Page 1

T he

ma g a z ine

VOL 07 ISSUE 04 may / june 2013




Optimise your potential

Consumer rights:

How do they impact you?

Plan for a Brighter Future LATEST NEWS


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


Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package* • Low start up costs • Perpetual Franchise Agreement • Recognised brand • Award winning system for over 30 years

• Exclusive territories • No weekend work • Ongoing business support & training • Easy to operate - no experience required • Enjoy the freedom of working for yourself

To find out more contact us: Australia:

p. 1300 FASTWAY w.

New Zealand:

p. 0800 4 FASTWAY w.

3 19 8 3 - 2 0 1

*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769 | Fastway Couriers (NZ) Ltd T/A Fastway Couriers, New Zealand. Fastway Couriers is a franchised courier network and its businesses are independently owned.


Australian Credit Licence 387405.

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

“In the world of franchising, there are many franchise opportunities operating in the B2B sphere, including some of the biggest names in the business.” Stacey Evans, Editor, CGB Publishing.

From the

Editor In this edition of Business Franchise magazine we take a close look at franchises that offer services to other businesses. Whether its accountancy, office supplies, IT services, courier services or cleaning, there are many successful offerings out there for the potential franchisee. With over 1.6 million small businesses in Australia, the potential for anyone looking at buying a business to business (B2B) franchise is huge. In the world of franchising, there are many franchise opportunities operating in the B2B sphere, including some of the biggest names in the business. This edition, we bring you advice from some of the franchising industry’s most respected experts about B2B franchises and more. Rod Young, Founder of DC Strategy, views business to business franchises as a new growth opportunity and explains their potential in our feature story, and Jason Gehrke, Director of the Franchise Advisory Centre, delivers his advice on the things you should know before buying a business to business franchise.

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 7 ISSUE 4, may / june 2013 publisher: Colin Bradbury.

Greg Nathan, Founder of the Franchise Relationships Institute, has just returned from the USA bringing with him some insights into the future trends in franchising. From over the water, our New Zealand franchising experts have provided their advice on two very important topics in franchising. Callum Floyd, Director Franchize Consultants (NZ) Ltd has covered the importance of business planning, and Mark Sherry of Harman’s Lawyers has an in depth look at the disclosure document. There’s also latest news, marketing advice, financial advice and motivational business coaching in an edition that’s jam packed with advice to help you succeed in franchising. Take a look at our in depth profiles of some of the franchise opportunities currently available on the market – who knows one of them might be the right one for you! Come and visit us at the Sydney Franchising Expo, June 14-16. We look forward to meeting you there to hear about your journey in franchising, and your suggestions for what you’d like to see more of in our magazine. Enjoy the read. Stacey Evans Editor


EDITOR: Stacey Evans. SALES DIRECTOR: Vikki Bradbury. SALES & marketing manager: Kathleen Lennox. SALES & marketing executive: Jodie Turner. SALES & marketing executive: Sarah Tarquinio. PRODUCTION: Joanne Tuffy. ACCOUNTS: DESIGN: Jejak Graphics (03) 9772 2571 COVER IMAGE: Social Media Business Boosters TO SUBSCRIBE: or CGB PUBLISHING PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email:

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 may / june 2013 On the Cover 22 Succession planning

How do they impact on your business

84 Business insights to help

optimise your potential

Tania Allen, Vision Alliance

Kristie Piniuta, Kubed Legal



46 Consumer Rights –

Raynia Theodore, Mason Sier Turnbull


In Every Issue

Profiled Franchises

06 What’s New!

12 Paraserve

Announcements from the industry

10 Cover story - Hitting the Mark: Online Marketing unraveled

Social Media Business Boosters

20 Flash by Morffew 26 SumoSalad

14 Sharing a wealth of knowledge at IFA

34 Froots

16 FANZ Conference 2013

48 Noodle Box

Michael Paul, FCA Chairman

Graham Billings, FANZ Executive Director

18 Online Training Course for potential franchisees


65 Feature - B2B – The new growth opportunity

Rod Young, DC Strategy

104 Behind the Headlines

Jason Gehrke, Franchise Advisory Centre

52 TeleChoice 58 Franchise Selection 74 Mail Boxes Etc (MBE) 86 The Leather Doctor 90 Snap-on Tools

105 Professional Services Listings

95 V.I.P. Australia

106 Franchise Listings

98 Dental Fix RX

108 A-Z Franchise Directory

Ian Watt, Westpac Retail & Business Banking

30 5 things to look for in a quality franchise system

buying a B2B franchise

Jason Gehrke, Franchise Advisory Centre

96 Tax planning strategies

Tim Kilham, Lanyon Partners

100 Lessons for Australian franchising

FC Business Solutions................................... 19

Lorelle Frazer, Griffith University

92 What you should know before

Fastway Couriers. ............................................ IFC

Michelle Gamble, Marketing Angels

88 Asking the right questions

& Restaurant........................................................... 43

Dr Callum Floyd, Franchise Consultants (NZ)

80 Business to Business marketing

Brotzeit® German Bier Bar

Mark Sherry, Harmans Lawyers New Zealand

60 Franchisee planning for a brighter future

BrightEyes Franchising................................. 56

Katherine Grace, Graceful Solutions Marketing

54 Examining the Disclosure Document

Brazilian Beauty....................................................57

Corina Vucic, FC Business Solutions

36 Database Marketing

Battery World............................................................. 2

Fernwood Fitness............................................... 51



28 The importance of a business plan

Franchising Expo............................................. 102

Henny Penny Hatching................................. 45

from the USA

Greg Nathan, Franchise Relationships Institute

Spotlight/Snapshot on Service 44 Harman’s Lawyers 50 Liston Landers 62 National Franchise Insurance Brokers 76 RedCat

Franchisee in Action 40 Brotzeit® German Bier Bar & Restaurant

Franchisor in Depth 70 Fastway Couriers

Link Business Broking................................... 33 Meta Management............................................73



Expert Advice

also in this issue:

OrderMate..................................................................31 Plus Fitness 24/7.................................................25

RedCat............................................................................. 1 Rent The Roo. ....................................................... 83 Snooze.......................................................................IBC Total Tools................................................................. 39 Tropical Plant Rentals. ............................. OBC

what’snew! GHA launches new Home Rating Tool Green Homes Australia (GHA) is a Green Trade Association changing the face of construction by delivering energy-efficient homes to market, and delivering new business to franchised Green Builders and Tradies across the country. Green Homes Australia offers the only Green Building franchise in Australia, at a time when home-owners are more aware of energy costs than ever before. David Berryman, Operations Manager at Green Homes Australia said, “As a franchised Green Builder, franchisees gain access to the secrets of Building Green as well as ready-to-build Green plans, business systems, and other essential tools to ensure that the business is in-demand and up-todate, and in-front of competitors. It is a totally unique builder franchise model that delivers the skills to navigate through the next level of green building.”

BEDSHED FRANCHISEES GO GLOBAL Bedshed delegates visited trade shows and suppliers on two recent international business trips. Bedshed Chief Operating Officer, Gavin Culmsee, said a contingent of 15 Bedshed franchisees from around the nation visited Singapore, Malaysia and China as part of a two phase international business trip. “Our Merchandise Advisory Council comprises franchisees and senior staff who travel overseas regularly to ensure we remain at the forefront of product design and innovation,” said Mr Culmsee. “We value the input from our franchisee partners because they know their customers’ needs better than anyone. “They talk to suppliers about what customers are asking for and have substantial input into the products that will end up on their shop

floor, translating to greater sales and business revenue,” he said. Mr Culmsee said international trade shows were an important component of the delegation’s international itinerary. “We found the Singapore trade show to be particularly modern and a major step forward in terms of its influence from Europe,” he said. Mr Culmsee said Bedshed would soon introduce new product innovations into stores, including technologically advanced bedroom furniture with concealed television brackets and Bluetooth technology. “The bedroom is almost the last room in the house to be infiltrated by technology and our franchisees are thrilled to be bringing the latest from the international bedroom furniture scene to their Australian consumers,” he said.

6 Business Franchise Australia and New Zealand

Green Homes Australia recently released its latest version of its Green Home Rating Tool to a positive response from Green Builders and key partners. The tool can be used for the design stages, for newly built homes and for older preexisting homes to generate a percentage score with an equivalency key for Australia’s relevant star rating systems. David said of the tool’s release “We’re really happy with the latest version of our Rating Tool. The 13 questions are structured in a way to stimulate conversation between the Green Builder and the customer, and really help to highlight the level of training our Green Builders have undergone. There are no “yes” or “no” answers and responses need to be worked through by the Green Builder with the owner to properly assess how the home will perform”. Green Homes Australia offers individual Green Builder franchises in all regions across Australia, and Master Franchise opportunities for each state.

Granite Transformations announces Ita Buttrose as Brand Ambassador Leading kitchen makeover specialists Granite Transformations has appointed media icon, author and 2013 Australian of the Year, Ita Buttrose as its Brand Ambassador.

combining the finest quality quartz, granite

Ita Buttrose will be the face of Granite Transformations for 12 months. Her role will include appearing in advertising and marketing campaigns, contributing to public relations and media activity, and attending events. Ita Buttrose will also announce the company’s ‘one millionth benchtop’, a milestone that is anticipated to be celebrated later this year.

their unique production process, Granite

and recycled glass with a state-of-the-art

polymer base, producing diamond-polished surfaces that are non-porous, heat, scratch,

Granite Transformations is the only national network of kitchen makeover specialists in Australia with over 40 branches across the country. They are the exclusive supplier of Trend Superior Surfaces®, an engineered stone range

stain and impact resistant. By virtue of

Transformations’ slabs are just 6.5mm thick, which means they can be installed directly over existing benchtops and splashback surfaces, saving time and money.

“We are thrilled to announce Ita Buttrose as the Brand Ambassador for Granite

Transformations. Ita’s attention to detail

and passion for aesthetics is a great fit for the Granite Transformations brand and

we look forward to collaborating with her over the coming 12 months,” says Jessie

Harvey, Marketing, PR and Communications Manager at Granite Transformations.

Zarraffa’s Founder Celebrates 20 Years in Coffee What started as a love affair in the coffee capital of the world over two decades ago, has evolved into one of Australia’s most successful coffee franchise chains for Zarraffa’s Coffee founder Kenton Campbell. Recently celebrating the 20 year milestone in one of the world’s most competitive industries, the American ex-pat is thrilled to have a continued love for, and business growth in, people’s daily grind. “It has been 20 years since I started in the coffee industry in Seattle USA, and what an amazing journey it has been,” said Kenton. The move to Australia in 1995 and starting up Queensland-based Zarraffa’s Coffee from a $9,000 personal loan is a true Aussie-battler tale. “I couldn’t be more proud of Zarraffa’s Coffee as a brand and of its evolution to date. We started out operating a wholesale coffee

business on the Gold Coast 17 years ago that has evolved today into a 60-strong, franchised coffee outlet business. “It continues to be our daily pursuit at Zarraffa’s to keep our product and service number one, to ensure maximum taste and convenience for our customers that rely on their daily coffee.” Kenton said his number one emotion when reflecting on his journey to date is gratitude. “Ultimately I need to thank our franchisees and staff who work diligently on and in this business. Many people say you can’t run a successful business without good staff and good product and this is absolutely true. “It is also thanks to the loyalty of our customers; the ones who keep the love and passion for Zarraffa’s going, that I am very appreciative of. Without them, we would still be just one store in one shopping centre.”

Business Franchise Australia and New Zealand 7

what’snew! Shannan Ponton Appointed as Anytime Fitness Brand Advocate Anytime Fitness recently announced the appointment of celebrity personal trainer Shannan Ponton as one of the company’s Brand Advocates. With over 20 years’ experience in the industry, Shannan has acquired extensive experience and knowledge in the areas of exercise, fitness, nutrition, health, people management and the media. During his career he has developed and delivered innovative personal training, fitness, motivational leadership and general life solutions to many individuals, companies and teams, at a state, national and international level. This year Shannan returns to Series 8 of The Biggest Loser as fitness trainer and mentor. The Biggest Loser continues to be amongst the highest rating shows on the Ten Network. “Anytime Fitness is the perfect partner for me to continue to promote the importance of health and fitness as part of your daily routine. With 24 hour access there is NO excuse, to miss your workout. Train...Don’t complain!” says Shannan Ponton. The master franchisors for Australia, brother-and-sister team Justin McDonell and Jacinta McDonell-Jimenez commented on the partnership, “Shannan is an important choice for us as a Brand Advocate. His values and beliefs mirror ours, he is genuine, downto-earth and stands for respect plus integrity, physical and mental discipline, as well as strength in body and mind. We are pleased to be partnering with Shannan and are excited about how the Anytime Fitness brand will continue to expand in 2013”.

Retail Food Group Cements QSR Pizza Position Competition was recently set aside in the name of gourmet pizza as over 150 franchisees representing more than 200 Pizza Capers and Crust Gourmet Pizza outlets across Australia converged on the Gold Coast for the Retail Food Group (“RFG”) inaugural Quick Service Restaurant (“QSR”) Pizza Conference.

Australia’s largest multi-food franchise operator, RFG, acquired Pizza Capers in April 2012 and Crust Gourmet Pizza in October 2012. The conference was held over two days and was designed to bring the two brands together after their transition into the publicly listed Company, as well as to define the strategy moving forward under the same ownership. QSR Divisional Director Michael Logos said that it was a great opportunity to bring key stakeholders together in an open forum to discuss the strategic future for the gourmet pizza brands. “The conference was a great opportunity to bring Pizza Capers and Crust franchisees, marketing teams and management teams together and outline the strategy for the QSR Division moving forward,” Mr Logos said. “It allowed us to answer questions and address concerns relating to the coexistence of both brands.” While often viewed as competitors in the marketplace, Mr Logos said the conference allowed RFG to investigate the synergies between Pizza Capers and Crust.

8 Business Franchise Australia and New Zealand

Fastway Couriers provide online businesses with a real alternative sending parcels by promoting simplicity and transparency on all levels of our business, and many businesses would be surprised by how much they can save by using a service like Fastway,” says Thame. Unlike competitors, Fastway Couriers provides many elements of its service at no extra cost. “We believe that obtaining a signature is a basic service which customers shouldn’t have to pay more for. With Fastway Couriers, we don’t charge for obtaining a signature and we also offer free redelivery if the customer isn’t home.”

Richard Thame, CEO at Fastway Couriers, says that the company delivers a less expensive and more personalised service to many leading online retailers shipping their parcels across Australia.

offering a low cost, reliable, national courier distribution service across all key regional and metropolitan locations in Australia. Our service is geared towards all businesses requiring an easy, economical and no-fuss courier service. We allow them to invest less time and money in courier services so they can focus on building their core business and customer base,” says Thame.

“At Fastway Couriers, we pride ourselves on

“Our goal is to take the headache out of

Fastway Couriers has reaffirmed its commitment to providing an affordable and efficient service to the growing Australian online retail industry.

Thame says that a freight provider should act as an extension of a business to ensure the highest levels of customer service. “Fastway Couriers is focused on utilising the latest technology to give businesses new tools to satisfy their customers and make their online business a success. By acting as a part of our clients’ businesses through solutions like our integrated shopping cart, we are uniquely situated to help them achieve bottom line savings, enhance customer experience and obtain a point of difference in an ever-tightening market,” says Thame.

JIM’S ANTENNAS RAISE AWARENESS & MONEY FOR A GREAT CAUSE When Jim’s Antennas Divisional Franchisor Andrew Parke and his wife Sarah lost their daughter Emma in 2004 from a rare genetic disease called Spinal Muscular Atrophy, they vowed to do their best to repay Melbourne’s Royal Children’s Hospital for their tireless efforts in difficult times. The Parke’s established The Baby Emma Foundation later that year to honour her and have since raised more than $200,000. The money raised through The Baby Emma Foundation is donated to the Royal Children’s Hospital each year to support children and families affected by a terminal illness or the loss of a child. In the past two years, The Baby Emma Foundation has successfully held various events and raised much needed funds to fund special projects and purchase

items for the Royal Children’s Hospital. The most recent fundraiser in Hamilton Island was driven by Andrew’s business, Jim’s Antennas, at its National Conference. Together with the help and support of franchisors, franchisees, partners and suppliers including Hills, Matchmaster, Bitek and Radio Parts Group, Jim’s Antennas managed to raise significant funds to help with the purchase of a state of the art ultrasound machine. Andrew Parke is extremely proud of the work of the Foundation, as well as the efforts of his franchisors, franchisees and suppliers. “We believe that we have made a sincere and valuable effort in support of the parents and siblings affected by the illness or loss of a child,” Andrew said.

Business Franchise Australia and New Zealand 9


HITTING THE MARK: ONLINE MARKETING UNRAVELLED The hyper competitive marketplace for ideas, commentary and stories has made it increasingly challenging for brands to get a marketing foothold. Adding to this, the next generation has new ideas about how consumers and brands interact. Among other things, they expect brands to be available for quick, seamless communication across platforms, and they expect transparency. The current output in the new marketing space ranges from the phenomenal or hugely viral to a write-off of valuable marketing spend and resources. How does a potential franchisee spot the difference? What marketing and social media customer touchpoints should a franchisee should look for in a franchisor? Where do you find help?

Michael Roach

To get the right answers it is necessary to spend a few hours testing out the response times, support quality and brand authenticity by putting yourself in the shoes of an engaged customer and getting to know the brand.

10 Business Franchise Australia and New Zealand

TELLING STORIES: In the ever critical online marketing space it is content that changes a user experience and the users perception of an experience. A frustrating experience is often the least engaging one. When did you last have a frustrating experience? Attempting to get what you wanted from a website? Waiting in a queue to be served? Dealing with a call centre? If brands cannot get this right then they are losing focus of what customers deem most important: a better experience. Storytelling is at the centre of new marketing for brands. Where brands can apply a storytelling component to their messaging they will achieve easy marketing wins - evidenced by shifts in marketing from companies like Coca-Cola with their ‘Content 2020’ initiative. This marketing shift is expanded upon by Joe Pulizzi, founder of the Content Marketing Institute in History of Content Marketing – How Brands Have Become Storytellers ( “Whether your goals are rooted in search engine optimization (getting found), lead generation (conversion) or leveraging social media tools, none of them will be effective without compelling storytelling”

Pulizzi explains. “As content marketing and storytelling become a larger apart of the marketing organisation in general, we are seeing an evolution of the marketing department transform itself into more of a publishing department. A content strategy always comes before a social media strategy.” What to look for: Compelling content leads to better engagement, better discovery, increased attention and deliberate actions Your future customers will be driven by these factors across multiple touchpoints with an increased online focus. Brands should have a clear plan to engage customers consistently using all of these touchpoints. You can see their approach with one click on to their Twitter and Facebook presence. Also check other engagement platforms. If a large competitor is on Instagram then they should likely be there with a unique and improved angle. Ask the brand if they have a dedicated team that looks at research and innovation across technology, design and brand experience. Ask for help from a reputable Social Media consultant - one such directory is located here:

DATING YOUR CUSTOMERS What brands are getting the edge in the new marketing space? It is those brands that are fanatical about creating meaningful relationships with their customers. Kevin Hale, CEO of online forms company Wufoo explained his approach to South By Southwest delegates in Austin, Texas (http:// by stating “new users are in a dating relationship with the Wufoo brand; existing users are in a marriage with the Wufoo brand”. An established relationship with customers can be built on a strong foundation of “making everyone do customer support”. Hale says brands can give the best support by directly exposing all employees to customer support “for a minimum of two hours in a six week period”. What to look for: First impressions count. What kind of initial email response do you receive? If there is an online members/loyalty component then what is the account creation process like? How great is the first support experience? In fact everything from the homepage of the website to the social media presence counts towards customer perception. There should be existing fan interaction and an authentic

human voice speaking as the company on Facebook, Twitter, LinkedIn and other touchpoints.

MOBILE Mobile represents both a business opportunity and an opportunity to help consumers do everything from building up businesses, improving their health, becoming more informed citizens and connecting with social networks. Mobile is disrupting industries from retail to health to autos to finance to education and beyond. Paul Berney, CMO and managing director, EMEA, Mobile Marketing Association predicts a change in mentality of the consumer in step with the proliferation of smartphones ( “[Gen Z] are growing up with an understanding that you can click and find, click and know, click and buy”. Consumer brands must be innovating for the connected consumer. “Those people have a much greater expectation that they will be able to connect with each other and with any brand, via every channel possible, but particularly mobile.” Consider that tablets, on the market for just three years, are expected to outsell PCs this year and laptops next year. Smartphones are starting to dominate, with close to a billion forecast to sell during 2013. How will brands react to new innovations like Ericsson’s prototype Facebook-like interface which allows users to “friend” their connected objects, such as lamps, fridges and ovens? Marketers will need to consider the tone and manner their products will adopt. Retail, entertainment and fast-food franchises are best poised to take advantage of this over the next few years. What to look for: A familiar theme is that preparation and knowledge is crucially important for the increasing synergy of communications, devices and the web. Brands should be excited about the prospects in mobile and wearable tech and making efforts to have a compelling mobile presence in line with current best practice. Avoid brands that are ignoring mobile or have it far down the R&D and marketing priority list. Finding new and novel ways to make oncedumb objects intelligent will enable some brands to attract new cohorts. The challenge will be to design experiences that enhance, rather than clutter, the value delivered to the user. Brands will need to be creative with

connectivity but judicious about where and how to implant connectivity. If there is no scope to support resources for investigating this the brand will need to look externally for help. Often your co-franchisees will need to be supported country wide by a reputable Social Media group. Review a national directory of available help ( smbb-consult)

BRAND REPUTATION Monitoring and managing brand reputation in the age of social media takes resources, focus and dedication. Who owns your brand on social media? EVERYONE! Democratisation of social means that anyone has the opportunity to share opinions, information and perspective about your brand. Maintaining and improving your online brand reputation management has become a burgeoning business in and of itself. There are entire companies – as well as a booming industry of skilled digital consultants that act as online watchdogs looking out for your business and ensuring that you stay clean from any unwanted and unwarranted attacks. What to look out for: What happens in a crisis for the brand? The responsive brands are already armed with an active online community that are already nurtured. The prepared will respond appropriately to crisis, but resist the urge to light their own fuse. Sticking to strategy and relying on social communities to self correct over time is a measured approach. More than ever, brands must understand which mode their target consumer currently prefers on which occasions and serve up messaging accordingly. Your line of questioning as a potential franchisee will catch a lot of brands off-guard and the results will be ‘up in lights’. The brands that have answers for you are the ones to stick with as they continue to pull in new customers and get loyalty and retention to strengthen your bottom line. Michael J Roach is a technologist working internationally with Social Media Business Boosters. Social Media Business Boosters franchisees run the length and breadth of Australia and internationally. Local representation is available for businesses Australia-wide. Phone: 1300 298 898 Web:

Business Franchise Australia and New Zealand 11

PROFILE : Pa r aserv e

experience gives franchisees confidence

Nossal High School

Five years cleaning schools for Paraserve’s forerunner Aero Property Services gave Korean couple Peter Park and Joyce Cho all the confidence they needed to become Paraserve franchisees when the opportunity came along. Peter and Joyce have just been awarded a $100,000 contract from Paraserve to clean Nossal High School in Berwick. Do they plan to grow the business? “Of course,” says Joyce, as if there could be no other response. Their goal is to grow the business to more than 10 client sites by providing quality service and customer satisfaction. Peter and Joyce arrived in Australia five years ago having spent four years in New Zealand in Invercargill and Hamilton. They emigrated from Korea so their children Jason and Rena could study English.

Today son Jason (25) is working for an information technology company in Melbourne after graduating from Monash University. Daughter Rena, (23) is studying early childhood education at Monash University. The couple’s dedication to their children’s education has led Peter and Joyce into a range of different jobs. In Korea Peter was a sales manager for car companies Kia and Ssangyong and Joyce was an art teacher although she also had franchise experience as a baby clothes franchisee. In New Zealand they housed and cared for many Korean students studying in Invercargill and for their first eight months in Australia Joyce worked for Safeway supermarket. Now they are embarking on a new challenge as the owners of a commercial cleaning franchise business.

Time for golf, church and a trip to Europe Having worked for Paraserve (formerly Aero) for five years, Peter and Joyce know the company’s policy and operating procedures very well. Their business will be general

cleaning, vinyl polishing and window cleaning at school and commercial sites. “We trust and believe in Paraserve regional manager Ray Liew as well as the other people on the management team,” says Joyce. “Also my work experience in operating a franchise in Korea convinced me that we could get good results from a Paraserve franchise.” Committed Christians, Peter and Joyce will balance their busy work lives with golf on Saturday and church on Sunday. Peter is a keen golfer, being a member of the Churchill Park Golf Club as well as playing rounds at the Frankston and Mornington courses. Their big travel aim is a trip to Europe – something they have never done before. The beauty of cleaning schools for a living is that there are school holidays when cleaning is not needed and Paraserve franchisees Peter and Joyce will be able to get away and realise their European tour dream. Apply now to become a Paraserve commercial cleaning business franchisee. Call Bill Wu or Ray Liew on: Phone: 1800 041 876 Web:

12 Business Franchise Australia and New Zealand AU

AU franchise mag V3a 24March 3778.indd 1

26/3/13 9:54:05 AM

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

sharing a wealth of knowledge at IFA During the start to a predictably busy 2013, I was fortunate enough to attend the 53rd Annual International Franchise Convention in Las Vegas, Nevada. As a standalone event, the three day convention held in late February each year is an invaluable learning experience for anyone in franchising. As part of this year’s FCA delegation, I was privileged to also attend the half day briefing specifically for Australians, as well as the FCA Franchisor US Study Tour - the first of its kind - immediately following the convention. I came away from the trip inspired, motivated and incredibly proud to be part of the global franchising community, where so many business relationships are formed and much valuable knowledge is shared. The Australian delegation began their time

in Las Vegas with a half day briefing tailored specifically to franchise professionals considering entry into the US market. Put together by FCA, the seminar focused on key strategic concerns for those looking to launch their brand in the United States, including finance, taxation, legal structure, recruitment, and whether to enter the market directly or through a master franchisee. One of the more interesting points made to the group was the need to consider which states are more ‘franchise friendly’ where regulation and market entry are concerned. This was particularly noteworthy given the movement in recent years by some State Governments in Australia to annex the Franchising Code into state law. A federally regulated sector and the ability to operate nation-wide under one framework is certainly a major advantage we enjoy in Australian franchising, and one of the reasons we can claim world’s best practice. The first thing you notice about the convention itself is the sheer size and scale. The enormity of the three-day convention was driven home at the keynote address by former Secretary of State, Condoleezza Rice. With 3,500 delegates seated for lunch,

14 Business Franchise Australia and New Zealand

Ms Rice spoke about her experiences in the White House and wider political career with such candour and insight that she received a standing ovation from the entire delegation. I would challenge anyone present at that lunch to say they weren’t motivated to do more in their own professional life. Following the IFA Convention, I, and a small group of other Australian franchisors participated in the first FCA Franchisor Study Tour. We travelled from Las Vegas to Texas, where we were hosted at six US-based franchise head offices in Dallas, Fort Worth and Waco. What was incredible about this leg of the trip was the genuine hospitality and generosity shown by the leaders of these franchise systems in making the study tour a resounding success. Dina Dwyer-Owens chairperson and CEO of the Dwyer Group was a great example. Dina oversees a company operating seven residential and commercial franchise service brands, made up of over 1,500 franchisees in 10 countries turning over US$800 million in annual system wide revenues. She openly shared her experience in franchisee recruitment growth, support systems, private equity ownership and the benefits of their

“The IFA is an invaluable learning experience for anyone in franchising.” Michael Paul, Chairman, Franchise Council of Australia.

unique Code of Values. Direct access to this lifetime of experience and know-how was invaluable to the members of the FCA study tour. The last leg of the study tour was to Silicon Valley in Northern California, home to the world’s most hi-tech innovation companies. Here we visited the head offices of eBay and Paypal and were given an impressive insight into e-commerce of the future. It is in this spirit of knowledge exchange, technological change, and moving into the next phase of the economy that we look forward to this year’s National Franchise Convention, NFC13 – Future Landscapes. We are privileged to count executive-level leaders from the International Franchise Association and technology pioneers from PayPal among our keynote speakers this year. There are many more exciting announcements to come. We’ll see you in October.

Condoleezza Rice

Business Franchise Australia and New Zealand 15

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

fanz conference returns to auckland

16 Business Franchise Australia and New Zealand

This year’s FANZ conference returns to Auckland after an absence of five years and will be held at the Waipuna Hotel and Conference Centre, Mount Wellington, on Friday 5th and Saturday 6th July. For FANZ Members, the Annual General Meeting will be held on Sunday morning 7th July. The New Zealand Franchising Conference is fast approaching and this year’s conference is all about acquiring knowledge to boost your franchise business. The event hit great heights last year in the Bay of Islands, with an outstanding array of key speakers – the benchmark for this year is set even higher. A key change in this year’s format will be the inclusion of a greater selection of workshop ‘break outs’. These workshops will take place in both morning and afternoon sessions and will not only introduce several additional speakers and key topics to the event, but also lend themselves to providing more time for idea sharing amongst participants – a key attraction for a Conferences of this nature. Several of the workshops will be particularly relevant for franchisor support staff and one workshop on both afternoons is specifically designed for potential franchisees to come and hear from experts and raise questions about the practical considerations they need to make. The choice of Auckland this year as the regional host also allows greater access to this event for a wider audience within the franchise sector. Long-time supporter of the franchising industry – Waipuna Hotel and Conference Centre - is already busy ensuring

Waipuna Hotel and Conference Centre, Mount Wellington

that the venue, quality of hosting and event are made as memorable as possible. Extraspecial room rates are available to registered conference attendees. While the final schedule of speakers is still not fully finalised – some of the ‘line up’ includes: • Mike Goddard – owner of Belvoir Lettings (UK) and Past Chairman of the European Franchise Federation

Workshops and Panel discussions will cover topics such as: • How to select the best franchisees

• Derek Lilly – owner of Dream Doors (NZ) Ltd, who brought his franchise over from the UK

• Ten habits of effective Field Consultants

• Sara Pantaleo – owner of La Porchetta both in New Zealand and Australia

• The Cloud and Social Marketing – is it all fog??

• David McCulloch – one of our very own Life Members and founder of the Arano Juice franchise • Dr Michael Schaper - Deputy Chair of the ACCC with special focus on franchises and the SME sector • Karli Furmage - CEO of the Franchise Relationships Institute • John Shackleton – international business performance speaker

• How to get the best out of site locations • Making the most of your marketing budget

• Potential Franchisees – what you need to know and ask The social aspects of a great Conference are also receiving the focus they deserve – ensuring that the event has all the threads of enjoyment during the evening as well as during each day. For further information and registration see the FANZ web site at: Web:

Business Franchise Australia and New Zealand 17

fr anch ise associ at i on of n e w ze a l an d

FANZ to launch

free on-line training course

for potential franchisees

In its role as the vanguard of franchise standards, the Franchise Association of New Zealand (FANZ) is intending to add value to its services and membership by active involvement in the development of a New Zealand pre-entry franchising course. The course will be run in cooperation with the Professional and Continuing Education Centre (PaCE) at Massey University and Dr Callum Floyd of Franchize Consultants (NZ) Ltd. Franchize Consultants are the principal authors and Massey University will act as the independent course reviewer, and course provider. Although there are almost 24,000 independently owned New Zealand businesses operating in a franchised format,

currently no NZ- based pre-entry education programme exists for people considering buying a franchise. The availability of relevant information is part of the total solution for greater informed decision making by prospective franchisees. Major franchising inquiries in Australia note that improved pre-entry education is likely to have significant positive impact on the franchise sector. One key study found that 71.3 per cent of respondents felt completion of pre-entry education should be a mandatory requirement before entering into a franchise agreement. In reviewing the results of the similar Australian pre-entry course run by Griffith University of Queensland, Prof. Lorelle Fraser said that franchisees enter their franchise operation with much more realistic expectations of what their experience will be like in terms of performance aspects such as operational, relational and financial. She went on to say that it appeared that the information provided in their program enabled prospective franchisees to glean a better understanding of what to expect and, thus, make more informed decisions. Even

if an individual’s pre-conceived notions of franchising are slightly dampened by undertaking the program, they were better equipped to effectively operate within a franchising arrangement knowing the possible challenges they may face and having a better understanding of the risk associated with any new business venture. Ultimately, having this awareness eventuates in higher levels of satisfaction because the franchisee’s experience it is not too far removed from their pre-entry expectations. The FANZ course will comprise of five modules covering franchising basics, financing, systems and support, operational issues and legal considerations including due diligence. The content will encompass a combination of both video and accompanying notes. At the end of each module, a set of questions will be posed and, once answered successfully, a Certificate of Participation will be generated by Massey University as proof of module completion. The course will be available through the FANZ website www.franchiseassociation. around the middle of this year.

18 Business Franchise Australia and New Zealand


Meet the team



Business Franchise Australia and New Zealand 19 FC_A4Adver[2012].indd 1

22/09/12 4:39 PM

PROFILE : Fl ash by Mo r ffe w

A fresh approach One of Australia’s most loved photographers has his sights set on bringing his unique style of photography to the franchising world. Mark Morffew, a successful photographer for over 20 years, has established himself as a leading force behind digital photography in Australia. Mark’s signature style is defined by both his passion for his art and his innate ability to ‘capture life’ through photographic image. “Combining animated expression with beautiful composition is the key to creating highly individual and relaxed photos. “As subjects, kids are great to photograph, you can achieve some beautiful shots, and parents are always going to want beautiful photographs of their children,” says Mark. “When digital photography was introduced we were one of the first to embrace the technology in the country, providing studio sessions with the ability for clients to view the images immediately on the computer screen. “Our studio work has been so successful that we want to take what we do in the studio and bring it to more people and at a cheaper cost – that’s when Flash by Morffew was developed,” Mark explains. The Flash by Morffew concept is very simple. Clients visit one of the pop-up studios located in a shopping centre. There is no cost for the photographic session, and from around 50 shots taken these are edited to between 20 and 30 of the best images.

“Flash by Morffew is the faster, cheaper version of what we’ve been doing for years now. The images have the Morffew Photo’s signature style but come at much cheaper price – there’s no photos of kids in flowerpots or on a motorbike wearing a bandana!” says Mark. Customers then receive an email containing a link to view the shots online, and from there they can purchase the digital files, either individually or costing up to a maximum of $350 for the entire shoot. “As a franchise concept, Flash by Morffew is so simple. It’s easy to operate, easy to learn, and in our company-owned kiosks we have seen great success with the concept,” says Mark. In the nine months since establishing the franchise, Flash by Morffew has opened five company owned stores across NSW and QLD, with a further three opening in Victoria, NSW and QLD in coming months. Franchises are currently available across Australia including regional areas. “We currently have great interest from potential franchisees. Many of them are people who have used the service before, often mums who are looking to take on a small business that affords them flexible hours,” says Mark. “It’s a very women-focused business – the vast majority of Flash by Morffew

20 Business Franchise Australia and New Zealand

customers are mums in shopping centres, so for franchisees that are a people person – someone who is great at sales and bringing in business will be a successful franchisee. “Photography experience is not necessary – you can employ a photographer to work in your pop-up studio. At the most basic level, as a franchisee your main role will be simply generating photo shoots in malls.” Franchisees receive a designated territory encompassing two or more shopping centres, and travel between locations as required. Investment required is between $90,000 and $120,000. New franchisees receive a two-week training program incorporating time spent learning the franchise model at head office, time at an existing company-owned site, and then supported on site at their own pop-up kiosk. “All franchisees need to do is to operate their kiosk to it’s maximum potential. All of the back end of the operation (client emails/ website downloads) are taken care of by the support office,” says Mark. “We see great potential in Flash by Morffew and look forward to sharing the journey with our franchisees,” he said. For more information about Flash by Morffew contact: Phone: 0416 225 311 Email: Web:

Business Franchise Australia and New Zealand 21

l eg a l a dv ice

SUCCESSION PLANNING Every business owner, irrespective of whether the business is a franchise or not, needs a strategy for exiting the business. This strategy is widely known as a succession plan. Succession planning is about dealing with the inevitable - death or retirement, however, disability, a dispute, a longing for something different or the end of an agreement may drive the need to leave the business. It is important for a business owner

22 Business Franchise Australia and New Zealand

to plan for this and make an early assessment of its options. Begin by asking the hard questions: 1. What are your business and financial goals and what is required to reach them? 2. When will your business reach its peak? And how might economic changes impact it? 3. What should you do when the business is ‘worth all that it can be worth’? 4. What would you do if someone suddenly offered to buy your business? 5. Do you have business partners to consider? What would your business

“Every business owner, irrespective of whether the business is a franchise or not, needs a strategy for exiting the business.” Raynia Theodore, Principal, Mason Sier Turnbull.

partners want to do? How would you resolve a partner dispute about whether or not to sell? What if something happens to one of your business partners? 6. If forced to sell, how long might it take to sell the business? Would the buyer be an existing employee or independent third party? 7. Are you the key person? What if something happens to you that causes your indefinite absence from the business? 8. Do you fully understand your role and responsibilities, including the characteristics and qualities that enable you to run your business? 9. Could anyone else run the business? Are your systems and processes strong and clear? 10. What risks would a change of ownership or management pose to the business and how can these be managed? If you cannot answer any of the above questions it’s time to add succession planning to your usual planning.

Plan ahead It is imperative that suitable company structures and documentation - partnership and shareholder agreements, buy/sell agreements and trust documents are put in place from the outset to ensure you can exit your business in a tax effective manner and to protect you in the event of an unplanned exit from your business. Business succession also needs to be coordinated with estate planning. Shareholder and partnership agreements are critical even with family businesses.

An agreement called a buy/sell agreement controls what happens if shareholders or partners exit a business – i.e. a shareholder or partner dies, is disabled or is otherwise incapacitated or retires. Commonly, buy/ sell agreements – whether freestanding or whether incorporated into the shareholder or partnership agreement itself set out what events will trigger a buyout of the departing shareholder’s or partner’s share in the business, and rules about who can buy it. Buy/sell agreements can also be backed by insurance policies to guarantee that there will be enough money to keep a business afloat when a buy/sell event is triggered and to ensure remaining shareholders and partners have the funds to buy the exiting shareholder’s and partner’s interest.

A well-crafted buy/sell agreement can also deal with interpersonal and family issues, and is therefore an essential tool for managing family businesses, and for ensuring spouses and children don’t suffer as a result of poorly planned decision-making. Trust deeds need to deal with the passing of control of the trust to the right person. Wills also need to reflect or be consistent with business succession plans (a spouse or executor may inadvertently be able to control or have (unwanted) input into the operation of the business).

Auditing Your Business An important part of succession planning is keeping your business in a condition in which a third party can, if necessary or

Business Franchise Australia and New Zealand 23

l eg a l a dv ice

the franchise agreement; • the franchisee paying a transfer fee, which can be a flat fee or a percentage of the sale price; • the franchisee or the purchaser refurbishing the premises from which the business is conducted and/or upgrading equipment used in the conduct of the business, which may serve to reduce the price offered by the purchaser if the upgrades are to be performed by the purchaser; • the purchaser and/or its directors, shareholders or manager completing any training required by the franchisor. The sale of a franchised business will also take longer whilst the franchisor reviews the sale contract, approves the transfer, the purchaser and/or its directors, shareholders or manager.

desirable, buy the business on short notice and on favourable terms. The daily reality of running a business can make this difficult, however, you can ensure your business is sale-ready at all times by: 1. Reviewing your business and addressing issues that might affect its value. For example, have you properly documented all material arrangements, including premises leases, franchise agreements, employment agreements; 2. Ensuring your management team is skilled and competent and can operate in your absence; 3. Ensuring financial figures and books of accounts are up-to-date and accurate; 4. Ensuring you have signed copies of all key contracts and agreements, including any supplier agreements, franchise agreements, licence agreements, premises leases etc.; 5. Being aware of the best economic conditions under which you could sell the business rather than simply waiting until forced to sell.

Franchise agreement Franchising adds another layer of complexity to succession planning. The franchise agreement will impact on your exit strategy.

The franchise agreement often set limits on the time that a franchisee or the franchisee’s key person may be absent from the business. A franchise agreement will typically dictate what will occur in the event of the death or disability of the franchisee or the franchisee’s key person. Generally speaking the franchise agreement will specify a time frame within which a suitable replacement franchisee or key person (acceptable by the franchisor) must be found to take the franchisee’s or its key person’s position. In some cases the franchise agreement allows the franchisor to take over the conduct of the business until such time as the replacement is found. Further the franchisor may be able to charge a management fee for taking over the management of the business, which will eat into the profits of the business. In order to protect the franchise network, the franchise agreement will no doubt also impose restrictions on the franchisee’s ability to sell. The franchisor will commonly reserve a first right to purchase the franchise and a right to approve the purchaser and/or its directors, shareholders or manager. Other common preconditions to franchisor approval to the sale of a business are: • the franchisee paying any money owed to the franchisor; • the franchisee remedying any breaches of

24 Business Franchise Australia and New Zealand

Similar requirements will also apply in the situations where the franchise undergoes internal restructure. Succession planning requires good independent legal and accounting advice to ensure: • the right structures are put in place from the outset; • the necessary agreements and documents such as shareholders and partnership agreements, buy/sell agreements and Wills are drafted. • other key agreements such as supplier agreements, franchise agreements, licence agreements, premises leases are drafted, are put in place and are valid. It is also important to remember to review and update your succession goals over time. If your plans change, further advice may be needed and documentation may need to be updated. Located in Melbourne’s industry heartland, Mason Sier Turnbull has strong commercial law skills and prides itself on providing clients with great service and sensible solutions. Raynia Theodore, Principal in Mason Sier Turnbull’s Corporate Advisory & Franchising team. Contact Raynia on Phone: 03 8540 0242 Email: Web:

Business Franchise Australia and New Zealand 25

PROFILE : Su m osa l a d


A recipe for success! According to SumoSalad founder, Luke Baylis, the key to the success of SumoSalad has been achieving the perfect combination of ingredients. The recipe for success has included a growing consumer preference for healthy options, an outstanding and innovative marketing proposition, a 100 per cent focus on creating tasty healthy food, and support from industry-leading chefs and dieticians. These ingredients combined have led to SumoSalad to become Australia’s leading healthy food brand, with no direct competition of the same scale. SumoSalad recently celebrated its 10th birthday and according to Luke, the brand is well positioned to take on the world. SumoSalad is now one of Australia’s largest and most awarded healthy fast food franchises, with 86 stores across the country, and nine in New Zealand, United Kingdom, Dubai and Singapore. “The success of the SumoSalad brand has been phenomenal. Over the last 10 years we have gone from strength to strength and firmly established ourselves as a leading Australian health and well-being food brand,” Luke said.

innovative idea to a household name, and created more than 5,000 Aussie jobs after starting out with just five members of staff.

Key milestones of SumoSalad include: 2003- Opening of the first SumoSalad store on Liverpool Street, Sydney CBD. 2004- Franchising begins, with store count reaching 5 in NSW. 2006- Store count quintuples to 25 and the first international store opens in Dubai. 2008- First New Zealand store opens, while store count more than doubles to 64. 2009- Opened eight new stores taking total store tally to 74. The first country town café concept opened in Mildura, Victoria. 2010- Unveiling of the first international café concept; first UK store opens and store count reaches 83. 2011- Steady store growth continues with 90 stores open globally and four stores open in Singapore.

“As we continue to launch new stores across the country people have the opportunity to secure some prime sites,” he says.

2012- First sub-franchised store, first railway store and first hole in the wall store opens.

“We support our franchisees every step of the way, with a dedicated team of professionals at Support Office on hand to provide in-depth training, advice on business planning and forecasting, marketing support and even recruitment.”

2013- Australian store count at 86 and international at nine. Investment from the Tulla Group in December 2012 has ensured a bright future for SumoSalad, further cementing its place as a leading Australian franchise.

Luke says that he has big plans for the future of SumoSalad. “We’re really looking forward to the next ten years and to becoming a dominant global player. Our aim is to become the number one brand in the world in the healthy fast food space.”

“The food at SumoSalad tastes better because of the great quality products we use. This is our competitive advantage and something we will continue to drive across the world.

Of course, SumoSalad couldn’t be where it is today without fantastic franchisees, and Luke says that SumoSalad has a strong focus on supporting their franchisees to run the best businesses they can.

“Innovation is also an essential part of the SumoSalad business and because of this, I firmly believe we have the makings of a global leader,” Luke said.

Luke’s advice for those considering a SumoSalad franchise? “Back a winner!”

For more information on becoming a SumoSalad franchisee contact Stephen Shirley:

“SumoSalad is leading the way, in a market that is growing significantly – the opportunities are very exciting.

Phone: 02 9569 7866 Email: Web:

SumoSalad has transitioned from an

26 Business Franchise Australia and New Zealand

Business Franchise Australia and New Zealand 27

fi nanci a l A dv ice e xpert ADVICE

The importance of a

Business Plan One of the main reasons many businesses (including franchises) fail is because they either do not undertake enough planning before they start or they do not maintain a solid planning-review process as their business grows and matures. It is vital for the survival of your franchise to take the time to develop your business plan. This should outline your goals, your strategies, your prospects and also the method by which you will achieve these. Each business should have its own, unique, plan. While it’s good (and often much easier) to work from a template, start out the right way by making sure that you delete any headings which do not specifically apply to your individual business. Don’t consider this as homework but instead as a serious analysis of how your franchise business will work. Your plan will not only help you test your ideas, but decide on strategies to reach your goals. It’s all about quality. Your business plan doesn’t need to be as long as War and Peace. In fact, the more concise but straight to the point it is the better it is likely to be. A five–page document can be sufficient, if it’s five pages of solid content and strategy. You do need to make sure that you cover all areas of your business and that your plan is manageable and contains enough flexibility

to be revised as conditions in and around your business change. Your plan should reflect your business life cycle - whether you are starting up, supporting a business-loan application or providing ongoing management. A business plan prepared to accompany a bank-loan application should show the loan requirements, describe how the borrowed money will be used, list what collateral will be provided and propose the repayment plan. Your business plan is your roadmap to success. It needs to be fluid and flexible and it needs to be reviewed and revised at regular intervals throughout the business year. If at any time you are forced to diverge from your strategy, your business plan will help you find your way back to more familiar ground.

Suggested structure for your business plan • The Executive Summary: A summary of the highlights and main points of your plan. Write this last. • About the business: This section should include detail about the location you will be operating from, the history of the franchise systems, facilities and equipment you will be using; as well as the legal structure; set-up costs, funding and insurances you will choose. This section paints a picture of your business and describes the legal entity and ownership structure, as well as giving an overview of start-up costs and initial funding. • Industry and Market Analysis: Here you want to describe the products or services you offer. Make sure you emphasise why buyers will purchase those things, and what benefits they will receive by doing so. Show how much it costs to deliver what

28 Business Franchise Australia and New Zealand

you’re selling. You should also review current trends in the wider industry or sector, and assess your competition. • Strategies: Here you need to document your overall mission strategy, objectives and milestones. You can also include your marketing strategy, outlining any plans for advertising and promotions as well as a sales forecast and the cost of sales. It’s a good idea to also detail your distribution method/s and plans for growth. You should also describe the target market and segment you will be focusing on, including market demographics, market growth, trends and forecast. Finally, describe the nature of your industry and sector as well as your competition, and fine tune your milestones with dates, budgets and specific responsibilities. • Management structure: Outline staff positions, costs, facilities and also include an organisation chart. You should identify and describe the key members of your team, list management-team gaps (if any) and show how they will be addressed. • Financials: Here you must include a financial plan and needs summary. Other components of this section should include sales forecasts, assumptions, annual income expenditure, a profit-and-loss statement (P&L), a cash flow statement and a balance sheet. • Information systems and controls: This is a summary outlining the operational aspects of your business. Here you should define the systems, processes and controls which have (or will be) put in place. Also, identify any gaps and plans for the future. • SWOT analysis: This helps you define your strengths (for example reputation, latest technology, good location), your

“It is vital for the survival of your franchise to take the time to develop your business plan.” Ian Watt, Senior Business Development Manager - Franchising, NSW & ACT, Working Capital & Industry Specialisation, Westpac Retail & Business Banking.

weaknesses (lack of experience; difficulty finding staff, high overheads), any opportunities (local market growing fast,an unfilled niche in market, the possibility of a joint venture) and threats (a competitor opening up, over-reliant on one supplier, raw-material costs rising). • Exit strategy: Knowing how and when to exit your business is as important as knowing how to start it. Many owners build their business to sell when the time is right. If this is your strategy, make sure that you understand how to do this. There are many books available which explain the details; alternatively you can speak with your accountant, solicitor or bank. Other considerations and water-cooler topics: - Share your business plan with your staff and summarise it into a one or two-page document. You need their commitment to help you get there! - Share performance outcomes with your staff regularly. Highlight key successes and learnings and pinpoint where results are not on track, to focus everyone’s attention. - Demonstrate key performance measures graphically… A picture really is worth a thousand words. - Consider outsourcing and obtaining professional assistance during all stages of the planning process. - Ensure the analysis is ‘non-emotive’, particularly in terms of what has been achieved to date and the successes and reasons for this. These reasons may not necessarily work into the future. - Update your plan every quarter. Even if the final outcome is that there are no changes required, the discipline of holding

and maintain their network. He holds

quarterly planning-review meetings is important.

a Bachelor of Business degree and is a

- Set key milestones which identify what you intend to achieve in set time periods. For example the first six months, second six months, second year and so on. - Business plans are as important for new companies as they are for established businesses which have been trading for ten years… Would you invest in a business that had no plan? - Your business may require you to share the plan with shareholders and other stakeholders at monthly board meetings perhaps even prospective investors.

qualified CPA. Westpac continues their long-term commitment to franchising in Australia through a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Ian at: Email: Web:

Ian Watt is the Senior Business Development Manager - Franchising, NSW & ACT at Westpac. He specialises in the franchise sector, working closely and assisting many franchise brands grow

Business Franchise Australia and New Zealand 29

e x pert a A dv ice

“If the system is doing all these things, and doing them well, then you can be fairly confident that you are dealing with a quality system.”


Corina Vucic, Director, FC Business Solutions.


For many, buying a franchise business is the fulfilment of a lifelong dream. It is also one of the most important personal and financial decisions you are likely to make in your lifetime. If you have the desire, commitment, passion, resources and support required, you must take the time required to find the best franchise system for you. When you are ‘shopping’ for a franchise system, there are five key areas that you need to investigate in each potential system. If the system is doing all these things, and doing them well, then you can be fairly confident that you are dealing with a quality system.

THE FIVE KEY AREAS 1. A Proven System 2. Training and Support 3. Documented Manuals and Systems 4. Public Relations and Marketing/Brand Awareness 5. Leadership/Mentoring

A proven system Is the system you are interested in a healthy, growing system? A proven system is the first key area that attracts a new franchisee. Everything flows on from there – business support, training, systems and procedures, leadership, financial management, marketing and public relations (PR) and of course brand awareness. The franchisor that runs a successful business model provides all the training and support that the franchisee requires, assists with financial and business management, provides local area marketing resources and public relations to support the franchisee and provides the leadership and mentoring to ensure he or she has all the tools to succeed. A proven system provides franchisees with the processes, methods and opportunities to operate a business using the name and trademark of the company. In addition, they usually get access to product, storefronts, staff training, marketing strategies and more.

Training and support What level of training and support does the franchisor offer? It makes sense for franchisors to invest heavily in their training programs for franchisees. Motivated individuals

30 Business Franchise Australia and New Zealand

helps achieve business success. People development, in the areas of OHS and risk management, recruitment, performance and management skills, is vital for the successful growth of a business. Excessive staff turnover can cost companies dearly. But by focussing on staff engagement and providing staff with the training and tools to engage and empower them, retention rates are able to be increased. Does the franchise system you are interested in employ field service personnel such as franchise support managers (FSMs) to ensure franchisees are staying on track with their business plan and receiving all the training and support they need? A quality franchise system should be continually looking at different ways for franchisees and staff to increase their performance in a measurable way. Individual profiling is often the first step that should be taken by both managers and their staff to understand people’s natural preferences of what they like to do in the work place, and help them understand the way they like to approach work. The implementation of TMP (Team Management Profiling) recommendations results in increased performance of staff, which increases the success of the franchise system. Find out if the system you are interested

I=:8DBEA:I:EDH HDAJI>DC;DG NDJG ;DD9;G6C8=>H: š9[djhWb_i[ZB?L;H[fehj_d] C[dkCWdW][c[dj šCkbj_#i_j[BeoWbjoC[cX[hi^_f$ D[mc[cX[hiWh[B?L;_dWbbi_j[i m_j^_di[YedZi š<hWdY^_i[[AF?CWdW][c[djJeeb šM[XFehjWb\eh<hWdY^_i[[Be]_d šEdb_d[EhZ[h_d]?dj[h\WY[ š8hWdZ[ZBeoWbjo7ff\eh_F^ed[%7dZhe_Z%M[X š?dj[hWYj_l[:_]_jWbI_]dW][WdZA_eiaEhZ[h_d] šJhk[(*%-DWj_edm_Z[Ikffehj

IWo]eeZ#Xo[ jefbWij_Yim_f[ YWhZiWdZcWa[ oekhcWha[j_d] ceh[[d]W]_d]$

Ä>lVheaZVhVcianhjgeg^hZYVii]Z h^bea^X^inVcYi]ZVXXjgVXnd[i]Z DgYZgBViZhidX`XdcigdahnhiZb# LZVgZcdligVX`^c\ZkZgni]^c\ YdlciddjgeVX`V\^c\VcYZkZc djg^XZ0djgeZgXZciV\Zh]VkZ cZkZgadd`ZYhd\ddY#Å <H7DAJ7::;E 8:D;VhiVEVhiV6jhigVa^V

9WbbEhZ[hCWj[demed')&&,,-&,-ehl_i_jmmm$ehZ[hcWj[$Yec$Wk *.;ZccZaaHigZZiEdgiBZaWdjgcZK^Xidg^V('%,<7N&(%%++,&%&;C7?BhVaZh5dgYZgbViZ#Xdb#Vj

Business Franchise Australia and New Zealand 31

e x pert a A dv ice

in offers Team Management Profiling or a similar profiling mechanism to assist with achieving optimum staffing requirements to help drive your business forward.

Documented manuals & systems What does a franchisor actually own if there are no documented standards and procedures? Compliance with operational standards and procedures usually forms a key part of the Franchise Agreement. It would be very difficult for a new franchisee to succeed in their business without proven standards and procedures. A quality system will have a comprehensive, well written set of Operations Manuals for its franchise network. Operations Manuals contain the details of the proper procedures and provide an invaluable support mechanism for franchisee education at all levels. As training tools, effective Operations Manuals promote consistency and quality throughout the franchise network. They help franchisees run their businesses more successfully. When properly drafted, Operations Manuals can serve as one of the strongest selling tools for the franchise program as they demonstrate best practice in franchising to current and potential franchisees. Potential franchisees should be confident that the system’s Operations Manuals are up to date, reflecting new products, services, changes in market trends, technologies and competitive forces.

Pr & Marketing/Brand awareness Does the franchisor communicate effectively with franchisees and the wider community? Does the franchise have a positive media profile? Building and maintaining brand awareness is vital to a franchise system’s growth and positioning in the marketplace. A sustained PR, Marketing and Communications program will assist businesses’ growth and success through

targeted and tailored brand building solutions including advertising, media relations, local area marketing, and internal and external communications strategies. Potential franchisees should be looking at what the system they are interested in does in relation to targeted PR and marketing solutions and if their internal and external communication strategies, local area marketing and advertising campaigns, have been proven to demonstrate measurable results from increased sales figures, and media coverage.

Leadership/mentoring Does your franchisor lead the way? Is the franchisor a brand ambassador? In the majority of businesses, leaders spend their time strategising with their office door closed. They don’t spend the time thinking about their business, they waste their valuable time being a ‘doer’ in the business. Business leaders of proven franchise systems have ‘taken back control’ and can spend that time thinking about ways to grow their business, how to sell more, how to get into new markets and how to get the best people they can into their organisation to take the next step and become an industry leader. Strong leaders with purpose possess courage; the courage to make the best decisions for the betterment of the group as a whole at all times. Brands in their lifetime will confront challenges, remove obstacles and create an opportunity from the potential diversity - this is expected from the franchisor as they lead and protect the brand. All highly successful franchisors are leaders who promote respect and integrity within their teams and throughout the brand. They set the path; share the end destination and make the best decision at the right time with the best information. This is leadership. They have taken on the responsibility to grow a business, to expand the product or service offering, to increase market share and to increase brand awareness. Successful franchisors are not shy in sharing their plans with the team members who choose to live and breathe their vision. The level of leadership differs amongst the

32 Business Franchise Australia and New Zealand

franchise network; some franchisees require the detail, the how, when and where; others require just the overall perspective and are committed to the cause. The franchisor’s responsibility is to deliver all these needs and continue to share the message in all available learning and development forums on a regular basis throughout the network.

Now it’s up to you! Having conducted your due diligence, including the five key areas above, selected your franchise and started on your new pathway, the satisfaction of being a franchisee can be exhilarating. If you are prepared to work hard, committed to following the system that you have invested in, embrace the training, support and mentoring available, and if you manage your back office (financials) in a professional manner, then you will give yourself every opportunity to succeed and grow. Like any business, it will be demanding, however, knowing you have the ongoing support of the franchisor, together with their internal knowledge and experience, as well as many supportive franchisees that are on the same life journey, franchising can be extremely satisfying. Corina Vucic is the Director of FC Business Solutions. Corina, the FCA’s 2012 Woman in Franchising for Victoria/ Tasmania, has been involved in the franchising industry for more than 15 years and is dedicated to the growth and development of the systems she works with. Corina is a great believer in the professional and personal benefits of lifelong learning and her academic achievements include a Bachelor of Arts and Commerce and Masters in Human Resources. Contact Corina on: Phone: Email: Web:

03 9533 0028 corina@fcbusinesssolutions.

If you are a franchisor, youâ&#x20AC;&#x2122;ll know that the success of your business relies heavily on the quality of your franchisees. Finding the right person is an exacting task. We at LINK are specialists in franchise recruitment and resales, we know.

All NZ LINK offices are licensed REAA08


uitment and Re

Franchise Recr

Managing the Sale of Your Business

Compiled by indust ry exper ts in busine ss sales, this guide provides a comprehensive overvi ew of all steps involved in selling a business, from groom through to settlem ing ent and handover.

The authority

LINKâ&#x20AC;&#x2122;s Franchise Division specialises in the sale of business format franchises. With a combination of the best franchisee selection skills and the best business broking skills, we are the only franchise recruitment agency of our kind. Our role is to present the information about your business in a very systematic and professional manner, and to target, test and recruit franchisees to match your profile. LINK recruits franchisees nationwide for selected franchisors that have well documented systems.

For your free pack or to discuss how LINK can help you in the development and growth of your franchise call LINK today.


on selling busin

PM 8/22/2012 3:29:31

ent Franchise Recruitm

and Resales.indd


The authority on selling


MTSOYB Booklet.ind

d 1

The authority on selling businesses

8/17/2012 11:39:10 AM

0800 546 528 (NZ) l 1300 763 668 (AUS) LINK have offices in New Zealand, Australia and South Africa ( Business Franchise Australia and New Zealand 33

PROFILE : Froots

Make a Healthy Investment! Not just a smoothie shop! For consumers looking to grab food quickly and still eat healthy, Froots serves up just what they need. Once he opened his first location in 2001, Froots Founder David Lopez knew right away he had a winning business concept on his hands. One location quickly turned into two, then three. By 2004, he started to franchise and so, the Froots franchise system was born. Froots is different. They use 100% real fruit and fruit juice in their smoothies as well as low fat, healthy ingredients in their soups, salads, wraps and Panini’s. No fillers. All food is prepared in a healthy manner, is delicious and there is even something for those with a sweet tooth. “We have a broad range of items that allow our customers to choose items that align with what healthy means to them,” says Scott Miller, President. “We use high quality ingredients in all our menu items. Whether the customer is looking for something that is low fat, low in calories, low sugar, or high in protein, we have options to serve their needs. While most menu items are low fat and healthy, we do have more decadent items like dessert smoothies. We provide several options for customers.” You can find Froots in the US and internationally in 13 countries, including locations in Guam, Egypt, Panama, Honduras and soon opening in Saudi Arabia

and Kuwait. “We are the approved healthy food vendor on various military bases around the world,” says Miller.

A Great Opportunity As a Froots franchisee, you will be the chief of your own financial independence and share in the excitement of being part of one of the fastest growing quick service restaurants in the US. Looking to add Australia to their Froots family, Miller describes what an ideal franchisee would be: “We are looking to expand into the Australian market. Our ideal franchisee has energy and enthusiasm, great customer service skills and understands their products and customers. Our franchisees are people with a healthy mindset.” “The difference between Froots and other smoothie concepts is that Froots is actually a quick service restaurant,” notes Miller. “We are not just one of the hundreds of juice bars or smoothie shops; we are a healthy food destination. We offer customers menu options for all day: breakfast, lunch and light dinner options.” “There is a market for steady growth in the smoothie/wrap industry,” notes Miller. Miller also describes many options for Froots venues, “There are a variety of concepts for the franchisee. For example, they can be in a kiosk, a mobile unit, in a food court stall or a stand-alone store.”

Highly Specialised Training Training starts with 25 hours of self-directed, online study, followed by a 21-day hands-on training program. “Training is up to date

34 Business Franchise Australia and New Zealand

and successful. New franchisees train with a current owner/operator in their store or location,” comments Miller. Following this, the franchisee heads back to the classroom to train on the ‘back-end’ of how the operation is run. All this training is done while the new franchisee’s store is being built. When the store is ready to operate, Froots provides on-site support five days before grand opening and then five days after. Continued support is done via phone, Internet and through site visits from the corporate office.

State-of-the-Art Marketing Locations can determine how marketing is done. “Where one medium, such as radio, works in one area, it may not work in another,” notes Miller. Support is provided to get your Froots business noticed and build the Froots brand. “An owner/operator gets to know their customer base,” says Miller. “They understand marketing options and how to execute plans.” Master franchise and license agreement opportunities currently exist within Australia. “Whether you want to own one or head the operation for Australia, we are interested in those with a keen business sense and a healthy mind set,” says Miller. If you love the idea of owning your own business and helping people enjoy a healthy lifestyle, being a Froots franchisee may be just what you are looking for. Phone: +1 877 376 6871 Web:

Weâ&#x20AC;&#x2122;re Making Franchising Easy & ProďŹ table Free yourself from the daily grind and blend up some excitement instead by sharing in one of the fastest growing franchises in the US. With over 40 locations worldwide, you can look no further for your financial independence. If you are looking to be your own boss, stay fit, and eat healthy, becoming a Froots franchisee is for you. Join the Froots family for an exciting opportunity! Master franchise and license agreement opportunities currently exist within Australia.









For more information call +1 877 376 6871Business or visit Franchise Australia and New Zealand 35

e x pert a dv ice

DATABASE MARKETING Building a limitless and free marketing source After over 15 years of working with business owners about every aspect of their business, late in 2012 I defected from a successful career as a business coach to specialise in marketing – specifically, low cost and database marketing. So before I explain the many ways that having a database can help your business, it is probably relevant that I tell you why.

WHY I LOVE MARKETING For many the most terrifying aspect of running your own business is not feeling in control –that at any time the omnipresent “market” will desert you and people will stop knocking on the door. In the current climate, there are millions of business owners right now feeling sorry for themselves and waiting for the “bad market” to pick up. I firmly believe – and have seen over and over – that there is enough for everyone who puts their hand up. For every 10 people bunkering down and saving money in a downturn, there is one skating through, with their marketing turned to full volume, picking up the work. This is equally true for household name franchises, where if you aren’t doing your own local area marketing, the national branding is only working half as well as it should. No marketing means you have no control. You are solely reliant on the type and volume

36 Business Franchise Australia and New Zealand

of work that your franchisor or people referring you decide to send you. It means that your business is worth less, as it doesn’t have a way of self-generating work. Instead of focusing on the high value services or goods that you would prefer to sell, having no marketing leaves you running ragged chasing every two-dollar job that lands in your lap. Marketing puts you in control. It allows you to say “actually I will have some extra business this month” and make it happen. And thankfully there are many low-cost strategies to choose from that also mean you can keep your marketing – or ideally increase it – even when times are tough.

A LOW COST MARKETING STRATEGY One of the best low cost strategies is Database Marketing. It costs you pennies. It gets your team, your clients and your

“Used with integrity, database marketing should be just another way of talking to your customers, without waiting for them to visit.” Katherine Grace, Director, Graceful Solutions Marketing.

community involved in your business. And with many industries (especially trades and B2B), it produces the highest hit rate of any marketing for near-on the lowest cost. This is because people on your databases have agreed to be in regular communication with you. So, as you can imagine, talking directly to 2,000 people who all know and like your business nets a much better result than throwing advertising at 20,000 who don’t know you from Adam. What does having a database (or databases) do for your business? You can control the “tap” while you’re running it – tap on, more clients, tap off, no clients. A potential buyer will see huge value in being able to immediately turn that tap on once they take over. And you will keep your customers and key referrers close and well-informed, leading to more sales more often.

HOW TO BUILD A DATABASE When I start working with a client I aim to get their database up to the magic 500-1,000 needed to make it ‘responsive’ – i.e. when we send an offer out at least one person will take it up. Any customer details you have will give you a head start – I have used old receipts, quotes and even shop layby books to kick things off. Some franchisees, like Jim’s Group, field client calls for you, meaning that they have automatically built you a comprehensive database since the day you started (lucky you). If you don’t have a database to begin with, collecting details at point of sale is the traditional method (a hamper or other competition entry will do, if you can’t have a staff member physically collecting emails).

You can also begin by collecting names at an event or trade show, or by partnering up with another business and running some joint marketing or a host beneficiary. Another clever way of collecting database is to require people to enter their email address to download something of value from your website (such as a ‘top 10 tips’ sheet - one client of mine has collected over 5,000 members from just this strategy). Some franchises have rules around who can use the client database and how, so check with yours before you start. If you can’t stockpile or use customer details for some reason, no matter, I’ll talk about other types of databases below that will be just as helpful. Store your details – at the minimum you need a first name and email address – in any number of ways (data is usually easily transferable anyway) – such as excel, a specialised CRM program or online in your email newsletter system (try programs such as Constant Contact for around $15 per month).

HOW TO CONTACT THEM An email newsletter is an obvious and easy way to stay in touch with your people. A couple of tips however – send out the sort of newsletter that you yourself would be happy to receive (and actually read). This usually means make it short and snappy, offer something of interest for everyday life, not just a sales pitch - but having said that, a special members-only offer never goes astray (and means you can get an actual ROI for your efforts). An occasional heads up about a sale is also fine (a retail client of mine has doubled her sale takings since introducing an email newsletter). Beyond that however, there are many other ways to keep in touch with and be of value to your various databases. Group SMS, letters, phone calls and invitations to participate in competitions, surveys and ‘in person’ events are just some of these. In particular, clients of mine very successfully use the ‘VIP Night’ strategy to net between a week and a month’s worth of sales in just one night.

Business Franchise Australia and New Zealand 37

e x pert a dv ice



Any group of people with whom you would like to speak constitutes a database. All of my clients have multiple databases, including not only clients but also a variety of referring businesses or affiliates. For example, a printing business might have a database of clients but also one of graphic designers and another of accountants and business coaches (who are connected to many more potential clients).

It is a good idea to contact people with nothing more than valuable or interesting information most of the time. However, when you want to use your database to turn the tap on sales you will need to make your members an offer. This should be something that makes them feel special and in-theknow, and it should have some urgency (this month only!) or scarcity (first 20 only!) attached to it. Make sure though that you are gaining sales and not just giving away your profits. In every case, it is much better for you to increase your value (get X get Y free) instead of a cash discount.

Within your client database it is also valuable to denote categories or industries. A client in the food industry has not only separated their clients into ‘corporate’ and ‘domestic’, they have broken down the corporate into industries (pharmaceutical, legal etc). A white collar business (a law firm) has three databases – clients, affiliates and presentation contacts. Another in personal services has a client database which also flags a handful of ‘gold’ clients (people who refer well and often). This type of segmentation makes sending relevant and compelling offers so much easier.

A FINAL NOTE Used with integrity, database marketing should be just another way of talking to your customers, without waiting for them to visit. Often, people might believe you are too busy for extra business or referrals - this is a way of saying ‘we are here, keep em coming!’ Keep in line with your business ethics but don’t make the mistake of thinking

38 Business Franchise Australia and New Zealand

that if you are too busy to read a newsletter all your clients are (they aren’t all silly/brave enough to be business owners). People will be genuinely appreciative of your contact and reminders – and I have yet to be proven wrong. Katherine is a former General Manager for the Jim’s Group, with over 17 years’ experience in franchising and trades. She has also been a successful ActionCOACH (#14 in the world) and runner-up Franchise Woman of the Year in 2010. Graceful Solutions is a marketing company specialising in no-cost, low-cost and local area marketing. Their team of eight consultants offer services including websites, database marketing and low-cost strategies to engage existing customers and find new ones. For further information contact Katherine at: Phone: Email: Web:

0400 865 277 Katherine@gracefulsolutions.


BUILD WITH US Looking for new franchisees across Australia to keep up with demand

“Total Tools know their customers, and their tools. We consider them a true business partner in every sense.” Nick Pritchard, Managing Director, Irwin Tools

“Our company’s growth with Total Tools has been outstanding and we consider them a great retail partner.” Tom Fukaya, Managing Director Sales and Marketing, Makita Australia

Over 21 Years as Australia’s Premier Trade and Industrial Tool Retailer sNational Support OfÀFe sNational Supplier Arrangements sNational Marketing Strategies s6XFFHVVIXO%XVLQHVV Model s6XFFHVVIXO3UiYDWH%rand 3URJram

For further information contact the Franchise Sales Manager mobile 0438 214 314 tel 03 9394 4300 email


Owner Benefits:

Fr a nchisee in Action : B rotzei t® g erman b i er bar & r estau rant


Brotzeit® is heading Down Under… A Singapore ‘Franchisor of the Year’ has set its sights on the Australian market, bringing with it a new and exciting concept. Singapore brand, Brotzeit®, was conceived in 2006 to introduce authentic Bavarian cuisine accompanied by world famous quality German beers in a chic and contemporary setting. “Brotzeit®” is a typical Bavarian expression – “Brot” being German for bread and “Zeit” for time, referring to a cozy meal complemented by fresh beer. Brotzeit® began franchising its current business model in 2010. In a span of just over two years, it has become a successful franchisor and was recently awarded the Singapore ‘Franchisor of the Year’ Award by the Franchising and Licensing Association of Singapore (FLA), for its established franchise support system and its expansion achievement. Brotzeit® has sold 10 franchise markets, in addition to its corporate market. Brotzeit® currently operates eleven outlets in Singapore, Malaysia, Vietnam, Hong Kong, China and most recently in the Philippines and Thailand. Brotzeit® has successfully opened seven franchised outlets outside of Singapore – the first franchised store in Kuala Lumpur and the second store in Petaling Jaya, Malaysia, one franchised store in Ho Chi Minh City, Vietnam, one franchised store in Kowloon, Hong Kong, the first franchised store in China located in Shanghai and latest two additions are in Manila, Philippines and Bangkok, Thailand respectively. Brotzeit® has signed development deals in Guangdong, Beijing and Indonesia, with more territories in the pipeline.

The signed agreements came to a combined total of twenty-nine outlets. Philippines franchisee, Mr Francis Aswin, is a proud new Brotzeit® franchisee, who opened his first restaurant in April 2013. With some experience in franchising, Mr Aswin saw the potential in the Brotzeit® opportunity. “We had some experience being a franchisee as we have a couple of quick service franchises within the family,” Mr Aswin said. “We believed it was time for us to move into casual dining. We were looking for a unique concept to introduce in the Philippines that was authentic - not a ‘me-too’ - and has virtually no footprint. “Being based in Singapore and living a stone’s throw away from the first Brotzeit® outlet, we believed that we had found what we were looking for,” he said. Mr Aswin said that the process signing up as a franchisee was easy, thanks to an immediately comfortable relationship with the franchisor. “It was a very quick process for us as we felt an instant connection, trust and fit from the first time we met. Our first meeting was in the end of May 2012 and within a few weeks, we had signed the LOI. By early August, we become a proud member of the Brotzeit® family.” Mr Aswin and his colleagues in ownership of the Brotzeit® franchise are all able to maintain regular full time employment whilst also being Brotzeit® franchisees. “Almost all founding members of FAME.DISH Inc. (holding company) have a full time day job. Two of us who are based in the Philippines are entrepreneurs in industrial and commercial materials, whereas the other two who are based in Singapore work as senior executives in Unilever and WPP,” said Mr Aswin.

40 Business Franchise Australia and New Zealand

Business Franchise Australia and New Zealand 41

Fr a nchisee in Action : B rotzeit® german bier bar & restaurant

“We are all still in our full time positions and will be for the foreseeable future. We all have a passion for food and beverage and are able to develop another stream of income doing so,” he explained. Mr Aswin says that in his view, work life balance is not something he is looking to achieve. “Work life balance has been dissected and argued to death, the way we see it, if we are passionate and are having fun doing it, we have reached our goal.”

AUTHENTIC GERMAN CONCEPT All Brotzeit® outlets engage guests with chic décor through the use of Germaninspired wooden benches and a long wooden bar counter. The contemporary bier bar possesses a playful charm with its characteristic signature mural showing the history and development of German beer culture. Brotzeit® serves a wide selection of imported premium German beers, made according to time-honoured German beer-making traditions that respect the Purity Law of 1516. All beers are made using pure spring water and are paired with authentic Bavarian dishes. Some of the other key features that sets Brotzeit® apart include: • The world’s leading German restaurant concept operating multi-nationally. • Authentic Bavarian cuisine and premium quality beers imported from Germany. • Unique proprietary recipes for seven types of sausages. • Specially styled music system. Mr Aswin said that the process opening his first Brotzeit® restaurant was quicker than anticipated thanks to the great level of support provided by Brotzeit® International. “The process was quite rapid and a bit manic. Even though our Area Development Agreement (ADA) afforded us 18 months to open our first outlet, we managed to open it in just six months. “This was made possible through the constant support from Brotzeit® and the luck in quickly securing a prime location fitting the concept,” Mr Aswin said.

UNIQUE FRANCHISE MODEL Unlike other segments in the multi-unit food

and beverage franchising industry, Brotzeit® has no organised competition. Brotzeit® does not sell single-unit franchises in a new market. Instead it has chosen to develop by selling market areas, which require the franchise developer to open a number of units, typically three to six in a period of six years. Brotzeit® is currently searching for potential franchisees who are excited about the concept and wish to be part of a new franchise entering Australia and New Zealand. “We’re looking for potential franchisees who intend to own and operate all of their stores directly,” said Mr Jason Tan, Director Franchise Development. “This can be an individual or a corporate entity. But passion of the industry and the brand is absolutely required. “Brotzeit® has pulled all the stops to give its franchisees strong and extensive support in all aspects. This ranges from marketing and promotional materials to recipes, proprietary spices, site selection, restaurant decor and even local supplies,” said Mr Tan. “We employ the best practices in the industry. Franchisees can expect the company to be fair and transparent in all aspects of its relationship. Brotzeit® has been careful to avoid the typical conflicts that arise in the franchisee/franchisor relationship,” he said. Mr Aswin agrees that the level of support provided by Brotzeit® has been both constant and thorough. “Support has never ceased. After getting to know the team at Brotzeit® better, we do not have any doubts that it will always be there. We have a common and shared goal of building this brand and its footprint successfully for many years to come,” Mr Aswin said. Mr Aswin says that the relationship with the franchisor is paramount. “Most people would say that what defines a good franchise is the ironclad system that comes with it. Whilst this is true, in our experience, the people behind it is also equally if not more important,” he said. “Business aside, we feel that we have found friends in Brotzeit® and that doesn’t happen very often. We would be glad to share our experiences with anyone who wants to find out more.”

42 Business Franchise Australia and New Zealand

Franchisees have full access to Brotzeit® Franchise Resource Centre, where they can download manuals, marketing materials and R&D items. Each franchisee outlet is be given its own website under the www. domain. Brotzeit® will provide both initial and on-going support to every franchisee, including but not limited to: • Initial Support

• Site Evaluation and Approvals

• Suppliers and Vendors Identification • Restaurant Fit-Out and Set-up • Franchisee Training

• Store Opening Support • Ongoing Support

• Operations Efficiency

• Research and Development • Marketing

• Finance and Reporting. Applicants must meet these criteria to gain consideration for a Brotzeit® franchise: Criteria for Consideration: • Proven hospitality experience preferred (food services, including quick service or casual dining)

• Multiple restaurant development plan of at least three restaurants • Minimum net worth of $800,000 USD. Franchise Partner Profile: • Possess knowledge in utilising systems and processes within a hospitality, food service and/or restaurant environment • Have an infrastructure and resource dedicated to supporting the development of our brands and opening schedules

• Have local knowledge, relationships and expertise in the areas of consumer preferences, real estate, government regulations, labour, and distribution issues • Able to access to adequate capital, such that cash flow are sustainable for 2-3 year period while continuing to develop additional units • Cultural fit and a passion for building a successful German Contemporary Bier Bar & Restaurant

For more information about this exciting new opportunity arriving in Australia and New Zealand visit: Web:

Business Franchise Australia and New Zealand 43

Service sn a pshot: H arman ’s L aw y ers

Christchurch rebounds Amidst the ongoing recovery of Christchurch following the devastating 2011 earthquake, commerce within the province is recovering well according to Mark Sherry of Harman’s Lawyers. “There’s billions of dollars being poured into the economy, and people are streaming into the city to assist with the reconstruction process. This has been great for businesses that have been buoyed by the influx of people to the area. For us, business is booming as we assist people through this busy time,” said Mark. “As the city is re-established there are growing opportunities for new franchise businesses and we are available to help new franchisees every step of the way.” Harman’s franchise team is led by two partners, Mark Sherry and Alan Prescott, who both specialise in franchising. They are assisted by four other partners and lawyers in the firm who also have franchising work as part of their core business. Mark Sherry says that the best advice he can give to those thinking of entering franchising is to ensure they conduct thorough research. “Make proper investigations into a system before you commit to it and take advice from appropriately skilled professionals, both accountants and lawyers,” he says. “One of the best ways to find out about a system and its strengths and weaknesses is to talk to a good number of existing franchisees, not just the ones that the franchisor may direct you to. “Remember too that it is a business decision being made, so try not to get too emotionally attached to a franchise before

the due diligence has been completed,” Mark advises. “If you’re considering buying into an existing franchise system, you need to be confident that the documentation for that system is robust but fair,” says Mark. “Since every franchise system is different and every franchise agreement is tailored to meet particular circumstances you need to gain an understanding of your rights and obligations under the franchise agreement. “Getting the right legal advice early is essential and that’s where the experienced Harman’s team of franchising experts can help,” he said. “We can assist with all other aspects of the legal and business arrangements that you will need to address when buying a franchise. “We have a broad range of contacts with other franchising professionals and as necessary can provide introductions to specialist franchise accountants, bankers and business brokers,” says Mark. Harman’s Lawyers’ extensive experience in all aspects of franchising across a wide range of industries will provide you with the technical know-how and the advice you need to move forward with confidence. Members of the Franchise Association of New Zealand, Harman’s Lawyers supports its vision of “best practice” franchising in New Zealand. “We have helped many clients who are investigating buying into franchise systems to complete their due diligence investigations, set up business structures and we assist with all other necessary legal requirements,” Mark says. “We have also helped many franchisees that have had issues arise during the course of their franchising experience and of course, we help franchisees at the time they put their businesses up for sale.“We also act for some South Island based franchisors and are able to assist people who want to establish new franchise systems,” he said.

44 Business Franchise Australia and New Zealand

Harman’s Lawyers provides a full range of services, including: • Advice on legal rights and obligations under franchise documentation • Financing issues • Leasing of premises • Employment and health and safety issues • Ownership structures and their tax implications • Asset protection, both for your business assets and lifestyle assets • Dispute resolution Established in 1888, Harman’s Lawyers is this year celebrating its 125th anniversary, and looks forward to sharing their celebrations with the local community and thanking them for their long-standing support. “We really want to make a splash,” says Mark. “125 years is a fantastic achievement, and we’ll be celebration with staff functions, client functions, as well as a special event planned for the community.” With 125 years’ experience, Harman’s Lawyers is well equipped to help you across all areas of franchising. Contact Mark Sherry at: Phone: (NZ) 03 352 2293 Email: Web:

Bringing a little piece of the farm to the city! Henny Penny Hatching delivers the thrill of chicks hatching to childcare centres, schools, aged care facilities and more! Visit our website for further details on franchises available in Brisbane, Sydney, Melbourne, Adelaide and Hobart. No experience required; easy to operate from home.

1Year of


One year (6 issues) of Business Franchise Australia and New Zealand for only $39.95 (AUS) or $52.95 (NZD). Packed with information relating to many different areas of the franchising industry, Business Franchise is a valuable and informative source of guidance.

SUBSCRIBE Send me 6 issues (1 year) of Business Franchise Australia and New Zealand for only $24.95 AUD for delivery within Australia or $32.95 NZD for delivery within New Zealand.


Credit Card

(sorry, we do not accept Diners Club)

Payment enclosed (cheque only)

Name:__________________________________________________________________________________ Address:________________________________________________________________________________ City:____________________________________________________________________________________ State:________________________________________ Postal Code:_______________________________ Phone Number:___________________________________________________________________________ Email:___________________________________________________________________________________ Credit Card No._____________________________ Card Type ________________ Exp. Date____________ Mail to: CGB Publishing Pty Ltd PO Box 968 Mt Eliza Victoria 3930 Australia Email: Business Franchise Australia and New Zealand 45

e x pert adv ice

CONSUMER RIGHTS How do they impact on your business? An owner of a franchised business, like any other business owner, must comply with the Australian Consumer Law (ACL). This means you are required by law to honor consumer guarantees and not engage in unfair business conduct. The Australian Competition and Consumer Commission (ACCC) was contacted by over 16,000 members of the public regarding alleged breaches of consumer guarantees in 2012. As a result the ACCC is actively and loudly investigating large manufacturers and retailers. A prime example is the recently instituted proceedings by the ACCC in the Federal Court against 11 franchisees of one of Australia’s largest retailers. The ACCC are alleging that these franchisees made misleading representations to consumers about their consumer rights including that: • They had no legal obligation to provide: - remedies for damaged goods unless notified within a specific period of time such as 24 hours or 14 days

- remedies for goods still covered by the manufacturer’s warranty - refunds or replacements for particular items such as large appliances or items priced below a certain amount • Consumers must pay a fee for the repair and return of faulty products. The court orders that the ACCC is seeking include penalties, declarations, injunctions and costs.

What is the ACL? Whilst being part of a franchise system that complies with best practice can put you in a great position to set up policies and procedures for the ACL compliance, ultimately complying with the ACL is your responsibility. Therefore, this responsibility cannot simply be passed on to a franchisor or disregarded because other franchisees are not complying. In fact, it is very likely that your franchise agreement stipulates you must comply with all relevant laws. Consequently, a franchisor’s hand may be forced to act if you are a franchisee in breach in order to protect the rest of the franchise network against any adverse publicity. It is therefore paramount you know and uphold your consumers’ rights. The ACL came into full effect on 1 January 2011. Its purpose was to harmonise and modernize Australian consumer protection

46 Business Franchise Australia and New Zealand

laws. One of the most notable changes introduced by the ACL was the new system of statutory consumer guarantees which replaced the conditions and warranties previously implied into consumer contracts by the Trade Practices Act 1974 (Cth) and various State laws. Unlike the implied conditions and warranties, the ACL system provides for express remedies for consumers. Since its launch, the ACCC has backed up this new system of consumer guarantees with a public awareness campaign including guidelines and website tools. In other words, the ACCC is educating consumers so they can stand up for their consumer rights.

Consumer guarantees explained Consumer guarantees are mandatory. They cannot be excluded, restricted or modified. They will apply where a person (which can include a corporation) is taken to acquire goods or services as a consumer if: • the amount payable does not exceed $40,000 (subject to exclusions) • goods or services costing more than $40,000 if are of a kind ordinarily acquired for domestic or household use or consumption (subject to exclusions) • in the case of goods, those goods consisted of a vehicle or trailer acquired for use principally in the transport of goods on public roads,

“Whilst being part of a franchise system that complies with best practice can put you in a great position to set up policies and procedures for the ACL compliance, utimately complying with the ACL is your responsibility.” Kristie Piniuta, Principal, Kubed Legal.

• and, in the case of goods, the goods are not acquired for re-supply or to be used up or transformed in the manufacturing process. By way of summary there are: NINE GOODS GUARANTEES for businesses that sell goods: • Those goods are of acceptable quality. • Those goods are fit for any purpose that the consumer made known to the business before buying (either expressly or by implication), or the purpose for which the business said it would be fit for. • Those goods have been accurately described i.e. in catalogues. • Those goods match any sample or demonstration model. • Those goods satisfy any express warranty. • The business has clear title (unless specified it was limited before sale). • The business has undisturbed possession. • Those goods are free of any hidden securities or charges. • Manufacturers or importers guarantee they will take reasonable steps to provide spare parts and repair facilities for a reasonable time after purchase. THREE SERVICE GUARANTEES - for businesses that supply services that those services will be: • Provided with due care and skill. • Fit for any specified purpose (express or implied). • Provided within a reasonable time (when no time is set).

Prescribed remedies If you sell a consumer a good/service that fails to meet one or more of the consumer guarantees, he/she is entitled to a remedy – for example, a refund, a further service to rectify the problem and in some circumstances compensation for

consequential loss. The business must then provide the appropriate remedy. If the problem is minor and can be fixed, you can choose how to fix the problem i.e. offer the consumer a repair, replacement or refund. If the problem is major and cannot be fixed, the consumer can choose to: • in the case of goods, request a refund, replacement or keep the goods and get compensation for the drop in value caused by the problem • in the case of services either end the contract for the services and obtain a full refund / replacement or otherwise seek compensation for the difference between the value of the services provided compared to the price paid.

Misleading claims and advertising If a business makes a false or misleading claim that is reasonably relied upon by consumers to purchase goods/services they could be in breach of the misleading and deceptive provisions of the ACL. Whether you meant to mislead consumers is irrelevant… if the overall impression is misleading! Misrepresenting a consumer’s right to remedies in notices, advertising, communications or contracts may amount to misleading and deceptive conduct. So how can franchised businesses make sure they’re in the right? Knowing and respecting consumer rights should not only be understood by those in managerial positions, but all staff in order to avoid conflicts with consumers. Review your refund policies and signs to ensure they take into account consumer rights under the ACL. In particular, a refund policy must not: • make blanket ‘no returns’ or ‘no refunds’ statements, even on sale items • require a consumer to take an exchange or

a credit note rather than a cash refund • require consumers to keep their receipt (although satisfactory proof of purchase can be required) or return products in their original packaging This does not mean you are compelled to accept ‘change of mind’ returns and if you do, you are permitted to set conditions on those returns i.e. length of time or tags still on the goods. Businesses may wish to consider displaying the national point of sale sign that informs consumers of their rights to repair, refund or exchange faulty goods. For more information you can visit the Australian consumer law website at http://www.accc. or These are some simple steps every franchised business owner could be following to keep consumers satisfied and to help avoid any ACCC penalisation. This article provides a general guideline for franchised business owners. I recommend that if the ACL is relevant to your business you seek legal advice to make sure your business is compliant. Kristie Piniuta, principal at KUBED LEGAL, specialises in franchising, retail leases and business law. Liability limited by a scheme approved under Professional Standards Legislation. Kristie established KUBED LEGAL so that her clients can directly benefit from the knowledge, skills and insights she gained from her unique experience as a private practice lawyer and General Counsel of Boost Juice Bars. KUBED LEGAL offers specialised yet practical legal services taking a flexible approach to meet each client’s needs. Contact Kristie at: Phone: 03 8514 5179 Email:

Business Franchise Australia and New Zealand 47

PROFILE : N oodle Box


NUMBER ONE restaurant openings in Australia and are actively exploring opportunities to expand internationally. Noodle Box recently announced the appointment of Ian Martin as Chief Executive. So what does Ian hope to bring to Noodle Box in his role as CEO? “With 20 years franchise and retail management experience gained both domestically and internationally with some of the world’s leading franchised restaurant brands, I aim to implement global best practice operating systems that will assist us to achieve our ‘Vision’ of making Noodle Box the first choice noodle based restaurant concept in every market in which we operate,” said Ian. New CEO, Ian Martin

Noodle Box is the largest noodle based restaurant concept in Australia serving high quality Asian style noodle dishes that are cooked fresh and fast in an open kitchen environment. In 1996, Josh James and David Milne created Noodle Box following a world trip. They became addicted to the delicious flavours and fresh quality of South East Asia’s street food served in simple packaging. They returned to Australian ready to put noodles in a box. 10 restaurants later in November 2002, Noodle Box opened its first franchised restaurant in Port Melbourne, Victoria and currently there are 78 restaurants across Australia. Noodle Box are looking to accelerate their

“My goal is to profitably grow our franchise network both domestically and internationally by providing our guests with authentic, high quality fresh and healthy noodle based meals in a friendly environment with great service.”

FRANCHISE PARTNERSHIPS Noodle Box is built on the following values: - Franchise partnerships built on integrity, respect and trust. - A commitment to excellence and innovation. - Leadership and collaboration. “It is important franchise partners joining the Noodle Box team share our passion for providing the highest quality fresh and healthy noodle based meals, served by well trained and friendly team members in an inviting and relaxed environment. “Noodle Box restaurants provide the theatre of our Wok Cooks in open kitchens, where everything is on display. This combined with our crunchy wok charred flavour, Original Master Recipe sauces and market fresh

48 Business Franchise Australia and New Zealand

vegetables, lean meats and seafood with a choice of premium noodles provides our guests with a great value for money dining experience they will want to come back for time and time again. “Franchise partners who have an ability to embed themselves into their local community usually find it easier to gain traction and succeed,” Ian said. “While we will be pursuing a growth strategy both in Australia and internationally, it is important to stress we are focused on delivering profitable growth; not growth for growths sake, for both our current and future franchise partners. “We have a strong presence in Queensland, South Australia and Victoria and they will continue to be a focus of our efforts. NSW and Western Australia provide enormous opportunities for the brand which we will be aggressively seeking franchise partners to capitalise upon. The Noodle Box Franchise Support Centre in Melbourne provides Franchise Partners with a broad range of support to help ensure their success and provide our guest with a consistent “Noodle Box” experience. This support covers everything from restaurant identification, design and build; ongoing training; through to national and local marketing and operational support delivered by our experienced team of Business Support Managers. Importantly, Noodle Box franchise partners are assured a cost effective and reliable supply chain with branded products and merchandise.” said Ian For more information about Noodle Box opportunities contact: Phone: +613 8851 4202 Email: Web:

Weâ&#x20AC;&#x2122;re boosting noodle numbers with new franchise partners... 78 restaurants Australia wide expanding in selected areas in all states Fastest growing noodle franchise in Australia Comprehensive training program Proudly Australian owned and operated For more information contact Michael Standley, Franchise Sales Manager Phone: 0416 256 338 Email:

Business Franchise Australia and New Zealand 49

Service sn a pshot: L iston L anders

Liston Landers

H el ping you ach ie v e a l ife t im e of fin a nci a l in depen dence For Franchisees

Melbourne-based chartered accountancy firm Liston Landers – a leading expert in the provision of detailed financial advice to prospective franchisees - can help you with every stage of starting up your own franchise. We can help you make strategic and successful franchise decisions. We possess a detailed understanding of over 30 franchise systems, and an ongoing commitment to continually updating our knowledge.

It is essential to get the right advice from experienced franchise advisors and undertake the appropriate level of due diligence.

of important factors. Once franchised, the quality of the franchisees within your business is critical to its success.

At Liston Landers we have the required specialised experience to evaluate the franchisor’s financials, answer all of your questions and provide appropriate franchise selection advice.

• Ensuring your business can be franchised;

We will help you to consider the right franchise pre-purchase questions including: • What are your long-term goals for the business?

Our expert advice to franchisors includes:

• Preparing a business plan for franchising; • Designing the franchise package; • Financial analysis;

• Setting up a test operation;

• Producing a franchise operations manual; • Drafting a franchise agreement;

• Drafting franchise staffing and training plans;

How do you choose the right franchise? How do you sell your franchise?

• What does the franchisor provide (e.g. training, branded equipment)?

We will help you answer these questions with our complete franchise solution which includes:

• Have there been any failures in the company/similar businesses?

• Determining a franchise management structure.

For Franchisors

For more information on our expert franchise advice contact Kieran Liston or Shaun Newton on:

• Valuations;

• Selection and evaluation advice; • Independent appraisals;

• Analysis of goals, risks and benefits; and • Tax advice.

• Are they an ethical trader?

Get the details right How to franchise your business effectively depends on carefully assessing a range

We also assist business owners considering franchising and franchisors wanting to expand their franchise operation. What’s it really worth? If you are considering purchasing a franchise, it is crucial that a detailed and expert examination is undertaken prior to purchase, and that you only pay what the franchise is really worth. We offer:

• Accurate valuations that are APES 225 compliant (as issued by the Accounting Professional and Ethical Standards Board). • The promise of a five-day turnaround for business valuations.

• Provision of an assurance to your financier that the value of the business corresponds with the finance required. Selection and evaluation - carry out due diligence.

50 Business Franchise Australia and New Zealand

• Making franchise funding requirements; • Marketing to potential franchisees; and

Phone: 03 9509 0366 Web:

Join Us.

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&#x20AC;&#x2122;s fitness; rLifestyle and financial rewards; rFull training and ongoing support; and rSecurity and opportunity for personal growth and achievement.

Visit us online today

Business Franchise Australia and New Zealand 51

PROFILE : T elechoice

TeleChoice 18 years on and now UNLEASHED The TeleChoice story began in 1995. From a humble beginning, TeleChoice has grown to more than 140 locations across Australia. This is only the beginning of the story, because from April 2013, TeleChoice enables customers to connect to a great network, at better prices. TeleChoice can do that because it now offers customers connection to parts of the Telstra 3G network. This is the most exciting development in TeleChoice’s 18 year history and presents fantastic opportunities for franchisees. TeleChoice is now a Mobile Virtual Network Operator in its own right. This means that TeleChoice offers its own plans and packages for customers – plans and packages which provide amazing flexibility, value and service. For example, TeleChoice franchisees can now offer customer a monthly mobile plan for as little as $15.00. Combine that with the latest mobile phones and the customer can save more money than ever. This is exclusive to TeleChoice’

customers, and that’s not all! TeleChoice is an innovative business which will bring amazing new offers to the market, including to take advantage of the ongoing roll out of the National Broadband Network. There’s even more excitement for TeleChoice’s franchisees with great offers to customers on electricity, gas and utilities making TeleChoice a comprehensive onestop location for customers to save money. On top of the internal opportunities for franchisees, there are projections that: • 70 per cent of Australians will have a tablet device by 2017; • Smartphones (5” or bigger) are expected to quadruple over the next three years; • Data use through smartphones will double, also in the next three years; • A wrist-phone-watch is not too far from being launched on the Australian market! All this means that the fast pace of technology is in favour of the telecommunications sector and this is an opportune time to be a part of it as a TeleChoice franchisee.

Setting you up to win When you apply to become part of the TeleChoice family, they want to set you up to win. They start with a thorough process directed to enabling the opportunity presented to match your goals. They follow that with four weeks comprehensive training and then continue with ongoing updates,

52 Business Franchise Australia and New Zealand

training and follow ups to ensure that their franchisees are knowledgeable in all the latest product releases, pricing changes and technology updates. The continuity of training is supported by TeleChoice’s Learning Management System. It is software that disseminates all new product information and training material to their franchisees and all their staff. They also have a dedicated team at Head Office to support their franchisees with the operational side of the business.

The best choice TeleChoice has so much to offer. In addition to the level of training and support, TeleChoice also offers: • great buying power with key suppliers; • industry leading experience; • great brand recognition; • an opportunity to own your own business; • fantastic training and support. Given this level of dedication to their franchisees, it is no surprise that TeleChoice is the first choice for 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: Web:

Business Franchise Australia and New Zealand 53

e x pert adv ice

Examining the

DISCLOSURE DOCUMENT If someone is in the market to purchase a franchise business, and they find a system that may be of interest to them, then they will investigate the franchise system further to see if it is the right fit for them. This involves investing time, effort and money before deciding whether they wish to proceed with a purchase or not. One of the best sources of information that a prospective franchise buyer can review is the disclosure document for the franchise system that has been prepared by its franchisor. Unfortunately, in New Zealand franchise disclosure documents are not compulsory and therefore a buyer can be tripped up at the first hurdle if the system they are looking at does not have one. In such cases a franchisee may have to spend significantly more time researching and collating the information they need. However, more and more New Zealand franchise systems are starting to make use of disclosure documents as they recognise the benefit for potential franchisees. Their use has become more prevalent as more systems are introduced from Australia and elsewhere. Further, if a franchise system in New Zealand is (or wants to become) a

54 Business Franchise Australia and New Zealand

“One of the best sources of the information that a prospective franchise buyer can review is the disclosure document.” Mark Sherry, Partner, Harmans Lawyers New Zealand.

member of the Franchise Association of New Zealand (FANZ), then it is a requirement of FANZ’s code of practice that franchisors will provide a disclosure document in accordance with their code. The FANZ code of practice includes minimum requirements for a disclosure document. FANZ requires that a disclosure document be regularly updated and that it be provided to a prospective franchisee with sufficient time to digest its contents before a final franchise agreement is signed or becomes binding. FANZ also require that an updated disclosure document be provided to existing franchisees before their franchise agreements are renewed. Many systems in New Zealand, even if they are not FANZ members, do have disclosure documents. This is especially true where they have been assisted at some stage in their development by a reputable franchise consultant who has convinced the franchisor of the benefits of a disclosure document. Ideally a disclosure document should provide the following details: 1. The name and contact details of the franchisor. It is important that at all times a franchisee knows how to contact the franchisor. They should also know the details of directors and executive officers of the franchisor as well as their job descriptions and qualifications. 2. The business experience of the franchisor, how long it has been involved in the type of business being operated in the franchise, how long the franchise itself has been operating, as well as detailing other franchise-related experience that the franchisor may have. This allows a prospective franchise purchaser to gauge the type of person that they are dealing with and whether they are qualified to deliver the assistance that the franchisee expects. 3. Financial projections, so that the franchisee can get an idea of prospective

returns on their investment. From a franchisee’s perspective, this is an extremely important item as the detail provided will show just how financially viable the business that they are looking to purchase might be. Disclosure documents do not always provide such written projections however as franchisors do not wish to be seen to be providing guarantees to franchisees around minimum income levels and the profitability of a franchise. Sometimes financial projections may be given, but often this is done as a separate document outside of the disclosure agreement. In nearly every case a franchisor will require the franchisee to seek independent financial advice and to specifically sign an acknowledgement at the time the franchise agreement is signed off that they have received independent financial advice and that they are not relying on any financial data provided by the franchisor. If financial projections are given by a franchisor then they are most often based on the actual historical performance of existing franchisees and they will be published with a waiver that states that there is no guarantee that a prospective franchisee will achieve those results. 4. The key financial information of the franchisor and the people behind it so that a franchisee is able to establish whether the franchise system itself is financially sound and likely to stand the test of time. If there have been bankruptcies, receiverships and the like in the history of the franchisor, or its executive team, these should be disclosed also. The relationship between a franchisee and a franchisor is one that is based on mutual trust. In other words, for each party to succeed the franchisor and all the franchisees in the system must perform for the benefit of each other. A good franchisor will always complete a due diligence investigation of its prospective franchisees to ensure they

are fit and proper. An astute franchisee should do the same. If the franchisor has had a troubled financial history then that is certainly something to be wary of. 5. A good summary of the main particulars and features of the franchise system, including things such as its history and how it developed, the intellectual property that is owned by the franchise system and any threats or litigation relating to that intellectual property, details of restrictions that may be imposed on a franchisee such as geographical or territorial restrictions, and details of how the system actually works on a day to day basis. If a franchise is a service-based system, it should provide details on how those services are to be delivered to customers. If it is a system that involves the sale of goods then it should detail how such goods are purchased and supplied and whether there are rebates that are paid to the franchisor by the suppliers. Rebates can be a contentious issue as they are an additional income stream for the franchisor that are generated from the sales of the franchisee. Problems have arisen in systems where their existence has not been disclosed to franchisees. 6. In systems where a franchise is operated from a specific site then there should be a description relating to how sites are selected and approved and the type of site that is suitable for the franchise. 7. How long a franchise agreement runs for along with details as to how, at the end of a term, the franchisee can renew the franchise for a further term or terms. There should also be a good summary of how a franchise agreement might be assigned if the franchisee wishes to sell their business to a third party. If a franchisee is looking to sell their business they are not just looking for a buyer who can pay them the purchase price. The buyer also needs to be a suitable person and that means that they must meet the franchisor’s criteria in terms

Business Franchise Australia and New Zealand 55

e x pert adv ice

of background, experience in the sector, financial standing and other relevant factors. 8. The financial information relating to the fee and cost structures of the franchise system. Most franchise systems have a number of fees and levies to be paid to the franchisor. There can be initial purchase fees, training fees, fit-out fees, ongoing royalties, marketing fees and other costs specific to the system. The disclosure document should detail the funds required by the franchisee both to get the franchise started up as well as to fund it on an ongoing basis. These details can then be provided to an accountant to review and to insert into a cash-flow projection. This can be very helpful in assisting a prospective franchisee to decide whether they believe the franchise system to be a viable investment or not. 9. What happens in the event of a franchisee failing to make payments due to the franchisor or otherwise defaulting on some other obligation contained in the franchise

agreement. Franchise agreements have rigid provisions detailing what happens in the event of different types of defaults and the sanctions that can occur if they are not remedied. In a worst case scenario a franchisee can have their franchise terminated and they will lose their business and investment. In summary, a disclosure document, when properly prepared, is an excellent tool for a franchisee to use when deciding whether or not it wishes to buy into the franchise system. However, it should not be used as an excuse for not doing other homework. The veracity of the contents of a disclosure document should always be checked where possible. A prospective franchisee should also talk to a number of existing franchisees and question them on various parts of the system and the matters raised in the franchise disclosure document. It is important to “test-drive” what may look like a glossy franchise system on paper to see if it stands up to its claims in real life. Purchasers of franchises should also

With a range of brands that are second to none, at Bright Eyes we’re not simply selling eyewear; we’re selling an enhanced way of life.

take advice from appropriate franchise professionals such as a suitably qualified franchise lawyers and franchise accountants. The advice that they can add to what is stated in disclosure documents and franchise agreements should not be over-rated and their general knowledge of the franchise world will mean that many hidden traps can be safely avoided. Mark Sherry, LLB (Hons), BCom, is a Partner with Harmans Lawyers New Zealand. He leads the commercial and property team, specialising in franchising, hospitality, rural law, property matters and asset protection. Harmans is a full service legal firm providing excellent service and advice, allowing Harmans to develop long-term, solid relationships with their clients. For more information please contact Mark Sherry at: Phone: Mobile: Email: Web:

03 352 2293 021 524 890

Our brand portfolio includes:

Ranked #6 in Passion* in the 2012 10ThousandFeet Survey ( *Passion for the franchise from both franchisor and franchisee.

To join our-award winning team, contact us now!

BRIGHT EYES FRANCHISING PTY LTD 75 Talavera Rd Macquarie Park, NSW 2113 T: 02 9815 2542 | F: 02 9815 2650 W: BRIGHTEYES.COM.AU | E:

56 Business Franchise Australia and New Zealand

...and many more



230 clients in the first 6 days. Up to 30 clients had to be turned away each day. 90% booked out until the end of month. Over $15,000 turnover (at normal prices) in the first 6 days. 60% of clients rebooking.

When you put a proven business model into a great location the results can be stunning. If youâ&#x20AC;&#x2122;re interested in a franchise check out our website Business Franchise Australia and New Zealand 57

Capital required - 220K - 410K Capital required - 170K Number of outlets - 13+ Number of outlets - 50+ Opportunities available nationally exist - nationally Capital required - $220K â&#x20AC;&#x201C; $410K Opportunities Capital required - $50K - $400K Number of outlets - 25 Opportunities available - Nationally

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

visual identity and signage styleguide

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

Number of outlets - 5 Opportunities available - Nationally

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

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

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

Capital Required - $350K + Number of outlets - 5 Opportunities available - Nationally

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

Capital required - 300K - 450K Number of outlets - 6 Opportunities available - nationally

Capital required - $400K + Number of stores - 25 Available opportunities â&#x20AC;&#x201C; Nationally

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



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

Capital required - 70K+Australia and New Zealand Capital Required - 250K 58 Business Franchise Number of outlets - 4 Opportunities available - nationally

Number of outlets - 100+ internationally Opportunities available - nationally

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

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

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

Capital required - $170K – $200K Number of Outlets - 20+ Opportunities - Nationally

Capital required - $400K + Number of outlets - 5 Opportunities available - Nationally

Capital Required - $200K + Number of outlets - 30+ Opportunities available - Sydney, Melbourne, Queensland

Capital Required - $350K + Number of outlets - 4 Opportunities available - Sydney

Connecting people to opportunities Choose from Australia’s best selection

WW.FRANCHISESELECTION.COM.AU Visit or ONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624) Business Franchise Australia and New Zealand 59


e x pert adv ice

Franchisee Planning for a brighter future

1. “Business planning is a waste of time.” 2. “I’m far too busy.” 3. “The plan is in my head – What do you think I think about every day and night?” 4. “I can’t predict the future.” 5. “My plans are none of your business.” For some systems, these objections are enough to stop planning in their tracks. Yet they needn’t be, as they are often based on a lack of understanding about good business planning and franchising practices - on both sides of the fence.

Why franchisee business planning is critical There are many reasons why franchisee business planning is important.

Franchisor participants to all of our franchise management training programs know of the importance we place on franchisee business planning. We regard it as a critical franchisee and franchisor success factor and process which, in my experience, is often underdone or worse still - left unattended. This leaves a lot on the table for both parties, often manifests in poor decisions, mediocre performance

and, at the extreme, business failure. This article highlights five common objections, five reasons why planning is crucial, and four suggestions for ensuring successful planning takes place in your franchise system.

Common franchisee objections Many franchisees fully understand the importance of business planning and are engaged in the process and the benefits it provides. Yet for those that aren’t we often find a commonality [and an abruptness] in the types of franchisee explanations why. Five really common examples we often hear are:

60 Business Franchise Australia and New Zealand

1. Goal setting [to establish direction]. A business without clear goals is like sail boat in the middle of the ocean without a sail. As a franchisee you can’t engage your staff on helping achieve your objectives if you haven’t formalised them. You can’t make good investment or resource allocation decisions if you haven’t run the numbers. And your franchisor and field manager are wasting their time if no analysis, training, or improvement-oriented solutions can be anchored to outcome you’ve stated you’d like to achieve. 2. Goal alignment [to get on the same page]. As a franchisee you are part of a system and team, encompassing fellow franchisees, and the franchisor. You are not a lone, independent business – and therefore you can’t plan and act like one. Furthermore, most franchise agreements require that you a) actively develop your

“Business planning is a critical franchisee and franchisor success factor and process which, in my experience, is often underdone or worse still - left unattended.” Dr Callum Floyd, Director, Franchize Consultants (NZ) Ltd.

location/territory, and b) present and formalise a business plan that is acceptable to the franchisor. The latter point is designed to facilitate goal alignment – and help ensure all parts of the team, which includes yourself, other franchisees, and the franchisor – don’t go out on a tangent. In other words, you and other franchisees are positively exploiting the business model, territory and system within which you operate – for maximum mutual advantage. At least, that’s the idea. 3. Clarity of action [to maximise effectiveness]. Without goal clarity it’s impossible for you to work out what specifically needs doing, by when, by who, and how you you’re going to judge when it’s done. This may seem simple, but the reality is most businesses have limits to financial and human resources meaning smart trade-offs and decisions are needed in order to drive productivity, quality and performance. 4. What if [to explore and respond]. In my experience, problems emanating from an unexpected and sustained explosion in sales rarely arise. By contrast, the opposite is a more common occurrence. This reality strikes at the heart of the “I can’t predict the future objection,” because it is precisely the reason why such planning is so vital. As an example, if you’re in one of the more cyclical sectors, like real estate or construction, it is possible your sales could suddenly drop by 30 to 50 per cent in a down market. To survive, you may need to scale back operations – fast! On the flip side, in an up-cycle, you may look to structure up a sales force to facilitate sales growth. Thinking through both possibilities is vital – as both require an active approach that, in order to protect and maximise the business, involves timely and quality decision-making.

5. A basis for communication [to engage with needed parties]. Even if you’re a one man band you still need to communicate your business goals, needs and/or activities effectively with others, like your family, accountant, bank, suppliers, staff, franchisor and other franchisees. Completing a business plan provides you with the clarity and confidence to achieve this.

Keys to business planning success As indicated at the outset we often find many franchise systems failing to engage franchisees on franchisee business planning – and this is despite specific provisions requiring such planning in the franchise agreement and franchise operating manuals. In my opinion there are many factors which help explain this dearth of planning. I think it’s useful to name some of them as they also serve as pointers for getting franchisee planning underway. My top four franchisee business planning success factors include the following: 1. Have a great template. For me, a great template is number one as the template can make or break franchisee engagement in the planning process. In my opinion the template needs to be specifically tailored to the franchise business so that every section a) counts, and b) contributes toward an output covering all key bases, and c) is comparable (with other franchisees). The template also needs to be simple to complete and bring the business alive – enabling the franchisee to efficiently set goals, understand key sensitivities and what is needed to achieve their plan. 2. Easy access to information. A major impediment to business planning completion is the ability to access needed

information. In an ideal world, all key information needed will be at your fingertips – and you won’t need to spend hours finding and collating numbers for a single business plan input. 3. Franchisor and field support understanding. Many franchisors and field managers are relatively new to business planning. That doesn’t help, because the planning cycle and process needs to be led by the franchisor. Increased confidence and competence at the top level, in turn, often helps explain the importance and provide franchisees with more practical and valuable assistance. In turn, that can help gets franchisee juices flowing. 4. Franchise relationship. Quite simply, it’s difficult to get strategic stuff done if the franchisor-franchisee relationship is strained. Investment in the relationship can help facilitate a more engaged business planning process. Callum has led New Zealand franchise system development and improvement projects across a range of business sectors involving leading local and international organisations. Callum has benefitted by completing both Master of Commerce (with 1st class honors) and Doctor of Philosophy (PhD) qualifications researching franchising. Franchize Consultants is New Zealand's largest and most experienced consultancy providing specialist advice and assistance to prospective and existing franchising and licensing networks. Founded in 1989, Franchize Consultants provides consulting, training, mentoring and research services to leading local and international franchising companies. Contact details: Phone: +649 523 3858 Email: Web:

Business Franchise Australia and New Zealand 61

Spotlight on Service : N at i o nal Fr anch ise Insu r ance B ro k ers



ne year on and National Franchise Insurance Brokers is on the move in a big way.

Every now and again, someone comes up with a new idea and everyone benefits. That pretty much sums up the last twelve months for National Franchise Insurance Brokers (NFIB). “Identifying a niche in any market is one thing, but being able to fill that niche with a product that is relevant, cost-effective and of real benefit to the marketplace is something completely different,” said NFIB Executive Director Darryl Morris. And judging by the take-up of the NFIB service by some of Australia’s most respected and well-known franchised businesses, NFIB has filled the niche and then some! NFIB is a web-based insurance platform that’s been specifically designed for providing low-cost insurance cover for franchised businesses. Based around the brand’s website this highly simplified online insurance platform means that any franchised business can be insured in just four clicks of a computer mouse. “Every franchisor we speak to is extremely positive about our service offering so it seems all the time and effort we spent in researching and developing this insurance system has been well worth it. What we clearly identified from the outset was that insurance cover for any franchised business needed to be a low cost cinch. “And now that we have the likes of Boost Juice and Salsa, Hire-A-Hubby, Cheesecake

Shop, Wendy’s, Xpresso Delight and many other franchised businesses of this calibre, we’re very encouraged that we really are on the right track,” said Mr Morris. Only four pieces of basic information are required in order for NFIB to arrange cover for a franchised business: • the value of the franchised business • the gross profit of the franchised business • the level of public liability required by the franchised business • whether or not machinery breakdown is required by the franchised business “Like anyone who’s running a small to medium-size business, franchisees have better things to do than spending a day filling out forms and making phone calls and sending faxes. We’ve boiled the insurance process right down so that now it’s just a simple matter of sitting down, visiting our website and the entire process can be completed in a couple of minutes at the most. We also recognise that compliance is a key issue with any franchise business type, and we’ve ensured that all the boxes are ticked in that regard,” said Mr Morris. There are two types of insurance programs available to franchised businesses. The first is the NFIB Managed Program allowing a master franchisor to endorse NFIB as the preferred insurance provider for all franchisees within that business. The NFIB Managed Program has common insurance due dates and allows the master franchisor to go online and make sure that all franchisees have adequate levels of cover. The second

62 Business Franchise Australia and New Zealand

insurance program is the NFIB NonManaged Program that enables individual franchisees to insure their own businesses. “From our perspective and based on the daily feedback we get from our clients, the benefits of our service are twofold: our insurance premiums are very low and the time it takes to insure with us is negligible so it really is a win-win for all our clients.” For more information about National Franchise Insurance Brokers please contact Darryl Morris. Phone: 1800 776 747 Email: Web:


To find out how we can insure a franchised business in just four clicks, speak to Darryl Morris today on 1800 776 747 or email

MYNFIB.COM.AU National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374)


Business Franchise Australia and New Zealand 63

australia & new Zealand business









Some of the top names in the industry contribute their expertise in regards to researching, finding and evaluating possible franchises.

$9.95 AUD, $11.9

The Franchise Directory is packed with valuable articles to help guide you through the franchising process.



Search through

1700 Listings to find the right franchise for you.

This annual publication is available on newsstands and magazine racks throughout the year. It is also sold at all the franchise expos in Australia and New Zealand or through the Business Franchise website:


The New Growth Opportunity Business Franchise Australia and New Zealand 65

feature When most of us think of franchising we think fried chicken, hamburgers and fast food, retail such as clothes, books, homewares and other concepts that service our daily needs. In 2012, the fastest growing franchises were in the health and beauty sector and the Franchisor of the Year was in food service. With the prevalence of retail and other business to consumer (B2C) businesses that are seen in shopping malls and strip shops and advertised on radio, television and social media, you could be forgiven for thinking that B2C businesses are the only type of franchises available. However, Australia has over 2 million businesses and its market is just 1.2 per cent of the global economy. There are 25 million businesses in India alone and probably over 100 million businesses across the international market. So the potential for franchise networks that service the business market is huge. And this potential is being exploited not just here in Australia, but across the globe.

With a growing number of businesses outsourcing their non-core activities to limit the number of employees under their direct control and to tap expertise only when it is needed, B2B businesses (of which IT businesses form a part) are growing strongly in both the service and supply areas. Rod Young, DC Strategy

66 Business Franchise Australia and New Zealand

With a growing number of businesses outsourcing their non-core activities to limit the number of employees under their direct control and to tap expertise only when it is needed, B2B businesses (of which IT businesses form a part) are growing strongly in both the service and supply areas. B2B service providers cover a huge range of services from software and bookkeeping to office cleaning and ink and toner cartridge supply. The franchises that are emerging to service the business market are growing rapidly in Australia and around the world. B2B businesses include Pack & Send, Cartridge World, Clean Green Strata, Hardware2You, Jani King, Total Tools, Xpresso Delight, Fastway Couriers, and Leadership Management Australia (LMA), Mail Plus and IT businesses like Gizmo and Sacko IT. These are only some of the many B2B businesses that service the small and

feature medium enterprises (SME’s) and in some cases large corporations as well.

Less Business Hours and a More Diverse Client Base As they serve the business market B2B franchises often operate normal 9 to 5 business office hours and usually operate just five days per week. This makes them more family-friendly than seven day food or retail shopping centre-based businesses. It also makes B2B franchises attractive to prospective franchisees who want to balance the opportunity to build a business with time for the family. One of the other features of many B2B businesses is that they are not limited by the location they operate from. They are often oriented toward outward bound, proactive sales activity to win new customers and increase sales revenue rather than just relying on a well–sited office location. Good B2B franchises have well developed sales tools to assist franchisees to identify and win new customers and use their websites and in some cases, eCommerce as a business development channel. As the location is not critical, some B2B franchises comprise smaller one owner/one operator franchisees who work from home. Overheads can be extremely low and the capital costs to buy in can often be less than $50,000. For example, bookkeeping franchises like First Class Accounts, with over 150 franchisees across Australia, have franchisees who work with clients either remotely or at their clients’ premises. These franchisees do not need an office so most work from a home. This means that apart from minor travel, administrative, IT and stationary expenses, gross income does not need to be huge to ensure an excellent net income for the franchisee even after paying royalties. While some B2B franchises may have an unlimited scope with customers across many business disciplines, others service a specific segment of the market.

Specialisation Clean Green Strata is a specialist cleaning and maintenance service franchise which focuses on servicing the common areas of flats, apartments and home units. While their end customers are the Body Corporate they are often referred by real estate property managers and other real estate service suppliers.

They are highly specialised and concentrate on a niche within the larger commercial cleaning market. Their name and reputation are well recognised within the specific market where they operate, but to the average consumer and sometimes the property owners they are virtually invisible.

From B2C to B2B Some service-type B2B franchises also serve the B2C market and offer dual income opportunities. One of the best B2B business opportunities today is Cartridge World which has been described by Entrepreneur Magazine as Number 1 in its class. What started as a consumer focussed retail ink-cartridge refilling business in Adelaide in the 1990’s has evolved into the world’s largest recycled ink and toner franchise with over 1500 stores in over 40 countries.

Cartridge World’s business model was originally based in retail premises that served only a walk-in retail consumer base with the franchisee refilling the ink and toner cartridges in the back of the store largely for domestic users. Today its network of stores has evolved into a multi-national B2B sales organisation servicing thousands of businesses each month across every continent. The B2B-focused franchisees seek out business customers who choose to save money by buying environmentally friendly recycled printer cartridges under the Cartridge World brand. These B2B customers can choose to visit the retail location, order online from the eCommerce site and have the order fulfilled by the store or have the franchisee deliver to the business in branded Cartridge World vans. While new franchise owners still enjoy the retail B2C walk-in business, they are trained in B2B sales and service techniques. Rather than spend their time in the back of the store in low value refilling activities, the group now offers its franchisees access to a growing global procurement program that allows them to access not only original cartridges but a wide range of compatible or factory refilled

Business Franchise Australia and New Zealand 67

feature In some B2B franchises this may mean canvassing and cold-calling for new clients. Many B2B businesses are not fast start businesses but need to build their client numbers over time. If franchisees and their families are not prepared to make sacrifices during this establishment period then perhaps a B2B franchise is not a good choice. Many good B2B franchises are labour intensive and franchisees and their families need to understand that only a total commitment to the business and its customers will ensure success. Going into business as a B2B franchisee is a serious undertaking and requires selfdiscipline, hard work and long hours to ensure the opportunity is fully maximised. and remanufactured cartridges as finished goods to suit the printers of their business customers. With the advent of new technology, the increase in buying power of the group and the growth in the SME market, the most successful franchisees now have hundreds of B2B customers who buy quality recycled and remanufactured printer cartridges month after month ensuring not only a predictable cash flow but a customer base that makes the franchise more saleable when a franchisee decides to transfer the franchise. The very best of these franchise owners are now offering to manage the printing needs of their customers and have extended their offer to office printer maintenance and advice.

Retail B2B Not all B2B franchises are low cost service businesses. An excellent example of a business that is focused on B2B customers is the trade tool retailer, Total Tools whose clients are tradesmen (and women) who make their living using tools. While Total Tools operate over 40 retail stores and have some DIY domestic consumers and owner-builders, the vast

majority of their customers are independent businesses run by tradesmen. These customers need and want quality, robust and long lasting tools to help them earn their living and deliver the trade services to their clients. This is a substantial market but requires big, high exposure, 1500 square metre locations, a large stock range and sales oriented product knowledge. A capital investment of around $1 million is needed to establish each location. However the rewards can be substantial. Trading only a six day week, many stores have gross sales of over $4 million in turnover and profits exceeding $500,000 after an establishment period.

B2B Franchises need a Sales Commitment Prospective franchisees should not be misled by B2B franchise opportunities which promote lifestyle first. They seldom, if ever, prove to be profitable ventures and can turn a dream of independence into a self-employed nightmare. Unless the franchisor is providing the all the new clients, B2B franchisees need to be self-motivated, sales-oriented and prepared to go out into the business world and promote their goods or services.

68 Business Franchise Australia and New Zealand

But for many, the financial rewards and satisfaction of winning and serving regular B2B customers can be rewarding. Rod Young is Managing Director of DC Strategy. He is considered one of the worldâ&#x20AC;&#x2122;s leading franchise consultants and sits on the boards of several Australian and international franchise networks. He acts in an advisory capacity to government and statutory bodies, private enterprise and academic institutions in the area of franchising policy and practice. He is also one of the Board of Governors of the ASEAN Franchise Association. DC Strategy is a specialist franchise consulting, legal and franchisee recruitment firm. It provides advice and services to those businesses who wish to franchise their business concept or existing franchisors who wish to increase the value of their enterprise. DC Strategy has developed the networks and brands of many of Australiaâ&#x20AC;&#x2122;s fastest growing, most successful and valuable franchises. It has offices in Sydney and Melbourne. Phone: 02 8220 8711 Email: Web:





Your favourite source of hot topics and expert advice on franchising is now available wherever you go.

Available via the App Store or Android.


Download the Business Franchise App and never miss an issue again! Business Franchise Australia and New Zealand 69


Fast way Cour iers

Fastway Couriers

Delivering franchisee success for thirty years For 30 years, Fastway Couriers has been providing cost effective courier services across New Zealand and Australia, and delivering success to hardworking franchisees. CEO Fastway Couriers Australia Richard Thame

CEO Fastway Couriers New Zealand Jason Windhager

70 Business Franchise Australia and New Zealand

Richard Thame, CEO at Fastway Couriers Australia, says celebrating 30 years in

feature operation is an exciting milestone for a global company with humble roots in Hawkes Bay, New Zealand. “It’s fantastic to be part of a brand which has been consistently successful for three decades. As a company with such an established history, its important to investigate opportunities to further grow the Fastway Couriers brand into the future,” said Richard. Fastway Couriers originally began as a low-cost courier service between Napier and Hastings in New Zealand. Less than a year later, Fastway became the first ever transport company to enter the franchising arena. In 1993, the decision was made to export the Fastway business concept to Australia. This followed a year of research which showed that the same niche market existed across the Tasman. “Our success in Australia was immediate and our growth has continued to this day,” says Richard. “Today, we have 25 Regional Franchisees operating delivery hubs around the country with over 700 Courier Franchisees moving in excess of twenty million parcels per year.” “Our Courier Franchisees have increased by almost 10 per cent over 2012,” said Richard. Fastway Couriers in New Zealand currently operates with 17 Regional Franchisees. Each region is serviced by the Courier Franchisees of which there are over 250 throughout New Zealand. Fastway Couriers New Zealand CEO Jason Windhager says the franchise’s success in New Zealand has been consistent over the last 30 years despite substantial changes in the marketplace. “The market has changed considerably since 1983, and the largest changes have all happened in the last ten. The rise of the internet and online retailers has changed the way the world does business,” explains Jason. “In recent years, online retail has continued to grow strongly, and this has introduced new opportunities for the courier industry, which has traditionally been oriented more at delivering to businesses than direct to consumers. “Much of our expected growth in years to come will be the result of both domestic and international e-commerce sites which rely on couriers to deliver goods within New Zealand,” he said. “We’ve also seen a shift in the way

businesses are purchasing; rather than buying in bulk loads, businesses now choose to purchase in smaller quantities and more often. This of course has a knockon effect for our couriers.” “The changes in the marketplace have been very positive for our business, and better still, they look to be sustainable,” said Jason. “As owner-operators, our franchise partners are dedicated to providing each and every customer with exceptional service; going the extra mile to ensure that parcels are delivered on time and with the utmost care,” says Richard. “Our Courier Franchisees are the foundation of our business.” “Increasingly, customers are demanding a greater level of flexibility when receiving goods. Fastway is particularly well suited to providing a ‘last mile’ solution to retailers given the franchise territory structure of our network, lower cost facilities, owner operators and internet based technology factors. “We know our customers are time poor. It doesn’t matter if they’re a start-up home internet business or a large multinational, we have a freight solution to suit just about everyone,” Richard said. Fastway Couriers are also located in Ireland, Northern Ireland and South Africa, with a total of 63 Regional Franchisees and over 1,200 Courier Franchisees in all the countries they operate in.

Brand revitalisation A brand refresh was undertaken in New Zealand and Australia in 2012. “We completed a brand revitalisation to ‘bridge the distance between the organisation we were, and the organisation

we wanted to be’,” said Richard. “One of our business goals was to position Fastway as a leading courier service provider to the online retail industry. Online retailers told us that they didn’t have the luxury of dealing with their customers face to face and so they relied on their courier to be an extension of their business. “The ‘last mile’ – the delivery of their products to customers; was critical in ensuring customer satisfaction and their business success,” he said. “In October 2012, Fastway Couriers won the Franchise Council of Australia Excellence in Marketing award for our brand refresh.” The brand revitalisation also created an increase in franchise enquiries and double digit growth of the brand last year,” says Richard.

The ideal choice For their clients, Fastway offer a cost effective, reliable, timetabled courier service with local, short haul and national courier distribution. Backed up by the latest technology and online parcel track and trace facilities, Fastway is the ideal choice for small to medium sized businesses. Fastway’s prepaid courier label system enables customers to enjoy savings on their usual freight costs, as well as providing a simple system free of any extra paperwork or add-on charges. For medium to high volume senders, an electronic labelling system is also available. Within Australia opportunities currently exist for Courier Franchisees. “We have a full complement of Regional Franchisees but there are always

Business Franchise Australia and New Zealand 71


Fast way Cour iers purposes and can be used as an ongoing reference guide. It includes a wide range of promotional materials and handy reference matter.

opportunities for more Courier Franchisees as territories are split or sold,” says Richard. In New Zealand opportunities currently exist for both Regional Franchisees and Courier Franchisees.

Regional Franchisees “Fastway Regional Franchisees are experienced business people,” says Jason. “Many want to take the next step in their career but prefer the support and back up that being part of a successful franchise group can provide.” Regional Franchisees operate a courier depot facility within a specified region. From this depot, they employ office staff to provide support to Courier Franchisees in the areas of administration, operations, sales, marketing, technology and customer service. “This is a total business management franchise that requires a skilled business person with strong business acumen, good leadership skills and the willingness to take a hands-on approach.” “Over the years, those Regional Franchisees which succeed are enthusiastic and energetic with a strong customer services focus, and the desire to build a successful business within the guidelines of the Fastway franchise system.“

Courier Franchisees “Fastway Courier Franchisees are motivated, self-employed business people who work under the recognised Fastway brand name,” says Richard. With low up-front investment and ongoing professional support, a Fastway courier franchise is an ideal entry-level business ownership opportunity. They’ll operate with an exclusive territory, collecting and delivering parcels and supporting local businesses by being their physical point of contact with their customers.

“With a Fastway franchise business, there’s no weekend work plus the opportunity to enjoy the freedom of working for themselves,” Richard says. “Our Courier Franchisees range in age from 18 to 80 and come from all walks of life. Successful Courier Franchisees demonstrate passion and drive while adhering to Fastway’s franchise system, and don’t mind going the extra mile for their customers.”

Optimal support Fastway’s franchisees receive optimal support from the outset. “We believe that comprehensive training is paramount to the success of our franchise partners,” says Jason. “Within the Fastway organisation, a strong emphasis is placed on both the initial and ongoing education of franchisees.” Regional Franchisees receive two weeks of in-house training and are required to complete a comprehensive online training course as part of their assessment. Ongoing support and training is provided by the Franchise Support Office team covering areas of franchise operations, administration, sales, IT, legal and marketing. For Courier Franchisees, introductory training takes place at the depot and includes a combination of classroom, practical, and self-training modules. Topics covered in the classroom section include the full scope of operating a courier franchise. The practical training takes place by accompanying an experienced and established Courier Franchisee and observing courier operations first hand. This is backed up by self-training modules, which include DVD and multimedia presentations that Courier Franchisees can watch in the comfort of their home. A copy of the Fastway Courier Franchisee Manual is provided for initial training

72 Business Franchise Australia and New Zealand

Ongoing training is offered through short training sessions, the franchise partner intranet and conferences. In addition to this, the Regional Franchisee and Franchise Business Managers from the Franchise Support Office regularly accompany any new Courier Franchisee on van rides to assist in improving their businesses operations and winning new business. A comprehensive range of tools and programs are available for ongoing marketing and business promotion. Fastway operates several national campaigns throughout the year which include flyers, parcel stickers and personalised emails as well as providing individual marketing solutions to both Regional and Courier Franchisees as required. The process is backed up by dedicated Sales Representatives who follow up on leads to make sales. Sales Representatives are required to work closely with Courier Franchisees to help build their business rapidly. Fastway Couriers also provides access to a PR agency free of charge to all franchise partners to assist in gaining local media coverage. Beyond operations and business support, full legal, IT, marketing and administration support is provided via the Franchise Support Office to assist Regional and Courier Franchisees grow their business. To help celebrate 30 years of operation, this year Fastway will hold a trans-Tasman conference for Australian and New Zealand Regional Franchisees in Napier, New Zealand, the birthplace of Fastway Couriers. “This will be a great opportunity to acknowledge 30 years of success, as well as to create discussion about the business and how to go forward over the next 30 years,” says Jason. For more information about becoming a Fastway Couriers Regional Franchisee or Courier Franchisee contact: AUSTRALIA: Phone: 1800 FASTWAY Email: Web: NEW ZEALAND Phone: 0800 4 FASTWAY Email: Web:

Franchise BUSINESS



Are you letting your people slow your business down? Having good staff is the only way for businesses to grow, yet after kicking off with great fanfare business operators can allow people problems to interfere with their success. ‘Staffing issues’ becomes the status quo and they get used to thinking this is normal. Often compensating by putting in crazy hours they get so far inside their business they cannot see the solutions.


Are you frustrated at staff that treat you as a ‘wage’ resource? Don’t be surprised if you have been treating your people as a ‘human’ resource. People Services is about building the employment relationship not administering it. We provide flexible solutions including:


Tailoring our People Services to create the franchisor employer brand Building our People Services into standard procedures and training franchise managers how to use them


SUBSCRIBE TO Business Franchise Australia and New Zealand’s newsletter and receive all the latest franchising news delivered straight to your inbox, every week!


As-needed for a problem, task or project including: Recruitment and induction Training for supervisors and managers Warnings and disciplinary issues Dispute and issue resolution Employee development Horatio, our integrated SaaS (software as a solution) automating key employment processes

Failing to properly manage staff is an expensive risk. Compliance audits or incidents can end up in court costing thousands in lost time, negative publicity, hefty fines and penalties. Our People Services take into account the current workplace laws and regulations giving you peace of mind especially as your outlay could be covered several times over by just one avoided fine^. Our approach is so effective that our clients achieve a 20% increase on their wages ROI* through improved productivity. We integrate with your operations creating a ‘turnkey’ solution for managing your staff. Franchises invest so much into their brand; don’t let one poor operator, bad decision or mismanaged situation put your reputation and credibility on the line.

Call (03) 9016 3827, Skype metamanagement or use our online form at Contact us for an introductory consultation (conditions apply) and we will provide Business Franchise Magazines readers a complimentary written one-page response.

To subscribe visit

*Based on client feedback ^A single breach of the Fair Work Act can attract fines up to $33,000

MetaAd.indd 1

30/11/12 12:40 PM


REACH YOUR POTENTIAL Join the worldâ&#x20AC;&#x2122;s #1

WITH MAIL ETC Postal and BusinessBOXES Services Franchise 1

Mail Boxes Etc. Centres are part of a global network with over wide. Theyrevenue streams 6000 locations internationally2 and 35 centres AustraliaMultiple According to Richard offer SMEs and home offices a large selection of professional Richard says that one of the benefits of Saar of which Mailhave Boxes Etc. consolidated business services been conveniently at the MBE is that they are a one stop shop for all one location. business services.

(MBE), itâ&#x20AC;&#x2122;s a common most other franchise systems, MBE that challenge with aâ&#x20AC;&#x153;Unlike If youmisconception are looking for a new business constantly offers a wide growing customer base, then joining â&#x20AC;&#x2DC;Australiaâ&#x20AC;&#x2122;s Leading Business range of B2B services. We franchising is all about fast do more than pack and send, we do more Centre Franchise Groupâ&#x20AC;&#x2122; is probably for you. than printing and copy, we do more than food and coffee. courier services or mail receiving. We do

Are you a team player? MBE looks for people who work well with others, are selfmotivated, energetic, able to get the best out of people, openly share and participate and want to make contributions to MBEâ&#x20AC;&#x2122;s overall success.

Are you a â&#x20AC;&#x153;people personâ&#x20AC;?? To effectively work in the MBE franchise system, a franchisee must enjoy working with the public, have strong problem solving skills, Takeâ&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve Control of Your Life with an MBE Franchise! it all. This reduces your risk, makes MBE attended many franchise expos, understand the importance of providing more future proof and insulates franchise and in my experience of talking to the outstanding customer service, be a good Everyday, Mail Boxes Etc. lends a helping hand to Australiaâ&#x20AC;&#x2122; s 1.9 Operating since 1980 operators from the economic impacts globally of public, people often donâ&#x20AC;&#x2122;t realise that listener and be considerate of others. million small businesses; Â&#x2021;3DUWRIWKHZRUOGŠ V ODUJHVWEXVLQHVVVHUYLFHVIUDQFKLVHJURXS technology changes, labour strife and there are professional services options in Benefits of joining the MBE network: Â&#x2021;Design, printing Richard & copyingsaid. (digital & offset) Â&#x2021;0XOWLDZDUGZLQQLQJLQWHUQDWLRQDOIUDQFKLVH other business factors out of the control of franchising,â&#x20AC;? Â&#x2021; Wide format printing & banners franchisees. Â&#x2021;&OHDQSURIHVVLRQDOZRUNLQJHQYLURQPHQW â&#x20AC;˘ Site selection and lease negotiations. â&#x20AC;&#x153;If youâ&#x20AC;&#x2122;re looking for a franchise system Â&#x2021; Private mailboxes & forwarding Â&#x2021;1RQIRRGIUDQFKLVH¤QRZDVWHQRPHVVQRSHULVKDEOHV â&#x20AC;&#x153;It provides multiple revenue streams for â&#x20AC;˘ Assistance with interior layout and that provides professional services, a Â&#x2021; Virtual officetoservices Â&#x2021;)LYHGD\VSHUZHHNSURIHVVLRQDOEXVLQHVVKRXUV franchisees. We also provide a physical design. business business (B2B) model, then Â&#x2021; 24Mail hourBoxes copyingEtc. & private mail access shop front â&#x20AC;&#x201C; which helpsÂ&#x2021;1RSULQWLQJH[SHULHQFHUHTXLUHG franchisees to could be forbox you,â&#x20AC;? he said. â&#x20AC;˘ Budgeting, accounting and financial Â&#x2021; Overnight courier & freight Â&#x2021;)XOOWUDLQLQJSURYLGHG RQJRLQJVXSSRUW really develop a relationship with their analysis programs. regular clientele,â&#x20AC;? said Richard. Â&#x2021; Pack & ship services Â&#x2021;3UHIHUUHGVXSSOLHUSURJUDPV Backed by experience â&#x20AC;˘ Buying power via global contracts with Â&#x2021;6WUDWHJLFVLWHVHOHFWLRQSURFHVV Â&#x2021; National & international courier & freight Owned by the largest courier and logistics For over 33 years, MBE has been major suppliers. company in the world, UPS, an MBE franchising globally, and has been Franchise Opportunities Available Nationally â&#x20AC;˘ Advertising, marketing and promotional franchise offers franchisees the opportunity operating within Australia for over 20 programs. to accomplish their own potential in an years. There are over 35 MBE Centres Who We Are Looking For! industry that is idyllic for franchising. â&#x20AC;˘ Management consultation. throughout Australia. With such a long history, and over 1400 MBE Centres in over 35 countries, franchisees can be assured they are backed by experience.

1. 2.

â&#x20AC;&#x153;With such a long history, and with so many outlets, MBE is well and truly experienced in what we do,â&#x20AC;? Richard said. â&#x20AC;&#x153;Our franchisees benefit from our experience â&#x20AC;&#x201C; we know what works and what Ranking compiled by Entrepreneur Magazine 1355and â&#x20AC;&#x153;Mail Boxes centres 4700 â&#x20AC;&#x153;The UPS Storeâ&#x20AC;? to doesnâ&#x20AC;&#x2122;t canEtc.â&#x20AC;? pass onandthis knowledge our franchisees.â&#x20AC;? â&#x20AC;&#x153;MBE has proven and professional expertise in all aspects of franchising, so it gives franchisees extra added support. This means you donâ&#x20AC;&#x2122;t have to go through the pitfalls that most new businesses have to deal with,â&#x20AC;? he said.

We provide franchisees the ability to adapt their stores services â&#x20AC;˘ Ongoing field and sales so they best utilise their existing regionalised skills Are you a match for Mailcan Boxes support. Â&#x2021;'HGLFDWHGDQGGLVFLSOLQHGEXVLQHVVRSHUDWRUV Etc? â&#x20AC;˘ Global network for worldwide document Â&#x2021;0RWLYDWHGSDVVLRQDWH SUHSDUHGWRJRWKHH[WUDPLOHIRU  At MBE Business Service Centres it is all distribution. their clients. about you - the franchisee.

â&#x20AC;˘ Private intranet with online support. To findonout â&#x20AC;&#x153;The financial rewards depend yourmore about this opportunity go to â&#x20AC;˘ Global web site and internet presence. ability to apply the proven MBE systems,â&#x20AC;? â&#x20AC;˘ Research and development. said Richard. â&#x20AC;&#x153;But some people make better franchisees than others. want the Call ourWe National Franchise Development Manger MBEâ&#x20AC;&#x2122;s experience in the industry best possible match, so that youBeugnon can thriveon; provides you with the necessary support Agnes in the MBE environment.â&#x20AC;? to help phone: 0457 677 986 you achieve your financial goals. For more information about becoming an email: Are you a hands-on operator? An MBE MBE franchisee in the Australia or New business services franchise will only Zealand, contact: be granted on the basis that it is owneroperated. MBE know from experience that owner-operators achieve significantly better results than pure, hands-off investors.

74 Business Franchise Australia and New Zealand

Phone: 1800 556 245 Email: Web:

Join the worldâ&#x20AC;&#x2122;s #1 Join the worldâ&#x20AC;&#x2122;s #1 Join the worldâ&#x20AC;&#x2122;s #1 Postal and Business Services Franchise the worldâ&#x20AC;&#x2122;s #1 Postal and Services PostalJoin andBusiness Business ServicesFranchise Franchise



Mail Boxes Etc. Centres are part of a global network with over 2 wide.over They 6000 Boxes locationsEtc. internationally Mail Centres are and part 35 of acentres global Australia network with 2 Maillocations Boxesand Etc. Centres are of aselection global network with over 6000 internationally andapart 35 centres Australia They offer SMEs home offices large of wide. professional 2 offer SMEs and home offices a large selection of professional 6000 locations internationally and 35 centres Australia wide. They business services which have been conveniently consolidated at Mail Boxes Etc. Centres are part of a global network with overthe 2beenaconveniently business services which consolidated atThey the offerlocation. SMEs and homehave offices selection of wide. professional one 6000 locations internationally and 35large centres Australia one location. business services which have been conveniently consolidated at the offer SMEs and home offices a large selection of professional Ifone youlocation. areservices lookingwhich for ahave newbeen business challenge with a constantly business conveniently consolidated at the Ifone you arecustomer looking for a new challengeswith a constantly growing base, thenbusiness joining â&#x20AC;&#x2DC;Australiaâ&#x20AC;&#x2122; Leading Business location. growing customer base, joining â&#x20AC;&#x2DC;Australiaâ&#x20AC;&#x2122; s Leading Centre Franchise isnew probably for you. If you are lookingGroupâ&#x20AC;&#x2122; for athen business challenge with aBusiness constantly Centre Franchise Groupâ&#x20AC;&#x2122; is probably for you. base, thenbusiness joining challenge â&#x20AC;&#x2DC;Australiaâ&#x20AC;&#x2122;swith Leading Business Ifgrowing you arecustomer looking for a new a constantly Centre Control Franchise is probably for you. Take of Your Life with an MBE Franchise! growing customer Groupâ&#x20AC;&#x2122; base, then joining â&#x20AC;&#x2DC;Australiaâ&#x20AC;&#x2122; s Leading Business Take Franchise Control Groupâ&#x20AC;&#x2122; of Your Life with an MBE Franchise! Centre is probably for you. Everyday, Mail Boxes Etc. lends a helping handMBE to Australiaâ&#x20AC;&#x2122; s 1.9 Take Control of Your Life with an Franchise! Everyday, Mail Boxes Etc. lends a helping hand to Australiaâ&#x20AC;&#x2122; s 1.9 millionControl small businesses; Take of Your Life with an MBE Franchise! million small businesses; Â&#x2021;Design, printing & copying & offset) Everyday, Mail Boxes Etc. lends(digital a helping hand to Australiaâ&#x20AC;&#x2122;s 1.9 Â&#x2021;Design, printing & Etc. copying (digital & offset) Everyday, Mail Boxes a helping hand to Australiaâ&#x20AC;&#x2122;s 1.9 Â&#x2021; Widesmall format printing &lends banners million businesses; Â&#x2021; Wide format printing& &forwarding banners million small businesses; Â&#x2021; Private mailboxes Â&#x2021;Design, printing & copying (digital & offset) Â&#x2021; Private mailboxes & forwarding Â&#x2021;Design, printing & copying (digital & offset) Â&#x2021; Virtual office services Wide format printing & banners Â&#x2021; office printing services& banners Â&#x2021;Â&#x2021; Virtual Wide format 24 hour copying &&private mail box access Private mailboxes forwarding Â&#x2021; 24 hour copying &&private mail box access Â&#x2021;Â&#x2021; Private mailboxes forwarding Overnight courier & freight Virtual office services Â&#x2021; courier & freight Â&#x2021;Â&#x2021; Overnight Virtual services Pack &office ship services 24 hour copying & private mail box access Â&#x2021; & ship services Â&#x2021;Â&#x2021; Pack 24 hour copying && private mail box access National &courier international courier & freight Overnight freight Â&#x2021; Overnight National &courier international courier & freight Â&#x2021; & freight Â&#x2021; Pack & ship services Â&#x2021;Â&#x2021; Pack & ship services National & international courier & freight Â&#x2021; National & international courier & freight


Postal and Business Services Franchise1


Who Are Looking For! Available Nationally Franchise Opportunities Who WeWe Are Looking For! Franchise Opportunities Available Nationally We provide franchisees the ability to adapt stores services We provide franchisees the ability to adapt theirtheir stores services so they can best utilise their existing skills WhocanWe Looking For! so they bestAre utilise their existing Who We Are Looking For! skills Â&#x2021;'HGLFDWHGDQGGLVFLSOLQHGEXVLQHVVRSHUDWRUV

We provide franchisees the ability to adapt their stores services Â&#x2021;'HGLFDWHGDQGGLVFLSOLQHGEXVLQHVVRSHUDWRUV WeÂ&#x2021;0RWLYDWHGSDVVLRQDWH SUHSDUHGWRJRWKHH[WUDPLOHIRU provide franchisees the ability to adapt their stores services so they can best utilise their existing skills Â&#x2021;0RWLYDWHGSDVVLRQDWH SUHSDUHGWRJRWKHH[WUDPLOHIRU   so they canclients. best utilise their existing skills their Â&#x2021;'HGLFDWHGDQGGLVFLSOLQHGEXVLQHVVRSHUDWRUV their clients. Â&#x2021;'HGLFDWHGDQGGLVFLSOLQHGEXVLQHVVRSHUDWRUV Â&#x2021;0RWLYDWHGSDVVLRQDWH SUHSDUHGWRJRWKHH[WUDPLOHIRU  Â&#x2021;0RWLYDWHGSDVVLRQDWH SUHSDUHGWRJRWKHH[WUDPLOHIRU  find out more about this opportunity go to ToTofind out more about this opportunity go to clients. theirtheir clients. 1.1. 2.2.

Rankingcompiled compiledbybyEntrepreneur EntrepreneurMagazine Magazine Ranking 1355â&#x20AC;&#x153;Mail â&#x20AC;&#x153;MailBoxes BoxesEtc.â&#x20AC;? Etc.â&#x20AC;?centres centresand and4700 4700â&#x20AC;&#x153;The â&#x20AC;&#x153;The UPS Storeâ&#x20AC;? 1355 UPS Storeâ&#x20AC;?

1.1. 2.2.

Rankingcompiled compiledbybyEntrepreneur Entrepreneur Magazine Ranking Magazine 1355â&#x20AC;&#x153;Mail â&#x20AC;&#x153;MailBoxes BoxesEtc.â&#x20AC;? Etc.â&#x20AC;?centres centres 4700 â&#x20AC;&#x153;The Storeâ&#x20AC;? 1355 andand 4700 â&#x20AC;&#x153;The UPSUPS Storeâ&#x20AC;? To find more about opportunity go to To find outout more about thisthis opportunity go to Call our National Franchise Development Manger Call our National Franchise Development Manger Agnes Beugnon Agnes Beugnon on;on; phone: 0457 986 phone: 0457 677677 986 National Franchise Development Manger CallCall ourour National Franchise Development Manger email: email: Agnes Beugnon on; Agnes Beugnon on; phone: 0457 phone: 0457 677677 986986 email: email:

Business Franchise Australia and New Zealand 75



RedCat is an Australian company, with an Australian development team. They have a history of leveraging their flexibility and integration capabilities to partner with clients to implement and develop unique solutions.


Franchise Solution Industry Leaders As a leader in hospitality point of sale and accounting software since 1992, RedCat supply integrated software and hardware solutions for point of sale and accounting. The technology can manage sales, staff, stock and payroll through to accounts, GST, customer loyalty, and web based multi-site reporting solutions to provide the complete business management system. The modular nature of a RedCat system means that it can grow with your business - no need to throw out your investment and start again because of expansion plans. RedCat can also tailor a customised solution to suit your business requirements, and even integrate multiple different solutions into a single reporting structure.

In particular, for the needs of franchise and multi-location businesses, RedCat have developed an extremely flexible centralised management capability that permits multiple levels of control and reporting capabilities. From total head office management, incorporating de-centralised localised management options through to web based consolidated reporting tools and a web based (and smartphone based) global loyalty, gift card and mobile ordering system which is totally integrated into the point of sale system.

provides reporting on production efficiency.

A flexible, and easy to use ordering interface linked to production screens (or printers) ensures orders are captured quickly and accurately, improves speed and efficiency at the customer interface and

One breakthrough technology that RedCat has recently launched is an integrated mobile phone ordering application. It offers the ultimate in convenience ordering, allowing customers to pre-pay and pre-

76 Business Franchise Australia and New Zealand

RedCat has a large contingent of existing franchise clients already and are involved with the FCA, so have a very good understanding of franchising requirements in Australia.

Innovation There have been several new innovations in the world of point of sale in recent times and more and more people are looking at new ways to streamline their hospitality operations.

feature order goods for pick up at their desired time and even remembers usual orders. In addition it allows customers to access gift and loyalty card balances and generates a barcode that can be scanned from the mobile phone screen for loyalty programs. Taking advantage of different POS hardware solutions such as production monitors is another way to help drive your business and improve customer service. Production monitors can be mounted in various different ways and are particularly effective in quick-service environments or to help baristas in cafes. Orders can be served using a touch screen production monitor or using a bump pad. Gone are the days where orders are hand-written and spiked as they are served. Another new technology that has taken off in the hospitality market is electronic loyalty and gift cards. Following on from the success and popularity of RedCat’s SmartLoyalty module, electronic gift cards are now also available. Designed with ease of use in mind, the gift cards are branded swipe cards that can be used at any site, at any time. They can be sold with pre-defined amounts of credit and can be used as many times as required and then if necessary, be topped up with more credit. As well as the latest gift card functionality, SmartLoyalty also provides businesses with all they need to manage an effective loyalty program. The system provides real-time data for powerful reporting and analysis. It allows businesses to build and manage a valuable customer database that provides information relating to customer demographics and buying patterns that can be used to support marketing and promotional activities. All of the above can be capitalised on by businesses looking to establish a point of difference or create a competitive advantage. The hospitality industry is extremely competitive and fickle at times so anything that can put your business ahead

of the pack is sure to be beneficial to the business’ bottom line. Find out more about how Australia’s franchise systems have utilised the services of RedCat.

Schnitz With a number of stores in Melbourne, Schnitz is an emerging food retail franchise that is growing rapidly as more and more people get to enjoy their unique schnitzel rolls and wraps and famous chips. “The introduction of production monitors has reduced waiting times by a huge 30 per cent which means our clients get to enjoy their Schnitz Rolls and Wraps a lot sooner!” Andrew Dyduk – Schnitz Franchising Pty Ltd

The Problem Schnitz required a Point of Sale solution that would provide them with accurate and up-to-the-minute sales information from multiple stores, managed and controlled from one central location at headquarters. They had specific menu and ordering process requirements and needed something that was quick and easy to operate. The Decision After reviewing POS solutions from a number of major Australian providers, Schnitz decided that a RedCat POS solution that included modules – SmartWages and SmartPay would best meet their business requirements.

Business Franchise Australia and New Zealand 77



The Outcome “Schnitz had a number of custom requirements with regards to our menu and ordering process and RedCat were able to tailor a solution that exactly matched our requirements. The front-end interface is extremely intuitive and our new team members are able to learn all the critical functions of the system within 30 minutes making training fast and efficient. “With RedCat’s central reporting functionality we are able to manage all our terminals from the central server at our head office. This gives us the power and convenience to effectively manage our current and future franchisee’s terminals remotely and ensure that their systems are always up-to-date and backed up daily to mitigate risk of data loss. The comprehensive sales reports provided by RedCat give Schnitz management the ability to analyse store performance and evaluate areas requiring review or improvement,” said Andrew. “Another great feature of RedCat’s POS solution is the SmartWages module which lets staff clock on and off during their shift using PIN security. The system records the time worked and stores this data so that our Accounts Department can process wage payments and manage HR compliance. “All the above factors have contributed to a fantastic experience with RedCat.

Our business is growing rapidly and knowing that RedCat has the resources and technology to grow with us gives Schnitz Management the confidence to continue expanding franchise operations,” he said.

Boost Juice Boost Juice is one of the fastest growing juice bar companies with over 200 stores throughout fourteen countries, with plans to expand in other overseas markets in the near future. It currently employs over 650 people with annual sales of over $90 million. “RedCat is a reputable organisation committed to meeting our requirements today and well into the future.” Eddie Tucker, Boost Juice The Problem Boost Juice required a web based system that delivered high end functionality and sophisticated corporate reporting in a multi-location environment. The Decision After experiencing shortcomings with other point of sale solutions, Boost Juice realised that the RedCat solution was far superior and much better suited to meet their business needs. The Outcome “RedCat POS enables us to sell our

78 Business Franchise Australia and New Zealand

products in a more controlled and secure fashion. It captures vital data and produces key management reports that enable us to run our business more effectively.” Another reason for the implementation of the RedCat solution is its simplicity. With stores hiring many younger transient staff the system had to be easier to grasp and operate to consistently meet their high standards of customer service. “It is the first time we have had corporate reporting across the whole organization. Franchises can log into the web based system and check KPI’s, best selling products and a whole host of other information. It gives us an amazing insight into certain key aspects of our business.” The RedCat franchise solution provides total franchise management and control from one central location. Data is securely transferred from the easy to use Point of Sale system back to head office allowing you to measure and manage up to date individual store performance. Can you afford not to have RedCat? For more information about how RedCat’s point of sale solutions can help you contact: Phone: 1300 4 REDCAT (1300 473 322) Email: Web:

Resources at your fingertips!

CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGBâ&#x20AC;&#x2122;s website also provides an additional advertising and information format and complements our publications. Business Franchise Australia and New Zealand 79


E x per t Ad vice

O T S S E N I BUS BUSINESS G N I T E K R MA Building a sales funnel for effective marketing One of the biggest challenges when you are a small business targeting other businesses is making sure that you are known within your local area, that you have a good pool of warm prospects ready to work with you, as well as having time to actually service your clients. One of the most important marketing tactics you can put into place is to start by designing and building an effective

sales funnel that is always full and that you have the tools and systems to move people through the funnel as quickly and effectively as possible.

A sales funnel is a system of communications and processes. Your offer brings people into your funnel, turning them into warm leads. Things like delivering a free consultation, health check or “how to” guide makes them eager to work with you. At that stage you have a hot prospect. A proposal or meeting turns them into a qualified buyer. Once you close the sale and deliver a great service, having a system to have them become advocates of you is the catalyst to them becoming raving fans. Raving fans then deliver you more warm leads, that help you grow your business and

80 Business Franchise Australia and New Zealand

decreases the time you need to spend on trying to contact cold suspects.

Start by defining your target market Your marketing will be more successful if you are targeting your ideal target market. It’s tempting – particularly when you are starting out or in quieter periods - to try and target everyone. The problem with that is a lot of your marketing will be wasted. It’s important to understand not just their attributes (e.g. industry, business size, location, decision maker) but also what characteristics they have. What are their sensitivities? Following that you can develop specific marketing messages for each market. This will help you get a better idea of how to communicate to them and also what channels might be best to reach them.

feature “One of the most important marketing tactics you can put into place is to start by designing and building an effective sales funnel.” Michelle Gamble, Founder Marketing Angels.

Where to start For effective targeting of prospects you can’t avoid picking up the phone. Nothing works as well despite all the technology now available to reach people. What makes prospecting a lot more effective is making sure you are prepared before you make a call. • Have list of prospects that you’ve sourced at your fingertips that you know fit your ideal client profile. • Have a script or call guide for what you are going to say when you pick up the phone. • Have communications already prepared that you will send them as an initial introduction, to warm them from a cold prospect to a warm lead. • Have a script or call guide for a follow up call. • Be clear on how you will conduct an initial meeting and what outcomes they can expect.

• Have a process for ongoing communication.

Make sure you can be found online

Finding your prospects First you need to get clear on where you will find your ideal prospects. Some suggestions include: • Using LinkedIn to search for prospects that fit your target profile – you can search by name, position, location and size of business. • Use Google to search specifically for businesses in your local area. • Access your local business chamber web site or directory. • Ask your current clients for potential prospects they know of. • Read your local newspaper – target businesses who might be advertising for a service you provide on an outsourced basis or are featured in the local paper. • Use local business directory websites such as True Local.

Sales Funnel Cold Suspects

Warm Leads Hot Prospects

Sixty per cent of business to business purchases are already decided before they contact you. That’s because they often will do their research online before picking up the phone or sending an enquiry. Setting up a complete and comprehensive LinkedIn profile as well as creating a local Google places listing will make sure you can be found online helping build trust with prospects.

Approaching prospects Approaching potential new clients who you don’t have a relationship with can seem overwhelming. Make sure you are well prepared before you pick up the phone or send that initial email. That includes a basic call script, email copy, materials to send, follow up call scripts and email copy. A good approach might be: Step 1 – an initial cold call to find out who the decision maker is, and to obtain their contact details.

Don’t know you, don’t care about you

Your “offer” brings them in to the funnel Free consultation, guarantee, “how to” guide makes them eager to work with you

Qualified Buyer

Requests a meeting or proposal


Expects you to deliver on your promises

Raving Fan!

Before you get started it’s a good idea to make sure you have a basic digital footprint online. You may already have a website via your franchisor, but it’s important to build a profile beyond that.

Expectations have been exceeded, actively let’s others know!

Step 2 – A structured email introducing yourself, offering something (e.g. a one hour consultation) and some further information (e.g. a capabilities statement, including client testimonials and case study). Step 3 – A follow up email or call to arrange a meeting, including suggested meeting times and location. Step 4 – A structured meeting that you’ve prepared for by researching the client. Step 5 – A process to follow up and thank your prospect for their time. Add them to your database, connect with them on

Business Franchise Australia and New Zealand 81


E x per t Ad vice LinkedIn, and put a note in your diary to contact them in another 90 days. Often your franchisor will have suggested call scripts, email text and supporting marketing or communications materials to send to clients so take advantage of those materials.

No doesn’t always mean no It’s a reality in business that you will face the word “no”. The way to view it is that “no” is just one fifth of a “yes”. It can mean: “No not right now but I’d like to talk to someone later”. “No for me, but I do know someone who needs your help”. Staying in touch regularly increases your effectiveness, and all it costs you is your time.

Getting referrals

front people, you might ask questions of a speaker at another event or offer to share your expertise as a guest speaker. However you approach it, it’s a great way of building trust with potential new clients.

Tap into social media With over 80 per cent of professionals using LinkedIn a LinkedIn profile is a must. Connect with any clients or potential referrals partners you know. If you are a keen social networker you might also use twitter to connect with influencers, journalists, professional bodies etc that might be a key contact to reach your target market.

Maximise any opportunities to network offline Social networking is great but nothing beats face to face. Research local networking groups in your area for opportunities to attend events

The best time to get a referral from a client is when they have expressed how happy they are with you. This is where following up with clients every 90 days helps. That’s your opportunity to check in and perhaps source a testimonial.

These might include:

Once a client has expressed how happy they are, ask them if they would be ok with it if you used their comment as a testimonial.

Start writing

Make it easy for them and send a follow up email with their comments in text for them to edit or approve. You will easily get testimonials following that process. You can also then follow up thanking them for their testimonial and asking them for referrals. This can feel a bit awkward. However, offering some praise yourself initially makes it easier. We often overlook our family and friends as a source for referrals. People who love you and respect you, want to see you do well so don’t forget to let them know what you do and the sort of clients you work for.

Other ways to maximise success A disciplined approach to building and maintaining your sales funnel will build the foundation for effective marketing. However, there are many other ways to help generate warm leads. These include:

Speaking If you get the chance to speak at an event, take it! You might volunteer to be a participant at an event that gets you in

• Local business chamber

• Local business women’s networking group

• Local school, church or sporting group

Write helpful articles or blog posts. Submit them to your local paper, include them in your email newsletters and distribute via social networks.

Show up to events Events can be a great way to meet potential prospects or channel partners. You can hold your own, exhibit at a trade event or sponsor an event. Look into events such as: • Local Business Expo

• Local Chamber meetings • Local fundraisers

These can all help raise your profile locally and generate new contacts who could be potential clients or referrals.

Develop relationships with channel partners Build relationships with other businesses who you do not compete with but who may target similar clients. These might include:

• Financial planners

• Business coaches and consultants • Recruitment consultants • Virtual Assistants

All of these may have databases that you could extend a relevant offer to or provide articles to.

Use email marketing Consistent email marketing is still a great brand builder and keeps you top of mind with clients and prospects. Use and customise any email newsletters that are already created for you via your franchisor or create your own email marketing program.

Get yourself in the press If you are an articulate and savvy business owner consider tapping into any PR opportunities. Contribute articles to local papers, or let them know of any events you might be involved with. Entering local business awards is also a great way to achieve press coverage.

Keep nurturing prospects and customers Make sure you are constantly nurturing your prospects and customers. This is where your database and a good email marketing system are critical. It makes it effortless for you to stay in touch and keep your brand top of mind. For key customers make sure you diarise a regular phone catch up, face to face meeting and perhaps once a year take them to lunch. Keep learning from your customers, what challenges are they facing, what can you help with, what can you learn from them? Finally, bring a relentless mindset to your marketing. Have a good system that means that you are consistently building your sales funnel and your local profile and you will have a consistent flow of new business. Michelle Gamble is the Chief Angel of Marketing Angels a national marketing agency working with small to medium clients in Sydney, Melbourne, Brisbane and Perth.

• Your local MP

Marketing Angels has worked with many franchise organisations helping build their brands, attract franchisees and build effective local area marketing programs. For more information:

• Lawyers

Phone: 1300 858 311 Web:

• Your local business banker • IT support providers

82 Business Franchise Australia and New Zealand

e x pert adv ice

Business Insights to Help

Optimise Your Potential Get clear on your WHY Whether you are just getting started in business, or you are a veteran and you have been doing it for a while, I have come to realise that most business owner are not experiencing the level of success they truly want. Sure you may be very optimistic and may even come up with some very good reasons why you are not enjoying the level of success you ideally want, you have set your goals and you are taking the action to move you closer to achieving what you want. So why are things taking longer than they should? Achieving success in business is about doing the right things, in the right order, at the right time… I’m sure you have heard me say this time and time again, and I hear you saying back to me… I’m doing that Tania, so why

am I not realising the success I truly desire. Here are some quick and easy things you can do to support your journey in business and help you achieve more momentum with less effort. Determine why you are in your business. Sometimes we can lose sight as to why we went into business in the first place. Take the time to reconnect, with your passion and your purpose and the very reason why you bought into the franchise brand in the first place. If you focus on what you are doing to earn a living, then you will always be doing stuff just to bring in the money. The passion will fade and all you will be left with is a passionless job in your own business. By shifting your focus from WHAT you have

84 Business Franchise Australia and New Zealand

to do to WHY you are doing it, things will flow and you will attract more customers, more money, more balance and build more momentum that will ultimately support you in achieving your dreams and goals for you and your business.

Knowing Your L – S – F Gap If we were to look at business from a simplistic view point every business either has a Leads gap, a Sales gap or a Fulfillment gap (L — S — F). Of course there are many areas of business that require attention and continuous improvement, however these three are the primary ones. Without leads coming into our business, we don’t even come close to the opportunity of closing sales. Without sales there are no revenues, therefore there is no business.

“Sometimes we can lose sight as to why we went into business in the first place. Take the time to reconnect, with your passion and your purpose and the very reason why you bought into the franchise brand in the first place.” Tania Allen, Founder, Vision Alliance.

Fulfillment focuses on the delivery of your products or services and without it there is no follow-through in the business itself. I’m sure you have heard this before - success is always in the follow-through. Carrying out a regular gap analysis helps you to define your present and future objectives in both financial and non-financial terms with also a specific focus on the L-S-F areas of your business. The difference between where you are and where you want to be is the gap and becomes the starting point for building your business to the next level. A gap analysis need not just be about leads, sales, fulfilment or the money, it is however usually where most people start. Your nonfinancial considerations could include the number of team members, your product or service offering to the marketplace and the number of satisfied customers. Other areas could also include the number of hours you work, the number of recreation days, family days and the holidays you take.

Serving Vs. Selling Gone are the days where we ‘sell’ to others. Today it’s all about serving, not selling. You may need to shift a little in your thinking to get this. To this day customer service is very important to me. You’ve just got to ask my kids. Not only do I expect great service it’s a value in our company that we serve our customers rather than sell to our customers. Sales is the discovery of a match - if what you have to offer does not match what the customer needs or wants and vice versa, then generally a sale should not take place if you are in the business of serving. If we are to serve not sell then it’s important to ask ourselves who do we want to serve more of and who do we want to serve less? I liken our ideal client to our favourite toy or teddy bear when we were children. We still played with the others, however we spent more time with our favourite one. It brought

more fun and enjoyment into our day so the same can happen in your business. Focus on your ideal client and you will increase your revenues, build more momentum and have more time to do the things you love. Before you can start serving more of your ideal customer you’ve got to know who they are and what they look like and where to find them.

Rather than setting the expectations around what you are selling that may or may not match those of the customer, you can focus on serving them in alignment to what they are wanting and then they will derive the value out of everything. Knowing what is important to your ideal customer will assist you in building the perceived value around serving them.

You can get started by asking yourself these simple questions:

Most business owners believe they have to provide massive value to their clients, and then they get paralysed by the concern of whether they are doing that or not. As perception is perceived, the customer is always responsible for getting the value out of the relationship! There are some things you can do to raise the perception of the value you provide and they can differ from business to business. Take some time to think about ways you can improve the perceived value wrapped around your product or service. Find out what your customer wants, loves and what’s most important to them.

• Describe the type of customer you want to do business with. • Describe the type of customer who you believe will give you the greatest return on your marketing investment. • Looking at your current business, which customers do you believe right now are the easiest to find, easiest to sell to and require the least amount of time spent on them? • Describe the type of customer who will stay with you the longest and spend the most with you.

Value – It’s all Perception: I’m asked this question all the time: “How do I know if I’m providing enough value?” We all have adopted a belief that it’s important to add value when we “sell” our products and services. Unfortunately this in fact causes most people to reduce their effectiveness and growth potential. When we are focused on selling we are always looking at how we can convince the customer of the value of something. If you shift to serving then it is our job to help the customer discover the value that is there for themselves. Value is perceived. It is a perception, which means the value will be different for every single customer. Value tends to be never about the money. It’s about the relationship you build, it’s about the experience you create.

Now that you know your why, you’ve identified your gap and you have worked out how you will add more value without having to work harder, we will, in the next issue, move onto learning - how to put a revenue plan together and implementing that plan to increase revenues and help you build more momentum in your business. Tania Allen is the founder of Vision Alliance and author of Franchise Profits. Vision Alliance is a business growth & franchise consulting firm that helps franchisors and franchisees get more out of business and more out of life. For more information about how Tania and her team can support you contact Tania Allen at: Phone: 1300 76 49 20 or 0419 481 203 Email: Web:

Business Franchise Australia and New Zealand 85

PROFILE : T he L eather Docto r



The international success of Australian franchise The Leather Doctor proves that their unique all-inclusive service is in high demand. With 60 technicians nationwide and a thriving chain in Dubai with 18 technicians, there’s no limit to this franchise’s growth potential.

to the Australian franchise industry, The Leather Doctor has offered a total solution for furniture retailers by taking on the care and maintenance of furniture with a level of service unrivalled by any.

It’s a question that all major furniture retailers have asked themselves time and again; how to maximise revenue potential by offering their service beyond the showroom floor. Directors at The Leather Doctor recognised this need and created a first class service to meet market demand by offering an all-inclusive in-house solution that has set up long standing relationships in the market and allows for future growth.

“We’ve developed our product and service alongside consultation with these big-brand names but with no exclusivity to ensure that there will always be scope for growth potential in the future.”

Countless Australians buy a new sofa every year offering ripe pickings of a hot customer database for franchisees of The Leather Doctor. Companies could spend hundreds of thousands of dollars accessing databases for their new business pitch, but The Leather Doctor has discovered an organic way of becoming an integral part of an existing sale in the furniture industry. Through their relationships with major furniture retailers alone including Super A Mart, Freedom and Dare Gallery, they offer their clients a way to maximise profit potential of customers from the showroom to the living room, supporting the quality of their product at the same time as furthering revenue potential. Unique

They are the only service in Australia to offer an all-inclusive package that extends from in-store products to insurance and mobile maintenance and repairs, all of which is managed by their custom online application. “The amazing thing is we’re flat out meeting current demand with fantastic scope for further growth,” says Dean Reid, The Leather Doctor’s Director of Marketing.

It was once common practice that retailers would source random contractors to deliver services on their behalf, exposing their good name to poor brand associations through sub-standard workmanship and service. The key to this company’s success is that they offer in-store training to clients and stringent follow-through on service standards through their franchisee guarantees to ensure the longevity of their brand. The Leather Doctor was cultivated to meet industry demand allowing it to grow to essential high spec standard and ensuring it a revenue stream with countless growth potential. It was through requests from existing clients that sibling companies The Timber Doctor and Care Cover were all created to resounding success offering a total one-stop-shop in furniture repair and maintenance. The Leather Doctor’s grasp of the furniture industry is just one niche market in their

service portfolio which includes automotive, marine and household with endless opportunities to expand this even further. Success hasn’t come overnight for the group of professionals who started this franchise 20 years ago. “The Leather Doctor’s priority has always been to deliver the highest quality service with a professionalism that is consistent with everyone who engages us,” says company Director Dean Reid. “We’ve created systems that ensures anybody who joins us is offered all training and facilities needed to meet the market demand, with no room for error.” For further information contact Dean Reid at: Phone: 1300 453 284 Email: Web:

86 Business Franchise Australia and New Zealand


Want to be in the drivers seat?

…err easy chair? Do you want to really take control? The Leather Doctor franchise is Australia’s largest mobile leather care company and part of a larger group that specialise in mobile furniture repair. Leather Doctors have been the respected name in mobile leather repair for around 20 years. Established throughout Australia and now overseas we have a proven system mostly servicing the furniture market which is a huge, $7Billion p.a. (IBISWorld’s Furniture Retailing market

• 50 Franchisees in Australia, 5 in Dubai • 20 year history • Contracts with Australia’s leading furniture retailers • Proven system ensure success Give us a call and we can help you take the drivers seat in your future… or in our case the easy chair.

research 2012)

The Leather Doctor offers a proven system that ensures success. We have a national customer base of major furniture retailers and manufacturers as well as a well recognised brand within the private market. This is backed up by the fact that our growth has continued each year despite economic conditions.

1300 453 284 Email:

FP CGB Franchise AUS & NZ.indd 1

National Marketing Manager: Dean Reid - 0438 844 238

26/11/12 6:03 PM

e x pert adv ice

asking the right questions If you’re looking to buy a franchise it’s important you decide which franchise to buy based on fact, not emotion. Many franchisees make the mistake of falling in love with a franchise brand and don’t properly assess whether the franchise opportunity is the right fit for them. The worst thing a franchisee can do, is to only read the marketing material disseminated by the franchisor and then decide the franchise opportunity sounds like the right fit for them. Some franchisees may go further in their analysis, yet forget to gain insights off the people that best know what it’s like to be

a franchisee in that particular franchise – existing and former franchisees.

Asking the right questions as part of your due diligence As a key part of your franchise due diligence to better understand what being a franchisee will be like it’s important to also speak to the franchisor, as well as franchisees and former franchisees, and ask lots of questions.

What to ask franchisees and former franchisees Fortunately, as part of Australian franchise regulations, franchisors must provide contact details for existing and former franchisees in the Disclosure Document, so it should be easy for you to get in touch with them. One question which is always good to ask franchisees is, if they had their time over whether they would still buy the franchise?

It’s better to have too much information than be ill-informed, so you’ll have less chance of uncovering surprises once you enter the franchise.

For former franchisees you may also like to ask why they are no longer a franchisee and whether their exit from the franchise was a smooth process.

As you investigate franchise opportunities you’re likely to have questions of your own, however to help you ask the right types of questions here is a list to get you started from Griffith University’s Asia-Pacific Centre for Franchising Excellence.

Just with any partnership (whether personal or business) how the relationship works is

88 Business Franchise Australia and New Zealand

We also recommend you ask questions around the relationship between the franchisor or franchise head office and the franchisee or former franchisee.

“It’s better to have too much information than be ill-informed, so you’ll have less chance of uncovering surprises once you enter the franchise.” Lorelle Frazer, Director, Griffith University’s Asia-Pacific Centre for Franchising Excellence.

important and you need to assess whether the likely style of relationship will suit you and your needs. Other questions to consider include: • What was your biggest surprise or shock in starting your business? • How much time do/did you work in the business per week? • Has/did the business met your income and lifestyle expectations? And in hindsight, were your expectations realistic? • What are/were the best things about this franchise? • What are/were the worst things about this franchise? • Is there anything else you think I should know about this franchise?

What to ask a franchisor Again, you’re likely to have a range of questions of your own as you explore franchise opportunities, and it’s worth noting that the answers to many of the questions you’re likely to have as you go through the early due diligence process will be included in the franchise Disclosure Document. Questions, in addition to your own, to ask a franchisor, that you may not automatically think of may be around the franchisor’s longterm plans for the business, both in Australia and internationally, as well as their role within the business and future ownership. If a franchisor is planning to retire in the foreseeable future, it may change the direction of the franchise and is something you should be aware of. It may also be of benefit to your due diligence to enquire about the average length of time that employees stay with the franchisor, and in particular field support personnel as they are likely to be your key

contact within the franchise head office. Also on the topic of field support you may like to ask whether the franchisor can provide a typical field support schedule and details of the frequency and nature of support available to franchisees. It’s also important to ask whether the field support includes time spent with you when your business first opens, and if so, for how long and the type of support provided during that time. To assist with your business planning you could also ask the franchisor what financial data they can provide you to assist you with putting together a detailed and relevant business plan. Franchisors are naturally one of the best people to ask about the franchise and they are usually more than happy to answer any questions you may have. Remember Franchise Agreements are legally binding documents, so it’s important you get all your questions answered before you sign on the dotted line. Other questions to ask the franchisor: • What is the average length of time that a franchisee stays in this system? • What proportion of franchisees who left the system in the last three financial years (the disclosure timeframe outlined in the Code) made a capital gain when they exited the business? • What franchise and industry-specific training or education has the franchisor and its personnel undertaken in the last 12 months? • What current and future potential competitive threats might affect the franchise, and what are the franchisor’s plans to combat these?

Further due diligence tips To assist prospective franchisees with conducting their due diligence effectively, and help ensure people are well-informed about franchising and what to expect as a franchisee, the Asia-Pacific Centre for Franchising Excellence developed a free online pre-entry franchise education program. The program is funded by the sector regulator, the Australian Competition and Consumer Commission. Further questions to ask as part of your due diligence are included in Module Four of the program. Find out more on the pre-entry franchise education program at: http://www.franchise. Professor Lorelle Frazer is Director of Griffith University’s Asia-Pacific Centre for Franchising Excellence and one of the world’s leading franchise researchers and educators. Lorelle has been actively involved in franchising research and sectoral policy initiatives for more than 15 years. She also lectures in franchising and is a member of the Australian Competition and Consumer Commission Franchising Consultative Panel. Her research is often used to inform sector policy and in 2010 Lorelle was awarded the Franchise Council of Australia’s national Contribution to Franchising Award. Griffith University’s Asia-Pacific Centre for Franchising Excellence aims to drive franchise sector best practice through practical, independent research and education. To find out more visit: Web:

Business Franchise Australia and New Zealand 89

PROFILE : Sna p- on tools

Driving Success While one store is more than enough for a most franchisees in Australia, there are a number of benefits - both to the franchisee and franchisor - of extending your reach and growing your portfolio in a brand. What’s more, franchisors are starting to recognise the value of expanding from the inside out and are increasingly giving franchisees the opportunity to expand their footprint within a company. North Queensland resident Brad Watts is one of those franchisees who has been given the opportunity to become a multiunit franchisee with premier mobile tool franchise Snap-on Tools. Brad started his career as a diesel fitter repairing heavy vehicles in the Queensland mining industry. It was his relentless pursuit of a challenge that eventually led to Brad investing in a franchise with Snap-on Tools - at the time the brand was expanding into the Australian market and offering attractive opportunities for those looking to join. And

with Brad’s love of tools, it was a match made in heaven. Seventeen years later, Brad owns four mobile franchises and employs six full-time staff. He’s Snap-on’s most successful multi-unit franchisee in Australia, with an annual turnover of more than $3m, and fifteen awards to prove it. Based in Rockhampton, Queensland, Brad claims investing in a Snap-on franchise was one of the best decisions he’s ever made, but that it certainly isn’t for everyone: “The key to running a successful franchise business lies in your personal philosophy and approach. Many people make the mistake of thinking that buying a franchise business means buying a job. If it was a job you would have a boss. But it’s a business and you’re the boss, so success and failure are largely dependent on you and how you operate. This becomes even more important when you’re a multi-unit owner. Even though Brad doesn’t necessarily operate his own truck anymore, he used to. This means he knows what the staff are going through and can relate his experience accordingly: “If they come to me with an issue, I generally know exactly what they mean and can work with them to create a solution.” Despite his trucks being spread over a 400km distance around Queensland, Brad attributes the success of his multi-unit

franchise to staying involved in the business, with his leadership style both visible and constant. Assisting in this effort is the recent purchase of industrial sheds which he uses as a home base for all team members: “The beauty of multi-unit operations is creating efficiencies within the business. These sheds mean all our stock can be kept in one place, I can be reached at one location, and if any of the team members have a query, they know where to find me. “From my perspective, having a hub for team members makes it easier to operate a multi-unit franchise, because everything is centralised and in the one place,” he concludes. Brad keeps busy outside of work being the national coach for the National Shotokan Karate team, which involves managing a team of 80 people across the country. He is also a trained pilot and currently training to become a scuba diving instructor. Alongside quality family time, all these extracurricular activities keep Brad motivated and just goes to show that if you play your cards right you can have a work-life balance. For further information about Snap-on Tools franchising contact: Phone: 1800 762 766 Email: Web:

90 Business Franchise Australia and New Zealand


Business Franchise Australia and New Zealand 91 1057_KLPR_SPOA_SharpestTool_v05FA_for_Franchise_magazine.indd 1

3/12/2012 4:55:33 PM

e x pert a dv ice

What you should know before buying a

B2B franchise

If you’re thinking of buying a franchise that has a business-to-business (B2B) franchise model, then there’s a few things to consider that may be substantially different from franchises that operate a business-to-consumer (B2C) model. Goods or services? Firstly, there’s very few dedicated B2B franchises that actually sell goods to other businesses. Franchised retailers such as Harvey Norman may sell office equipment to small businesses, but this is not their only market. Those B2B franchises that cater only to a business market may sell highly specialised equipment that may be manufactured or exclusively distributed by the franchisor. If this is the case, you should explore what (if any) inventory you are required to hold, and how much of your available capital this will consume, and what the stock turn on this inventory will need to be to justify the investment level required. Alternatively, if you are not required to hold inventory of the equipment you are selling, you should research the franchisor’s inventory management and delivery systems to ensure that your sales and reputation are enhanced by rapid and efficient delivery.

92 Business Franchise Australia and New Zealand

“If you’re thinking of buying a franchise that has a business-to-business (B2B) franchise model, then there’s a few things to consider that may be substantially different from franchises that operate a business-to-consumer (B2C) model.” Jason Gehrke, Director, Franchise Advisory Centre.

Most B2B franchises however are servicebased, rather than based on the sale of goods alone.

This means that for you to get clients, you might have to take them off someone else, or find them before someone else does.

Typically, these service franchises will fall into two categories – white or blue collar.

Taking clients away from a competitor can be a long and tiring process.

White or blue collar? White collar B2B franchises will generally provide some kind of expertise that can augment a business’ existing management capabilities, such as in bookkeeping, expense management, HR, business coaching and performance management, finance broking, insurance and other services. Blue collar franchises will be more technically-oriented on the specific execution of certain business activities, such as the provision of security services and the installation and maintenance of alarm and monitoring systems, or the maintenance of facilities or assets owned or managed by the business (eg. cleaning franchises, and pool, air-conditioning or vehicle repair franchises). Arguably, there are also hybrid B2B service franchises, such as in IT (information technology) where operators offer a mix of white collar services (eg. reviewing business processes to recommend appropriate software solutions) as well as blue collar services (eg. building networks, repairing computers, etc). Irrespective of whether your B2B franchise sells goods or services, your business’ customers will be fundamentally different from B2C customers in three key ways: they will be harder to acquire, expect more, and take longer to pay.

Understand client acquisition processes and timeframes Almost every business faces competition at some level, and chances are that your B2B franchise will be no different.

Firstly, you have to find the right person to deal with in your target business, which is often easier said than done as large organisations become increasingly cautious about giving out names of key personnel (although for small business clients, the key contact could in fact be the person who answers the phone). Researching online directories, business websites and cold-calling (by phone and inperson) are the best ways to build a database of key contacts to start the client acquisition process. Next you will need to gain an interview, or create an opportunity to make a presentation, demonstration or similar, to start building the relationship with the business. Maybe the value proposition of what you have to offer will be so great that your business prospects will drop any existing suppliers and give you sales orders straight away. More often than not however, you will have to wait for a triggering event, such as the replacement of a decision-maker with someone more open-minded to your offer, or the inability of an existing supplier to deliver in the time, quantity, quality or price required. Opportunities created by the inability of an existing supplier to deliver are golden, rare and must be acted on immediately and comprehensively. One slip-up by a competitor can open the door for you, and it’s your job to open it as wide as possible, then slam it on the competitor afterwards. This process of collecting data, making presentations, responding to RFP’s (requests

for proposals) and building relationships with decision-makers who might ultimately elevate you from their fourth, third or second choice to first choice takes time. Weeks, often months, and sometimes years are required to acquire business clients. The best operators are not always the most successful in a B2B environment. Those with the nerve, patience and capital to go the distance are the ones who make it.

Manage client expectations The potentially long, slow and painful process of acquiring clients, particularly against an entrenched competitor, can provide an incentive to create the perception that your products or services are not just the equal of your competitors’, but vastly superior in every way, if only you could be given the chance to demonstrate. It is only natural to be passionate about the products or services offered by the franchise in which you have invested, but overselling them creates a level of client expectations you may not be able to live up to when the time comes. Underselling and over-delivering is a hallmark of successful B2B operators, and while it is desirable for your clients to think that you can perform miracles and walk on water, you’d better be sure you can do so whenever required.

Get paid on time While a B2B franchise can generate much higher sales volumes per customer than a B2C business, B2C businesses are generally paid upfront for their products or services, whereas B2B businesses are paid after the sale, service or installation is complete. Businesses will expect to be invoiced, and depending on their relative size and the industry in which they operate, may expect

Business Franchise Australia and New Zealand 93

e x pert a dv ice

days (eg. 15 days) tend to have much better cash flow and clients who can be relied to pay regularly and in full.

Continue your journey of learning By investing in a B2B franchise, you are not planning to undertake your business journey alone, and you should look to your franchisor for guidance where possible. If at least you have an understanding of the B2B environment beforehand, you can better assess the franchisorâ&#x20AC;&#x2122;s ability to help you manage key performance areas such as debtors, client acquisition, and service delivery, in addition to the technical expertise you will need to sell, advise, install, maintain or otherwise do what the business does. When you have a basic understanding of these generic B2B issues, you are better placed to identify the best franchise that suits your interests and the market it will service. Finally, you should recognise that you will need to embark on a continuous journey of learning to ensure that you are up to date with the latest information, technology, practices and skills to maintain your relevance and usefulness to your B2B customers. Your franchisor should provide this development pathway for you, but you might also consider what association memberships, courses and programs of formal study can also help you maintain your competitive edge, and to help you master these key challenges of operating a B2B franchise.

to be given seven day trading terms, 30 days, or even longer. Coupled with potentially long client acquisition timeframes, a long payment cycle could potentially be the kiss of death for a B2B franchise if the operator doesnâ&#x20AC;&#x2122;t hit critical mass quickly enough, or have sufficient working capital to keep them going in the meantime. Strategies to improve on-time payment include charging deposits and progress payments, keeping payment terms to the

shortest possible timeframe, and to offer a variety of payment methods that make it as easy as possible for a client to pay their bills. The measure of the length of time it takes for a client to pay their bill is known as debtor days (ie. the number of days). This is a key performance indicator for any B2B business, and a high number of debtor days (eg. 90+) means that a business is offering too much credit to too many clients, and may well face a serious cash flow squeeze. Those businesses with low debtor

94 Business Franchise Australia and New Zealand

Jason Gehrke is the director of the Franchise Advisory Centre and has been involved in franchising for 20 years at franchisee, franchisor and advisor level. He advises both potential and existing franchisors and franchisees, and conducts franchise education programs throughout Australia, and publishes Franchise News & Events, a fortnightly email news bulletin on franchising issues and trends. Contact Jason at: Phone: 07 3716 0400 Email: Web:

PROFILE : V.I.P. aust r a l i a

“There’s nothing like working for yourself” trying to make more and more money for the bank. Nobody seemed to really care about people.


ark Tesseyman loves the outdoors. He loves camping, bush walking and venturing out in his four wheel drive. What’s more, he loves his job. However, it hasn’t always been this way. Mark used to work in a bank, “I had a good job at a bank but I was only ever a number. I really didn’t like the culture there – always

“Ironically it was an ex-colleague who was making a deposit at the bank who told me about V.I.P. He owned a V.I.P. lawns and gardens franchise, we got talking, I did my research and made the switch. At the time I remember him saying that it was the best decision he ever made - ten years down the line I’m saying the very same to people I know!” explained Mark. Mark left the world of banking behind and it wasn’t long until he had doubled his previous income. But, for Mark, it wasn’t about the money, “The money is great but it was never my motivation. I worked at the bank for around six years. There was a lot of pressure with targets and I didn’t really like being stuck behind a desk all day.

“Now I get to do my own thing, I’m the boss and if I want to finish work early one day or take some time off I do. I love the outdoors and I love my job,” continued Mark. “There’s nothing like working for yourself – it’s fantastic. Of course running your own business can be tough, but that’s why I joined V.I.P. “I knew the support systems were in place and there was plenty of work out there. I even have to turn down work which always feels a bit strange, but then again I have to make time for me,” concluded Mark, just as he was about to head off on yet another camping trip! Contact the V.I.P. team: Phone: 13 26 13 Web:

Business Franchise Australia and New Zealand 95

e x pert a A dv ice

It’s that time of year again!



It is, as you read this article, not long before the end of the tax year. As a business owner, you have many things to do. It has been said that the reason you go into business for yourself is so you can work sixteen hours a day to have other people work eight hours a day for you. There is a germ of truth in this for many businesses… It is time to turn your attention to tax planning matters if you have not already done so. I have been practicing as an accountant in Australia for nearly twenty-five years. In my early days there were many “big ticket” planning activities that could be undertaken. Massive reductions in profits could be achieved using various opportunities - prepayments in particular, artificial investment schemes, distributions to charities and a wide other range of activities. Most of these opportunities – loopholes, if you like – have been shut down and legitimate tax minimisation opportunities are far more limited than they once were. However, they exist and they should be utilised.

DON’T SPEND A DOLLAR TO SAVE 46 CENTS! The next point to stress – and I stress this in every article I write on tax planning – is that there is no point in trying to save tax by entering into ill-fated or poorly executed tax schemes and losing your capital. Many people did this when they invested in afforestation or other similar schemes. They saved tax at their marginal rate – let’s say 46 per cent – but then lost the capital they invested. They spent a dollar to save forty-

six cents. Net result – a loss of fifty-four cents. The purpose of tax planning is not to end up worse after tax planning than before tax planning – that might seem self- evident but history proves otherwise for some people! Lesson number one is to not look first to any possible tax saving, but to the true investment value of any opportunity. Lesson number two is to refer to lesson number one.

START TAX PLANNING EARLY I started this article by saying that because it is the end of the tax year it is time to turn your attention to tax planning matters. In truth, the best time to turn your attention to tax planning matters is on 1st July each year, as each new tax year begins. Some tax planning strategies require implementation at the beginning of the year. For example, if you are in the fortunate position of receiving a salary and being able to sacrifice an

96 Business Franchise Australia and New Zealand

amount into superannuation over and above the compulsory nine per cent superannuation guarantee contributions, then to get the maximum benefit from this you would probably have had to start making those additional contributions from the very first pay cheque you received in the new financial year. However, all is not lost. Some strategies can be implemented towards the end of the tax year, and there are still benefits to be obtained from other strategies which are implemented late, albeit the full benefit will not be obtained.

USE YOUR ACCOUNTANT’S EXPERTISE If you are running a franchise business – or indeed any business – and you have not met with your accountant to discuss the results for the financial year that is soon going to end, then now is the time to do so.

“Lesson number one is to not look first to any possible tax saving, but to the true investment value of any opportunity.” Tim Kilham, Director, Lanyon Partners

All business owners should be regularly reviewing their financial results – preferably monthly but at least quarterly – and assessing the performance of the business, what is not working and what corrective action should be taken. Those meetings may or may not involve your accountant, depending on how closely involved your accountant is with your business. I would recommend though that, even if you do not otherwise meet with your accountant, you sit down with the results for, say, the first nine months of the financial year and review those results with your accountant.

- contributing to superannuation (which can involve maximising deductible contributions, making non-concessional contributions, splitting contributions with a spouse, spouse co-contributions etc. etc.)

Your accountant will have many ideas relating to taxation matters.


- If the business is making profits there will be strategies to minimise taxes. These may involve deferring income, prepaying expenses, making distributions from trusts, additional superannuation contributions, etc, etc. The list is long and what is appropriate will depend on your circumstances. - If the business is making losses, there will be strategies to minimise taxes or help cash flows. These may involve making distributions to entities making losses, reducing salaries, payment of management fees between entities, etc. etc. What is certain is that unless you are well versed in accounting and taxation matters, there will be strategies that you will not be aware of to save tax and improve cash flow – and this is the case whether your business is making profits or losses.

BROAD STRATEGIES TO EMPLOY I am not in this article going to discuss specific tax planning strategies. Broadly, these strategies usually involve - bringing forward expenses - deferring income

None of these strategies employ rocket science and most business accountants will be able to identify legitimate tax saving opportunities using these strategies. There is one additional strategy that is often overlooked but perhaps achieves the biggest savings of all – and that is having the correct business structure.

Choosing the best structure for your business is something that needs careful thought before you set up a business. It may be possible to change the structure after you have commenced business, but usually at some cost. Tax minimisation is not the sole objective, and often not necessarily the primary objective, of choosing a structure. Flexibility, asset protection and simplicity are other objectives that need to be considered. Tax minimisation is however certainly an important objective in business structuring. Having the correct business structure – and this could involve any or all of a mix of partnerships, companies and trusts - can make a huge difference to the amount of tax that is paid. The ability to split income (with business partners), to make flexible distributions (through discretionary trusts) and to minimise taxes (for example, by paying company tax at 30 per cent rather than individual marginal rates of 47 per cent), can save many thousands or tens of thousands of dollars. Your business structure can also make a huge difference to the taxes you pay when you dispose of your business. In simple terms,

the tax on the profit on sale of a business can quite easily for most businesses be nil, but for some businesses can be in excess of 30 per cent. Sometimes the difference in the taxes you pay is simply due to the business structure that you set up in the first place. Business structuring is therefore critical. The moral is: - if you are about to set up a business, consider very carefully the structure you will use and which structure will suit you best. - if you have an existing business structure, and it is not suitable, consider changing it. This is not a task to be lightly undertaken, and needs expert advice from your accountant, because of tax and other consequences of re-structuring. Notwithstanding this, I have had many examples with clients where a change in structure has resulted in some short term cost, but far more significant long term cost savings.

CONCLUSION Specific techniques to minimise your tax have not been discussed in this article – those specific techniques are dependent on your specific circumstances. However, if you do adopt the overarching strategies and principles outlined in this article, and combine them with specific techniques applicable to your business, you tax planning is likely to be highly effective. Tim is a director of Lanyon Partners Chartered Accountants and heads up their franchising division. Tim has provided advice to, and acted for, many franchisees and franchisors, and is particularly active in advising on the purchase and set up of businesses. Contact Tim at: Phone: 03 9861 6140 Email: Web:

Business Franchise Australia and New Zealand 97

PROFILE : Den ta l Fi x r x

Service Industry Business Opportunity in Dental Field America’s fastest growing service based franchise is expanding globally, presenting an outstanding opportunity for potential Australian investors. Dental Fix RX has revolutionised the dental service industry in the USA by delivering on-site service through a dedicated mobile network of highly trained and successful professionals. From handpiece repairs to equipment service and sales, Dental Fix RX is a niche business that has experienced high demand from dentists and is attractive to entrepreneurs. Established in 2003, Dental Fix RX began franchising in 2009 and since then has established over 100 territories, with over 50 more scheduled to open in 2013. According to CEO David Lopez, Dental Fix RX fills a niche in the market which has not previously been explored. “What we have found in our experience is that servicing of dental equipment has been very expensive and usually carried out by the supplier, who would often prefer to sell new equipment, rather than repair it. “Dentists have been relieved to discover Dental Fix RX. Now they can receive much more affordable, on-site service and repair of their equipment, saving them both time and money,” said David. “We’ve established that this need exists in countries throughout the world, and that there are very few businesses, if any, that currently provide this service to dentists.

To keep pace with patient demand, dentists can no longer afford to wait for lengthy equipment repair times,” David said. “Even in a down economy, the dental industry continues to grow. Dental services are in high demand, and so is the need for our highly trained service specialists. As a result, Dental Fix RX is one of the only true recession-resistant opportunities available.”

A Great Opportunity People from all walks of life are using Dental Fix RX to create financial independence for themselves. Here’s why this exciting niche opportunity is becoming so popular in the USA: • Untapped market with steady future growth; • Protected territory; • Identified and prime customer base; • One-of-a-kind business model in the recession-resistant dental industry. Licence agreement opportunities currently exist within Australia. “We are looking to hear from people interested in bringing the Dental Fix RX concept to Australia and are willing to consider varying levels of investment,” says Chris Forneris, Sr. Director of Franchise Development. “There is an opportunity for someone who may be interested in purchasing the licence for the entire country - which they can then on sell to smaller territories. “Alternatively, we are also willing to enter discussions with people interested in purchasing a smaller territory for a smaller financial investment – at this stage we are

98 Business Franchise Australia and New Zealand

looking to partner with the right people,” Chris said. “We’re looking for entrepreneurs with proven business experience who are motivated and driven to succeed, and it’s especially important to note that no dental repair experience is required. The license opportunity is completely turn-key and you will receive all the training and resources you will need to operate your business,” Chris said.

Highly Specialised Training Dental Fix RX’s Dental Equipment and Parts Training is the only program of its kind in existence. “All initial training is carried out in the USA, with follow up support provided in your own market. This means you get top-level training from some of the most experienced professionals available. “Our six-week training course support will have you up-and-running quickly,” said Chris.

State-of-the-Art Marketing World-class marketing is a vital component of a successful franchise business. The Dental Fix RX marketing team designs, customises, and implements creative materials and initiatives with the sole objective of helping you grow your business. License opportunities are currently available starting from $60,000. For more information about this exciting opportunity contact: Phone: +1 800 586 0340 E-mail: Web:

A Business You Can Sink Your Teeth Into

Put your earning potential on the fast-track making money in the field of dental equipment repairs. If youâ&#x20AC;&#x2122;ve been looking for a chance to own a cutting edge business for a low initial investment, look no further. Starting a Dental Fix RX business is a great way to own and operate a business with minimal start0up costs and unlimited growth potential. With an untapped customer base and little overhead expenditures, Dental Fix RX has become on of the fastest growing service based opportunities in America and is now expanding globally!

t/P&YQFSJFODF/FDFTTBSZ t2VJDL4UBSU6Q t'VMM$MBTTSPPN t1SPUFDUFE5FSSJUPSZ t.BSLFUJOH.BUFSJBMT t5FDIOJDBM4VQQPSU Call or visit today +1 239 222 5581 Business Franchise Australia and New Zealand 99

e x pert a dv ice

Lessons for Australian Franchising

FROM THE USA ‘family’ culture, that tended to exist where a founder was still the leader, often disappeared. As you can imagine the franchise relationship in these networks then became more prone to suspicion and conflict, which in turn provided a lucrative market for franchise lawyers to flourish. In fact, while the USA franchise sector may be 10 times the size of Australia’s, the USA legal sector of franchising is probably 20 times or more the size of Australia’s. Not surprisingly this has created a greater tendency for franchisors and franchisees to engage in litigation.

I recently returned from a few weeks in the USA, attending the International Franchise Association convention and servicing some of our North American clients. Because the USA often reflects the shape of things to come, it is an interesting market to study. While Australian franchising is world class in many areas, certain trends in the USA are worth sharing because they affirm the more healthy aspects of our own sector. In some cases, trends in the USA have not been all that desirable, also providing us with important lessons.

Trends in the franchise relationship The USA franchising sector is huge - around 10 times the size of the Australian sector. While this is not surprising, given the

population is also around 10 times that of Australia, the dynamics of the USA sector are also different because it is more mature. While Australian franchising was building momentum in the mid 1990’s, the USA market had already been in full steam ahead for 20 or so years For instance it is far more common today for USA franchisors to be publically listed companies or owned by venture capital firms. The founder entrepreneurs of most large USA franchisors are long gone and many franchise networks have changed hands several times. This has had significant implications for the organisational cultures of these networks. One phenomenon to emerge has been Franchisee Associations. These are a kind of franchisee union, often formed to protect the interests of franchisees who felt they were at the mercy of new brand owners who may have introduced strategies to create a quicker return on their capital, sometimes at the expense of franchisee profitability. Another implication of having a new impersonal franchisor owner was the

100 Business Franchise Australia and New Zealand

Whereas mediation is now an accepted and effective way to resolve differences in Australia, this is infrequently used in the USA. Where alternative dispute resolution is used, arbitration is the most common technique. Unlike mediation where the parties resolve their differences to suit their needs with the help of a mediator, arbitration involves the arbitrator making a ruling, sort of like a judge. This is more expensive than mediation and, like litigation, creates winners and losers. In this sense the culture of franchising in Australia is more collaborative. I believe this has created greater levels of internally led innovation within franchise networks and has also meant less money and energy is typically spent on litigation. Interestingly a new generation of USA venture capital firms with more of a longterm, win-win approach to the franchise relationship has emerged in recent years. These companies specialise in acquiring franchise networks and work hard to respect and preserve the internal culture and values of the brand. Another positive shift in the franchise relationship has ironically been brought about by the Global Financial Crisis, where USA franchisors have worked harder than ever before to look after their existing franchisees. This combined with less of a

“Because the USA often reflects the shape of things to come, it is an interesting market to study.” Greg Nathan, Founder, Franchise Relationships Institute.

dictatorial approach to leadership, has meant USA franchisors are now consciously trying to create more collaborative relationships with their franchisees. Also many Franchisee Associations are taking a less hard line approach than they did years ago, seeing their franchisor more as a business partner than an adversary. One lesson here for Australia is, while we can expect greater numbers of franchise networks to change hands, hopefully new brand owners will take an enlightened approach to how they manage their newly acquired assets, respecting existing cultures and the needs of their franchisees to also make a reasonable return on their investment.

Technology’s contribution to business The number of suppliers at the recent IFA Convention offering technology related solutions for franchising companies was amazing. In particular technology would appear to be making significant contributions in the following areas: • Providing franchisees with convenient access to training for themselves and their staff through e-learning platforms which deliver material, test for comprehension and enable the tracking of participation. • Improving franchisor access to franchisee financial and performance data, enabling franchisees to benchmark themselves against their peers. Not only is this useful to assess the productivity and efficiency of a business, it can also be a powerful motivator to drive franchisees to higher levels of performance. • Improving franchisee access to high quality marketing collateral so they can instantly customise promotional materials and put these to use in their own local marketing programs. • Online recruitment tools to assist both franchisees and franchisors in collecting relevant information about the suitability

and capability of potential staff or franchisees.

skills to manage a larger more complex enterprise.

While on the topic of technology, most established retail franchise systems in the USA are now using the internet creatively, both as an alternative sales distribution channel, and as a way to complement how customers are interfacing with their stores. Australian franchisors have, as a rule, been slower to create a viable “bricks and clicks” strategy. An exception would be companies like Domino’s, who have fully embraced technology to give them a competitive edge and enhance their customers’ experience. Many franchisors could take a leaf out of Domino’s book and invest more seriously in this area of their business.

Multi-unit franchising Another franchising trend that continues to flourish both in Australia and the USA is multi-unit franchising. This is where existing franchisees acquire additional businesses within a franchise network. In the USA over half of all franchisees are multi-unit operators, the majority owning more than five units. Many own over 100 units. A recent multi-unit conference in the USA last week attracted over 1000 people. In Australia 23 per cent of franchisees are currently multi-unit operators with an average of three units. I suggest this will increase to 35 per cent by the year 2015 representing 60 per cent of all the revenue generated by the franchising sector. While multi-unit franchising may appear to be an attractive growth option for both franchisors and franchisees, there are also many pitfalls. For instance, the skills needed to succeed in operating three businesses are different to those needed to succeed in one business. An important lesson is that franchisors need to be selective in which franchisees they allow to expand, ensuring they not only have the capital, but also the people and financial

State verses Federal legislation A final trend in USA franchising worth noting has been the emergence, over the past 20 years, of State-based franchise legislation alongside Federal legislation. In the USA, 15 States have enacted separate franchise legislation, which has created a complex commercial and legal minefield for all stakeholders in the sector. I recently facilitated a colloquium in the USA of some of the brightest and most experienced lawyers and franchise consultants, representing both franchisor and franchisee interests, on how USA legislation might be improved. The clear consensus was the overlay of State based and Federal legislation in the USA had led to an inefficient and ineffective franchising sector which created unnecessary cost and red tape with little benefit to the franchisees it was intended to protect. There is possibly another important lesson here for Australia, as debates continue over the merits of introducing State based franchise legislation. It would appear that better education for franchisees and franchisors on how to run good quality businesses and effectively manage their franchise relationships would be a better focus for everyone’s energies. Greg Nathan is Founder of the Franchise Relationships Institute (FRI), leading global providers of learning programs to help franchisors and franchisees create profitable partnerships. He is also author of several popular franchising books including Profitable Partnerships. For more information about FRI’s work contact: Phone: 07 3510 9000 Email: Web:

Business Franchise Australia and New Zealand 101

Fr anch ising E x p o

Franchising Expo gets new life The new organisers of the Franchising & Business Opportunities Expo have wasted no time turning the show around, with a range of new exhibitors and features.

including Outback Jacks, Movenpick, Dymocks, Pack & Send, Minuteman Press, Total Tools and Virgin Money.” Following Sydney will be the Brisbane show at the Convention Centre from 20-21 July and the Melbourne show at the Exhibition Centre from 30 August-1 September. All three shows will feature a similar range of exhibitors and seminars, with some local variations.

Exhibition manager Fiona Stacey says, “It has been a busy few months, but I have really enjoyed working with the association and major franchise groups to ensure the show is going in the right direction. We are making some immediate improvements, with more to come over the next 12 months.”

Fiona says “it makes the logistics so much easier for everyone if the shows follow a similar format. It means we can present a high quality event regardless of location and also keep costs down for exhibitors. We are hoping that companies will look at participating in all three shows to reach the widest possible audience”.

The first show on the circuit is the Sydney show. It runs at Darling Harbour from 14-16 June. Fiona says ‘there has been a rush of bookings and we are now around 70 per cent full. There will be a great range of exhibitors

Something else the organisers want to encourage is greater engagement with visitors. This will include more free seminars and networking opportunities. Also for the first time the organisers are

102 Business Franchise Australia and New Zealand

providing free back-of-house for food companies to encourage more sampling. As Fiona says, “Exhibitions are unique because they are live – you can engage in a way that is impossible online. We will be working with exhibitors to encourage more interaction. Visitors are hungry for information and just need a little help to start the conversation.” For a limited time visitors can register free for the show. After that it will be a $15 entry fee. Simply visit the show website www., click on registration and type in the code FPR. You will then receive a free pass that can be redeemed at the door. Some stands remain available in Sydney, Brisbane and Melbourne. Franchise companies looking to exhibit at the show should contact Fiona Stacey at Specialised Events on 03 9999 5464 or visit the exhibiting section on the website.



% , 7 , 2 1 , 1

Sydney 14-16 June 2013 Brisbane 20-21 July 2013 Melbourne 30 Aug - 1 Sep 2013

Register online and SAVE

2 7





NEWSER NI ORGA even Now ger! big



If you want to start your own business then come to the Franchising & Business Opportunities Expo. Meet over 100 exhibitors, attend free seminars and talk to experts. Turn ambition into action!

Enter code FBS at Business Franchise Australia and New Zealand 103

h ot to pics

Behind the

headlines Franchisor wins NZ gym franchise spat, rogue outlets to return Three Auckland Club Physical franchise outlets which caused an uproar by rebranding overnight to become independent gyms will be rebranded back to Club Physical and operated as company-owned outlets following legal action in the New Zealand High Court. Negotiations for the franchisor to acquire the leases and equipment of the three outlets concluded after High Court injunctions had ordered the newly-independent outlets which had branded themselves as Jolt Fitness to close due to breaches of their franchise agreement with Club Physical. The battle between the owner of the three outlets, Stuart Holder, and the founder of the Club Physical chain Paul Richards, has been fought in the courts, in the New Zealand media, and in person as disaffected customers recently demonstrated outside one of the outlets waving placards and demanding a return to Club Physical.

Byron Bay Cookies fail within days of announcing plans for expansion Barely a week after announcing ambitious international expansion plans, fledging franchise Byron Bay Cookie Company has had its manufacturing business placed in receivership due to unpaid taxes of more than $1.2 million claimed by the Australian Tax Office (ATO). A director of the six-outlet chain has claimed in a media report that the receivership of the manufacturing business does not affect the retail outlets or expansion plans, but fails to indicate how supply of the group’s core products can be maintained if

receivers are unable to prevent closure of the manufacturing plant. At least 13 staff have already lost their jobs in the company’s head office and manufacturing plant. Immediately prior to its receivership, the company’s chairman announced plans to expand to the United States and the United Kingdom, despite court papers lodged by the ATO stating that employee superannuation had not been paid since early 2010.

IT franchisor offers 285 free franchises nationally Adelaide-based computer repair and audiovisual services business Dr PC is giving away 285 free franchises worth $10 million in order to accelerate growth and increase national coverage, according to a media report. However, successful candidates must still outlay up to $5,000 for equipment and setup costs, have suitable experience, and are expected to devote 35 hours a week to their business.

Small business sector gets fifth minister in 15 months The Federal Government has appointed Western Australian MP Gary Gray as the fifth Business Minister to occupy the portfolio in 15 months after Chris Bowen resigned following the abortive Labor leadership coup last week. Gray will be the third Business Minister since the announcement of the latest review of the Franchising Code of Conduct in January. Previous business ministers since December 2011 (in order) include Nick Sherry

104 Business Franchise Australia and New Zealand

Jason Gehrke, Director, Franchise Advisory Centre.

(resigned), Mark Arbib (resigned after three months), Brendan O’Connor (reshuffled after 11 months) and Chris Bowen (resigned after one month).

Cash Converters receives $60 million injection Pawnbroking and short-term lending franchise Cash Converters has obtained $60 million from Westpac Bank via a securitisation program to increase the chain’s personal loan book.

Vale Elisabeth Ritchie – An outstanding commitment to Australian franchising Widely regarded franchising lawyer and longstanding Franchise Council of Australia volunteer Elisabeth Ritchie passed away recently after a long and courageous battle with cancer.

Australian ice cream market heats up Competition among ice cream brands in Australia will heat up as mature brand Baskin Robbins announces a 200-store expansion under new owners, and relative newcomer Ben & Jerry’s seeks to add a further 30 stores to its network. Baskin Robbins’ Australian operations, which were previously fully-owned by United States-based corporate parent Dunkin’ Brands, has been sold to the owners of Baskins’ middle-east operations. Dunkin’ Brands retains 20 per cent of the Australian business, with the remaining 80% sold to United Arab Emirates-based conglomerate Galadari Brothers Group.



Mason Sier Turnbull

485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E

315 Ferntree Gully Road, Mount Waverley VIC 3149

If you’re considering buying a franchise you need the legal confidence that the agreement is fair and ethical. Getting the right legal advice early is essential, and that’s where the knowledgeable Harmans team of franchising experts can help. Our extensive experience in all aspects of franchising, across a wide range of industries, will provide you with the advice you need to more forward with confidence. We have acted for franchisors and franchisees over many years and know the advantages of franchising and pitfalls to watch out for. Our Franchising Team can assist with a full range of franchise related services, including: - Legal rights and obligations under franchise documentation - Business structures and asset protection structures - Financing issues - Employment issues and health and safety - Lease arrangements and agreements - Terms of trade - Dispute resolution We are members of the Franchise Association of New Zealand

the magazine for franchisees


P 03 8540 0200 F 03 8540 0202 Contacts Raynia Theodore, Principal / John Sier, Principal E Mason Sier Turnbull is widely recognised as one of Australia’s leading franchising law firms having more than 30 years of experience in advising franchisors, franchisees and suppliers to the franchising sector on all aspects of franchising, including advising on Franchising Code of Conduct compliance, Competition and Consumer Act compliance, drafting Franchise Agreements, Disclosure Documents and ancillary documentation, sales and purchases of franchise businesses and franchise networks, restructuring of franchise networks and multi-tiered franchising options. Mason Sier Turnbull acts for a number of well-known national franchisors, international franchisors and for new and emerging franchise systems. Our dedicated franchise team prides itself on providing commercial and practical advice to its franchise clients and our international affiliations allow us to stay in touch with global franchising trends and developments.

Wisewould Mahony Lawyers


AU S TR A LI A a n d n e w z ea l a n d

Professional services listings are a great way to promote your business for more information call 03 9787 8077 (+61 3 9787 8077 from outside Australia) and speak to one of our sales executives.

419-425 Collins Street, Melbourne VIC 3000 P 03 9629 8333 F 03 9629 4035 Contact Robert Toth E Lawyers in love….with Franchising 25 Years of Specialised Franchise Industry Knowledge Member Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand (FANZ) & US Commercial Service. FIXED COST FEES to Franchisors & Franchisees based on scope of works. No hourly rate surprises! Services Provided • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – strategies & solutions • Sale/Purchase of Franchise Systems • Employment Law and Workplace Relations Specialists • Master Franchising • International Franchising • Business Law Specialists Call or email for a complimentary brochure for Franchisors & Franchisees

Business Franchise Australia and New Zealand 105

FRANCHISE LISTINGS FRANCHISE APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: Website:










$43,500 + GST + Vehicle


6 (@1/7/12)







$49,900 + GST

$250,000 + GST

BRAZILIAN BEAUTY (AUST) PTY LTD 45 Crosby Road, Albion QLD 4010 Ph: 07 3262 8984 Fax: 07 3262 1835 Email: Website:





$250,000 - $350,000

BRIGHTEYES SUNGLASSES 75 Talavera Road, Macquarie Park NSW 2113 Ph: 02 9815 2628 Fax: 02 9815 2650 Email: Website:



Franchise Council of Australia

$10,000 plus GST

Varies from store to store


4 Corporate & 9 Franchised

Franchise Council of Australia




Over 200 worldwide



FROM $129,600

CREMA ESPRESSO 118 Varsity Parade, Varsity Lakes QLD 4227 Ph: 07 5562 5516 Fax: 07 5562 5543 Email: Website:



DENTAL FIX RX 4380 Oakes Rd, Suite 814, Ft. Lauderdale FL 33314 USA Ph: +1 800 586 0340 Fax: +1 866 725 1165 Email: Website:



BACKCARE & SEATING 4 Guilfoyle Ave, Coburg VIC 3058 Ph: 03 9353 0500 Fax: 03 9353 0599 Email: Website: BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: Website:

BROTZEIT® INTERNATIONAL PTE LTD 56B Pagoda Street, Singapore 059215 Ph: +65 6222 6863 Fax: +65 6222 7069 Email: Website: CAFE 2U Building 7, 81 Frenchs Forest Road, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: Website:

ELLA BACHÉ 2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: Website: FASTA PASTA PTY LTD 38 Barnett Avenue, Glynde SA 5070 Ph: 08 8336 5855 Fax: 08 8365 2524 Email: Website:


Franchise Council $45,000 + GST Incl. Training of Australia IFA-

160+ Franchise Council Nationally of Australia (FCA)

Dependent on Site conditions $250k$450K




$100,000 - $300,000



Franchise Council of Australia

$50,000 + GST

$650,000 - $950,000

FASTWAY COURIERS AUS Level 9, 491 Kent Street, Sydney NSW 2000 Ph: 02 8263 3900 Fax: 02 9264 4966 Email: Website:




From $25K+GST


FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website:












FCA, AAT, Inst. Of Certified Bookkeepers

$32,000 + GST

$38,000 (Franchise fee & equipment)














$10,000 (Incl. in cost)




Franchise Council $52,000 inc GST of Australia










Included in Purchase Price

From $50,000 + GST


175 across Australia & New Zealand




KWIK KERB PO Box 103, Mt Ommaney QLD 4074 Ph: 1800 773 231 Fax: 07 3717 6777 Email: Website:






LINK BUSINESS PO Box 12 324, Penrose, Auckland New Zealand Ph: +64 9 579 9226 Fax: +64 9 525 1457 Email: Website:




From $5,000


MAIL BOXES ETC Level 1, 117 Willoughby Road, Crows Nest NSW 2065 Ph: 1800 556 245 Fax: 02 8088 0773 Email: Website:






NANDO’S AUSTRALIA 40 Mollison Street, Abbotsford VIC 3067 Ph: 03 9385 0777 Fax: 03 9385 0788 Email: Website:


270 +


$45,000 + GST

$380,000 - $450,000 + GST

NATRAD 40 Overseas Drive, Noble Park VIC 3174 Ph: 03 9795 1255 Fax: 03 9795 0807 Email: Website:






NOODLE BOX 13A/663 Victoria Street Abbotsford VIC 3067 Ph: 03 8851 4200 Fax: 03 8851 4277 Email: Website:






ORDERMATE POS 59 Fennell Street, Port Melbourne VIC 3207 PH: 1300 667 067 Fax: 1300 667 101 Email: Website:






PARASERVE (VIC) PTY LTD 3/16 Turbo Drive, Bayswater North, VIC 3153 Ph: 1800 041 876 Fax: 03 9729 7722 Email: Website:




From $15,000

$35,000 Including franchise fee

PEDDERS SUSPENSION 6 Bridge Road, Keysborough VIC 3173 Ph: 03 9706 3500 Fax: 03 9706 3355 Email: Website:


120+ Australia Wide


PLUS FITNESS 24/7 PO Box 76, Camden NSW 2570 Ph: 02 4648 2099 Fax: 02 8572 8222 Email: Website:






playgroup, transition, pre-school & child care





FERNWOOD FITNESS Level 1, 475 Flinders Lane, Melbourne 3000 Ph: 03 9630 8810 Fax: 03 9630 8830 Email: FIRST CLASS ACCOUNTS Suite 8, 34-36 Glenferrie Drive, Robina QLD 4226 Ph: 1800 118 611 Fax: 07 5578 9028 Email: Website: FLASH BY MORFFEW PO Box 626, Potts Point NSW 1335 Ph: 0416 225 311 Fax: 02 9389 8816 Email: Website: FROOTS PO Box 848727 Pembroke Pines FL 33084 USA Ph: +1 877 376-6871 Fax: +1 954 241 6009 Email: Website: HENNY PENNY HATCHING PO Box 1376 Kenmore QLD 4069 Ph: 0402 853 213 Fax: 07 3201 0336 Email: Website: HOME INSTEAD SENIOR CARE L3 Toowong Tower, 9 Sherwood Road, Toowong QLD 4066 Ph: 07 3720 8400 Fax: 07 3720 8644 Email: Website: JESTERS FRANCHISING PTY LTD Unit 1, 34 Prindiville Drive, Wangara WA 6065 Ph: 08 9309 2200 Fax: 08 9309 2199 Email: Website: JIM’S FENCING PO Box 686 Mount Martha VIC 3934 Ph: 131 546 Email: Website: JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 1800 334 498 Fax: AUS 02 9527 5144 Email: Website:

precious cargo Ph: 0409 652 545 Email: Website:

106 Business Franchise Australia and New Zealand

$16,500 inc GST $200,000 - $350,000







RED ROOSTER FOODS PTY LTD Level 1, Unit 17, 202 Ferntree Gully Road Notting Hill VIC 3168 Ph: 03 9582 8716 Fax: 03 9582 8744 Email: Website:






RENT THE ROO PO Box 2150, Howrah LPO TAS 7018 Ph: 03 6247 3826 Fax: 03 6247 3853 Email: Website:


60 territories






Institute of Engineers

$68,500 + GST

$68,500 + GST

RYCO 24•7 19 Whitehall Street, Footscray VIC 3011 Ph: 03 9680 8000 Fax: 03 9680 8001 Email: Website:



FCA – Franchise Council of Australia



SHERPA KIDS 3 May Terrace, Brooklyn Park SA 5023 Ph: +61 8 8354 4886 Fax: +61 8 8121 1835 Email: Website:


10 in AUS, 50 in NZ






Bulky Goods Assoc/FCA


$180,000 - $220,000




$49K plus GST

$500K-$700K inc. Equip. Financing

SNAP-ON TOOLS (AUSTRALIA) PTY LTD 80 Holbeche Road Arndell Park NSW 2148 Ph: 1800 762 766 Fax: 02 9837 9199 Email: Website:





$37,000 with Snapon finance

SNOOZE SLEEP WELL PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: Website:



Franchise Council of Australia






$49,000 plus GST

Finance Available




$15,000 (Licence Only)

$75 P/W

STAR MART - CALTEX AUSTRALIA 2 Market Street, Sydney NSW 2000 Ph: 02 9250 5000 Email: Website:



STEAMATIC 23 Jarrah Drive, Braeside, VIC 3195 Ph: 03 9587 6333 Fax: 03 9587 6572 Email: Website:




From $20,000

From $30,000

SUMOSALAD Level 1, 1 Short Steet, Leichardt NSW 2040 Ph: 02 9569 7866 Fax: 02 9569 7811 Email: Website:




$45,000 + GST

$300,000 PLUS GST

TACO BILL MEXICAN RESTAURANTS 375 Clarendon St, South Melbourne VIC 3205 Ph: 03 9690 2077 Fax: 03 9696 0868 Email: Website:



Restaurant Catering Victoria







From $200,000


Approximately 200


From $24,750

$150,000 to $700,000

THE LEATHER DOCTOR 2/52 Export Drive, Molendinar QLD 4214 Ph: 1300 453 284 Email: Website:




Starting from $45,000 + GST

$60,000 + GST

THE TIMBER DOCTOR 2/52 Export Drive, Molendinar QLD 4214 Ph: 1300 453 284 Fax: 07 5563 3477 Email: Website:




$35,000 (plus GST)


TOTAL TOOLS 19 Grimes Court Derrimut VIC 3030 Ph: 03 9394 4300 Fax: 03 9394 1699 Email: Website:






TPR GROUP National Service Centre, 6 Pedvin Place, Annangrove NSW 2156 Ph: 1800 631 365 Fax: 1800 631 265 Email: Website:


30+ Nationally

NGIA, Green Building Council, IPA


$25,000+GST for Shell







SLEEPY’S PTY LTD Unit 9/16 Metroplex Avenue, Murrarie QLD 4172 Ph: 07 3895 4100 Fax: 07 3395 6096 Email: Website: SNAP FITNESS AUSTRALIA PO Box 41, Cannon Hill, QLD 4172 Ph: +61 435 841 811 Email: Website:

SOCIAL MEDIA BUSINESS BOOSTERS 39F The Promenade, Sanctuary Cove QLD 4212 Ph: 1300 298 898 Website: SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: Website:

TELECHOICE 74 Eastern Road, South Melbourne VIC 3205 Ph: 03 8699 2555 Fax: 03 8699 2550 Email: Website: THE CHEESECAKE SHOP 2 Lisbon Street Villawood NSW 2163 Ph: 02 9723 1011 Fax: 02 9727 6771 Email: Website:

V.I.P. HOME SERVICES AUSTRALIA Offices in each State Ph: 13 26 13 Fax: 08 8220 4588 Email: Website: WET-SEAL PO Box 481, Coffs Harbour NSW 2450 Ph: AUS: 1800 025 081 NZ: 0800 436 000 Fax: +61 2 6650 8699 Email: Website:


Franchise Council $150k to $800k of Australia



$50K AUD +GST, $50K NZD +GST

A-Z Listings are a great way to promote your business For more information call 03 9787 8077 (or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to

Business Franchise Australia and New Zealand 107

A-Z FRANCHISE DIRECTORY APPLIANCE TAGGING SERVICES Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? With over 10 years experience, ATS are Australiawide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its franchisees grow profitable and successful businesses.

BATTERY WORLD AUSTRALIA Australia’s leading battery retailer Battery World is offering qualified individuals a unique retail opportunity with a great growth potential. Battery World stores carry batteries for everything from mobile phones and laptops to vehicles and boats. With 79 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category.

Brazilian beauty Welcome to the Brazilian Beauty franchise model where beauty and brains meet. Proven to have successful franchisees from an array of backgrounds embracing the beauty industry and the Brazilian Beauty brand to create profitable lifestyle businesses that engage, challenge and motivate. Proven operational systems, award winning marketing and advertising; team and individual guidance; training and personal development;

BrightEyes Sunglasses Established in 1985, BrightEyes Sunglasses is one of Australia’s largest sunglass retail networks, with over 80 locations nationwide.


Our genuine passion towards enhancing Australia’s active lifestyle makes us the experts on fashionably functional eyewear. At BrightEyes we’re not simply selling sunglasses; we’re selling an enhanced way of life. The BrightEyes Sunglasses product range is extensive and showcases the latest styles from

Brotzeit® “Brotzeit®” is a typical Bavarian expression - “Brot” being German for bread and “Zeit” for time, referring to a cosy meal complemented by fresh beer. Started in 2006, Brotzeit® is a Singapore-based casual dining brand offering authentic Bavarian cuisine and worldfamous quality German beer in a chic and contemporary setting. Brotzeit® currently operates eleven outlets in Singapore, Malaysia, Vietnam, Hong Kong and China (Shanghai), Philippines and Thailand. It has also signed development deals in China (Beijing, Guangdong), Taiwan and Indonesia, with more territories in the pipeline. In recognition of its established franchise support system and

108 Business Franchise Australia and New Zealand

No prior electrical experience is required, just a passion for safety and a commitment to growing your business. With low entry fees, minimal franchisee administration, and average returns between $1,000 and $3,000 per week an ATS franchise may be just the opportunity for you. ATS were named the FCA - Emerging Franchisor of the Year 2011. For further information please contact Steve Wren, National Sales Manager on 1300 287 669 or visit

If you want to invest your time and money in a powerful franchise, Battery World offers a unique opportunity to tap into an ever-growing market. A select number of franchises are currently available throughout Australia for motivated individuals with strong communication skills and a background in customer service. For further information about Battery World contact 07 3373 1764 or visit

weekly in salon and monthly group meetings are all part of the package. “At Brazilian Beauty we work together to share our knowledge, ideas, passion and goals to gain a competitive advantage over all other beauty competitors.” Francesca Webster, founder. Visit us at and Call 07 3262 8984 today and take the first steps towards making your business dream happen.

leading international brands such as Ray-Ban, Oakley, Arnette, Revo, Maui Jim, Bolle, Prada and Vogue (to name a few). We are also proud to market our unique house brands including Mangrove Jack’s, Stiletto, Nicole’s, Attitude and Urban. If it’s a fantastic franchise opportunity you are looking for, backed up by proven operational, product and marketing support you can visit us at www. to find out more. Alternatively, just contact the BrightEyes franchising team on (02) 9815 2628 or email brighteyes.admin@ We would love to hear from you!

its expansion achievement, Brotzeit® has been awarded the ‘Franchisor of the Year’ in 2012, by the Franchising and Licensing Association (Singapore). • Top of Industry Sales and Profitability • Low Fit Out Costs • Quick Pay Back • Coordinated Marketing • Excellent Support For enquiries on franchising in ANZ, please contact Mr Dennis Delaney at +61 0 411 265441 or email

CAFE2U Cafe2U is Australia’s No. 1 and most successful mobile café system. With over 200 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchises now have access to the unique “Acceleration Package” that fast-tracks franchisees three months ahead. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run

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

Dental fix rx Become a Dental Fix RX Master Licensee! If you have been looking for a chance to own a cutting edge business for a low initial investment, look no further. Starting a Dental Fix RX business is a great way to own a business with minimal start-up costs and unlimited growth potential. People from all walks of life are using Dental Fix RX to create independence for themselves. Dental Fix RX has become one of the fastest growing service-based opportunities in America and is now expanding globally.

that delivers a minimum of $500.00 a day before the Franchisee operates solo. The business is HACCP certified and offers a unique van fitout, with strong marketing support. If you are passionate about coffee and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own business. A café without the hassles of staff or rent provides you the freedom to enjoy the lifestyle you deserve. Contact John Stanton - Sales and Franchising Manager on 1300 Cafe2U (1300 223 328) or

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

Here is why this opportunity is so popular: * Untapped Market with steady future growth * Protected Territory * One - of - a - kind business model in the recession resistant dental industry – Multiple Revenue Streams. Top level training from some of the most experienced professionals available over a 6 week course, you will be up and running with ongoing support very quickly. For more information on this great opportunity contact Chris Forneris on telephone + 1 239 222 5581 or email

Ella Baché Our Success is your Success! Join the Ella Baché network of loyal and profitable salons and enjoy the success and support of a premium established brand. Our franchise model is unique, with no royalties and no marketing fees. Ella Baché was established in 1954 and is the oldest family owned skincare company in Australia with over 160 salons nationally. Our company’s mission is that “Ella Baché will inspire you to be the best that you can be.”

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

We pride ourselves on being the “Skincare Experts” and attribute our success to our people, knowledge and understanding of tailored skincare Solutions. We are committed to providing support through in training, business planning, marketing, sales initiatives, salon designs and investing in our brand. Please contact Michelle Donnelly for more information. E: P: (02) 9432 5016

opportunity to be part of our winning national organisation. Extensive initial training and ongoing support is provided. New franchisees undergo 12 weeks training in one of our company restaurants covering areas such as, front of house, kitchen (all areas), necessary bookwork, PPS, and Management skills. For more information on joining a successful franchise call 08 8336 5855, email, or visit our website,

Business Franchise Australia and New Zealand 109


• Low start up costs

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

• No weekend work

*Conditions apply


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

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

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

FERNWOOD fitness Fernwood Women’s Health Clubs is a dominant player in the women’s-only fitness in Australia. It owes its success to the quality of the franchisees who work hard in partnership with Fernwood to make a difference in the lives of women. Our franchise system has been built from the ground up and developed over many years. The system is focused on providing our Franchise partners with the necessary tools, advice and support they need to grow their businesses. Key strengths & benefits • National brand awareness

FLASH by Morffew Creative? Love Photography? Run your own photographic franchise and be supported by the best in the business! Mark Morffew is renowned for being an industry leader. His company own five exclusive MORFFEW PHOTOS photographic studios located in some of Australia’s best shopping centres. April 2012 saw the launch of his diffusion brand FLASH by Morffew - a pop-up studio concept designed to be

froots Eat delicious and smile! Free yourself from the daily grind and blend up some excitement instead by sharing in one of the fastest growing franchises in the US. With over 40 locations worldwide, you can look no further for your financial independence. Froots is different. They use 100% real fruit and fruit juice in their smoothies as well as low fat, healthy ingredients in their soups, salads, wraps and

110 Business Franchise Australia and New Zealand

*Conditions apply

• Well established & proven system for over 20 years • Innovated & creative marketing initiatives • Professional & friendly ongoing support from NSO • Stream line structured induction 3 week training program • Multiple streams of income These key strengths combined with honouring our core values and utilizing the Fernwood tools, knowledge and model assists new franchisees to build a successful business. For franchising enquiries visit our website

able to move to different locations. The vibrant colors, contemporary design and fun style of photography make FLASH by Morffew a clear stand-out. The best part is you don’t need to be a photographer to successfully own and operate a FLASH by Morffew franchise. Just love working with people, enjoy motivating your team, strive to provide an amazing customer experience and have passion for the product! We want your business to be simple, profitable and successful. Contact mark@ or call 0416225311 for more information

Panini’s. No fillers. All food is prepared in a healthy manner, is delicious and there is even something for those with a sweet tooth. If you are looking to be your own boss, stay fit, and eat healthy, becoming a Froots franchisee is for you. Join the Froots family for an exciting opportunity! Master franchise and license agreement opportunities currently exist within Australia. For more information call +1 877 376-6871 or visit

HENNY PENNY HATCHING Henny Penny Hatching has been operating since 2001 in Brisbane, where it has become a household name. Since then we have become well-established in both Sydney and Melbourne and with the continued demand for our program we are now expanding to include franchises in both Adelaide and Hobart. Henny Penny Hatching delivers a simple set-up which brings the joy of chicks hatching to venues including childcare centers, schools and aged care facilities. Franchisees require no prior experience and our mobile

jesters Jesters Jaffle Pie Company was founded in Western Australia in 1997 on the philosophy of producing the healthiest, finest quality pies available in the marketplace. Our commitment to quality, health, taste and freshness led to the development of a unique way of cooking the pies by hand and fresh all day in store. Jesters is a WA company with our HO and experienced support team all based in Perth. We source all our meats and vegetables from WA supporting other local industries. When buying a Jesters Franchise you become part of a supportive and successful network. Jesters Franchisees are provided with intensive training and support during

Jim’s Fencing Jim’s Fencing franchise opportunities were launched in 1997, initially in Melbourne; to date Jim’s Fencing is Australia wide with approx 150 franchise owners of which includes contractors (who work for the franchise owners) building fences every day of the week. Due to the over supply of work which we cannot service Australia wide, Jim’s Fencing needs more franchise owners to service our customers. Some of the benefits of joining our Jim’s Fencing team are; • 8 weeks paid for training @ $1000 inclusive p/w

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

LINK BUSINESS BROKING LINK is a Premium Business Brokerage network with offices in New Zealand, Australia and South Africa. Since its formation in 1996, LINK’s leadership in the Business Broking industry has pioneered and set the professional standard to which other brokerages aspire.

franchises, which have low overheads, are easy to operate from home. We are seeking enthusiastic, energetic franchisees with good communication skills who enjoy interacting with the public and who are keen to establish one of our well-respected franchises in Brisbane, Sydney, Melbourne, Adelaide or Hobart. Full training, marketing support and continued advice are all part of the package. Visit us at for further details on available franchises.

start up of the business. You are also appointed your own business consultant for dedicated ongoing support. Jesters also provides marketing and advertising support for the entire network of Jesters Stores. Jesters has successfully tapped into a niche of the $5 billion (and growing) fast food industry with a unique product which no other chain has recognised. Jesters have developed a unique culture, in that operating a business can be fun as well as profitable.For more information on exciting opportunities within the Jesters Franchise, please contact Terry Sherlock on: Phone: 08 9309 2200 Email:

• 3 month bookkeeping assistance package • Work availability GUARANTEE • Ongoing support and personal mentoring • Strong brand recognition • Over supply of work • And much, much more If you are looking for a self-employed business opportunity and enjoy working outdoors, then why not join the team here at JIM’S Fencing. For more information on this Franchise opportunity and Jim’s Fencing, you should go to our website: or call us on 131-546.

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

With a proven back office system, world class marketing tools and the LINK Training Academy, LINK truly is the authority on selling businesses. Contact us today for information on a LINK Business Broking Franchise. Phone 0064 9 579 9226 or email Kevin Atkinson: Visit,,

Business Franchise Australia and New Zealand 111

A-Z FRANCHISE DIRECTORY MAIL BOXES ETC Established in 1980, Mail Boxes Etc.(MBE) is a global network with more than 6,000 locations worldwide, serving more than 60 million customers a year in 32 countries. Mail Boxes Etc. has been consistently rated as the #1 Postal and Business Services franchise for 20 consecutive years. Mail Boxes Etc. stores offer print and finishing services, design and marketing services, mailbox rental and shipping services (domestic and international).

means you don’t have to go through the pitfalls that most new businesses have to deal with.

MBE franchise offers you the opportunity to accomplish your own potential in an industry that is idyllic for franchising.

The benefits of an MBE Franchise are straightforward: • Independence • Reward for Effort • Be Your Own Boss • Freedom • Quicker Start • Lower Risk You’ll get full support from the MBE team, a group that is dedicated to providing you with guidance, consulting and all the resources you need to make your MBE Centre a successful business.

MBE has proven and professional expertise in all aspects of franchising, so it gives franchisees extra added support. This

Call Agnes Beugnon on 1800 556 245 or email


Natrad is currently looking for interested individuals from outside the industry as well as existing automotive workshops looking to convert and further develop their business.

Natrad is the most recognised and iconic brand in radiator and air conditioning cooling systems and is Australia’s most trusted cooling specialists, with over 80 stores nationwide, offering specialist service with local outlets conveniently located all around Australia. Natrad will only use quality and trusted products. We stand by our specialist service, ability to access a wide range of product and get the job done right. We specialise in exclusive access to OE and aftermarket radiators and air conditioning backed by product 3yr nationwide warranty.

NOODLE BOX In 1996, two young Aussies with a thirst for soy sauce and a hunger for authentic Asian noodles created Noodle Box.

If you love cars, and want to become part of Natrad’s powerful branding, quality products, strong support and low entry costs … “Nip into Natrad”! Natrad National Office: 03 9795 1255 Haydn Roberts, National Recruitment Manager: 08 8243 9860

Since then, Noodle Box has become a woking success. In November 2002, Noodle Box franchised their concept and today there are 80 stores across the nation, making Noodle Box the fastest growing noodle franchise in Australia.

After taking a trip around the globe Josh James and David Milne became addicted to the delicious flavours and fresh quality of South East Asia’s street food. Impressed by the simple packaging concept the two entrepreneurs returned to Australia ready to put noodles in a box.

The future “Tastes Like Happy” with more and more consumers responding to the fresh and healthy, fast food alternative Noodle Box represents.

Simple and delicious, it didn’t take long for the idea to become a reality with the first Noodle Box opening in Chapel Street, Melbourne in September 1996.

Or call our Franchise Sales Manager Michael Standley on 0416256338.

OrderMate POS

We have a proven track record of delivering a return on investment within 12 months.

OrderMate is a complete multi-site franchise POS solution. OrderMate is designed and developed in Australia by hospitality people, for hospitality people. Our success relies upon our ability to tailor your POS system to meet the specific needs of your business. We have a nation-wide network enabling us to rollout, service and support large scale projects. Our easy to use front of house interface, is balanced by powerful backend reporting to drive your business. OrderMate gives you the tools to track and manage the KPIs of your franchisees in real time.

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

112 Business Franchise Australia and New Zealand

For more information see


Find out more for your franchise contact: Clinton Capuzzi 1300 667 067 / 0409 191 617. Become an OrderMate Dealer contact: Shannon Hautot 1300 667 067 / 0409 424 979

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

Pedders Suspension Pedders Suspension is an Australian family owned company that has been operating since 1950. As Australia’s No. 1 Shocks, Steering, Towbars, Brakes and Suspension Specialist, our objective is to ensure through innovation and technical expertise – that every car leaves a Pedders store performing to its potential in terms of comfort, handling and safety.

networks - we are passionate about franchising, our business, our industry, our franchisees and their customers. We offer a fair and workable system that is mutually beneficial to both the Franchisee and the Franchisor. Straight advice, specialists you understand and No Bull!

With over 120 outlets Australia wide - and hundreds of international distribution

For more information call 03 9706 3500, email: or visit:

plus fitness 24/7

assured that your franchise will be success.

The only true turn key 24 Hour Gym Franchise on the market, Plus Fitness 24/7 capitalises on strong supplier relationships developed over 16 years in the Australian Fitness Industry. Plus Fitness provides the most competitively priced 24 Hour Gym Franchise with an initial investment from $289k including all gym equipment, aesthetic fitout, signage, access control and marketing.

A franchise model that provides fast breakevens, low staffing and impressive returns, Plus Fitness 24/7 is a ‘lifestyle’ business second to none. With 55 gyms open and a further 42 territories sold, Plus Fitness has a clear goal of establishing over 150 gyms by the end of 2013. Plus Fitness 24/7 Franchise opportunities exist however territories are selling fast!

Add to this proven operating systems, unrivalled franchisee training and ongoing support you are

To find out about current opportunities call on 02 4648 2099 or email


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

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

RENT THE ROO RENTALS Rent The Roo specialise in the rental of any household appliance or furniture product available. There is simply NO LIMIT to the development of product ranges on offer from Rent The Roo, because franchisees can purchase from any retail outlet or accessible supplier – giving us the flexibility to satisfy every customer enquiry. If we can find it, you can rent it…! With over 36 years of trade and development and our continued focus on customer satisfaction, Rent

RYCO 24•7 RYCO Hydraulics is one of the largest hydraulic hose and fittings manufacturers in Australasia. The RYCO Trade Mark has been established in the industrial market for over sixty years and is a trusted name for quality products and service. RYCO 24•7 Pty Ltd is a member of the Franchising Code Council Limited, which administers the Franchising Code of Practice. RYCO 24•7 Mobile Connector Specialists franchises was established over twenty years ago and is a successful channel to market for the RYCO group.

The Roo continue to grow with over 60 franchise territories covering every state & territory in Australia. Franchisees have access to ongoing training and support as well as an extensive range of marketing tools to help drive the business forward. Rent The Roo’s home-based, simple and productive business model combines low running costs with the highest possible returns. For further information, visit the FRANCHISE tab at or contact Alan Carroll on 0408 178 858 or

Target markets for RYCO 24•7 “product and services” being emergency breakdown and installation of hose and fittings to a large range of industries. Training is provided and conducted at RYCO’s design centre in Melbourne, or at RYCO 24•7 Mobile Connector Specialists designated Service Centre. RYCO’s training packages meet a Nationally Recognised Standard and cover all aspects of the identification of hydraulic hose and fittings. For further information, call 133 247 or visit

Business Franchise Australia and New Zealand 113

A-Z FRANCHISE DIRECTORY Sleepy’s Sleepy’s unique selling proposition is ‘The Mattress Experts’. We focus on providing the right mattress to our customers through a tried and tested selling process and we back up our advice and sales with a 60 day comfort guarantee giving our customers complete buying confidence and, we take away your old mattress free!

With Sleepy’s low entry costs, simple business model, proven selling system and healthy margins you too will become a mattress expert! Sleepy’s currently has 22 stores and has embarked on an aggressive national growth plan. Make an enquiry today and we’ll be very happy to provide you further details on how you can become a Sleepy’s franchisee.

Sleepy’s offers our franchisees high quality initial and ongoing training, national marketing programs, full support from the management team and, up to the minute product development.

Please contact Guy Elliott on 07 3895 4100 or 0434 254 154. Email: Website:

SNAP fitness

Easy to own • Affordable investment • Financing options available Easy to manage • Complete Turn Key Operation Easy to market • Ready-to-go, proven sales & marketing support Contact Catherine McGill, Franchise Sales Manager +61 435 841 811, email:

In today’s uncertain economy, professionals and small investors from all walks of life are saying “enough!” and partnering with Snap Fitness, the fastest-growing franchisor of compact, state-of-theart, 24/7 fitness centers in the world. Discover the freedom, flexibility and fulfillment that comes with owning the leading alternative to traditional “big box” health clubs; and a value-driven concept that’s right for the times.


Snap-on in their last three surveys and the Best Value franchise system. Franchisees, who operate from amazing custom built mobile stores, have protected territories that have been surveyed to locate and profile the customers before they start. Extensive training and ongoing support is provided and no previous mechanical/trade experience is necessary. Franchisees need to be motivated business minded people with a desire to be successful and enjoy the sales environment while building professional relationships with their customers. No royalties, no advertising levies and Snap-on finance packages available.

Snap-on tools have a heritage spanning more than 90 years and is a brand that defines quality. The range of more than 19,000 products are the choice of professional technicians from NASA to Formula One. The primary customers for franchisees are the professional technicians who service and repair cars, trucks, motorcycles, boats, aircraft and earth moving equipment - the people who make their living using tools and demand the best. With more than 4,700 franchisees around the world, 160 of them in Australia and New Zealand, the franchise programme has been developed over decades. The Financial Review Smart Investor magazine has chosen

For more information call 1800 762 766 or


• NAB & ANZ accreditation

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

• Sales and product training

Boasting more than 70 stores across Australia and a goal to reach 90 stores by 2014, Snooze is looking for ambitious and passionate people to join the business’ exciting future.

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

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

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

• Vendor finance assistance


Social Media Business Boosters

• Awesome Support

A world first social media consultancy franchise - • Low market entry • Income Guarantee • Massive Ongoing Demand • Rapid return on investment • Minimal overheads • No Stock • Extensive Training

• No Royalties

114 Business Franchise Australia and New Zealand

• Work from Home • Your Own Boss • No Territories • No Restrictions • Scalable to any size you want * The smarter you work the more you earn. To discover more about this exciting opportunity visit

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

STEAMATIC Steamatic is Australia’s largest and most successful insurance restoration company. Offering our services to the insurance sector for over 25 year we are well regarded and indeed supported with preferred agreements with various insurers to provide restoration and recovery services. Steamatic services are not limited to the insurance sector with a wide range of domestic, commercial and industrial services and techniques providing the

sumosalad SumoSalad is Australia’s most commercially successful healthy fast food franchise; serving over 145,000 customers each week. We’re on a mission to recruit like-minded franchisees who want to provide healthy, nutritious food and be part of the solution to Australia’s obesity crisis. SumoSalad started a health food revolution nine years ago when founders Luke Baylis and James Miller came to the conclusion that ‘fast food’ didn’t

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

TELECHOICE TeleChoice is Australia’s largest independent mobile phone and telecommunications services franchise, operating for 18 years in more than 140 locations. Using the most reputable service providers in Australia, TeleChoice franchisees are in the business of saving money for their customers. For example, TeleChoice uses parts of the Telstra 3G Network to offer the most competitive mobile phone rates that any franchisee in Australia can offer; and offering

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

franchisees with multiple profit centres to capitalise on. Part of an international network with now represented in 28 countries the Steamatic system is a proven winner that will exceed your expectations. For more information about becoming a successful member of the Steamatic family phone 1300STEAMATIC (1300 783 262) and speak with Oliver Threlfall.

have to mean ‘snatch and grab, lardy laden food’. SumoSalad’s unique concept of a fast food outlet that sold made-to-order salads that were nutritious, delicious and convenient is as popular now as it was in 2003. If you’re enthusiastic, health conscious and want to make a difference, come join our revolution, just contact Graham Streeter, General Manager Business Development on 0418 870 920 or email who’d love to hear from you.

restaurants as well as Australia’s largest Margarita – Pancho Villa (fishbowl) - giving the restaurant even more flavour and authenticity! With 37 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email

Electricity and Gas from Energy Australia delights our customers even more. You too can make money by saving people their money. Our industry is very dynamic and is only suitable for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be part of our team. Call the National Franchise Manager on (03) 8699 2555, or visit

Business Franchise Australia and New Zealand 115

A-Z FRANCHISE DIRECTORY THE LEATHER DOCTOR Decades of dedication and service have made the Leather & Vinyl Doctor what we are today; Reliable, Reputable and Really good at what we do. We offer: • Repairs to leather and vinyl goods and objects of all descriptions • Re-Colouring of leather and vinyl goods to restore

THE tiMBER DOCTOR The Timber Doctor is the latest franchise brand recently launched by Mobile Services International, who developed the successful Leather Doctor franchise. This mobile service business provides repairs to indoor and outdoor timber furniture, floors and trims. With franchisees already in Brisbane,


Stacked logo

them to original or add a fresh new look • Leather cleaning and conditioning service • Sales of quality cleaning products Our success has come from providing professional systems and a ‘white-collar’ Service. For more information on becoming a Franchisee contact 1300 453 284

Sydney, Melbourne and Perth after only six months, you will hit the ground running. The magical onsite repair process would suit those who have some artistic flair and enjoy working with their hands. For more information call Dean Reid on 0438 844 238, or email: or visit us at

total tools Welcome to the Total Tools Group

potential franchisees in all areas across Australia.

Being the best means selling the best. Australia’s most trusted tools retailer, Total Tools supplies only quality trade, industrial and commercial tools. So you’ll find we’re specialists in leading brands such as Makita, Hitachi, Sidchrome, Bosch, Stanley, Irwin, Cigweld, Milwaukee, DeWalt and Sutton.

Total Tools franchisees are positive, focused people, usually with tool or trade experience. Many already have a good head for business and people management. They choose Total Tools for brand strength, proven systems, security and the kind of return on investment only great franchises offer.

Already a successful national franchise, Total Tools is currently on a growth trajectory. This retail network expansion means Total Tools is presently seeking

For more information see or contact our Franchise Development Manager on (03) 9394 4300 or


based franchise system, operating business to business to commercial, hospitality, retail, government and other sectors.

Healthy Office Solutions Operate one or more franchises at no extra cost! With TPR GROUP you have the exciting opportunity to operate two franchises in one: Tropical Plant Rentals (Indoor Plant Hire and Maintenance) and Aarons Coffee at Work (Coffee Machine Hire, Maintenance & Supplies). TPR GROUP is a successful national network of over 30 franchises Australia-wide creating happy, healthy and productive environments – places where business and people thrive. You have the opportunity to join our dynamic service-

Join a team of successful franchisees who enjoy a good income balanced with a good lifestyle. The opportunity to expand your business and improve your bottom line is apparent for franchisees that follow our proven successful system. Available Australia-wide: Sydney, Brisbane, Melbourne, Perth, Adelaide, Canberra. Please contact us at or phone 1800 631 365.

V.I.P. Home Services australia

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

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

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

116 Business Franchise Australia and New Zealand

For further information call V.I.P. Home Services on 13 26 13 or visit

SapientNitro FSNO 640



Vendor finance now available* *Available to approved applicants

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

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

It’s amazing what a little snooze can do.

FSNO 640 Franchising FPP_210x297.indd 1

3/15/13 2:41 PM


Business Franchise AUS & NZ May/June 2013  

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