Schlebusch has over 20 years’ experience in the food and beverage industry and has perfected what food customers want combined with the world famous service from Hooters girls. It is the first Hooters restaurant in Australia which will not be wholly owned by
8 Business Franchise Australia and New Zealand
Schlebusch, with foreign investors seeing the value in this incredible opportunity and taking 49 per cent ownership. “It really speaks volumes for the achievement of Hooters in Australia, that Chanticleer Holdings, Inc. (CCLR) want to make their first foray into investing into the Hooters experience in Australia. Chanticleer Holdings, Inc. already own other Hooters in other parts of the world and I can’t wait to utilise their experience to make Campbelltown an unbelievable experience for customers,” said Schlebusch.
Fernwood Fitness are always seeking great franchise partners who are passionate about running their own business, with a key focus on health, fitness and customer service. Our system offers: r Recognised and trusted brand in womenâ€™s fitness; rLifestyle and financial rewards; rFull training and ongoing support; and rSecurity and opportunity for personal growth and achievement.
Visit us online today fernwoodfitness.com.au
Business Franchise Australia and New Zealand 9
MÖVENPICK Ice Cream is a super premium ice cream brand that was first developed in Switzerland more than 40 years ago. MÖVENPICK Ice Cream has continued to grow from strength to strength and now is available in 38 countries worldwide.
WHAT DO YOU GET?
Here in Australia, MÖVENPICK Ice Cream made its debut in 2008 with its first franchised Ice Cream Boutique. Today we have 11 Franchised Ice Cream boutiques and a corporate store operating on the east coast of Australia.
t The chance to join a experienced and vibrant team with great opportunities for growth in Australia
Each of our MÖVENPICK Ice Cream boutiques provides a sensory experience in atmosphere as much as taste.
t Initial and ongoing support from the Operations/Training/Marketing and Management team to ensure that you understand fully the operational/ financial and marketing aspects of your new MÖVENPICK Ice Cream Boutique business
If you’re looking to be part of a franchise, don’t cheat your standards – or your tastes. When you’re familiar with prestige, you simply prefer a certain level of quality. So the calculated, organised producers of Switzerland’s famous ice cream make it easy for you. MÖVENPICK Ice Cream is produced in Switzerland and delivered direct to your boutique. You won’t have to worry about quality or production preparation in house. MÖVENPICK Ice Cream is a an authentic and memorable brand making investing safer and easier. It is backed by a multinational company and you can be assured that you will be supported by our dedicated experienced team through your entire journey.
t The right to utilise the MÖVENPICK Ice Cream brand name, systems, trademarks that have been developed over 40 years
t Site/lease assistance t A professionally designed and fully fitted out store
NEXT STEPS? To be a part of this Aussie success story contact Renato today through our contact details or visit our website for our online information Brochure.
RENATO MAIALE Email: Renato.email@example.com Phone: +61 (0) 3 9565 7688 Web: www.moevenpick-icecream.com
COV ER STO RY
Join Australia’s Strongest Tool Retailing Brand
he Total Tools brand promise is to have the broadest range of superior tools available on the market. This, backed by the unrivalled retailing standards in the tool industry and experienced staff offering professional advice and service, has firmly established Total Tools as the market leader in professional tools for the people who use tools for a living. Specialising in trade and industrial tools, Total Tools carry’s an extensive range of the world’s leading brands. Total Tools also has its own private brands including TTI, Mastercraft Value, Detroit, Guardall, Iron Air, Hornet and HRD. Strategic expansion through 2011 saw seven new stores open, taking the total number of Total Tools stores to 31, with representation in Victoria, New South Wales, South Australia and Queensland. There is no sign of slowing down in 2012 either, with more stores planned to open nationally throughout the year.
WHY JOIN TOTAL TOOLS NOW? Total Tools are looking to confirm their position as Australia’s leading specialised trade and industrial tool retailer through further national expansion of their highly effective business model – so there’s never been a better time to join the winning team at Total Tools. There are many reasons why Total Tools is the obvious choice for anyone looking to invest in a tools retail franchise. Here are just a few: • Up to 10,000 product lines in store, with
access to over 60,000 lines. • Unrivalled in-store expertise in trade, industrial and commercial tools. • Professional in-store merchandise and layout, setting industry standards. • Full access to the Total Tools private line program offering premium products sold exclusively through the Total Tools retail network offering a high margin return. • Buying power built from years of positive supplier relationships and collective bulk purchasing. • Operational support and business information systems helping your store to be highly competitive. • Inclusion in all national marketing activities and comprehensive consultancy with regard to all local area marketing activities.
• passion for tools
• No marketing fees; in fact, Total Tools helps fund local area marketing activities.
• attention to detail and store presentation
• Benefits of an established and effective customer loyalty program (Insiders) – building strong customer bases with high retention rates. • Support in all areas from site selection to new store establishment/setup/visual/ merchandising, etc. • Plus, share in the knowledge and expertise gained from the existing store owners over the many years of operation. Total Tools is looking for franchisees that share their vision and wish to be part of the success of their growing company. Total Tools considers the following to be critical to the acceptance into the franchise system and the ongoing success of a new store:
• commercial acumen – astute in business, financial planning and budgeting • experience in merchandising and stock control
• computer literacy and acceptance of business systems to manage information • face to face selling skills – enjoying direct involvement in the selling process • a positive attitude and able to work in the team environment offered between franchisee and the support office For more information about Total Tools franchise opportunities please contact Neville Bruns at: Phone: Email: Web:
03 9394 4300 0438 214 314 firstname.lastname@example.org www.totaltools.com.au
Business Franchise Australia and New Zealand 11
profiLe : TELECH O ICE
in the long term F amily Matters was not just a successful US comedy program that ran from 1989-97, it is also a culture that pervades leading telecommunications franchisor TeleChoice.
TeleChoice care about their customers, employees and franchisees. They are very interactive and support their franchisees with challenges across all areas such as marketing, stock and remittance,” said Xander.
Founder and CEO, Ehab Abdou, said TeleChoice prides itself on the tradition it has created of ensuring employees and franchisees are made to feel part of a family.
Xander acknowledges the ‘family focus’ has been good for business and the brand awareness from TeleChoice’s AFL sponsorships and TV advertising has been helpful in attracting customers.
“Trust, loyalty, commitment and a willingness to help out in times of need are all attributes of members of a modern day family,” Ehab said. “We believe we have not only created a similar atmosphere within the TeleChoice franchise, but staff and franchisees all benefit from the ‘caring’ relationship.” Ehab credits the warm and open support system which TeleChoice has engendered to the rise in franchisees becoming long-term tenures of the company. “The fruits of our success are reflected in the number of long term franchisees that we have at TeleChoice,” Ehab concluded. TeleChoice is one of the country’s largest telecommunications franchises with 154 retails stores nationwide, and more than 20 per cent of franchisees have been with TeleChoice for eight years or more. Victorian franchisee, Xander Rodrigues, is one of the long-term franchisees drawn to TeleChoice’s family atmosphere, and its strong business model.
While he agrees TeleChoice’s commitment to family values can help sales, Ehab believes the real benefit of its supportive culture is the reward to long-time franchisees. Overnight success is unheard of in the telecoms industry or any other industry, according to Ehab. “The franchisees who invest time and money in building relationships with both customers and the communities they serve, and who are willing to receive help, are the ones to reap the greatest rewards. “The business success that comes from community outreach and customer loyalty becomes more apparent as franchises mature, and more than justify any initial start-up costs,” remarked Ehab. Ehab refers to Xander as a prime example of a franchisee who has found success through being active within his local community and upholding TeleChoice’s ‘family values’ culture. Xander said he had been with TeleChoice for over 10 years now and still got the same thrill coming to work and helping customers as he did the day he opened for business.
Xander opened his Northcote Plaza franchise 10 years ago, and it was TeleChoice’s ‘family traditions’ which sealed his deal with TeleChoice.
The best choice
Xander had previously been with another telecommunications company. “When it collapsed in 2001, I bought a TeleChoice franchise in the same shopping centre,” Xander said.
TeleChoice also knows that the best scenario for sales is repeat customers. They are currently working with their franchisees to offer loyalty based programs to keep customers coming back.
“One thing which kept coming up in my search for a new telecoms franchise is that
The company is also focused on providing more bundled packages – meaning
12 Business Franchise Australia and New Zealand
franchisees have customers who are purchasing products and contracts for several products at the same time. For new franchisees, TeleChoice has so much to offer. In addition to the level of training and support, TeleChoice also offers: • 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 • fantastic training and support • ANZ finance for up to 50 per cent of all set-up costs Given this level of dedication to their franchisees, it is no surprise that TeleChoice is the first choice for the entrepreneurial Australians who are looking to become franchisees. If you are interested in becoming part of the TeleChoice network of successful business owners contact: Phone: 03 8699 2555 Email: email@example.com
Business Franchise Australia and New Zealand 13
fr anch ise cou nci l of aust r a l i a
“In franchising, dispute resolution is mandatory and the disclosure obligations rest primarily with the franchisor. The reverse is true in retail tenancies.” Steve Wright, Executive Director, Franchise Council of Australia.
the fca looks at the SA small business commissioner appointment & retail lease issues
rejected by the Federal Government, Labor and Liberal Governments in WA, and a series of thorough studies done by experts in competition and trade practices.
The Franchise Council of Australia (FCA) welcomes the move by the Government of SA. Especially if it is an office which, like other States focuses on quick and affordable dispute resolution.
Mr Zumbo was paid large consulting fees by the Government of SA in the lead-up to the introduction of the SA SBC legislation. During this period he conducted stakeholder meetings with a number of business representatives – but not with any member of the Adelaide-based or national franchising community, as far as the FCA can ascertain.
n the last day of January this year, South Australia (SA) joined Western Australia (WA), Queensland, New South Wales and Victoria in announcing the establishment of a Small Business Commissioner office, set to commence operations in March 2012.
The FCA does not welcome the appointment of the Deputy – and Acting – Small Business Commissioner (SBC), academic Frank Zumbo, of the University of NSW. The appointment appears audacious and definitely a first. The FCA believes having a Deputy and Acting SBC doing the job one day a week from his university office in another State as unprecedented, untenable and dismissive of small businesses and taxpayers in SA. The political process in which he was involved has been questioned by the Law Council of Australia, and the law societies of Queensland and SA – the position was not even advertised. Associate Professor Zumbo has been an activist for new franchising legislation in SA, WA and elsewhere. A self-proclaimed expert on franchising, he has frequently described a need to toughen franchising legislation to eliminate unnamed ‘rogues’ and has been an advocate for a new definition of ‘good faith’ negotiations between franchisors and franchisees – a concept
Against this background, it is impossible for Mr Zumbo to claim impartiality on franchising matters. Accordingly, the FCA has called on him to recuse himself from consideration of any franchising issue brought before the new SA SBC office. On a positive note, towards the end of February the FCA held a retail issues forum to discuss all the pressing concerns for the retail sector for 2012 and beyond. All major retail associations, the ACCC and other relevant state and federal government departments were invited to attend. At the forum, the possibility of a real payroll tax freeze was discussed, Government assistance for small business was analysed (see FCA Chairman Stephen Giles’ column) and the FCA reaffirmed its commitment to continuing its push for a voluntary Retail Leasing Code of Conduct. The FCA would like to see the franchisor/ franchisee mutual benefit principle applied in retail leasing to the landlord/lessee relationship, especially with the retail landscape currently experiencing difficulties.
14 Business Franchise Australia and New Zealand
The FCA’s main areas of focus for the Code are on substantiation of dramatic changes to lease terms, including price, length of term and conditions such as fitout and defit requirements; reciprocal disclosure of information and the process which occurs at the end of a lease. Other areas of focus are substantiation of rival offers for existing tenancies and dispute resolution. In franchising, dispute resolution is mandatory and the disclosure obligations rest primarily with the franchisor. The reverse is true in retail tenancies. There is clear opportunity to adjust this imbalance – and to do so without detriment to either party. These concerns are not new, nor are the potential remedies. To a significant extent, they already exist in the franchising world. It is the FCA’s hope landlords will recognise this and engage constructively to see what positives can be taken from the franchising operating model and applied to retail leasing. About half of the 70,000 franchise sector businesses (franchisee units) in Australia are retail based. This provides a very strong backbone to the many shopping strips and shopping centres in cities, urban centres and regional centres. The FCA looks forward to bringing you the outcomes from the FCA’s retail issues forum in the next issue of Business Franchise Australia and New Zealand Magazine.
Business Franchise Australia and New Zealand 15
fr anch ise cou nci l of aust r a l i a
BIG PLANS AND BIG INITIATIVES The Franchise Council of Australiaâ€™s (FCA) big goal for 2012 is to increase the size of the franchisee pool and to maintain confidence in franchising, while still ensuring the best possible people enter the sector.
ome initiatives - such as approaching a major employer who had announced major retrenchments with a specific franchising program - are somewhat reactive. Others are more proactive and structured. In an exciting longer-term initiative, the FCA has encouraged the Federal Government to implement a small business loan program along the lines of the Small Business Act program that has proven so popular in the US.
Since its founding on 30 July 1953, the US Small Business Administration (SBA) has delivered about 20 million loans and loan guarantees to small businesses. The SBAâ€™s current business loan portfolio of roughly 219,000 loans (worth more than $45 billion) makes it the largest single financial backer of US businesses in the nation. Over the past 10 years, the SBA has helped almost 435,000 small businesses get more than $94.6 billion in loans. No other lender in the US has been responsible for as much
16 Business Franchise Australia and New Zealand
small business financing as the SBA has during that time. The FCA is not intending to ask government to be a lender, it is asking it to make use of an unused bank wholesale funding guarantee to provide a guarantee to business start-ups which lack the collateral to secure a loan but otherwise meet all lending and business ownership criteria. In a franchise sense, it means getting over the line a franchisee who meets all approval
“The FCA has encouraged the Federal Government to implement a small business loan program along the lines of the Small Business Act program that has proven so popular in the US.” Stephen Giles, Chairman, Franchise Council of Australia.
criteria in a franchise system which has been appropriately accredited. We know many systems have quite a few candidates in that category. As Sam Kekovich said, “You know it makes sense!” There seems to be some interest, but the Federal Government has budgetary constraints which need to be navigated. The FCA also appreciates that the program probably needs to be piloted in Australia and fine-tuned for our market dynamics. One area of Government interest where funding appears to be available is the empowerment of our indigenous Australians through business ownership. With this in mind, the FCA has approached the AFL, leveraging an old football friendship with indigenous leader and AFL Community Manager, Jason Mifsud. The AFL has created best practice mentoring and support programs for indigenous AFL footballers that have been extremely successful.
business on your own, we say franchising is being in business for yourself, not by yourself. Stay tuned for news on this and other initiatives designed to increase the pool of potential franchisees. Another discussion point for the FCA this year is to look at ways that the Franchising Code of Conduct (Code) can operate more efficiently. Some areas of the Code attract excessive compliance cost for no real benefit for either franchisors or franchisees. For example, sometimes the mandatory 14 day disclosure and seven day cooling off period gets in the way of a deal proceeding with the haste both parties want. It also seems ludicrous to require franchisors who grant a single master franchise to have to update their disclosure document annually, notwithstanding they have essentially ceased franchising. Our FCA Legal Committee will be making an important contribution to this discussion.
The FCA feels that these programs, when combined with the structure and support of a well-run franchise program which has been accredited in a similar manner to the system operating in the US, would provide a solid foundation for business success.
Retail leasing reform remains an important priority. Consistent with our approach to franchising, we are seeking to have a collaborative rather than combative approach to reform, and hope the property sector will participate.
Franchising is a teamwork business, much the same as a football team. Franchising provides training in the transition into business, and ongoing support, similar to football culture. As opposed to being in
We concede current State-based regulation of retail leasing imposes unnecessary compliance costs, and we support efforts to harmonise legislation. In return, we expect the property sector should support
the implementation of the Productivity Commission recommendations around the establishment of an Industry Code of Conduct. We support the free and fair operation of the market, but this of course requires equality of information and prevention of abuses arising out of unequal bargaining power. Toward the end of February the FCA held a retail issues forum to discuss all the pressing concerns for the retail sector for 2012 and beyond to ensure those entering franchising can have confidence when entering the market. At the forum, the possibility of a real payroll tax freeze was discussed, government assistance for small business was analysed and the FCA reaffirmed its commitment to continuing its push for a voluntary Retail Leasing Code of Conduct (see FCA Executive Director Steve Wright’s column). The concept of a payroll tax freeze is not a difficult one, but is one State Governments are likely not to agree with. The FCA is not asking for a reduction of payroll tax, only for a freeze, so that payroll tax bills paid by employers do not get any bigger. A freeze would remove any ‘threshold creeps’ which can be a disincentive to employ new workers - as the new employment may take a business above the threshold, and therefore incur the tax or even be dragged into paying payroll tax simply by granting a pay rise to employees, in order to keep them.
Business Franchise Australia and New Zealand 17
fr anch ise associ at i on of n e w ze a l an d e xpert ADVICE
Graham Billings, Executive Director, Franchise Association of New Zealand.
GEARING UP FOR 2012 FANZ PREPARES FOR THEIR NATIONAL CONFERENCE AND ANNUAL AWARDS
FANZ Conference 2012 12-15 July, Bay of Islands This year’s Franchise Association of New Zealand Conference will be held in the Bay of Islands, Northland. This location remains completely unspoilt and with its ancient Kauri forests and hundreds of kilometres of stunning coastline, the region is a natural paradise. The Copthorne Hotel & Resort Bay of Islands will be a superb waterfront conference venue and offers uninterrupted bay views surrounded by 60 acres of subtropical gardens and the historic Waitangi Treaty Grounds. The grounds are described as New Zealand’s premier historical and cultural site, where our nation’s founding document, the ‘Treaty of Waitangi’, was signed. The Franchise Association of New Zealand’s conference, will bring together the franchise community over three days to network, exchange ideas and interact with other systems and service providers, as well as catch up on industry trends and hear what experts in the growing field of franchising have to say. Conference registration includes invitations to three social events where delegates can relax, recharge and enjoy their surroundings. An array of talented speakers will be led by Geoff Bryan, our MC. Geoff is a New Zealand television broadcaster, currently a sports presenter for TVNZ, and most well-known for presenting the Olympic and Commonwealth Games since 1988.
Afternoon workshops provide delegates with an opportunity to drill down on some specific areas of interest. Smaller groups made up of like-minded individuals, facilitated by an industry expert, provide a valuable insight into the world of franchising. Speakers drawn from the franchising community have scored particularly well with past delegate audiences and will again feature prominently. The conference will end on a high note with an address from John Anderson, New Zealand businessman, author, celebrity speaker and founder of Contiki Holidays. The natural beauty, collegial environment, and inspirational speakers will combine to ensure a conference that is vital dynamic and must do for those in franchising.
Franchise Awards 2012/13 17 November, Auckland This year will be the 18th Annual New Zealand Franchise Awards, which will celebrate and showcase many of the country’s highest performers in the franchising community. The award nominations are open to any member of the Franchise Association or the member’s franchisees. The Awards Gala Dinner and presentation night this year will be a very special event as it coincides with the meeting of the Asia Pacific Franchise Confederation, which FANZ will be hosting in the days prior to the Awards night. (See Chairman, David Foster’s article in the Jan/Feb issue). Award winners will, therefore, be showcasing their
18 Business Franchise Australia and New Zealand
achievements in front of the delegates to the meeting and their invited trade attaches. Once again, the award entries will be evaluated by a panel of franchise industry experts who will rigorously analyse and test each entrant - looking at their planning, return on investment and customer satisfaction, as well as overall performance. The panel will operate under the guidance of the New Zealand Business Excellence Foundation and entries will ultimately be judged under the internationally recognised Baldrige criteria. Baldrige Awards promote awareness of performance excellence as an increasingly important element in competitiveness and information sharing of successful performance strategies and the benefits derived from using them. To receive a Baldrige Award, an organisation must have a management system that ensures continuous improvement in the delivery of products and/or services, demonstrates efficient and effective operations, and provides a way of engaging and responding to customers and other stakeholders. Last year’s Supreme Franchise System was awarded to Paper Plus New Zealand Ltd and the Supreme Franchisee of the Year to Columbus Coffee, Ashburton. The Award categories include: Business Services, Food and Beverage, Home Services, Retail, Service Provider, Master Franchisee Award, Media Campaign of the Year and a new category this year, Franchise Export Award.
With franchises, it’s actually success you want to replicate.
If you’re considering a franchise, our specialists are here to help. Investing in a franchise can be both personally and financially rewarding. At BNZ, we’ve been working alongside franchise owners for decades. Over time, this vast experience has been channelled into a range of franchise solutions that can enhance your profitability and efficiency – everything from finance to personalised banking services. So remember, starting a franchise business for yourself doesn’t have to mean by yourself. Talk to us today.
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Business Franchise Australia and New Zealand 19
fr anch ise associ at i on of n e w ze a l an d
“The continuing development of skills has been identified by many of our members as one of the key factors necessary for further growth.” David Foster, Chairman of the Board, Franchise Association of New Zealand.
The Franchise Association of New Zealand Membership Makes Sense As we reach the start of another financial year, it is perhaps a good time to reflect on what membership of FANZ offers to both franchisors and franchisees and why it is in both groups’ interest to be in membership.
Membership Membership of the Franchise Association of New Zealand (FANZ) is only available to those who meet the membership criteria and undertake to comply with the Association’s rules, Codes of Practice and ethics. The members of the Association are a wide range of people involved in franchising. This includes franchisors, who make up the majority of the membership, together with franchisees. Members also include service providers who represent many of the businesses which have an interest or expertise in franchising such as lawyers, accountants, consultants, publishers and others.
of franchising in New Zealand. The work of the Association includes the promotion of good franchising practice, both through the joining process and also through subsequent activities including the advocacy for the maintenance of a self regulatory system in New Zealand and our principal sponsorship of a national franchise survey. Members share in the credibility the Association has developed for its members and also share, have influence and add weight to the voice of the Association as the spokesperson for franchising in New Zealand. As a national franchise association, FANZ also plays a part in the activities of the World Franchise Council and the Asia Pacific Franchise Confederation to promote and advocate franchising best practice standards.
FANZ benefits for members and members’ franchisees
For franchisors, their membership includes ensuring that their franchise documentation complies with the Codes, particularly in such important areas as disclosure, cooling off periods and dispute resolution.
The Association organises a wide range of activities through its Auckland office and the regional branches which operate in many provincial cities and regional areas. These include:
It is for this reason that members value the credibility that membership provides to their organisation and is why FANZ recommends prospective franchisees always look to deal with franchisors or service providers who are members.
• Regular breakfast or evening meetings where members can develop networks and hear from industry expert speakers.
Why does FANZ exist?
• The annual July conference where three days are spent with some of the leading New Zealand and international guest speakers in the industry.
Just like many similar trade associations, FANZ provides an opportunity for people with a common interest to combine forces, to help each other, to promote franchising as a business system and to protect the interests
• Seminars and other events designed to increase members’ knowledge of franchising and business generally.
• The opportunity to enter the Franchise Awards based on an international standard
20 Business Franchise Australia and New Zealand
for business excellence and to receive the recognition these awards create at a wellpublicised gala dinner in November each year. • FANZ also supports the annual Auckland Business Opportunities and Franchise Expo held in August, with preferential rates for members.
Other services • In the event of disputes arising between franchisor and franchisee, the Association has a dispute and mediation process available, as well as a formal complaints process if there are allegations that any of the Association’s Codes or rules have been breached. • FANZ publishes two easy to read guides for both those thinking about franchising their businesses and also for prospective franchisees. The New Zealand Franchisor’s Guide and The New Zealand Franchisee’s Guide are both available through the Association’s web site or directly from the office. This coming year, the Board is working on a significant increase in the educational opportunities the Association will be offering to those who are thinking of purchasing a franchise, as well as those who are already franchisees or franchisors. The continuing development of skills has been identified by many of our members as one of the key factors necessary for further growth. For further information on these or any other questions about the Association please call the office on 09 274 2901 or email firstname.lastname@example.org.
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For further information contact Tile Mart Central: email@example.com or www.tilemart.com.au
PROFILE : G EL AT ISSI M O
Gelato Girls Say, “What Glass Ceiling?” W
omen buy franchises for many reasons. For some it’s a numbers game; they identify a business opportunity offering a fantastic return on investment that they can make work. Others see franchising as a way to combine work and family on their own terms. Some view owning a franchise as something they can do for themselves; a way to define themselves separate from their role as wife and mother. Franchising is also a way to create a family business which allows women to work with their loved ones, while creating a legacy for the future. All these motivations are represented in the Gelatissimo network. Joint CEO, Domenico Lopresti, says Gelatissimo’s women franchisees are highly successful. He said, “If I had to identify why our women franchisees are so dynamic, I would say it’s their attention to detail and their ability to multi-task.”
ANNA Anna Calcagno has the only Melbourne Gelatissimo franchise, located in the famed Lygon Street eating precinct. A force to be reckoned with, Anna had always helped her husband in his business, but as her children matured, she wanted a business she could make her own. When Anna and her husband Sam visited the Gelatissimo gelateria in Manly, she fell in love with its look and the beautiful gelato. She wanted a business where she
could control the quality of the product and this made a Gelatissimo franchise the ideal business opportunity. “I am not a sales person,” said Anna. “I couldn’t sell a product that I didn’t believe in, so luckily I love our gelato. I have been in business for six years and I still love it. It’s happy food.”
ASTRID When Astrid Orne-gliemann visited German relatives, her Uncle revived a childhood ritual and took her out for gelato. Astrid reveled in the experience and wished for beautiful gelaterias in her home town of Townsville. Fast forward three years, Astrid saw an advertisement for a Gelatissimo franchise. Astrid was dissatisfied with her corporate job. Her husband, Bob, was also ready for a career change. It was the ideal opportunity for the couple to build a business together. Astrid’s only regret is that they didn’t take the plunge sooner, as the franchise is everything they hoped for.
KATHY Mooloolaba based serial entrepreneurs Kathy and Mark Blake weren’t looking specifically for a franchise opportunity when they identified Gelatissimo. They already owned a highly successful fitness/aquatic centre, and were looking for another business opportunity that would meet a strict set of criteria they had created. Gelatissimo was the perfect fit.
22 Business Franchise Australia and New Zealand
They bought an existing franchise four years ago and after a fairly hands-on period, they have now pulled back to accommodate their other business interests.
RAYLENE They say if you want something done give it to a busy person, and this is certainly true of Raylene Garrow. Not content with a sea-change from Melbourne to Queensland, Raylene bought the Gelatissimo gelateria in Surfers Paradise, whilst juggling a young baby and a sick mother. In the early days, Raylene spent the day with her baby, then worked at nights. During the day the business was run by Raylene’s fatherin-law, Brian. For all these women, the franchise model helped create the life they wanted. They said the key to why Gelatissimo has worked for them is the simplicity of the system. While they have all made the business their own, they have bought terrific systems and there is no temptation to deviate from the rules. It is the best of franchising; the freedom of self-employment and controlling one’s own destiny, with the security of a proven formula that makes it easy to succeed. For more information on this exciting new career contact Karen Pollard at: Phone: Email: Web:
02 8845 0100 firstname.lastname@example.org www.gelatissimo.com.au
MAKE THE MOVE TOWARDS
Gelatissimo is seeking Franchisees with a passion for all things Italian! Since opening as a small family business 20 years ago, Gelatissimo has become Australiaâ€™s largest gelato franchise and its international expansion includes the home of gelato, Italy. Unlike its competitors, Gelatissimo makes fresh gelato in-store daily, supported by a brand that embodies style and sophistication. As well as creating a retailing point of difference using a system that is simple for franchisees to run, Gelatissimo has an enviable performance record that is defying todayâ€™s challenging trading environment. The average Gelatissimo store turnover is $776,000* and comparative store sales growth has averaged a positive 8.29%* over the last two years. This reflects Gelatissimoâ€™s commitment to our franchisees, including full training and ongoing support from the operations and marketing team, brand building and local store marketing. Unlike many franchise systems Gelatissimo charge a flat royalty fee instead of a percentage of your sales, so you reap the rewards when your business grows! Gelatissimo is recruiting franchisees with energy and enthusiasm for delivering great products and excellent customer service. If you want to change your lifestyle through investing in a business that is fun, flexible and financially rewarding,
Call Karen on (02) 8845 0100 or email email@example.com
Franchise opportunities available in selected areas across Australia
Now with gelaterias in Australia, Singapore, Indonesia, Malaysia, Philippines, Kuwait and Italy GELATISSIMO IS PROUDLY AUSTRALIAN OWNED AND OPERATED *Sales figures based on the last 12 months turnover as at January 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.
e x pert A DV ICE
SIMPLE STEPS TO SUCCESS How to build consistent success in your business
f you are like most business owners, you are striving to do things better this year. You want to make more money, you want more bottom line profits and I can also probably guess you want all this and more without having to work longer hours, with less overwhelm and zero headaches. So how do you build a more efficient and consistent business? Well, the answer to that question is quite simple. It’s about doing the right things in the right order and taking consistent daily action. Here are FOUR areas you can focus on quite effortlessly to ensure you build more momentum over the next 12 months.
1. Create your outcomes Now I’m sure you are all familiar with the tradition of goals setting. We follow the smart criteria we learnt in our management and business training and then we hope that when we review those goals we have achieved them. If you want my honest opinion, for the majority, goal setting just doesn’t work. It’s a bold statement but true. Your focus should be on achieving your goals not just setting them, so that’s when I changed the acronym SMART to SMARTA to include that all important element – ACTION. Unless you take the required action, your goals will simply remain your wishes and desires. So how do you CREATE your
outcomes so you can move closer to where you want to be? As Peter Druker once said, “The best way to predict your future is to create it.” The first step is to decide what you want. It may sound simple but most don’t even get this far. I believe success starts with a decision. Regardless of whether you have small or big goals you must decide what you want. How you write down what you want is very important. This is the first step of writing down your goals, so make sure your outcomes meet the CREATE criteria, which follows: C - Clear and concise: in other words be specific about what you want to achieve. R - Realistic: remember, we don’t get what we want, we get what we expect. So set your outcomes in alignment to what you expect you can achieve. Once you start achieving your goals, stretch your expectations and yourself. E – Ecological: running an ecology check on your goals is always a good idea. This simply means looking at the consequences of attaining that goal. You may ask yourself, ‘Is this outcome good for me and good for others?’ A - As If Now: it is vitally important you write your goals in the present tense. This is because once the mind has fully imagined something, it makes it far easier to accomplish. So your goal must be written in the present-tense language, as if you are
24 Business Franchise Australia and New Zealand
achieving the last step right now in this moment. T - Timed and Toward What You want: even though you are going to write down your goals in the present tense, you must put a future date or time to your goal to indicate when you wish to achieve this outcome. The T also stands for toward what you want; this just means it’s important to express your goal positively rather than including negative language about what you don’t want. E- End Step (Evidence Procedure): always include the final step that lets you know you have actually achieved your goal. This is the event, situation or result that would occur in order for you to have attained your outcome.
2. Take consistent daily action and improvement They say success is in the follow through and therefore Action is an essential element to success. So how do we maintain that action on a daily basis and focus only on the high income and high impact activities that will help us move to achieving higher levels of success.? The average person over-estimates what he or she can do in a day, a week or a month, and they under-estimate what they can do in a year, five years and a decade. Most of us associate action to taking big leaps and bounds, which is not always possible to maintain every day. So to get started with building more consistency in your efforts, try focusing on achieving
“The average person over-estimates what he or she can do in a day, a week or a month, and they under-estimate what they can do in a year, five years and a decade.” Tania Allen, Founder, Vision Alliance.
consistent daily improvement. We all think we have to improve by 20 per cent or 50 per cent or 100 per cent in one leap.
about working the room at a big event with a big fake grin plastered on your face. Far from it.
Why not make the decision to commit to improving your business, your sales, how you interact with your customers, your staff, etc - in fact everything you do, by only one per cent - but do this every day.
You might be waiting for a bolt of confidence to strike before you get up enough courage to put yourself out there, but confidence doesn’t magically appear.
At the end of every year you will be at least 365 per cent improved in many areas of your business and your life. Think about how much closer you will be to achieving your goals and outcomes if you are achieving those kind of results consistently.
3. Develop a prospect mindset and keep it for life When you develop a ‘prospect mindset’, you’ll begin to understand what your customers want... specifically. You’ll understand how to clearly identify the problems, frustrations and concerns they typically experience when they buy what you sell. These frustrations, concerns, problems and fears are what we call HOT BUTTONS. If you can discover what your ideal customer wants, and then provide them with solutions to their wants, they will buy from you each and every time. Once you completely understand how and why human beings make decisions, you can then begin to create persuasive and compelling marketing messages that are so powerful they practically force your prospects to buy what you sell.
4. Become an automatic smart networker Though it may be hard to grasp, networking is much easier than you think. Forget the myth that you need to be an extrovert to network well. You don’t. Or that you must network nonstop. Absolutely not. Or that networking is all
Instead, confidence comes partly through knowledge, being able to see what the process looks like, trusting yourself and taking a deep breath and plunging right in. It also comes from knowing what to say to people when asked…’What do you do?’ A quick way of telling people what you do includes the following: AVOID Telling People WHO You Are • I’m an accountant. • I’m a plumber. • I’m a florist.
leverage your opportunities through your connections. Smart networking does the following: • It is driven by purpose. It starts by defining your goals. These goals should then determine whom we ought to have in our network, which in turn, should help us decide where best to meet them. This means you are just not wasting time at the wrong events or in following up when it’s not the right fit. • It adds value and removes pressure as it places a deliberate focus on the needs and feelings of other people first. • It leverages tools that multiply our productivity. Rather than meeting people and interacting with them one-to-one, smart networking takes advantage of online tools and services that help us reach people on a one-to-many basis. Time to Take Action
• I’m a business coach. Tell People WHAT You DO and Show Them How Your Solutions Match Their WANTS! • I help people become financially successful.
Remember success is in the Follow Through - so take some time right now to: • Decide what you want and create your outcomes for the year. • Commit to consistent daily improvement. • Match your solutions to your customers wants.
• I help people with all their plumbing needs. • I bring joy and happiness to people’s day.
• Become an automatic smart networker.
• I help business owners get more from their business.
Tania Allen is the founder of Vision Alliance, a business growth and franchise consulting firm and author of Franchise Profits.
Once you have the experience of communicating this well and find that networking is not so daunting after all, you will wonder why you ever waited so long to get started Remember, you must network the smart way - which will include both face-to-face networking and online social media. Not enough people view social media as a form of networking, but it’s a must if you want to
Tania is passionate about helping both franchisors and franchisees maximise their potential. Contact Tania at: Phone: Email: Web:
1300 76 49 20 0419 481 203 firstname.lastname@example.org www.vision-alliance.com
Business Franchise Australia and New Zealand 25
PROFILE : SN A P- O N TOO LS
olin Brightwell was considering his options when his life changed direction a couple of years ago. Like many baby boomers – those born between 1946 and 1964 – he was considering the fact that many are facing constricted superannuation funds due to the economic downturn. He was weighing up the need to continue working beyond the traditional retirement age. But Colin decided to view this time of life as an opportunity to take control over his wealth and grow it as quickly as possible before his retirement. He took this decision after comparing the more limited income prospects he had should he choose to take a salary. A ski instructor in the States and Japan for most of his life, Colin had not given much thought to the idea of creating his own business, let alone one in the mechanics and tool industry. But in his later years, circumstances led him to weighing up his choices. Colin undertook his due diligence on a wide variety of different franchise offers and started to work out which would give him exactly what he needed. “Taking out a franchise has been a bit of change from my previous life,” he explained. “I was used to managing my own time, teaching prominent US based celebrities and sports stars to ski. When I moved back to Australia, I was considering starting up my own snow sport school, but it looked like it was going to need a whole lot of effort before it would pay off.” Colin was looking for a business with something behind it. He looked at a lot of franchise operations and found the majority
of them didn’t match his requirements. According to Colin, Snap-on Tools gave him balance – in his work day, his need for leisure and sport time and in the predicted profitability. Like many of his peers, Colin had accumulated assets over his working life, and found it straightforward to self-fund or even borrow against his existing assets to invest in the franchise. In the end, Snap-on Tools made it easy for him to join as a franchisee, by supporting him through their finance program. Colin’s view is similar to many of those aged over 50 who expect the gains to be made on the sale of their businesses to contribute substantially toward their superannuation and fund part, if not all, of their retirement. According to the Franchising Australia Survey conducted by Griffith University in 2010, nearly one in every four franchisees is over 50. Of Snap-on’s 144 franchise owners in Australia and New Zealand, 35 per cent are 50+ years of age. A significant number of these franchisees have been tenured with the 24-year old company for more than half its lifespan in Australia. They have grown up with the business, maturing alongside it. Although aged in his sixties, Colin has joined the company as a relatively greenhorn, starting his franchise in October 2011. Nick Hudson, National Franchise Manager of Snap-on Tools, explained that many franchisors are actively seeking to recruit older candidates given their maturity as well as their financial viability. “Although there is not a specific age range
26 Business Franchise Australia and New Zealand
for a Snap-on franchisee, we do encourage babyboomers to consider applying,” said Nick. “Those who are thinking about starting a franchise to fund their retirement, or to bolster their superannuation funds, are being sensible with their investment because one truck alone can turn over an average of $600,000 in one year.” For Colin, one of the most attractive elements of starting his own franchise was the flexibility. “If I’d come back to Australia and been an employee, I would have been a pretty poor one!” Colin explained. “But with Snap-on I’m in control of my own hours. I work a five day week, and I get time in the mornings to do my exercise.” Colin has clear advice for those in their later years who are seeking the next challenge. “Investigate all of the franchise options. I had several meetings with other franchise operations, but in the end it was about how I want to live,” he said. Nick is circumspect about age and joining a franchise system. “Being part of the Snap-on team is more about a state of mind, than how old you are,” he said. To start your new career as a Snap-on franchisee contact Nick at: Phone: 1800 762 766 Email: email@example.com Web: www.snapontools.com.au
E CTIV EFFE G T S N CO NCI FINA AGES PACK ABLE L AVAI LITTLE S A FROM $37,000. S A
SNAP-ON TOOLS PUTS YOU ON THE ROAD TO SUCCESS â€œThe ongoing fee structure is very low compared to other franchises. With Snap-on the more I sell, the more I earn. Youâ€™re buying an asset, and if you work hard you will reap the rewards. Snap-on ticks all the ÂżQDQFLDOER[HVÂ´ â€“ Martin Pearce Snap-on Tools franchisee since 2004.
Ă† Global leader in tools and franchising Ă† 3URYHQHVWDEOLVKHGSURÂżWDEOHEXVLQHVVPRGHO Ă† In-demand products, #1 market share Ă† Operating in Australia for over 21 years Ă† 1RPHFKDQLFDOH[SHULHQFHQHFHVVDU\ Ă† ([WHQVLYHWUDLQLQJDQGRQJRLQJVXSSRUW
Phone 1800 762 766
www.snapontools.com.au Business Franchise Australia and New Zealand 27
FR A NCHISor IN d ep th : R esicert
INSPECTIONS MADE EASY
28 Business Franchise Australia and New Zealand
Resicert harnesses the power of IT to streamline the inspection process
t all started in May 2009. Paul Antonelli, a chartered professional engineer, and his wife Robyn, a shrewd businesswoman, saw the need to provide a reasonable, reliable inspection service to people who were planning to buy a home and lacked the knowledge to determine if the potential property had the correct structural integrity. Typically, when people are interested in buying a house, property inspectors are recommended by real estate agents or friends in the area. They are often ‘one man’ businesses and the variety and quality of the inspection and the follow through can vary greatly. Most home buyers are not familiar with the inspection process and thus don’t know how to judge a ‘good inspector’ from a ‘not so good inspector’. Paul and Robyn knew they could remedy this situation and embarked upon a business venture to create Resicert – an honest, reputable inspection company which could provide individuals with the peace of mind – knowing their future home had been properly and fully inspected. However, they also believed that the inspection process should be effective, efficient and stress free for all parties involved – the buyer, the seller and the agent. With Paul’s engineering background and Robyn’s love of all things business, they developed sophisticated systems for inspecting, recording and producing reports. The Antonelli’s pushed the boundaries of the benefits of IT to see how it could be of maximum value to their company and their clients.
These systems have continued to be improved upon and the company now boasts a completely paperless system. Can you imagine? An inspection company with no paper? No reports in triplicate, no coffee stained copies handed to you from the back seat of the inspector’s ute? Resicert has utilised technology to integrate all the steps of the inspection into a seamless computer based process. Their systems continue to become more complex from a technology standpoint, but much easier from the user standpoint.
TME FOR EXPANSION This business philosophy worked so well and Paul and Robyn saw such positive results, they knew they had the right base for a franchise system. They brought on their first franchisee in 2010 and haven’t looked back. As the company grew, they added another key component to the mix. Tony Melvin. Paul met Tony during a year-long business mentoring program which Tony was running. Paul was eager to learn more about business, with plans to expand Resicert. Tony said Paul was one of his ‘star’ students! Paul listened intently, took on board many
of Tony’s suggestions and implemented them into his own business. A friendship developed, which then turned into a business partnership. Tony was so impressed with Paul’s dedication and drive and even more impressed with the Resicert company, that he is now Chairman of Resicert. Tony is incredibly proud and excited with both the company to date and the plans for the future.
OVERWHELMING INTEREST Looking forward, Tony said the level of interest for future franchisees has ‘gone through the roof!’ According to Tony, “We had 250 applications for franchisees in January of this year alone. Of those, twenty are through to the due diligence phase already.” Franchisee interest comes from individuals with widely varying backgrounds. “You don’t actually need any specific prequalifications to become a property inspector in Australia,” said Tony. As such, Resicert has developed their own course to ensure all their inspectors meet their own high standards of excellence.
Business Franchise Australia and New Zealand 29
FR A NCHISor IN d ep th : R esicert
GUARANTEED SERVICE Resicert is so confident of customer satisfaction that they have always offered a money back guarantee for every client. The inspectors produce such thorough and concise reports (all usually generated with less than a 24-48 hour turnaround) resulting in happy clients nearly every time. The reports generated are easy to understand, can be accessed online and are immediately sent to the correct parties involved. Inspectors brief everyone involved in the inspection during the process and at the conclusion. Clients are told on the spot of any inconsistencies or issues which are found. Once the inspection has been done, the purchaser is called and the real estate agent (if involved) is messaged as well. No waiting, no surprises! Everyone is informed and up to speed!
CUSTOMER SERVICE IS KEY For people interested in starting a career as a Resicert inspector, the most important ingredient for success is the ability and desire to provide excellent customer service. The technical side of building inspections can be learned – and Resicert provides a comprehensive training program to be sure all their franchisees are qualified and confident. Resicert also provides franchisees with work. The company handles all the necessary ‘paperwork’ – despite the fact they use no paper! Resicert has a central hub which handles all inquiries and allocates jobs to the appropriate franchisees in that area. All invoicing, quoting, payments and follow-ups are also completed by Resicert. This leaves the franchisee free to coordinate their schedule and get to the job of inspecting. Resicert does expect the franchisee to establish a sound network of contacts as well – especially with local real estate agents. Any jobs coming from these relationships are passed on to Resicert and they do the follow up.
As a Resicert franchisee, you control your schedule and decide when to schedule your inspections. Resicert assigns the job, but not the time frame. With very little investment and full training provided, you can be up and running as a Resicert franchisee in no time.
Tony said Resicert plans to release 80 new areas, get these franchisees up to speed and go from there. The amount of inquiries they have received already is a good indication that these areas will fill up fast, so Tony recommends anyone who is interested to contact Resicert sooner rather than later.
For more information regarding Resicert contact:
The earning potential with Resicert is dependent on the number of jobs you complete per month, but the earning potential is $120,000 to $200,000 per year!
Phone: 1800 737 423 Email: firstname.lastname@example.org Web: www resicert.com
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TELSTRA IS SEEKING NEW LICENSEES
FIND OUT MORE ABOUT BECOMING ONE AT THE SYDNEY FRANCHISING & BUSINESS OPPORTUNITIES EXPO
23-25 MARCH Weâ€™re looking for business savvy self-starters with energy and entrepreneurial drive to join the success story that is Telstra retail. Exciting new store locations are now available. So come and find out how together we can build your future and our brand. Details: Sydney Convention & Exhibition Centre Darling Drive, Darling Harbour Sydney (Stand B2) To learn more, visit telstra.com.au/licensed-stores
THINGS YOU NEED TO KNOW: The Telstra Licensed Store program is not a franchise and does not involve a franchise agreement. ÂŽ Registered trade mark of Telstra Corporation Limited, ABN 33 051 775 556. 7/6)UDQFKLVH0DJD]LQH$GSUHVVLQGG
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GETTING A LOAN? WHAT YOU SHOULD PREPARE BEFORE YOU ASK FOR A LOAN
oing to a bank and making a loan application for finance to purchase or set up a business can be very daunting. Some say this is one of the most stressful things you will do in your life. This doesn’t need to be the case as this stress can be reduced by some premeeting preparation and research.
RESEARCH YOUR BANK Choose a bank which has expertise in your industry and will provide the range of financial products and services you will require. Do they have specialists in your business segment, such as franchise finance? Do they have a banker you can meet face to face or will you be directed to a call centre? Your application and the quality of advice you receive will be improved by some preparation. They say in real estate, ‘Location, Location, Location’. In business this mantra can be replaced by, ‘Prepare, Prepare, Prepare’. This view is true irrespective of the amount of money you are looking to invest in the business purchase. Mobile businesses, for example, while at the lower end of the cost spectrum, still have the potential of losing a lot of money if the purchaser gets it wrong.
Potentially you can lose not only your initial investment but you will also be liable for any losses you may accumulate. Before making that all important appointment to see your banker spend some time to prepare.
UNDERSTAND YOUR FINANCIAL CAPACITY Your banker will need to assess your financial capacity. Write down a list of all your assets (what you own) and your liabilities (what you owe). Don’t forget balances in your superannuation funds and limits on your credit cards. Also include a list of your income and fixed outgoings (loan repayments, credit card payments, private school fees, etc). You should include dividends from shares, rent from investment properties and external income from part-time work. Bring a copy of your personal tax returns for the past three years and bank statements for your bank accounts. The banker will look towards securing your loans against your house or other real property and in some cases the business itself.
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This may require a re-finance of loans if they are with another lender.
PREPARE A BUSINESS PLAN Taking the time to write a detailed, well thought out business plan is essential when starting or purchasing a business. This will document your business opportunity and how you will run the business. Among other things, your business plan should include your goals, strategies, prospects, financial information (historical and projected) and business structure. Your plan will help identify any weaknesses in your business and issues you need to work on to ensure you’re moving in the right direction. A business plan will help your banker and other advisors assess your business and offer guidance. Remember your business plan is a roadmap and will assist you to monitor your performance. It is a living document and needs to be monitored and adjusted as your business progresses. There are a number of free websites which can help you by providing templates and other advice on preparing a business plan.
“Remember your business plan is a roadmap and will assist you to monitor your performance. It is a living document and needs to be monitored and adjusted as your business progresses.” Steve Seddon, Senior Business Development Manager, Franchising and Associates, Westpac.
vendor, and in the case of a franchise, speak to as many other franchisees as possible, including some who have left the system. This process will provide a well-rounded and realistic view of the business. There is no such thing as a perfect business. Involve the franchisor at an early stage. Franchising is like a marriage and all parties need to build a sound professional relationship. Look at the industry and how it is being impacted. Many industries have been impacted by such things as changes in consumer behaviour and legislation. These issues may be different from state to state and region to region.
GET ADVICE Speak to your business advisors, business accountant and lawyer. These advisors are able to recommend business structures, tax planning, GST obligations and book keeping. They can also assess leases and agreements, etc. Time and money spent at this stage will ensure the proper processes are put in place and legal obligations are understood. Most state governments provide a free or low cost service to assist people get into business. There may be some training programs available. Look at any weaknesses you may have and put a plan in place to develop yourself. Few people will have all of the required skills up front. Learning is a continuous process for all business owners. When speaking to family and friends, ensure you are getting a balanced view. Like with all things in life others will have their own opinions and bias when giving their views.
RESEARCH THE OPPORTUNITY As outlined in this article, research will assist you to understand the business you are looking at purchasing. Spend time with the
We have all seen the rise and fall of the video rental industry and the environmental impact on the car detailing industry. Look at what the competition is doing. Ask questions such as: • Will there be a price war? • What is your business’ point of difference in the market? • How easy is it for others to enter the market? • What are the barriers to others entering the market, including cost, expertise, access to product, location, etc? If buying an existing business, find out about your customers: • Who are your customers? • Will they stay with you as the new owner? • How hard would they be to replace if they went elsewhere?
CONSIDER WHAT YOU NEED What are you looking for from your bank? Business loan, overdraft facility, transaction accounts, internet banking, equipment finance, landlord guarantee, business credit cards, merchant facilities, personal and business insurances, etc.
The list is extensive. Your banker will help you through this, however some thought on your part will ensure all your business and personal financial needs are covered. Provide a breakdown of the finance you will need. Include purchase price (or detailed set up costs if new), working capital, legal and accounting costs, stamp duties etc. Detail your cash contribution and financial reserves.
SUPPORT OF FAMILY Family support is critical to the success of any business. Buying a business can be an added strain, at least initially, so it’s important that you consider how this will impact on you and your family. Who will work in the business and on what basis? How will they be paid? Will employment outside of the business continue? Communication channels need to remain open to ensure any hiccups don’t get blown out of proportion. Buying a business is an exciting time. Time spent before meeting with your bank will be worthwhile as it will reduce the stress for you and the time taken by the bank to come to a decision on your loan and other services your bank may be able to provide. Steve Seddon is a Business Development Manager with Westpac. He specialises in the franchise sector and is on the Franchise Council of Australia Western Australian committee. He holds a Diploma in Franchising and is a qualified CPA. Westpac continues their long-term commitment to franchising in Australia. The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Steve at: Phone: 08 9426 2204 Email: email@example.com Web: www.westpac.com.au
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focus : PLUS FI T N ESS 24/7
of the first Plus Fitness in Northmead. The small club (in both size and membership base) grew from 67 members in 1996 to 1500 members in 2000. During this time period the gym space was rebuilt and renovated to four times its original size. Northmead was so successful, exceeding 2000 members in 2003, that John knew it was time to purchase another site. Using the experience and systems he had put into place in his Northmead gym, John took over a struggling gym in Camden. He managed to turn the gym around in a short period of time and then went on, in 2007, to purchase sites in Annangrove and Narellan.
John Fuller and Nigel Miller
lus Fitness, a company born from a desire to improve the strength and fitness of fellow Australians, is itself growing stronger each year. Created and developed by John Fuller and Nigel Miller, Plus Fitness utilises both John and Nigelâ€™s extensive experience to grow the franchise system and the brand. Johnâ€™s passion for health and fitness originally came from necessity. Having survived a near fatal car accident in 1992, but sustaining severe leg injuries, John had to sell his existing successful business in the home improvement industry and embark upon a long journey of rehabilitation.
It was during this process that John became passionate about the physiology of the human body and the human spirit. He decided to study Sports Medicine and Business Management, supplementing his income and gaining valuable onsite experience by working as a fitness instructor. John then went on to become one of the fitness industries leading and most sought after personal trainers, working in a number of Sydneyâ€™s most exclusive health and fitness clubs. By 1996, John was ready to open his own club. On a limited budget, but unlimited desire to succeed, John opened the doors
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By 2008, John knew he was on to a good thing. His gyms were prospering, his systems were in place and he was ready for more growth. It was at this point that John realised it was time to develop a more formal business relationship with his long-time friend and business consultant, Nigel Miller. At the time, Nigel was also a successful gym owner in Sydney. He also worked as an extremely successful and well-known consultant for the fitness business and training industry. With a background in banking and finance and over ten years of consultancy under his belt, Nigel was the perfect choice to form the partnership that has now propelled Plus Fitness to the forefront of the industry. In 2009, Plus Fitness had been operating successfully for 13 years. It was now time to
take it to the next level. John and Nigel set out to grow the business, grow the brand and become one of the strongest contenders in the fitness industry. They developed their strategy, their systems and their long-term goals. They opened the head office and their health club franchise model – as well as adding a further three clubs – all in 2009. Then came the global financial crisis. Never ones to back down from a challenge, John and Nigel accepted the reality that it was now more difficult to find franchisees with enough available cash to purchase and run their Plus Fitness clubs. The answer? Plus Fitness 24/7 – a fitness club that required a lower investment and lower running costs on behalf of the franchisee and lower fees and greater flexibility for members. Realising the 24 hour fitness model would work perfectly for Plus Fitness, John and Nigel set about revising their existing business models and systems to incorporate the 24 hour gym concept. Plus Fitness 24/7 was officially launched at the 2011 Sydney Franchise Expo. It was apparent at that point that the franchise system John and Nigel had developed was a winner, as they signed up five new franchisees at the expo alone! Looking forward, John and Nigel plan to have 75 gyms open throughout Australia by the end of 2012. Considering they have already opened the first Perth based franchise and have sold the territories for six gyms in Victoria and four gyms in Western Australia, the goal is already in sight. Plus Fitness has been so successful, in fact, that they achieved a remarkable 430 per cent growth in 2011! Fifteen years on, the success story of Plus Fitness is testament to the belief that passion, hard work and commitment can and will make you strong!
YOUR OWN ‘PERSONAL TRAINER’ Buying a Plus Fitness 24/7 franchise is a little like starting a fitness program with a personal trainer. You know what your goal is, you are willing
to put in the hard work and effort, you know you just need some guidance from a professional to help you reach your goal in the most efficient way. You could just waltz into the gym and start randomly using the equipment, but why would you? Isn’t it better to utilise the knowledge of a professional trainer with years and years of experience? The trainer has learned the hard way, made all the mistakes and developed the most effective program to help you reach your goals. The trainer gives you step-by-step instructions, coaches you on the correct techniques and motivates you and guides you when you are struggling to keep going or lose sight of the big picture. John and Nigel have developed a comprehensive, tried and tested business model that will help guide you every step of the way – what better franchisors to have than…personal ‘business’ trainers!
STRONG FRANCHISE SUPPORT Plus Fitness 24/7 offers a true turnkey franchise business with an initial investment as low as $229,000 – including equipment! Add to this exclusive territories, low staffing costs, no ongoing software license fees, low flat monthly royalty fees and unrivalled initial and ongoing franchisee support and you can see why Plus Fitness is in such
demand. You also get extensive marketing and administration tools, templates and assistance, IT equipment and installation, assistance with the fitout of your gym, loads of marketing materials and a whole host of other benefits to get you going.
A LIFESTYLE CHOICE One of the other key benefits of buying into the Plus Fitness 24/7 business model is the fact that whole business is designed to allow you to run, monitor and manage your business both in house and away from the gym. You will have the peace of mind knowing that the time you put in actually at your gym will be invaluable, but while you are away from the gym you will be able to monitor the physical space as well as the day-to-day operations remotely. This allows you to work ‘in’ the business and ‘on’ the business, and also gives you the flexibility to be away from your gym but still keep your finger on the pulse of your business. So what are you waiting for? For more information on a Plus Fitness 24/7 gym franchise in your area, contact Nigel Miller at: Phone: 02 4648 2099 Email: firstname.lastname@example.org Web: www.plusfitness.com.au
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“One of the most important items to attend to when you set up a new franchise business is to make sure you know what your income tax liability is going to be and to set aside money for that liability.” Tim Kilham, Director, Lanyon Partners
TOP 7 STEPS
TO KEEP YOUR BUSINESS MOVING Financial, taxation and general business tips for your franchise
f you are still looking for a suitable franchise system, it is important to gain as much knowledge as possible along the way. If you have already purchased your franchise, congratulations! You have made the brave decision to go into business for yourself and control your own future. Let’s focus on some of the financial, taxation and commercial issues you should consider as you begin this journey as a new business owner. In line with the theme for this issue, let’s assume that you are planning to or are currently operating a mobile franchise, although much of what is said also applies to a franchise operating from a fixed location.
INCOME TAX One of the most important items to attend to when you set up a new franchise business is to make sure you know what your income tax liability is going to be and to set aside money for that liability. I have seen franchisees struggle and even fail because they were unable to pay their income tax bills. Most new mobile franchisees come from a background where they have been paid wages and had PAYG deducted. They then go into a new structure (be it a sole trader,
trust, or company) where PAYG is not deducted or required to be deducted. So – quite legitimately – no income tax is paid for a long period, but when returns are lodged there is a large amount of tax to be paid. As an example, assume you are a salary earner until June 2012 and you then resign and buy a mobile franchise in July 2012. You operate as a sole trader and therefore the franchise profits are included in your personal income tax return. You will earn income and make a profit each month – hopefully! No PAYG will be deducted, as a sole trader cannot pay a salary to himself or herself. So at this stage no tax is being paid on the income. Your 2013 income tax return – covering the first twelve month period of the business from 1 July 2012 to 30 June 2013 – will include the franchise profits for that period. If your tax return for the 2013 return is lodged by a tax agent, it can be lodged as late as May 2014, and tax will then be payable in June 2014 on the income you started earning in July 2012. Think about that for a moment!! You are in June 2014 paying tax on income you started earning almost 24 months ago!!
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As you have lodged your 2013 income tax return, you now get caught up in the instalment system. As a consequence, you will receive an instalment notice in relation to your 2014 tax requiring you to pay in July 2014 – one month after you have paid the 2013 tax. This is an instalment of tax for 2014 which will be about the same amount as you have just paid for your 2013 tax.
don’t get caught out! I have gone in to some detail above because the issue is so important to many new franchisees. The example may be a little confusing but what it amounts to is this – you might find yourself in a situation where you pay no tax for two years, but then you pay two years tax in one month. And then, to top it off, you will (in about three months) be required to pay another instalment of tax of about one quarter of your annual tax bill. It is obvious that the consequences of not understanding how much tax is payable and when it is payable can be horrendous, including possible collapse of your franchise. The solution is fairly simple. You should accurately estimate your tax liability – seek help from your accountant if necessary – and then set aside, in a separate bank account, the money you need to pay in tax. Do not withdraw money from that account except to pay your tax.
GOODS AND SERVICES TAX Your mobile franchise will need to be registered for GST unless your turnover is less than $75,000 (registration is optional if your turnover is less than $75,000). It is not possible to fall as far behind with GST as it is with income tax for the simple reason that GST is payable either quarterly or monthly, depending on what option you
chose when you registered for GST. However, the amount of even one quarter’s GST can be substantial and pose a cash flow problem for a franchise. Some franchisees therefore open a separate bank account for their GST liability, put money aside in the account each month and only withdraw money from the account to pay GST.
STATUTORY PAYMENTS If you have one or more employees and are paying wages, there will be a number of statutory payments you will have to make. These will include: • Workers Compensation payments. The payments could be monthly, quarterly or annual depending on the State in which you carry on business and the amount you have to pay. • Pay As You Go Withholding (PAYG – W). This is for amounts withheld from salaries. These payments will be either monthly or quarterly, depending on the amount that you are withholding from employees. • Superannuation Guarantee Charge payments. These payments – currently nine per cent of wages but going up - have to be made not later than 28 days after the end of the quarter to which the payments relate. It is important to understand that, if you have set up your franchise as a trust or company and you are paying yourself a wage, you have to make these statutory payments in relation to the wage you pay yourself. Some franchisees are under the impression that if they own their business through a trust or company then the amounts they pay themselves cannot be wages. This is not correct. The amounts may be wages and if they are, then the statutory payments must be made.
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MOTOR VEHICLES You will be entitled to deduct motor vehicle expenses for a vehicle used in your mobile franchise - to the extent that the vehicle is used for business purposes. Generally, you will need to prove your business usage by means of a log book. The logbook requirement does not apply to vehicles designed to carry a load of more than one tonne. Generally, it applies to all other vehicles. There are a number of common misconceptions, including: • 100 per cent of the expenses of the vehicle can be claimed if the vehicle is signwritten with a business name or has a business logo on the vehicle. NOT TRUE. • Because the vehicle is used mainly for business purposes, there is an automatic claim for 100 per cent of the expenses. NOT TRUE. • 100 per cent of the expenses of utilities and panel vans can be claimed. NOT TRUE. These misconceptions can prove extremely expensive. Even if your business use is in reality close to 100 per cent, your deduction will be severely limited if you do not have logbook to prove your business use. The best deduction you are likely to get without a logbook is one-third of the vehicle costs. If you use more than one vehicle for business purposes, you can claim a deduction for the costs of business use for each of those vehicles. Expenses include not only the running costs, but also depreciation (if you own the vehicle or are purchasing it using hire purchase or a chattel mortgage) or leasing costs if the vehicle is leased.
INSURANCE This is an area often overlooked by new franchisees. There are a number of different types of insurance to consider. Questions you need to ask include: • Is your life insurance adequate? This is a question that you probably have considered before you bought your franchise, but it needs to be re-considered after you have purchased your franchise.
HOME OFFICE If you are operating a mobile franchise then it is highly likely that your home is also your main place of business. This is a little different to the situation of somebody who has an office to go to and occasionally takes some work home at night. For those people, their home is a home office but not a place of business. When your home is also your place of business, you will generally be entitled to claim expenses on the basis of the floor area of the room you use as your office, compared to the total floor area of your house. In other words, if the floor area of the office is 10 per cent of the house, then 10 per cent of expenses are claimable. The situation becomes more complicated if you do not have a separate office but perhaps use a living room or bedroom as your office. Where your home is also your place of business, you are allowed to claim not only a percentage of gas and electricity, but also a percentage of expenses such as interest on your mortgage, water and council rates, etc. However, if you do claim these items then, when you sell your house, it will not qualify for the full main residence exemption. Normally, the sale of your main residence is tax free, but if you claim, say, 10 per cent of expenses such as rates and mortgage interest as a deduction, then 10 per cent of your house will be treated as the sale of business premises, and have taxation consequences.
For this reason, most people limit their deductions to those that will not interfere with the main residence exemption. If you are renting your property, you will be able to claim a percentage of the rent as long as that property is classified as a place of business.
RECORD KEEPING It makes good sense to keep good accounting records for your franchise. It makes good sense because if you keep good records you are able to regularly monitor the progress of your business, and if you know how you are performing it will probably help you to work out what you need to do to perform better. It will certainly help you to work out what amounts you need to set aside for GST and income tax. Further, the better the condition of the records you provide to your accountant at the end of the tax year, the less you are going to be charged by your accountant. The accounting system you use is up to you – the system that you are most comfortable with is the most appropriate system, be it a manual system, a spread sheet system sheet or a specialised accounting package. What is important is that you keep proper records. Whatever the system you use, it is important that you keep and file all the documents that support your accounting records. Your accountant probably won’t ask for these documents, but the tax office may.
• Do you need income protection insurance? As a wage earner you are covered (for work related accidents) by workers’ compensation. If you are now selfemployed and not paying yourself a wage, you are no longer covered by workers’ compensation. Income protection insurance will provide you with an income if you are incapacitated and unable to work. It will provide cover irrespective of whether your inability to work is due to a work-related accident or any other reason. • What general business insurance do you need? Types of cover you may need will include vehicle insurance, insurance of other business assets, public liability insurance and possibly professional indemnity insurance. To some franchisees these insurance matters may seem unimportant, and the cost of insurance can be considerable, but these costs need to be weighed against the cost if an event occurs and you do not have the appropriate insurance. There is much to do and much to learn. Hopefully the matters raised in this article help you on your journey. Good luck! Tim is a Director of the accounting division of Lanyon Partners and heads up their franchising section. Tim has provided advice to, and acted for, many franchisees and franchisors. He is particularly active in advising on the purchase and set-up of franchise businesses. Lanyon Partners is a professional services firm that provides accounting, taxation, financial planning and insurance services. Contact Tim at: Phone: 03 9861 6140 Email: email@example.com Web: www.lanyonpartners.com.au
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HAVE YOU CONSIDERED
YOUR LEGAL OBLIGATIONS FOR YOUR MOBILE BUSINESS? M
any franchisees believe that, in buying a mobile franchise, their business will be simpler to operate and will involve less complex legal considerations merely because the franchise system is conducted as a mobile model. However, franchisees of a mobile system will still be affected by most of the issues which are relevant to ‘fixed site’ franchises, and may also be required to contend with additional matters that are specific to mobile businesses. The following are some of the legal issues that franchisees of a mobile system may be faced with:
Is the business truly mobile? Although the business may be modelled on a predominantly mobile concept, some ‘mobile’ franchises still require the franchisees to have the use of certain premises - for example an office, a showroom, or a warehouse or other storage facility for the products and any necessary equipment. Franchisees cannot simply assume, because the franchise is marketed as a portable business, that they will automatically and entirely avoid the obligations that are ordinarily associated with occupying retail premises. Franchisees may discover that, despite the business not being operated from a fixed site, it is still necessary for them to obtain occupancy rights, enter into a lease or
occupancy licence, deal with landlords and possibly even fitout or equip a site. Even if the business is truly mobile and does not require the use of any premises, any vehicle used by the franchisee in conducting the business, such as a car, delivery van or trailer, is likely to require fitting out with signage and/or equipment in accordance with the franchisor’s image and specifications.
Territory and exclusivity issues Some mobile franchise systems pursue a business model pursuant to which franchisees are granted certain rights within a particular area or territory, whilst others operate on the basis that all franchisees can conduct their businesses in all areas without restriction.
their businesses and attract customers. Certain mobile businesses rely heavily on the value in having a distinct territory. For example, couriers or delivery drivers who have exclusive rights to a particular route, or mobile pet groomers or other service providers who have exclusive access to all residences and businesses in a specific area, have a readily definable and instantly protected customer base. However, these franchisees could also be limited in the sense that they may be prevented from operating or even marketing their business outside of the specified territory.
Franchisees must ensure that they know at the outset whether they will be granted a territory and if so, whether or not it will be exclusive and what rights and obligations they will have within the territory.
Franchisees in these types of businesses must be prepared to ‘work the territory’, taking pains to make their presence known within the territory and making efforts to develop relationships, to ensure they secure the maximum number of customers and jobs available within the confines of their territory.
This will enable franchisees to plan where their customers are likely to come from and what actions they can take to target those potential customers and to generate demand for their products or services. Unlike fixed site franchisees, who can rely to some degree on local customers and passing foot traffic and who can undertake marketing activities in the local area surrounding their premises, mobile franchisees may need to consider different techniques to advertise and grow
Alternately, the franchisor may claim
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Where a mobile franchise promises to provide an exclusive territory, prospective franchisees must ascertain whether there will be any exclusions or limits imposed on their exclusivity. For example, a franchisor may undertake not to establish any other franchisees within a particular territory, but may retain the rights to itself service certain types of clients or operate a temporary business within the territory.
“Franchisees cannot simply assume, because the franchise is marketed as a portable business, that they will automatically and entirely avoid the obligations that are ordinarily associated with occupying retail premises.” Esther Gutnick, Associate, Mason Sier Turnbull.
to grant complete exclusivity, but the exclusive rights may be compromised or lost if the franchisee fails to achieve certain performance benchmarks or breaches the franchise agreement. Other mobile franchise systems do not seem to place any emphasis on the use of territories and instead thrive on an ‘open slather’ approach, whereby all franchisees can service any customers and operate freely in all areas. Franchisees of such businesses should be prepared to compete for market share with the other franchisees of the system, actively defend their customers and pursue aggressive marketing practices, if necessary.
Generation and allocation of job leads In a mobile business which may operate without an office or any physical presence to alert potential customers to its existence, it is imperative for the franchisees to be aware of how customers and jobs are procured. Commonly in mobile franchise systems, there is a central facility established for receiving customer leads and enquiries, such as an online system or a 1300 or 1800 telephone line. Where this occurs, franchisees must ensure they understand how the system is to operate, including who maintains and controls the facility, what amount (if any) each franchisee must contribute towards the costs of maintaining the facility and how the enquiries are allocated amongst the franchisees. If the franchise system does not grant territories, then franchisees should ask what criteria determines which franchisee should receive any particular job lead. If there is no central customer enquiry facility and it is left up to each franchisee to generate and receive its own enquiries individually, this can sometimes cause
unnecessary competition among the franchisees, whereby franchisees are incentivised to keep all leads for their own benefit rather than referring a lead to another franchisee, even where it may be appropriate for another franchisee to undertake the work. In such circumstances, franchisors may have developed a system for the payment of referral fees or the sharing of profits to encourage franchisees to refer jobs to the most appropriate member of the franchise network. Franchisees should familiarise themselves with the rules of any such scheme, and if none exists, franchisees should consider establishing such a scheme amongst themselves, to promote fair and suitable allocation of job leads.
Interaction with fixed site franchises Some mobile franchisees may be part of a dual franchise system which operates both fixed site and portable businesses. Consider a fast food franchise which may have both a chain of retail premises and also have mobile vans to service public events. In these circumstances, any mobile franchisee of the system may find themselves in close proximity to, or within the exclusive territory of, a fixed site franchisee of the same system. If this is likely to occur, both franchisees should be well versed as to their respective rights and obligations. In some cases, the mobile franchisee may be required to rely on the support and resources of a local fixed site franchisee for assistance. For example, in the case of a mobile fast food business, the mobile franchisee may require the use of the fixed site franchisee’s facilities to assist in any food preparation (including cooking, refrigeration, storage and delivery). Again, franchisees should ensure they are aware of any guidelines the franchisor may
have developed for such situations, and should consider establishing mutually agreed arrangements in relation to profit sharing or payments for such involvement and assistance.
Additional authorisations Mobile franchisees may find that they are required to obtain various additional permissions or qualifications to properly operate their business. Some examples include: • a special licence required to operate a particular vehicle such as a truck, trailer, boat or other specialised machinery • permits from the city council or other relevant authority enabling the franchisee to park vehicles and/or set up stalls in a public area such as a park or garden Franchisees must ensure they are aware of any such requirements, including any applicable fees and the nature and duration of any application process or separate training obligations.
Personal effort and financial rewards It is worthwhile to draw a distinction between mobile businesses with a ‘regular’ customer base or which operate on an established route (for instance mobile café businesses or couriers), and those which focus on operating at sporadic or one-off events (such as food stands at music festivals, conferences, sporting or community events). Those businesses in the latter category will require very different time commitments and will possibly also generate different cash flow and income streams in comparison to the regularly operated mobile franchises. Mobile franchises which operate predominantly at irregular events are not akin to a usual ‘Monday to Friday’ job or business.
Business Franchise Australia and New Zealand 41
Franchisees of these businesses should expect that they will be required to make themselves available outside of ordinary business hours, often working mostly on weekends, public holidays, late at night and during the course of major events and festivals. These businesses may also generate uneven income, such that the majority of sales and profits may be derived in a particular season, or at certain key times of the year.
Advertising All franchised businesses, including fixed site operators, should undertake marketing activity to grow their business. However, the marketing needs of a mobile business may differ significantly. Promotional materials used by mobile franchisees may vary substantially and often, for instance if they must comply with the regulations of any particular local authority or co-ordinate with the promotion of each relevant event. Since franchisees are usually obliged to obtain the franchisorâ€™s consent
before using any marketing materials, this could be a source of additional cost and delay.
Supplementary agreements Franchisees of mobile businesses must ensure they are aware of any other documents and agreements which they may be required to enter into in addition to the usual franchise documents, such as delivery/ driver contracts. Franchisees should read such agreements carefully and seek independent legal advice if required.
Conclusion There are several common and obvious advantages to purchasing a mobile franchised business instead of a fixed site franchise, including lower establishment costs, lower ongoing overhead expenses and usually a lesser need for employees, thereby reducing employment regulation compliance and costs. However, franchisees should not fall into
the trap of believing that mobile businesses are necessarily cheaper, less complex and simpler to operate. There are many other considerations affecting mobile franchises which this article has not gone into, including strict legal obligations under the new Australian Consumer Law and various other pieces of legislation. Franchisees should always undertake proper due diligence, ensure they know what they are getting into, and seek appropriate advice before committing themselves. Esther is an Associate at Mason Sier Turnbull, a law firm renowned for its franchising expertise. Located in Melbourneâ€™s industry heartland, Mason Sier Turnbull has strong commercial law skills and provides clients with sensible solutions. For more information contact Esther at: Phone: 03 8540 0200 Email: firstname.lastname@example.org Web: www.mst.com.au
42 Business Franchise Australia and New Zealand
The safety professionals! www.safetyquip.com.au
Looking for a business offering financial security plus weekends free? I found one!
My sales grew on average 53% p/a during the last 5 years - even during the global financial crisis.
Hi. I’m Tim from SafetyQuip Adelaide. Call me personally on 0409 830 238 and I’ll tell you about SafetyQuip from a franchisee’s perspective.
I get to enjoy weekends with the family, holidays & Christmas closures.
I’m ideally positioned to tap into the $2 billion+ workplace safety market. I’ve reached multi-million $ annual sales with heaps more potential.
SIX-TIER BUSINESS MODEL
I started with a modest investment and a single sales van. Now I’ve got a successful trade shop and a sales fleet.
MULTIPLE SALES CHANNELS I get sales through our web site, our mobile service, our trade shop and through phoned in and faxed in orders.
BROAD CUSTOMER BASE
I sell safety products to any and everyone. It’s hard to find a business that can’t benefit from using my products.
BUILD SOLID CAPITAL GAIN A generous 5+5+5 year franchise agreement gives me time to build a business of substantial value.
BUSINESS WITH STATURE
I’m proud to be in the safety business. Our products help people just like you and me return home safely each day.
Award-winning franchisee Adelaide
Business Franchise Australia and New Zealand 43
Franchisee in action : TACO B I L L
taco bill PARTNERS, FAMILY, FRIENDS If you ask any franchisor what makes their particular franchise systems successful – they will usually say ‘Our franchisees’.
Pradeep & Mike
Taco Bill franchisees come from a wide variety of backgrounds and establish their Taco Bill franchises according to what suits them best – whether it be a partnership, a family business or a sole entrepreneur. The key ingredient in this mix is that in the end, and what makes Taco Bill so successful, is the fact that regardless of the business set-up from the franchisee’s end – Taco Bill is committed to each and every franchisee and considers them all partners, family and friends.
44 Business Franchise Australia and New Zealand
LONG-TIME PARTNERS AND FRIENDS A franchise system is based on a partnership – between the franchisee and the franchisor. However, sometimes there are other partnerships involved. Take Pradeep and Mike, for example. Having developed a strong working relationship in a previous business, Mike and Pradeep decided to buy a Taco Bill franchise as a joint venture. It was a natural progression for the two men. Mike stated, “Pradeep worked for me in my first business, a service station, as my Assistant Manager. He came to be someone I had great trust and faith in, and so when the idea of a joint venture first arose, knowing that we already worked very well together, we were very comfortable with the idea of a partnership.” Prior to joining Taco Bill, Mike had experience in managerial roles. “I had a long background in management, having been Operations Manager for a multisite service station franchise for many years. Much earlier, I had worked in kitchens for a few years.”
So long as you never expect what the other person is incapable of delivering, you’ll never be disappointed,” remarked Mike. Like any successful partnership, Mike and Pradeep utilise their particular strengths. Pradeep looks after the kitchen operations and Mike takes care of the front-of-house. As Mike and Pradeep have each other to rely on, their families are not really involved in the business. “Pradeep and I handle almost all of the dayto-day business operation and affairs. Our wives, at this stage, concentrate on being mums - a job far more important than either of ours!” Pradeep, on the other hand, had other key skills which would benefit the partnership. “I had completed my Bachelors degree in Computer Science in India before coming to Australia in 2004 for higher studies. “I did my Masters in computers at Victoria University while working part-time at a service station. In 2006 I had a change of heart and decided to enter into hospitality, and undertook a diploma in hospitality management, which I completed in 2008. “I gained some experience working in a Japanese Restaurant. I then commenced my journey with Mike, as a business partner, by taking on our first Taco Bill franchise,” said Pradeep. Mike and Pradeep found their combined skill set enabled them to take on a Taco Bill franchise with great enthusiasm and confidence. Mike said, “I find that many people I speak to are of the view that partnerships are fraught with danger, and they can quote countless stories of such arrangements ending badly.
twice the resources. We have grown to two franchises in fairly quick time, and plan to expand further in the future,” said Mike. Every business has its challenges and every relationship has its bumps. Mike and Pradeep have worked hard to make sure any issues which arise can be resolved professionally and respectfully. “In terms of the challenges of working with a partner,” Mike said, “ I guess they are largely self-evident. “Clearly, trust is the foundation upon which the entire relationship is built. It is nonnegotiable, and it’s important. “Therefore, to have a thorough understanding of your prospective partner and their background, friendship alone would not be enough. “Some of the wisest words I have read regarding partnerships talked about expectations; always maintain a realistic expectation of what the other person’s capabilities are.
THE TACO BILL ADVANTAGE Mike and Pradeep knew they had an excellent partnership – but why did they choose to go with Taco Bill? The beauty of the franchise model was very appealing to both Mike and Pradeep, however it was the personal aspect which sold them both on Taco Bill. “Having a long background with a franchised operation, I understood the many benefits of franchising. The strength, security and value of a ‘big brand’ are worth a very great deal. “Much of the thinking, marketing, and tedious groundwork has been done for you. “The systems, tried and true, are all available for you. Your only responsibility is to implement and take advantage of the refinement that is the result of someone else’s decades of toil!” said Mike.
“Be that as it may, I’d be surprised if for every one poor example, there aren’t a hundred other very good ones. Ours is one of them.” Mike and Pradeep said their arrangement works very well for a number of reasons. “We complement each other well, in terms of our strengths, interests and the respective roles we wish to have in the business,” said Mike. “By effectively halving the responsibility, we are able to achieve more. Do less, but do it better, you might say! “With two of us working together, we have twice the drive, twice the determination and
Business Franchise Australia and New Zealand 45
Franchisee in action : TACO B I L L
“We currently operate two Taco Bill franchises. We plan to continue to grow, and would like to someday operate three or four Taco Bill restaurants. “However, being in a position to make comparisons, I can say that what makes Taco Bill different is the ‘personal’ aspect. No glossy brochure will ever tell you this, but the people behind Taco Bill are genuinely wonderful people, who really do care. “Pradeep and I have discussed this many times, and when we have occasion to visit the head office, we feel as if we are amongst friends. Without that, it’s still an excellent business model, but with it, Taco Bill becomes a way of life,” said Mike. “I am in the fortunate position of being able to compare Taco Bill to other franchises, and I couldn’t speak more favourably of Taco Bill or its people. “Despite its growing size, it remains an intimate operation, and the access franchisees have to the decision-makers, and the input we are able to have into virtually every aspect of the business, is amazing. “We have seen first-hand the support that is available to franchisees, not because it’s an obligation, but because they genuinely want us to do well. “Anyone considering a new franchise would be very well-advised to look closely at what Taco Bill has to offer. We will never leave!” concluded Mike.
ALL IN THE FAMILY Some franchisees choose a business partnership as the best way to run their franchise, others like to keep it in the family. Jianbo and Tet Xu are a husband and wife team who bought their first Taco Bill in 2006. Jianbo came to Melbourne from China in 1996. He came to join his wife and start a new life in Australia. He was eventually able to bring the rest of his family, including his parents and his brother. Once the family had settled, Jianbo and Tet decided it was time to start their own business. Tet’s younger brother already owned two Taco Bill franchises – so Jianbo knew how the business worked. Jianbo said the reason he chose Taco Bill was the simplicity of the business model and the huge amount of support given by the head office. When he opened the doors to his first Taco Bill, Jianbo said he was so unbelievably
nervous. At the time, his English was not very strong and he was terrified to talk to the customers, in case they could not understand him. It seems this turned out not to be an issue at all, however, as Jianbo and Tet now own multiple Taco Bill locations and Jianbo is a favourite with all his regular customers. With many locations to manage now, Tet basically runs all the administration and business aspects and Jianbo oversees the locations. Jianbo now has his brother and his cousin helping as well. Jianbo attributes his success to the continued support of the franchise. He said he is always learning and the head office at Taco Bill has helped him every step of the way. They have helped Jianbo with everything from food preparation to managing his team to opening multiple locations. Jianbo said everyone in the Taco Bill ‘family’ is happy – from head office to his own family to every one of his staff members. When asked if Jianbo preferred preparing Mexican food or Chinese food at home, he just laughed. Jianbo said he had no idea how to cook Chinese food. Before opening his Taco Bill restaurants he had never cooked before in his life. Seven years on, he is a master at Mexican food, but according to Tet, still can’t cook Chinese food!
WHY OWN A TACO BILL RESTAURANT? Taco Bill offers the opportunity for franchisees to immerse themselves in Mexican food and flavours in an environment that is fun, exciting and dynamic, with a company that has been in the Mexican food industry for more than 40 years.
46 Business Franchise Australia and New Zealand
Taco Bill ‘training champions’ provide intense training for a two month period, which involves comprehensive lessons in areas such as meal preparation, IT systems and customer service. The company also provides ongoing training and support, which maintains a high level of customer service that customers have become accustomed to. Operating a Taco Bill restaurant provides a greater work-life balance and flexibility with hours from 5pm to 10pm (dinner service). These are shorter operating hours in comparison to most franchises and many Taco Bill franchisees enjoy involving their families in the business, which matches the family environment of the restaurant. Taco Bill offers marketing and support to its franchisees with a range of promotional activities and campaigns that link into holidays, special events and national holidays in Mexico, including Cinco de Mayo (Mexican holiday that celebrates Mexico’s victory over the French army in 1862). There is also a great opportunity for franchisees to really develop the business by promoting corporate functions, birthday parties and takeaway food offers in the local area. So whether you want to go it alone, bring in a partner or include the whole family, Taco Bill will help you achieve your goal of owning your business. For more details on joining the Taco Bill franchise family contact Tom Kartel and Stan Teschke at: Phone: 03 9690 2077 Email: email@example.com Web: www.tacobill.com.au
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mmm$EhZ[hCWj[$Yec$Wk Business Franchise Australia and New Zealand 47
PROFILE : R EL I A NCE ROO F R ESTO R AT I O N
UNDER ONE ROOF
eliance Roof Restoration is proud to offer its franchisees an affordable initial investment, full and extensive training, access to all marketing systems and, best of all, as long as you follow the system an income guarantee – if you don’t make $75,000 net in the first year, they will pay the difference! All this ‘under one roof’. Reliance Roof Restoration is based in Brisbane and has always provided top quality workmanship and customer service. Celebrating its 10th birthday this year, Reliance has now serviced over 5,000 homes. This continued success has prompted continued growth plans for the company, which plans to bring on one franchisee per month for the next three years. Reliance is confident that it will find suitable franchisees who can see the obvious benefits of joining the company.
Roof Cleaning and Painting franchises available Reliance offers an extensive range of services to its clients. In particular they have seen an increase in demand for roof cleaning and painting. This has prompted them to now offer franchise opportunities specifically providing roof cleaning and painting.
What GFC? Reliance Roof Restoration has managed a 20 per cent growth rate for the past three years, in the middle of the global financial crisis. How do they do this? Justin Eldershaw, Founder and Managing Director of Reliance Roof Restoration, said this is because the industry is basically recession proof. Having a roof repaired, restored or replaced is usually a necessity, not a luxury. Also, with the rate in which houses are being built, there is more demand for their services than they can possible meet. New franchisees do not need to have previous experience, just a desire to work hard and provide the best product and service possible to maintain the company’s existing standard of excellence. In fact, many of the current franchisees have had no prior experience in the roofing industry and are experiencing great success – proof that the training program works. Reliance Roof Restoration gives a two week intensive training period in all aspects of the roof cleaning and painting process, with ongoing training around sales, marketing and business management. In addition, they have a central call system
48 Business Franchise Australia and New Zealand
and handle all the initial inquiries for their franchisees. Reliance also utilises a unique direct response marketing plan to generate new leads.
Room for growth For franchisees who want to grow with the company, there are options to add employees or expand into new territories as well. With the ability to make back the initial investment within 20 to 30 weeks, and their income guarantee, now is the time to join Reliance Roof Restoration. For a free information pack, contact Justin at: Phone: 07 3286 3900 Email: firstname.lastname@example.org Web: www.relianceroof.com
“Who Else Wants To Double Or Triple Their Current Income…Without Working Longer Hours… Working Outdoors…In A Simple Business That Almost Anyone Can Run..?” “Plus…full training is provided so almost anyone can do this.” THIS OPPORTUNITY IS PERFECT FOR YOU IF: s 9OU LIKE TO WORK OUTDOORS s 9OU WANT TO MAKE PER WEEK s 9OU ARE LOOKING FOR A CHANGE s 9OU WANT TO GAIN SOME GREAT NEW SKILLS s 9OUD LOVE TO BE YOUR OWN BOSS s 9OUD LOVE TO HAVE QUALITY OF LIFE 'O lSHING PLAY GOLF SPEND TIME WITH YOUR FAMILYx WHATEVERxWHENEVER YOU FEEL LIKE IT &OR BENElTS LIKE THAT YOUD EXPECT TO PAY THROUGH THE NOSE RIGHT 4HE INVESTMENT FOR A 2ELIANCE FRANCHISE IS SURPRISINGLY AFFORDABLE GST GETS YOU INTO A 2ELIANCE 2OOF CLEANING AND PAINTING FRANCHISE 4HAT MEANS YOU MAKE YOUR MONEY BACK IN TO WEEKS 9OU WONT lND MANY IF ANY BUSINESS OPPORTUNITIES WITH A RETURN LIKE THAT
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