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AUSTRALIA and NEW ZEALAND VOL 07 ISSUE 05 july / august 2013

Tips for success in retail

Increase your revenue Get to know:

The Franchising Code LATEST NEWS

FINANCIAL ADVICE FROM THE BANKS

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TOP LAWYERS’ ADVICE


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


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 this edition we’ve taken a close look at some of the franchise systems thriving in the retail industry, and our industry experts have provided their insight into succeeding in the competitive world of retail.”

From the

Stacey Evans, Editor, CGB Publishing.

Editor Australia’s retail industry is worth over $292 billion dollars and employs over 1.2 million people. Retail offerings dominate the franchising landscape, with 27 per cent of all franchisors are involved in this sector.

Retail franchises cover a huge range of products from fashion, to house and garden needs, to pets, automotive, books, gifts, hair and beauty, the list goes on. You will find retail franchises in suburban strips, in shopping malls and centres, and on highexposure highway sites, ranging in size from tiny kiosks to massive warehouses. The options out there for the prospective franchisee are exciting and reach far and wide. In this edition we’ve taken a close look at some of the franchise systems thriving in the retail industry, and our industry experts have provided their insight into succeeding in the competitive world of retail. Boost Juice founder Janine Allis, whose highly successful retail ventures have seen

BUSINESS FRANCHISE AUSTRALIA and new zealand VOLUME 7 ISSUE 5, july/august 2013 publisher: Colin Bradbury.

her build one of the most recognisable franchise brands in the country, discusses the importance of attention to detail; Karli Furmage and the Franchise Relationship Institute team have shared their top ten tips for being a successful retail franchisee; and Katherine Grace discusses ways to increase your retail sales. We’ve also covered one of the most importance issues currently affecting the franchise industry – the Franchising Code of Conduct review. Stephen Giles, Deputy Chairman of the FCA, has outlined the FCA position on the review on page xx, and Jason Gerhke discusses ‘How major changes to the code will affect the franchising sector’. Our experts have covered all the important topics from local area marketing, to human resources, commonly asked legal questions, and financial advice. Throughout the issue you’ll find all of this advice and more, as well as profiles of some of Australia’s top franchise systems, and don’t miss our ‘What’s New’ pages featuring some of the latest happenings in the world of franchising.

colin@cgbpublishing.com EDITOR: Stacey Evans. editor@cgbpublishing.com.au SALES DIRECTOR: Vikki Bradbury. vikki@cgbpublishing.com SALES & marketing manager: Kathleen Lennox. kathleen@cgbpublishing.com.au SALES & marketing executive: Jodie Turner. jodie@cgbpublishing.com.au PRODUCTION: Joanne Tuffy. production@cgbpublishing.com.au ACCOUNTS: accounts@cgbpublishing.com.au DESIGN: Jejak Graphics (03) 9772 2571 COVER IMAGE: Total Tools TO SUBSCRIBE:

Enjoy the read, and I wish you all the best on your franchising journey.

www.businessfranchiseaustralia.com.au

Stacey Evans Editor

CGB PUBLISHING

or www.isubscribe.com.au

PO BOX 968 MT ELIZA, VICTORIA 3930 TEL: (03) 9787 8077 FAX: (03) 9787 8499 Email: cgb@cgbpublishing.com.au

SUPPLIER FORUM

www.businessfranchiseaustralia.com.au www.businessfranchisenz.co.nz

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


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Contents july / august 2013 On the Cover

76 10 Top Tips for being a

Tania Allen, Vision Alliance

32

Closing the gap

28

successful retail franchisee Karli Furmage, Franchise Relationships Institute

88 Get to know: The

Franchising Code Dr Michael Schaper, ACCC

76

22 Increase your revenue -

In Every Issue

Profiled Franchises

06 What’s New!

Announcements from the industry

10 Bakers Delight

8

Cover story – Total Tools

20 Plus Fitness 24/7

CEO becomes a store owner, now that’s belief in the system

12 Chairman’s report

Michael Paul, FCA Chairman

14 Deputy Chairman’s report

Stephen Giles, FCA Deputy Chairman

16 Franchising legislation before parliament

Graham Billings, FANZ Executive Director

26 The Leather Doctor 30 V.I.P. Australia 38 Mail Boxes Etc 42 The Australian Drug Detection Agency 54 Franchise Selection

63 Feature – Shopping for a franchise?

60 SumoSalad

100 Behind the Headlines

74 Tropical Plant Rentals

Consider retail!

Jason Gehrke, Franchise Advisory Centre

101 Professional Services Listings

80 Brozeit German Bier Bar & Restaurant

102 Franchise Listings

86 Flip Out Trampoline

104 A-Z Franchise Directory

96 TeleChoice


28 Common Facebook marketing mistakes and how to avoid them

Maria Abadilla, Revive Projects

32 How will major changes to the code

Jason Gehrke, Franchise Advisory Centre Andrew Kelly, F.C. Business Solutions

44 Want business success? Create Value!

Brazilian Beauty............................................ 79

affect the Franchise sector?

40 The value of Local Area Marketing

Battery World................................................. 62

Isabel Wu, Meta Management

Bright Eyes Franchising........................... 59 Café 2U................................................................. 2

50

Chipmunks Playland.................................. 73

50 Five commonly asked questions by franchisees

F.C. Business Solutions. .......................... 15

56 Planning for growth and success

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

Jane Garber, Mason Sier Turnbull Labrina Tsekouras, Westpac

67 Retail is detail

Janine Allis, Retail Zoo

69 Increasing your retail sales

Katherine Grace, Graceful Solutions

Franchising Expo......................................... 98 Global Franchise Sales............................. 91 Link Business Broking.............................. 85

74

Listen to Read................................................ 59

Mason Sier Turnbull. .................................. 53 Noodle Box. .................................................... 37

Focus Feature 48

Sherpa Kids

Paleo Café........................................................ 17 Paraserve. ........................................................ 45

Franchisee in Action

Recruitment Coach.................................... 47

34

RedCat.................................................................. 1

Sleepy’s

Franchisor in Depth 64 Snooze 82 The Original California Burrito Company 92 Ryco 24*7

Rent the Roo.................................................. 19 Sherpa Kids ................................................... 95 Snap-on Tools..........................................OBC

88

63

Expert Advice

also in this issue:

Snooze.............................................................IBC

The Interface Financial Group.............. 31 Westpac............................................................ 57 Zarraffa’s Coffee........................................... 25


what’snew! FAST CASUAL THE REAL ITALIAN WAY Rozzi’s Italian Canteen is the collaborative outcome of seasoned food and business operators who have combined their past 25 years’ industry experience to create this exciting new fast casual dining offer. Rozzi’s Director Dean Salomone and past Vic/Tas FCA State Chapter President tells us “As you can see with our first new concept store at Highpoint Shopping Centre we believe in creating interesting and unique places to enjoy our simple and great tasting ‘Real Italian’ food. The overall feedback from customers, suppliers and the general public has been sensational. “Sometimes we’ll pop up in shopping centres, sometimes in a great shopping strip. Either way we’ll make sure you feel like you’re in our home and ready for some of our great, simple Italian food.” Salomone continues “Whether it’s one of our Pasta Aglio e Olio dishes (the way real Italians have their pasta no heavy sauces – premium olive oil and garlic bases just simple and tasty) or a Napolitana style Pizza cooked on our imported stone ovens using Italian Tippo 00 flour, Gourmet Salad & Breads’, seriously good coffee, even our wines - Rozzi’s Italian Canteen is very focussed on being all about real Italian food.” Just like their philosophy on all things food related the Rozzi’s franchise business model is simple, reliable and proven if you are prepared for some hard work and commitment along the way. As they take Real Italian food around the country and beyond they will be seeking some more members to join their franchise famiglia. For more info visit www.rozzis.com.au

SPEEDY PERFORMANCE FROM CAR CARE Mobile car detail franchise, Car Care, found a position on the winner’s podium in the recent Top Franchise survey conducted by 10 THOUSAND FEET. Car Care, which boasts almost 100 franchises throughout Australia, came in third in the race to be the top franchise, pipped at the chequered flag by Smartline Mortgage Advisors and Kwik Kopy. Car Care first raced onto the circuit in Western Australia in 1987 and began franchising in 1990. It is now Australia’s largest mobile car detailer with a proven and awarded system. This is not the first accolade for Car Care, which has previously finished in the Top Franchise top three, as well as featuring in the BRW fastest franchise Top 50. According to National Franchisor, Michael Stringer, the Car Care system has helped people from all walks of life establish a successful business with a good income and lifestyle without the need for a huge investment. “Many businesses’ priced much higher than Car Care would not be able to provide the same level of income as we can,” Michael said.

6 Business Franchise Australia and New Zealand

“The type of job undertaken by Car Care franchisees varies from a basic detail at about $60 to full interior/exterior protection at up to $1250. Your customers will vary from regular corporate clients to one-off pre-sale details. “There is a gross misperception of the Car Care franchise being low income, however, the average franchisees are earning anywhere between $1500 - $2000 per week. The group turnover is estimated at approximately $7.5 million. “Car Care really is a wonderful opportunity for people looking to balance work, lifestyle and a good income,” Michael said.


Xpresso Delight takes on the USA which led Xpresso Pronto to take on the US market was carefully considered. “It’s something we have been working on for over three years now. We’ve conducted an depth market analysis and have established that the potential in the US market is enormous,” Stephen said. Through its network of franchisees, Xpresso Delight provides café style espresso coffee in workplaces across Australia, and hopes to do the same in the US. Existing franchisee, Nigell Lee, had been operating his franchise in Western Australia for around two years when the opportunity in the US arose.

Successful franchise Xpresso Delight is about to take on the US market, with the first regional franchisor already on the ground in New York. As Co-founder and Director of Xpresso Delight Stephen Spitz explained, the process

“I felt extremely comfortable with the system and when the opportunity arose it really was an easy decision. “The relationship I have with Paul and Stephen is great and I knew I had a lot of support which is critical considering I was moving across the globe to start this new adventure,” Nigell said.

“My wife and I moved to New York - which is an unbelievable city. There is never a dull moment! “In a business sense it has been interesting. There is a completely different culture and psychology here so we have really spent some time understanding it and really feel now we are in a position to take advantage of that. “The feedback we have been getting from our initial clients has even blown my expectations away and I am really looking forward to the next couple of months. We are now starting to advertise for new franchisees, which is a really exciting time,” he said. Nigell has high hopes for Xpresso Delight in the US. “We are taking it step by step but I feel we have great systems, support and most of all a fantastic product. Americans love their coffee and it is ever evolving so I really look forward to taking advantage of that and educating them on what a ‘good’ cup of coffee actually tastes like.”

Dymocks Melbourne Acclaimed Franchise Bookseller of the Year at 2013 Australian Book Industry Awards Dymocks Melbourne has been acclaimed the national 2013 Franchise Bookseller of the Year at the 2012 Australian Book Industry Awards (ABIA). Known as the ‘Academy Awards’ for books, the annual awards pay tribute to the book industry’s most outstanding authors, illustrators, booksellers and publishers across the country. Four of Dymocks’ other bookstores – Brisbane, Adelaide, Garden City and Hobart - were also among the six finalists to be nominated for the prestigious national award. Dymocks Melbourne, franchise owner Dino Traverso, was thrilled to receive the award and acknowledges his hardworking team for

was a reflection of the team spirit he believes gives Dymocks its competitive advantage.

their continued dedication and passion for delivering expert advice and service to the Melbourne community. “The ABIA award is one of the most significant accolades we could be bestowed with. Recognition from our industry peers is the highest acclaim and it is gratifying that our commitment and efforts to be a leading Australian bookstore have not gone unnoticed,” said Mr Traverso. “I’d like to thank my hardworking and passionate team who go above and beyond to offer our community expert advice and service,” said Mr Traverso. Dymocks’ Managing Director Steve Cox said the success of Dymocks stores in the awards

“Dymocks has a strong 130 year-old heritage in Australia and we’ve made deliberate efforts to showcase Australian authors and support the local community at every step of the journey. Locally owned and operated, at the heart of our bookstores across the country are a passionate team of booklovers to serve every customer,” said Mr Cox. “This is an extraordinary achievement by Dino and his team. I’d like to congratulate all our stores for their tireless efforts to service the Australian booklover community and promote a lifelong passion for reading,” concluded Mr Cox.

Business Franchise Australia and New Zealand 7


COV ER STO RY

CEO becomes Store Owner now that’s belief in the system!

CEO-turned-store owner Greg Heath displays loyalty and confidence in the franchise group and brand he helped shape. There’s nothing outstanding about Total Tools Thebarton when you compare it to the other 35 stores in the franchise family, and that’s exactly the way owner Greg Heath likes it. Although the two-year old suburban store is Adelaide’s biggest professional tools retailer boasting more than 6,000 lines, spread across a massive floor space of 2000+ sqm., its owner prefers to play down the superlatives, while eager to point out that all Total Tools outlets carry an equally

substantial range, as that is the main draw card for the group’s loyal customers. He takes the same earnest view of the store’s layout and display. Not only does Greg have no qualms about conforming his store’s image and presentation to the precise mould of the group’s branding stamp, he peddles Total Tool’s signature look and in-store environment as key assets. “It’s like buying a burger from McDonald’s. You know exactly what you’re getting because the quality of the product is consistent throughout the entire chain of restaurants. Similarly, a Total Tools customer visiting from another state walking into our store will immediately find our store environment familiar. He would then be confident of getting the same quality products and service synonymous with the Total Tools name.”

8 Business Franchise Australia and New Zealand

The crossover Greg’s resolute endorsement of the corporate brand and his ‘big picture’ take on all things store-related may very well stem from his previous vocation, as CEO of Total Tools. Subsequent to his five-year corporate tenure, the 44-year-old crossed over the fence in May 2011, to ‘walk the talk’ as a store owner. “I chose to leave that role and do what many managers of our franchise do, that is to take on a store myself. That showed belief in the franchise model and goals in the group to transition from the management team of the franchisor to becoming a franchisee.” The badge change came as a result of Greg wanting to pursue a balanced lifestyle as a self-employed businessman and to focus on the improvement and delivery of his own


sure the extensive product lines remain front and centre in the minds of potential customers. Total Tools stores operate on an active marketing calendar to keep customers updated on the latest promotional activities throughout the year. The strong marketing brand is promoted through various channels including print ads, radio spots, SMS messaging services and email campaigns. Among them, a head office initiative that has received resoundingly positive feedback is the Insiders program.

of market research including a competition and demographic analysis. Graduating into its third 12-month business cycle, Total Tools Thebarton has done convincingly well. The store recently managed double digit year-on-year growth figures, in particular showing its mettle in the product categories for power tools, automotive, storage, welding, safety and hand tools. The specialist tools store caters to a mixed customer base of professional trade and DIY, although tilting heavily towards the former in its choice of merchandise. “We like to think that our DIY purchasers see our store as being aspirational,” Greg explains. “They like to buy from Total Tools because they consider themselves to be serious DIYers or wish to buy the same grade products as the professional tradesmen.”

Leveraging the franchise network

operations, as opposed to those of the group as a whole. “I think I’ve adjusted very well and understand that the transition requires letting go of certain responsibilities. Certainly from my time spent with the Total Tools management team, I stand to benefit from a lot of background information as well as a good understanding of the business model. “I understand the areas of the business that you need to focus on and the importance of maintaining good relationships with people from the support office and within the franchise network.” Prior to taking over the existing nonhardware trading site, located on the main road that links to Adelaide’s CBD, Greg says due diligence involved carrying out a range

As for his well-stocked range, earning the store its title for being the city’s most comprehensive tools retailer, Greg attributes the head office’s well-oiled buying machinery and the close fraternity of store owners. On the latter point, Greg offers the example of the close working relationship he maintains with Jerry Atkinson, owner of the only other Total Tools store in Adelaide. “I am in daily contact with Jerry, discussing how to get the best products and prices for our stores, and secure the best deals for our customers. That’s one of the Total Tools business models, to leverage on our franchise network, allowing store owners to collaborate with each other to maximise our synergies, buying and marketing opportunities.” The support of the head office is perhaps most appreciated in the area of marketing. Living up to its tagline ‘Every Trade, Every Tool’ requires not only a robust supply chain but also regular marketing rotations to make

The program offers customers who shop regularly at a Total Tools store exclusive ‘Insiders’ membership for which the member, who signs up in-store or online, is entitled to receive regular ‘first-to-market’ product information, special buying opportunities and redeem reward points linked to their purchase frequency and volume. “It’s a really strong selling feature especially since the Insiders program is integrated with our business operating system. It’s a centrepiece of the offer from Total Tools to our customers.” Greg affirms the overall efficiency of the marketing programs, saying: “The goal is to develop a relationship with our customers and communicate with them on a regular basis with informative, valued offers to ensure that you’re top-of-mind.” Showing his support for the national office, Greg praises the current Total Tools CEO Tim Cockayne and his teammates for giving the stores their much-needed exposure through a calendar-filled series of promotional campaigns. If any franchisee could appreciate what goes on behind-thescenes to deliver seamless, on-the-dollar group support, it must be Greg. For all his former contributions to the group, Greg says that shedding his CEO role to take up the gauntlet as a retailer has been a satisfying experience. Noting that Total Tools has earned a reputation within the supply network as being the most professional outfit in the business, outside of Bunnings, Greg concludes: “I am happy to have been one of many people who influenced the group’s successful development, and today, I’m also among the grateful franchisees that benefit from the excellent support that we continue to receive from them.” Contact Total Tools on: Phone: 03 9394 4300 Email: newstores@totaltools.com.au Web: www.totaltools.com.au

Business Franchise Australia and New Zealand 9


PROFILE : Ba k ers Del ig h t

Success with

Bakers Delight Richard Vandeham is a salesman of old. After spending 27 years in the automotive industry as a spare parts salesman, he made the bold decision to down tools and put on a baker’s apron, a decision that has paid off in spades. With Year 11 qualifications and a TAFE diploma in electronics and maths, Richard couldn’t have been further away from the Bakers Delight bakery he now owns. “I worked in the automotive industry for almost thirty years before making the decision to start my own business. It was a huge change for me and my family, but it was time to do something that would allow me to invest in our future,” said Richard. Following discussions with his good friend and existing Bakers Delight business owner, David Crampton, Richard and his wife Tracey began investigating their options to buy into the franchise chain. “Bakers Delight has always been a marquee franchise, and one people speak highly of, so there was never any question in my mind that it was the right option for us. My friend, David, has had a great success with his Bakers Delight bakery, so I knew it was a solid investment,” he said. And the feeling about Richard as a prospective franchisee was mutual, with the recruitment team quickly recognising his previous business experience and his people management skills. Once his local Moonee Ponds Bakers Delight became available, negotiations turned serious. As part of the process, Richard completed a series of recruitment stages to give him a

real taste of life as a franchisee and baker. It involved a two-day bakery orientation where Richard was able to speak with any three Bakers Delight franchisees of his choice and complete a sales and baking shift at a bakery. “With no previous baking experience, those initial stages couldn’t have been more different to what I’d been doing for most of my adult life. It was a real eye-opener for me. I was no longer simply a salesman. “I had no idea about the amount of work that went into producing such a variety of products while running a store and managing staff. But at the same time it was very rewarding to see the tangible fruits of my labour, something I had never really experienced before.” It was this hands-on training, long discussions with other franchisees and constant guidance from Bakers Delight that Richard credits with helping him build a successful business. “I don’t think I could have done this on my own. It’s not easy to make the transition from working in a sales capacity in a very different industry, to becoming a baker. There’s a lot of training involved, which would have been daunting had I not had the support of an established and successful system behind me.” “Bakers Delight equips you with all the skills, tools and support to launch your business.” Almost 12 months in, Richard is beginning to reap the rewards of his hard work and has a firm grasp on the intricacies of managing his own business. “I’m at a more comfortable point in the business now. I have great staff, so my hours have become more flexible. In addition my wife and kids have started working in the business so I can rely on the fact that they always do the right thing in the business and are a great support. “The business has given us a new lifestyle,

10 Business Franchise Australia and New Zealand

one that is more flexible and where we have more control. It has also allowed me to start investing in my community through local sponsorships that directly benefit my customers.” Richard’s advice for prospective franchisees: » Speak to existing franchisees in the business you are interested in and ask them lots of questions. » Spend time learning the accounting and management systems side of the business. These tools are invaluable in helping your business run smoothly and efficiently. » Have clear goals for your business and where you’d like to be in twelve months, five years and beyond. » Make sure you recruit quality staff; they are the face of your business and make a big difference to things running smoothly. If you would like more information about Bakers Delight visit: Web: www.bakersdelight.com.au/ franchising


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

New report shows pre entry information stronger in franchising than wider small business

12 Business Franchise Australia and New Zealand


“It’s important you thoroughly research the available information to assess your own capabilities and financial resources to deal with the requirements of the franchised business.” Michael Paul, Chairman, Franchise Council of Australia.

Following the commencement of the scheduled 2013 Franchising Code of Conduct review, along with a Federal election looming in September, it is understandable that there is an increased focus on regulation in our sector this year.

there adequate information on franchising as a business model available, but those who are prepared to make a proper effort at due diligence before investing are actually making use of it.

Around the same time of the release of the Wein report, containing 18 recommendations for improvements to our national Code, new research has also come out of Griffith University around the survival factors affecting people in small business, Survival of the fittest: The performance of franchised versus independent small business during economic uncertainty and recovery.

failed franchisees believed that available information was insufficient and had either underutilised or discounted obtaining independent external advice.

The survey was conducted over a two-year period and measured 20 survival factors and their impact on both franchisees and independent small business owners during the global financial crisis.

This validates what we at the Franchise Council of Australia have been encouraging for years. Due diligence. The more research you undertake before investing in a franchise or any other kind of business, the more realistic you will be in your expectations – and the more likely you will be to succeed.

Interestingly, for a report conducted between 2010 and 2012, both the franchisee and independent respondents did not feel the economic climate was a major factor in their success or failure. What the research revealed was that personal factors such as motivations, personality, decision making autonomy and adaptability were more likely to affect business survival than external factors. The report also showed that successful franchisees believed that sufficient information was available to them, spent considerable time in researching the business opportunity, sought considerable external guidance and were actively and personally involved throughout the evaluation phase. On the other hand struggling or

The report highlighted that it was apparent that successful franchisees exerted significantly more effort in conducting adequate due diligence than struggling or exited franchisees.

One of the great things about franchising as a business sector in Australia is the sheer abundance of information that is available, both to those already operating in franchising, and those looking to get their foot in the door. At the time of writing, we are still waiting on the Federal Government’s response to the Wein report. What this research shows us is that while many of the recommendations to come out of the report are worthwhile and will enhance our sector, further legislative intervention at the pre-entry level is not necessary. Franchising is already a sector focused on education and transparency. This research confirms that not only is

For those considering opening your own business through an established franchise brand, there are a number of places you can go to begin your research. This publication is an excellent place to start. The Franchise Council of Australia franchising knowledge base, available on the FCA website (www. franchise.org.au) contains the preliminary ‘What is franchising’, delves deeper with articles such as ‘Understanding the risks and rewards of franchising’ and provides access to external documents like The Franchising Code of Conduct. I would also encourage you to make contact with the brands you are interested in and ensure that before you ultimately commit to purchasing a franchise that you speak to some of their franchisees. It is in the franchisor’s best interest that you become part of their business with as much background knowledge as possible, so they will facilitate this for you. The rewards and benefits of franchising are well publicised and there are lower risks involved in buying a franchise compared to starting your own business - but like any business there are still risks. Franchising is not like working a job. It’s important you thoroughly research the available information to assess your own capabilities and financial resources to deal with the requirements of the franchised business. Utilising the ample information and support available to you during the initial research stage will ensure you have realistic expectations and the best possible chance at success.

Business Franchise Australia and New Zealand 13


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

“The FCA has welcomed the outcomes and recommendations of the review of the Franchising Code of Conduct.” Stephen Giles, Deputy Chairman, Franchise Council of Australia.

FCA compromises for regulatory certainty and unified national regulation The Franchise Council of Australia has compromised on the key issues of good faith and increased penalties for the ACCC in the hope that all stakeholders will now unite behind a consistent national regulatory framework for the franchise sector. The Federal Government’s Expert Report1 has endorsed franchising and suggested several improvements to the Code. The FCA has welcomed the outcomes and recommendations of the review of the Franchising Code of Conduct conducted by franchising expert Alan Wein. Good faith and ACCC penalties have been contentious issues, and the FCA has consistently made the case that there is no evidence or factual basis to justify further regulation. Nevertheless perception can be reality in franchising, and it is vital that potential franchisees and the public can have full confidence in the sector. The spectre of additional State franchise legislation was an evil to be avoided at all costs. Accordingly the FCA in its submission to the Wein review supported the express inclusion of the common law duty of good faith into the Code. After discussions with the ACCC, the FCA also supported the ACCC’s request for

greater enforcement powers. In subsequent discussions with the Federal Government and the Federal Opposition the FCA has continued to press for a bi-partisan approach and a single national regulatory framework. The decision to support good faith and ACCC penalties makes it extremely difficult for State Governments to justify any regulatory intervention at a State level. The Wein Report noted that submissions to the Review were overwhelming in their support for the retention of a single, national regulatory scheme, commenting that “evidence clearly indicates that a national system reduces duplication, red tape, uncertainty, compliance costs and ensures franchisors are in the best position to develop and maintain an effective national business model”. The Wein Report has rejected calls for mandatory extension of franchise agreements, and compensation at end of the franchise term. Similarly the Report has adopted the FCA’s suggestion for the incorporation of the common law duty of good faith into the Code rather than some new and different definition of good faith. The review of the Franchising Code of Conduct was the most comprehensive since its introduction in 1998. Pleasingly, it found that the Australian franchise sector operates well, and the Franchising Code of Conduct is “a robust model” and “generally operates effectively within a very dynamic and difficult economic environment.”2 The Report notes the relatively low levels of complaint and disputation in the sector. The Wein Report contains a total of 18 recommendations to government. Wein

notes that “No recommendation has been made that franchisees receive an exit payment or goodwill payment at the end of the term of their franchise agreement,” as “this would interfere with fundamental principles of contract and property law. However, a recommendation has been made relating to the use of restraint of trade clauses in the context of franchisors not renewing franchise agreements in certain circumstances.3 The Franchise Council of Australia has cautiously supported the vast majority of the 18 Recommendations, noting that it is important that the actual amendments to the Code are carefully drafted to reflect the reasoning contained in the Wein Report and avoid any unintended or unreasonable consequences. The FCA still considers that there would be value in enabling the Australian Competition and Consumer Commission to grant exemptions from strict Code compliance or modify Code compliance requirements, as the franchise model is applied across a vast array of different businesses and industries. The FCA is keen to continue to work with Government on the detail of the Code amendments, including the recommended clarifications and changes to the Code included in Appendix D to the Wein Report. These clarifications and changes largely reflect contributions made by the FCA’s Legal Committee as part of the FCA’s submission. 1

“The Wein Report” is the Alan Wein Review of the Franchising Code of Conduct: Report to the Hon Gary Gray AO MP, Minister for Small Business, and the Hon Bernie Ripoll MP, Parliamentary Secretary for Small Business. 2 Letter from Alan Wein 30 April 2013 to the Minister and Parliamentary Secretary, Wein Report, page i 3 Wein Report Executive Summary page vii

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Meet the team

GO TO OUR NEW WEBSITE

fcbusinesssolutions .com.au

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

New Zealand Franchising

Legislation before Parliament Commerce (Cartels and Other Matters) Amendment Bill. This Bill was reported back by the Select Committee in early May. As you may know, the potential additional compliance costs for franchise systems were considerable when seeking exemptions from the provisions of the Bill and this was the main thrust of the Franchise Association’s written and verbal submissions to the Select Committee. We are pleased that the points we made appear to have been taken on board as the Report recommended to the Commerce Commission that they develop specific guidelines for franchise systems to provide more certainty with respect to collaborative activity. FANZ has been in touch with the Commerce Commission and offered the Association’s assistance in developing the guidelines as well as assisting with the dissemination of information.

Employment Relations Act 2000 (Part 6A).

There are two major issues affecting franchising that are currently before Parliament - the Commerce (Cartels and Other Matters) Amendment Bill and the review of Part 6A of the Employment Relations Act 2000.

16 Business Franchise Australia and New Zealand

The proposed amendments to this section of the Act would create a whole new legal relationship between franchisor and franchisee that would create, not only an unfair competition between a franchisee and an independent small business, but also has major implications for the future of the independence of the two entities as is expressed in a resolution by the 45 member World Franchise Council, the international body representing world-wide franchising. Whilst it is proposed to exempt SMEs from the transfer entitlements for employees under


People from all over are screaming out for more Paleo Cafés to open so we are excited to present this exciting new business opportunity. Do you care about people? Do you have an interest in healthy fresh food and quality of life? Be at the frontline in this highly sought after business. Enjoy the benefits of a successful business system that won’t cost you the earth.

Paleo Café is a revolutionary health food store and café based on the most logical philosophy for optimal health; the Paleo lifestyle.

The Paleo lifestyle is about eating and living as mother nature intended. That means eating a good variety of lean meat, seafood, eggs, fruit, vegetables, nuts, seeds and berries. Avoid eating dairy, grains, legumes, sugars and preservatives which our bodies were not designed to digest. Make sure you get enough sleep, exercise, play time and laughter. The benefits of adopting the Paleo lifestyle include weight loss, better skin, teeth, hair and nails, improved sleep, balance energy levels throughout the day, increased results from exercise, stable blood sugar, anti-inflammatory, reduced allergies, improved self confidence and general wellness. The Paleo lifestyle has been known to improve and cure symptoms of many modern day diseases, including cardio vascular disease, diabetes, high cholesterol, high blood pressure, obesity, acne, eczema, psoriasis, chronic fatigue, asthma, sinus infections, allergies, migraines, acid reflux, Crohn’s disease, celiac disease, IBS, bipolar disorder, depression, Lyme disease, endometriosis, PCOS, autism , fibromyalgia, ADHD, hypothyroidism, arthritis and multiple sclerosis.

Yes, Paleo is 100% gluten free and it has been around for 2.5 million years so it is certainly not a fad! What we offer you: A rewarding and uplifting business Proven business model Comprehensive operations manual Full training on products and services Ongoing support Group buying power Marketing expertise and advice Sophisticated hospitality industry systems Flexibility in your business hours

Paleo Cafe attracts a loyal local customer base, particularly professionals and those with a health or fitness focus. In only six months, the flagship Paleo Cafe in Cairns has become one of the busiest cafes in the Far North Queensland area.

If this lifestyle appeals to you, then our team is here to support you every step of the way in building your very own successful Paleo Cafe business. For more information visit our Affiliates page on our website www.paleo-cafe.com.au or phone Marlies on 0438 140 148.

Affordable fixed franchise fees (no percentage of profits) which means you retain the rewards of your hard work A degree of individuality in your fit out style and product and menu offerings

Like us Facebook www.facebook.com/paleocafeaustralia

Business Franchise Australia and New Zealand 17


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

L-R: Mr Abdul Malik Abdullah, Chairman, Malaysian Franchise Association (Chairman Elect of the WFC); Mr Raja Habre, General Manager, Lebanese Franchise Association; Mr Charles Arbid, President, Lebanese Franchise Association (Chairman of the WFC); Mr Graham Billings, Executive Director, FANZ; Mr David Foster, Chairman, FANZ

this provision, the Government is proposing to create a class of “associated persons” that means a franchisee AND the franchisor must employ fewer than 19 persons between them to be exempt. This is, in the words of a letter from the Minister of Labour, Hon Simon Bridges, to “help ensure that only genuine small to medium businesses are exempt”. FANZ has already held meetings with the Minister and with the Minister of Commerce, Hon Craig Foss as well as the Minister for Small Business, Hon John Banks and will be making strong submissions at the Select Committee hearing later in the year.

World Franchise Council Meeting - Beirut, Lebanon. Chairman, David Foster and Executive Director, Graham Billings attended the first 2013 meeting of the WFC in Lebanon in April and by unanimous vote FANZ was re-elected to serve a second two-year term as the General Secretariat - a real accolade to the work we have done over the last two years. On behalf of the WFC, David Foster was also invited to address the President of the Lebanese Republic, His Excellency General Michel Suleiman and to thank him for the personal interest he takes in the development of franchising in his country. Once again, it was a very full agenda and the exchange of updated information on franchising around the world was very valuable.

18 Business Franchise Australia and New Zealand

For Members of the FANZ, the Expressions of Interest (EOI) to enter the 19th Annual Westpac New Zealand Franchise Awards will remain open until 24th July. These prestigious awards are an opportunity to increase profile and gain recognition whilst celebrating business success, with the chance to build public profile and gain increased business opportunities. This first stage of the Awards has been designed to be quick and painless, with entrants only required to answer four questions in a maximum of 400 words each. Answers allow the evaluation panel to quickly assess and select potential Qualified Entrants - who will then be invited to enter the next stage. There is no entry fee for the Expressions of Interest. Industry Awards on offer are:

• Best Franchise System and Best Franchisee Business Services • Best Franchise System and Best Franchisee Food & Beverage • Best Franchise System and Best Franchisee Home Services • Best Franchise System and Best Franchisee Lifestyle Services • Best Franchise System and Best Franchisee Retail The winner of Best Franchise System in each category is automatically entered in to the Westpac Franchise System of the Year award and likewise the winner of Best Franchisee in each category is automatically entered into the Westpac Franchisee of the Year award. Special Awards on offer are:

• Emerging System Award (1-5 years) - A new category this year. • Service Provider Award • Master Franchisee Award • Franchise Export Award For more information contact the FANZ office on Phone: 09 274 2901 Email: contact@franchise.org.nz


Business Franchise Australia and New Zealand 19


PROFILE : PLUS FIT N ESS 24/7

Plus Fitness 24/7

continues to grow MULTI-UNIT FRANCHISEES Nigel says that they have experienced great success with multi-unit franchisees across the network. “More recently three more of the very first Plus Fitness 24/7 Franchisees have recently opened their second franchise in the past three months, said Nigel. “Adrian and Ange who opened their first Franchise in Pinjarra WA have now opened up the road in Halls Head. Likewise, Chris, Plus Fitness 24/7 Lidcombe Franchisee has now opened his second Franchise in Granville NSW. Shane, Franchisee of Plus Fitness 24/7 Eastwood also joins the Multi Unit ‘club’ and has opened his second Plus Fitness 24/7 located in Rydalmere, NSW.

Since the launch of its franchise model just over two years ago, Plus Fitness 24/7 has gone from strength to strength, and continues to grow across the country. In April this year Plus Fitness successfully opened its 50th gym located in Wentworthville NSW. To add to this, the 100th franchise territory was sold shortly after, located in Southport QLD. Since these milestones were reached a further three Plus Fitness 24/7’s have opened and a further eight territories sold, placing Plus Fitness at 108 franchises in total. Coming from having only six gyms open just over two years ago these are significant milestones in the growth and development of Plus Fitness. Franchisors John Fuller and Nigel Miller put the growth of Plus Fitness down to a

number of things including; the hard work and commitment of their Head Office team, the faith in the brand and hard work of their franchisees, and the development of a franchise model and consumer offering that appeals to a broad market of investors, entrepreneurs and consumers. Plus Fitness now has a clear goal of establishing 200 gyms by the end of 2014. The rapid success of Plus Fitness 24/7 has seen the franchise awarded a number of high profile accolades including: • 46th Fastest Growing Company in Australia in the 2012 BRW Fast Starter Awards • Franchise Council of Australia 2012 Top 5 Emerging Franchisors of the Year • 26th in the Smart50, 2012 fastest growing independent Australian owned companies • Finalists in the BRW Fast Franchises for 2013 “We’re thrilled to be acknowledged for our success,” says Nigel. “It’s a testament to the hard work and commitment we have put into developing the franchise system.”

20 Business Franchise Australia and New Zealand

“There’s a combination of factors for this,” explains Nigel. “Firstly, it is a result of the success of their initial franchises - financial returns have exceeded their expectations, enabling them to expand. “Secondly, it is driven by the strong support they receive from head office and from their Franchise Support Manager. And lastly our low staff model makes managing multiple sites much easier.”

UNRIVALED FRANCHISEE SUPPORT Plus Fitness 24/7 offers a true turnkey franchise business with an initial investment as low as $289,000 – including equipment! Add to this exclusive territories, low staffing costs, low flat monthly royalty fees and unrivalled initial and ongoing franchisee support and you can see why Plus Fitness is in such demand. For more information on Plus Fitness 24/7 contact Nigel Miller: Phone: 02 4648 2099 Email: nigelm@plusfitness.com.au Web: www.plusfitness247.com.au


Business Franchise Australia and New Zealand 21


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Closing the gap between where you are and where you want to be 22 Business Franchise Australia and New Zealand

No matter what stage of development your business is presently in, all small business owners want more revenue. That is always priority number one and to be honest, it should be. As the year starts to pass us by very quickly you may be asking yourself, how can I achieve more over the next six and 12 months? As fast as the year may go, so does our opportunity to really create the results we want in our business. So how can we really achieve more? The difference between those just going with the flow and those who grab


“The key to dramatically increasing your sales and marketing results is very dependent on your ability to attract not just more clients, but more ideal clients.” Tania Allen, Founder, Vision Alliance.

hold of the steering wheel with two hands and deliberately drive their revenues forward is in how they plan for the achievement of higher revenues; what strategies and tactics they implement, and the actions they take in order to achieve the desired outcomes listed in that revenue plan.

Identifying Your Gap Before you get started in putting together your revenue plan, it’s important to know where you are now and of course where you want to be. This is what we call your gap. A gap analysis defines your present and future objectives in both financial and nonfinancial terms. The difference between the two is the gap and becomes the starting point for building your business to the next level. A gap analysis need not just be about money, it is however usually where most people start, including your revenues, profits and cashflow. Your non-financial 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. To create your own gap analysis, simply list the goals that are most important to you and your business. List where you are today with each of those measurables, using a number scale system. E.g. on a scale of 1-10, 1 representing little results are being achieved right now and 10 being the ultimate place where you want to be. Write down a number for each goal that represents where you are and then write down a number that represents where you want to be, let’s say, in one years’ time. The distance between those two sets of numbers is your gap. Now you can start working on closing the gap. Once you define the gap that exists in all areas relevant to your business you can then create a revenue plan that will map out the

exact process required so you can eliminate that your gap, reach every one of your goals and objectives and do so within a very specific time frame.

Creating a Simple Revenue Plan Your revenue plan need not be too complicated. It is an outline of how you intend to close the gap between where you are and where you want to be. Your revenue plan actually begins the process of generating leads for your business by knowing specifically the product and/or service your business will offer, the number you want to sell, the price you will charge and when you project these sales will take place. Once these objectives are clearly and specifically defined you will have an excellent idea of the number of leads your business needs to generate in order to accomplish every one of those objectives. Putting together your revenue plan is relatively simple. Start by listing on a piece of paper all the products and services your business provides. Your next step is to then multiply each product or service by the prices you charge and then multiply that by how many units you expect to sell for the specific period (quarter, six month or one year period). Setting your revenue plan out in a table is all you need. What’s important is you set your plan in stone so that you can get to work moving closer to your desired outcome. I like to work with a simple table to begin with that gives you a snapshot of the year then using a more detailed spread-sheet I then break that revenue plan into a month view plan which enables you to be more specific when planning what strategies and tactics you will take action on in order to achieve your plan. If the results on your revenue plan do not match the objectives on your gap analysis then simply make adjustments until they do. This may mean increasing your prices, increasing the number of times a customer

buys from you or it may mean increasing the average amount a customer spends with you at any one time. It’s a simple road map for reaching your targets. If you haven’t yet drafted an outline of a revenue plan, get started today and see the difference it makes in such a short period of time.

Example Revenue Plan Snapshot Product

Unit Price

Units /week

Total Revenues

Product A $9.95

700

$362,180

Product B $8.95

700

$325,780

Product C $3.00

1600

$249,600

Total Revenues Product /Service

Unit Price

$937,560

Units Total /month Revenues

Service A $300

40

$144,000

Service B $1500

10

$180,000

Service C $2500

10

$300,000

Service D $5000

5

$300,000

Product A $39.95

200

$95,880

Product B $8997

3

$323,892

Total Revenues

$1,343,772

Now you are ready for the next step.

Creating your sales process. The first step in the sales process is determining the best method and distribution channel for getting your message out to your ideal customer.

“Mapping out your sales process is the key to knowing and understanding your ideal customers ‘buying habits’.” Once you have determined which distribution channel you will use to get

Business Franchise Australia and New Zealand 23


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1

Identify

2

3

Lead Generation

your message to your ideal customer, it is important to decide which communication strategies will be the most effective at generating leads. It’s a good idea to narrow the field to a few strategies so you can test and measure just a few at a time. From there, your next step is to uncover the tactics that will work with these strategies to cost effectively generate qualified leads. Tactics are the tools used to generate the leads that will produce the sales you want. You may even want to create a Process Map to help you put this together. Process Mapping is a simple tool that will help you find the most effective strategies along with the right tactics.

A Process Map is a visual outline of your sales process Your process map will allow you to break down the sales process into a stepby-step format so that you can see your communication points of contact with your customers. By knowing these specific points of contact, you can then analyse the effectiveness your marketing messages will have in convincing your ideal customer to buy what you sell. It will also provide tremendous guidance as you create your marketing message by revealing the possible state of mind of your prospects. Specifically, how receptive will they be when they receive your marketing message? Typically your sales process would include these steps: • Identify your ideal client / customer • Generate leads • Qualify your prospects • Present your product or service to your prospect • Convert your prospect into a customer / client (remember to upsell, cross-sell and down-sell) • Lead nurturing - Following up leads that have not yet converted

Lead Qualification

Needs Analysis

• Delivery - Servicing your customers including following up

Standard Sales Process Defining your ideal client is the first step to attracting the kind of people you want to do business with and will greatly increase your revenues. The key to dramatically increasing your sales and marketing results is very dependent on your ability to attract not just more clients, but more ideal clients. So before you dive straight into your sales and marketing activities in order to increase your revenues, it’s important to understand who your ideal client it. I liken the ideal client to a favourite toy you used to play with as a child. You may still play with the other toys however the majority of your time is spent with your favourite one, in other words the one you prefer to spend more time with. This is the same for your ideal client. Sure you may have other client types but your ideal client is the one you want to focus the bulk of your time. The ideal client is the one who not only buys your product or service, they love your product and service. They literally share your passion for what you do. These are the clients who really want what you have to offer instead of just needing what you offer. Ideal clients mean fewer headaches, returns and complaints. They’re a pleasure to deal with and they’ll not only buy from you once, they’ll keep buying from you forever. Or if you offer a one-off product or service, your ideal client will be willing to tell their friends and family to buy from you. These are the type of clients who will spend more money with you than the average client ever would. They will send you great referrals and give you unsolicited testimonials. When you properly and specifically identify your ideal client you will soon find you are working less and earning more, which is what your ultimate aim in business should be. Knowing who your ideal client is will enable

24 Business Franchise Australia and New Zealand

4

5

Lead Conversion

you to craft a message that speaks directly to them which will help. This can have a massive impact on your business allowing you to increase revenues, and have more time, more money and more freedom to do the things you love.

Time to Take Action Before we move onto the next step and key area in your business take some time now to 1. Complete a GAP Analysis on your business. Where are you now? Where do you want to be? 2. Prepare your Simple Snapshot Revenue Plan and your Detailed Monthly Revenue Plan listing all your products and services and what you want to achieve. 3. Describe the type of customer you want to do business with. 4. Describe the type of customer who you believe will give you the greatest return on your marketing investment. 5. 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? 6. Describe the type of customer who will stay with you the longest and spend the most with you. 7. Review your past marketing strategies. What worked? What didn’t? What else could be done to maximize your potential? 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 a complimentary strategy session to help you expand on and implement the above contact Tania on: Phone: 1300 76 49 20 or 0419 481 203 Email: tania@vision-alliance.com Web: www.vision-alliance.com


62 stores and growing fast Serving serious coffee in QLD, NSW and now in WA.

Zarraffa’s Coffee is committed to the mantra ‘fresh is best’ and strives to serve you an individually perfect cup of coffee – every time! Enquire now! Franchise sites available nationally.

zarraffas.com © Intellectual Plus Pty Ltd. All Rights Reserved, 2013. Trade marks used under licence. 13091

Business Franchise Australia and New Zealand 25


PROFILE : T h e L e at h er Docto r

DEMAND CONTINUES TO GROW

FOR THE LEATHER AND VINYL DOCTOR A number of Leather and Vinyl Doctor franchisees are splitting and selling territories in order to keep up with demand; while this popular franchise is also spreading onto the shores of India this month. Within Australian shores, two new franchises have opened their doors for business in Lismore NSW, and Broadbeach in Queensland. “Considerable growth has recently been driven by retailers in the furniture industry,” says Dean Reid, The Leather Doctor’s Director of Marketing. “They are turning to the Leather and Vinyl Doctor professionals for furniture repairs and the supply of care products.” Other Melbourne franchisees are hiring extra technicians, and territories in the northern states are either splitting or taking on extra franchises. “The growth is being felt Australia wide,” Dean said. As for India the opportunity to expand was brought about through business contacts. “The new division is based in New Delhi,” said Dean. “It operates under the guidance of the Australian team, while having a local on the ground to customise the business to suit the local market. They are kicking

off with a master franchise and employing technicians as needed. “Having local contacts in India is crucial to the success and smooth transition for the franchise and ensures a definite share in the commercial furniture industry market in India,” Dean said. And yet another success story for the Leather and Vinyl Doctor is the 18 month growth experienced in Dubai. This booming franchise opportunity has grown to an 18 person team that now services all of Dubai and the neighbouring Emirate, Abu Dhabi. This certainly is a franchise that has solid results and recent growth that is by no way

slowing down. If you feel this internationally booming franchise opportunity appears a sound investment then you would be absolutely right! For further information contact Dean Reid at: Phone: 1300 453 284 Email: info@theleatherdoctor.net.au Web: www.myleatherdoctor.com.au

26 Business Franchise Australia and New Zealand

FP C


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: info@theleatherdoctor.net.au

www.myleatherdoctor.com.au

FP CGB Franchise AUS & NZ.indd 1

National Marketing Manager: Dean Reid - 0438 844 238

26/11/12 6:03 PM


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Common

Facebook Marketing Mistakes

& How to Avoid Them

Many franchisors already understand that depending on the location, each of their business owners may warrant a separate social media page. Although a lot of marketing guidelines may be set for you by your franchisor, as a franchisee, you can use Facebook as a social media tool and come up with new ideas of what works and what does not for your specific target market. In other words, every franchisee’s market is subtly different from their counterparts despite the obvious similarities, and social tools can help you fine tune your online presence in a way that suits your specific needs. For example, your opening hours or specials, or you may have an audience which is very different social-economically from that of other franchisees. Some markets respond better to particular promotional strategies like coupons and discounts, whereas others love keeping a tab on and checking out new products or how to guides. If you are using Facebook as one of your marketing strategies, it is best if you follow the tried and tested practices that work. It’s easy to fall into the trap of making common Facebook mistakes, but with the right strategy and knowledge, it’s possible to avoid them.

Common Facebook Mistakes 1. Treating All Social Media as Equal

28 Business Franchise Australia and New Zealand


“With careful and consistent social media planning, you can keep away from making Facebook marketing mistakes.” Maria Abadilla, Director, Revive Projects.

So you’ve got all the major social platforms in your marketing plan. Great! But what’s your strategy to post on them?

you. Don’t be a robot pushing content on social media – be the opposite. It’s called “social” for a reason.

For example, many businesses make the mistake of pushing the same posts on Twitter and Facebook. Of course, it saves time and you can get both pages look updated with new content daily, but the fact that you have two different platforms confirms you must do something different on both of them.

That said, when you’re new to the scene, a negative comment can freak you out and that’s when you may want to hide behind the computer. Many business owners make this mistake and do not respond to such comments, or worse, end up deleting them. Never do that.

Twitter and Facebook are two very different platforms, and you should treat them as such. For example, Twitter only allows for 140 characters, whereas Facebook allows a whopping 63,206 characters. (If you exceed this limit, you are given a warning and asked to post it as a Note instead). So why not make use of that space? Another reason you should tweak your posts is that people don’t want to see duplicated content on two separate social media. If they are following you everywhere, they expect something different from you on these platforms; otherwise they are better off following you on just one, aren’t they? Specifically, Twitter users are OK to receive short blurbs several times a day, whereas it might be annoying to your Facebook fans if you post more than twice. Moreover, Facebook is getting more and more visual by the day. The launch of Facebook Timeline is a clear indication that Facebook wants you to make use of images to capture attention. A picture does speak 1,000 words, and but when combined with punchy text on Facebook, it speaks two-fold! 2. Not Being Human Occasionally, people will want to see the real person sitting behind the computer. After all, no one likes being talked at. Fans love engaging and talking with

Despite the negativity, address everyone’s comments. That’s where a leader differentiates themselves from the herd. A leader will stay positive and calm when responding to criticism. So have a friendly tone to your posts and always be curious about this person. What led this person to post a negative comment in the first place? Where are they coming from? Really listen first. Answering openly will make you come across as someone who is not afraid to make and accept their mistakes – aka a human. Another common mistake is never taking the initiative to start a conversation. If you are a coaching business and your social media strategy is just to churn out motivational quotes, you are leaving a lot of potential on the table. Instead, ask intriguing questions that people love answering. Understand their pain and pleasure points, and make interesting conversations by opening them with questions. To make this point clearer, think about a friend who always wants to talk about them, without any interest whatsoever in asking you “how are you doing?” How do you feel in the presence of someone like that? I am guessing not so great and mostly drained. It’s a one way communication. And social media is anything but that! Don’t be a robot, be human. Interact, ask, and engage. Be curious. Thank them.

Stay candid and honest. Last but not the least: Keep the conversation going both ways! 3. Always Tooting Your Own Horn Let’s get this clear: Yes, you can talk about your shiny, newly-launched product and yes, it’s OK to keep doing this every now and then. But only pushing promotional content? No, thank you. Fans want you to show them you care about them, not just about your business. If you only promote your stuff, they may soon lose interest in your page. You also need to make sure there’s other stuff happening as well. For example, you can post a recent win on your page, and then thank your fans for the support. In that way, you are making it about them instead of just you. Another good tactic is to host regular giveaways on your page to attract new audience and retain old fans. With careful and consistent social media planning, you can keep away from these Facebook marketing mistakes and raise your profile by reaching a whole new audience. Maria Abadilla is the Director of Revive Projects and is passionate about helping franchises attract, engage and retain their clients through marketing, communications, and training and social media policy development. Established in 2007, Revive Projects has been helping businesses serious about their growth and increased visibility in their markets. It is Australia’s leading and award-winning marketing consultancy for government projects, franchises and product and services based industries. Reach Maria at: Phone: 1300 836 863 Email: mariaabadilla@reviveprojects. com.au Web: www.reviveprojects.com.au

Business Franchise Australia and New Zealand 29


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

V.I.P. Special Agent David Burgess Having worked for seven years in the sales industry earning other companies the big bucks, David decided that it was time to put the hard earned money in his pocket rather than a company’s bottom line. With a desire to own his own business and work for himself, David decided that owning a franchise was how he could achieve his ultimate goal. David explored a range of other franchise

brands, but it was his love of cleaning and his fond memories of the V.I.P. television advertisement as a child that led him to V.I.P. Home Services. Now, with a new vehicle proudly featuring the V.I.P. signage and the unforgettable number plates “VIP007”, David is well on his way to achieving his mission of being a successful business owner. David’s approach to his V.I.P. Home Cleaning franchise of going above and beyond the expectations of his customers has won him the loyalty of his expanding customer base. “I genuinely love what I do and really enjoy seeing the satisfaction of my customers. I really value the relationship I have them,” said David.

30 Business Franchise Australia and New Zealand

“What I love about what I do is that I not only clean the homes of my customers, I make their lives easier and I’m also their friend. “I have fantastic customers such as Pat and Kath who recently celebrated their 60th wedding anniversary. I baked them a cake and we had a little celebration. They cherished the moment and I enjoyed making their day that little bit happier,” said David. If, like David, you would like to experience the benefits of owning your own business, contact V.I.P. today. Phone: 13 26 13 Email: info@viphomeservices.com


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How will major changes to the Code affect the franchise sector?

The recent release of the Review of the Franchising Code of Conduct provides a valuable insight into what the future of franchising in Australia might look like. The 18 recommendations made by reviewer Alan Wein offer a range of proposed changes and improvements that have the potential to substantially influence the nature of relationships between franchisors and franchisees. There is something for everyone in the review, with franchisor, franchisee, legal practitioner, regulator and other stakeholder perspectives taken into account in framing the various recommendations. Chief among these recommendations is the proposal to introduce fines of up to $50,000

for a breach of the Code, the inclusion of an express obligation of good faith, greater definition around the management of marketing funds, and recognition of franchisees as creditors in the event of a franchisor insolvency. While the Minister for Small Business, Gary Gray, is yet to announce the governmentâ&#x20AC;&#x2122;s official response to the recommendations, Parliamentary Secretary for Small Business and chairman of the last franchise inquiry in 2008, Bernie Ripoll, has been quick to promote the report since its release on May 17 via media release and radio interviews. For Ripoll, the current Code review represents an opportunity to deal with some unfinished business. He was chairman of the 2008 Parliamentary Joint Committee on Corporations and Financial Services, which independently of the then Small Business Minister Craig Emerson, conducted a comprehensive

32 Business Franchise Australia and New Zealand

review of the Franchising Code of Conduct following state-based inquiries earlier that year in South Australia and Western Australia. The 2008 inquiry took longer than the current inquiry, and included public hearings which sought personal testimony from participants across the franchise sector, as well as received more than 140 written submissions. (By comparison, the current inquiry did not conduct public hearings, although the reviewer did meet with a variety of stakeholders to discuss their views, and received 73 submissions). Following the 2008 inquiry (which made 11 recommendations) Emerson took nearly a year to consider the governmentâ&#x20AC;&#x2122;s official response, which resulted in full or partial acceptance of eight of the recommendations. These were adopted into the Code from July 1, 2010, and were criticised by advocates of increased franchisee rights that they did not go far enough, while franchisor stakeholders


â&#x20AC;&#x153;There is something for everyone in the review, with franchisor, franchisee, legal practitioner, regulator and other stakeholder perspectives taken into account.â&#x20AC;? Jason Gehrke, Director, Franchise Advisory Centre.

accepted that the changes may require more effort to comply with the new requirements.

period to allow the franchise sector to adjust to any changes before fines are levied.

A key recommendation of the 2008 inquiry was that the Code not be reviewed again within three years, in order to give time for the latest changes to be properly evaluated. While the timeframe has been slightly less than three years, the scope of the current review and its recommendations appears to be significantly broader than any previous review. (Indeed the current review recommends a period of five years before any further review).

Recommendations regarding marketing funds in the Code Review go further than in any previous review. Franchisees in most systems make a contribution to a central fund that then pays for communal promotions, such as catalogue production, major media advertising, and online promotions.

The key recommendations regarding fines, good faith, marketing funds and franchisees as creditors represent potentially the most significant changes to the Code since it was first introduced in 1998. Although the Australian Competition and Consumer Commission (ACCC) have had the role of enforcing the Franchising Code since its commencement, the range of enforcement tools available to it have been limited largely to outcomes derived from court proceedings. This enforcement methodology has been criticised by some stakeholders as slow, expensive and inefficient. If fines are introduced for breaches of the Code in future, it is likely that enforcement responses will be faster and potentially more specific to the relevant breach. The devil is in the detail and it remains to be seen how this recommendation may translate into a scale of Code breaches, and what size fine may be applicable to each. This will require extensive consideration due to the complexity of the Code and its requirement to disclose information to franchisees upfront, and may also require a transitional

The management of these marketing funds has not been a particular focus of reviews in the past, but now is subject to recommendations that, if adopted, would require the fund to be operated like a trust account, with an annual audit, and compulsory contributions from franchisorowned outlets, among other requirements. At a practical, commercial level, the operation of a marketing fund as a trust account may require a fundamental change in the way these funds are managed, and the cost and complexity of doing so. Again, the devil is in the detail and it depends on whether or not this recommendation is accepted, and if so, how this may be worded in a future version of the Code. Good faith was considered in the 2008 review of the Code, and again in the current review. Its existence was acknowledged for the first time by changes to the Code which commenced in 2010. The current review seeks to include a specific requirement to act in good faith (as opposed to just acknowledging that good faith might exist), but does not seek to include a definition of good faith, instead leaving it to the courts to define on a case-by-case basis in a similar manner to the concept of unconscionable conduct.

Another key recommendation is the recognition of franchisees as creditors by apportioning the franchise fee paid up-front over the term of the franchise, thus creating a debt owed to the franchisee in the event of a franchisor insolvency. This addresses an issue that has occurred in recent high-profile franchisor insolvencies such as Angus & Robertson and others, where franchisees have not been owed money by the franchisor, and therefore are entitled to less information than creditors or staff in the administration process, despite having the most invested in the future of the franchisor as a going concern. As mentioned earlier, there are 18 recommendations arising from the current review of the Franchising Code, and this article has provided an overview of the reviewâ&#x20AC;&#x2122;s background and four key recommendations. As with the previous Code review, it is likely that a majority of the recommendations will be accepted, although an implementation and transitional timeframe is unclear. 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: jason@franchiseadvice.com.au Web: www.franchiseadvice.com.au

Business Franchise Australia and New Zealand 33


Fr a nchisee in action : Sl eepy ’s

The

Mattress Experts According to Sleepy’s franchisee Wayne Stephens the key to success is he and his wife Sandra’s high level of personal involvement with the daily operations of their store. “From day one, my wife and I have been heavily involved with our store and our customers. We aim to be more personal and more flexible than our competitors and our direct involvement with our customers helps us to ensure that,” Wayne said. “We’re constantly exceeding people’s expectations and our level of repeat customers and our referral rates are a testament to that.” Wayne opened his Sleepy’s store in Hobart in June 2008, as part of the first homemaker centre to open in Hobart. “At the time we were looking for the right business opportunity, and when Sleepy’s advertised in our local area it set the process in motion for us to start looking at the bigbox concept,” said Wayne. “I’d previously been working in a high level sales role which involved extensive travel. For us it was a life choice to purchase the business – a way of having more control over our life and hopefully spend more time with the family. “We have worked very hard to establish our business and become successful, and after five years we have achieved a great work life balance,” Wayne said.

34 Business Franchise Australia and New Zealand


company growth. Ideally, a Sleepy’s store is situated in a ‘bulky goods’ centre with at least one other mattress or bedding retailer, whose target market is similar to that of Sleepy’s. Stores trade seven days and a typical Sleepy’s store will require one to two part-time staff in addition to the franchise owner. Guy Elliott says that the beauty of the Sleepy’s business model is its simplicity. “When people ask me “Why Sleepy’s?”, I always talk about the simplicity of the Sleepy’s model. The concept is clear and simple, a shop floor with mattresses in it, a clear selling proposition and method through which to sell,” he said.

L-R: Shane Flynn, Sleepy’s CEO, Sandra and Wayne Stephens Hobart Sleepy’s franchisees, Brooke Hanson, Sleepy’s ambassador.

In 2012 Wayne and Sandra were awarded Sleepy’s Franchisee of the Year. This award measures five key areas of each franchisees business including Sales, Product, Marketing, Business Operations and Customer Service. National Franchise Manager, Guy Elliott said, “Wayne and Sandra’s overall passion and attention to customer service is exemplary and they never stop thinking of ways to drive the business and give their customers a better offer. “Wayne is also a member of the Franchise Owner’s Advisory Council and at each monthly meeting is one of the sounding boards for Sleepy’s ongoing franchise development – a role which requires the ability to think not only for his own store but for the national network on issues such as ranging and product development, marketing, seeking feedback from franchisees and ways to improve the Sleepy’s offer.”

The right mattress Sleepy’s franchisees are committed to fitting their customer to the right mattress. Sleepy’s National Marketing Manager, Kate Smith, says that Sleepy’s focus is solely on this goal. “For us it’s all about the mattress. Walk into our stores and you see an attractive space filled solely with mattresses and bases. There is virtually nothing in the way of bed side tables, bed ensembles, bedding etc, it’s all about the mattress and finding the right one for the customer. “We’re comfortable with filling this niche in the market. We’re not trying to be all things

to all people, but when someone needs a new mattress we want to the first place they think of,” Kate says. “For our franchisees, the benefit is received through lower set up costs. Through stocking only mattresses and bases, our floor space does not need to be as large as that of other bed retailers. Our average space is between 300 – 350m2 compared with other retailers who need space in excess of 1000m2. “Sleepy’s range includes 35 mattresses, and for the franchisee it’s about taking the customer on the journey to find them the right mattress. “We have close relationships with both Sleepmaker and the Chiropractors Association of Australia. All franchisees and staff members are trained in assessing the spinal alignment of the customer, and once this is established they are able to more clearly determine the right mattress for the customer. “This means that the selection can be narrowed down to three or four mattress options for the customer.”

A simple model Sleepy’s began operations in 2001 and there are now 15 franchised stores and seven company-owned stores across the country. Sleepy’s plan is to establish a presence in all major markets throughout Australia, achieving a balanced geographical spread in both regional and metropolitan areas. All new stores will be located in areas that are considered to be strategically important to

For Wayne, the process once signing his franchise agreement involved preparing his store for opening and learning the Sleepy’s system at their head office in Brisbane. “Whilst the site I bought had already been selected by Sleepy’s, I became involved with the fit out of the store, as well as attending training up in Brisbane,” Wayne said. “The training involved both ‘classroom’ learning, and in store training, and prepared me well for opening my store. “Sleepy’s also provide continual product updates and support once you are running your store.” “Once you’re in the system, I believe the best training you can have is on the job, learning how to best relate with people and make the sale,” he said.

Factors for Franchisee Success There are two important factors Guy looks for in potential Sleepy’s franchisees. “As with any type of business, the first factor we look for in potential franchisees is passion for the business and for the product,” said Guy. “Secondly, and equally as important, our franchisees must have the ability to sell to the customer and to close the sale. “The ability for potential franchisees to articulate why they will be able to sell the products to the customers is extremely important. They need to be able to demonstrate that they have skills in selling the product and the desire to please the customer and solve the customer’s problem by selling them the right mattress,” he said.

Business Franchise Australia and New Zealand 35


Fr a nchisee in action : Sl eepy ’s

Kate goes on to say that Sleepy’s prides its reputation on selling the customer the right bed. “We offer a 60 night comfort exchange guarantee. This means that the customer has between 14 and 60 nights to sleep on the mattress, and if during this time they are not happy with what they have been sold, then they can exchange the mattress for another,” Kate said. “We literally stake our reputation on fitting the customer with the right mattress; if it’s not right then we will refit, and as an added benefit, we also offer free old mattress removal.” Kate explains that for customers, the purchase of a mattress is an important decision. After all, we spend half of our lives in bed.

work with you to ensure you get: • A simple, proven selling system that works • A stable industry with healthy margins • Product with leading technology and exclusive endorsements, regularly updated and expanded • Professionally styled, fully stocked showrooms in locations relevant to our product sector • Depending on availability in your desired areas, a new or existing store can be purchased • Benefit from Sleepy’s national advertising campaigns with comprehensive, cost effective marketing and advertising programs • On-going training and IT support

“Customers will often research their purchase online, and this has been kept in mind with the recent developments to our website. Customers can research our mattresses online, and then come to the store where they will receive the personalised service to help them make the final decision.

v Approximate capital outlay required for a new store is $165,000 to $200,000, depending on the size of your store

“Usually people only purchase a mattress every 10 to 15 years, and often during this time their needs have changed. It’s important that our franchisees and sales staff are able to understand the customer’s needs and they are extensively trained in doing so,” Kate said.

Head Office provides comprehensive support both at the outset and ongoing.

Become a Franchisee Sleepy’s understand that investing in a business takes thought and consideration. With the purchase of a franchise, Sleepy’s

• Full support from the Sleepy’s management team

Support “Our job is to provide the management, marketing and administration expertise and experience, contributing to the individual franchised stores ability to operate efficiently and profitably,” says Guy. “Sleepy’s also manages and maintains trade agreement negotiations and supplier relationships on behalf of its franchisees. “All franchisees receive extensive training

36 Business Franchise Australia and New Zealand

at the outset, spending two weeks at our Head Office in Queensland and in stores. This time is split between extensive product knowledge training, and training in sales techniques,” he said. “Training in our sales steps is an important part of the training process,” Kate continues. “Whether you are directly experienced in selling or not, the ability to perform a sales analysis of the customer is important in order to help build rapport and close the sale.” Franchisees also receive assistance in planning for the opening and operations of the store, and in coordination of store planning, layout and design. Marketing As a Sleepy’s franchisee you will receive the benefit of a national marketing campaign, as well as assistance with Local Area Marketing. “We work with the franchisees to establish the right local media campaign to drive the level of enquiry they require to meet their sales targets,” says Kate. “This may be through traditional media outlets such as newspapers and direct mail campaigns, or through activity-based events. We are flexible and offer the level of support the franchisee is comfortable with. Some people feel comfortable with conducting their own activities, while others need more assistance.” Opportunities currently exist in Maroochydore QLD, Western Sydney and Melbourne. If you would like more information about becoming a Sleepy’s franchisee contact National Franchise Manager, Guy Elliott. Phone: 07 3895 4100 Web: www.sleepys.com.au


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: michael@noodlebox.com.au

Business Franchise Australia and New Zealand 37


profile : M a i l Box es E tc

REACH YOUR POTENTIAL

WITH MAIL BOXES ETC According to Richard Saar of Mail Boxes Etc. (MBE), it’s a common misconception that franchising is all about fast food and coffee. “I’ve attended many franchise expos, and in my experience of talking to the public, people often don’t realise that there are professional services options in franchising,” Richard said.

Multiple revenue streams Richard says that one of the benefits of MBE is that they are a one stop shop for all business services. “Unlike most other franchise systems, MBE offers a wide range of B2B services. We do more than pack and send, we do more than printing and copy, we do more than courier services or mail receiving. We do it all. This reduces your risk, makes MBE more future proof and insulates franchise operators from the economic impacts of technology changes, labour strife and other business factors out of the control of franchisees.

“If you’re looking for a franchise system that provides professional services, a business to business (B2B) model, then Mail Boxes Etc. could be for you,” he said.

“It provides multiple revenue streams for franchisees. We also provide a physical shop front – which helps franchisees to really develop a relationship with their regular clientele,” said Richard.

Backed by experience

Owned by the largest courier and logistics company in the world, UPS, an MBE franchise offers franchisees the opportunity to accomplish their own potential in an industry that is idyllic for franchising.

For over 33 years, MBE has been franchising globally, and has been operating within Australia for over 20 years. There are over 35 MBE Centres 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. “With such a long history, and with so many outlets, MBE is well and truly experienced in what we do,” Richard said. “Our franchisees benefit from our experience – we know what works and what doesn’t and can pass on this knowledge to our franchisees.” “MBE has proven and professional expertise in all aspects of franchising, so it gives franchisees extra added support. This means you don’t have to go through the pitfalls that most new businesses have to deal with,” he said.

Are you a match for Mail Boxes Etc? At MBE Business Service Centres it is all about you - the franchisee. “The financial rewards depend on your ability to apply the proven MBE systems,” said Richard. “But some people make better franchisees than others. We want the best possible match, so that you can thrive in the MBE environment.” Are you a hands-on operator? An MBE business services franchise will only be granted on the basis that it is owner-operated. MBE know from experience that owneroperators achieve significantly better results

38 Business Franchise Australia and New Zealand

than pure, hands-off investors. 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 MBE’s overall success. Are you a “people person”? To effectively work in the MBE franchise system, a franchisee must enjoy working with the public, have strong problem solving skills, understand the importance of providing outstanding customer service, be a good listener and be considerate of others. Benefits of joining the MBE network:

• Site selection and lease negotiations.

• Assistance with interior layout and design. • Budgeting, accounting and financial analysis programs.

• Buying power via global contracts with major suppliers.

• Advertising, marketing and promotional programs. • Management consultation.

• Ongoing regionalised field and sales support.

• Global network for worldwide document distribution. • Private intranet with online support.

• Global web site and internet presence. • Research and development.

MBE’s experience in the industry provides you with the necessary support to help you achieve your financial goals. For more information about becoming an MBE franchisee in the Australia or New Zealand, contact: Phone: 1800 556 245 Email: richard.saar@mbe.com.au Web: www.mbebusinessfranchise.com.au


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www.mbebusinessfranchise.com.au www.mbebusinessfranchise.com.au 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 www.mbebusinessfranchise.com.au www.mbebusinessfranchise.com.au

Agnes Beugnon Agnes Beugnon on;on; phone: 0457 677 986 phone: 0457 677 986 National Franchise Development Manger CallCall ourour Chief Operating Officer National Franchise Development Manger email: agnes.beugnon@mbe.com.au email: agnes.beugnon@mbe.com.au Agnes Beugnon on; Richard Saar on;on; Agnes Beugnon phone: 0457 677 986 phone: 1800 556 245 phone: 0457 677 986 email: agnes.beugnon@mbe.com.au email:agnes.beugnon@mbe.com.au Richard.saar@mbe.com.au email:

Business Franchise Australia and New Zealand 39


e x pert a dv ice

THE VALUE OF

LOCAL AREA MARKETING

Why do some franchisees in a system perform consistently well, whilst others flounder? More often than not, the answer is that the successful franchisees are very good at local area marketing. They are the ones who are always thinking and planning about what they can do to attract more customers and increase their brand awareness in the community, and putting those plans into action. In my 20 years in franchising, there has been no coincidence that the best performing franchisees are those who are active in local area marketing and constantly driving their businesses. Local Area Marketing (LAM) involves identifying and implementing marketing

opportunities in local communities by engaging positively with individuals, groups, organisations, businesses and local media. A pro-active and sustained LAM program will increase the individual franchisee’s own profile as a dynamic member of their community and will increase overall brand awareness of the franchise system and its role in the community. Franchisees who sit back in their franchise and expect the franchisor to achieve everything for them are going to run their business into the ground very quickly. One franchisee recently summed it up perfectly when she said to me: “Andrew, you’ve got to spend money to make money.” This particular franchisee has taken two ordinary performing stores to become the number one store in the network. This franchisee also spends a minimum of three per cent of her turnover on local area marketing. In addition, this franchisee also

40 Business Franchise Australia and New Zealand

has a strong staff incentive program in place, ensuring that her team helps her to drive her businesses.

So how much should franchisees spend on LAM? The rule of thumb in franchising is that franchisees are expected to pay anywhere between 1.5 – 3 per cent on local area marketing, over and above their national marketing contribution, which can sit anywhere between five and 10 per cent, depending on the franchise. Far too often, franchisees believe their marketing finishes when they contribute to the national fund. The national fund is certainly utilised to promote the brand, however, there are many marketing costs that are taken from that marketing fund, including creative design, website, online media, national sponsorships, print and electronic media, etc.


“Successful franchisees are very good at local area marketing. They are the ones who are always thinking and planning about what they can do to attract more customers and increase their brand awareness in the community.” Andrew Kelly, Director PR & Marketing, FC Business Solutions.

FIVE OF THE BEST LOW TO NO-COST LOCAL AREA MARKETING IDEAS How far can a franchisee go? The large majority of Franchise Agreements stipulate that no local area marketing can be conducted by franchisees without the approval of the franchisor. This should be standard across all agreements. A lot of money is invested by the franchisor to develop, promote and maintain the integrity of their brand. A lot of the good franchises have local area marketing portals, which allow all franchisees to utilise artwork, ideas and campaigns that have been created and have worked successfully for other franchisees. If rogue franchisees want to alter logos, create different themes and colours, change tag lines and USPs, then they should ask themselves whether they want to be part of a franchise or create their own business. The success of a franchise is the brand, how that brand is promoted, how that brand engages and how that brand drives sales. The LAM program must complement the system’s national marketing plan and all LAM activities should be consistent with the system’s over-riding marketing plan. However, it is also vital that the individual franchisee forms a distinct relationship with their local community and local media to help generate local loyalty to their business.

1. If you have a mobile franchise or a signed vehicle, use your vehicle as a billboard – regularly park it in a prominent spot e.g. at the local shopping strip whilst you eat your lunch or do your paperwork. 2. Offer to present a talk to your local community group/chamber of commerce/local radio – you can talk about small business, your particular industry, the challenges you’ve overcome to get where you are – by doing so you will be engaging with your local community and informing people about yourself and your business whilst building the franchise brand. 3. Look out for opportunities in your community where you can donate goods or services to those less fortunate than you. The local paper is a good source of potential opportunities. Word will soon get around about your community mindedness. 4. Say ‘Yes’ to community/sporting groups when asking for donations or prizes (within reason) - Maybe offer to ‘sponsor’ a local sporting hero. 5. Use ‘quiet‘ times in your business as an opportunity to promote your business. Get out in the street – hand out brochures! Think, plan and research local area marketing strategies. Ask yourself how you can get some more business through the door. Ask other franchisees in your group what works for them. Keep trying new ideas! programs with strategic LAM and PR.

Andrew Kelly is a professional journalist and PR specialist with more than 20 years’ experience in franchising corporate communications.

The key outcomes of the workshop are: • Differentiate between Public Relations, Brand Marketing and Local Area Marketing

Andrew fully understands the dynamics and idiosyncrasies of franchising and is able to play an active and ‘hands on’ role in promoting and growing the businesses of existing and new clients.

• Identifying LAM Opportunities • Planning a Local Area Marketing campaign

For further information about local area marketing contact Andrew Kelly, Director PR & Marketing, FC Business Solutions.

• Understanding your demographic

Franchisor’s responsibility

• Analysing LAM

In our network, many of the franchise systems we work with have participated in a LAM workshop which assists franchisors to stimulate, engage and encourage their franchisees to support national marketing

By actively and consistently engaging in your local community and with your local media outlets, you will help drive the success of your own business and contribute to the overall success of the brand.

Phone: 03 9533 0028 or 0488 333 191 Email: Andrew@fcbusinesssolutions com.au Web: www.fcbusinesssolutions.com.au

Business Franchise Australia and New Zealand 41


profile : the australian drug detection agency

Number one in

drug detection Drug detection is increasingly being adopted across the country by companies concerned about ensuring the health and safety of all employees. Kirk Hardy, CEO of the Australian Drug Detection Agency (ADDA) says that workers affected by drugs have a much higher risk of accident in the workplace, putting themselves and their co-workers at risk of serious injury or even death. “Workplace drug-testing significantly lessens that risk for both the workers and the companies who carry the responsibility for their employees’ safety,” Kirk said. “Businesses have to carefully consider their occupational health and safety policies and, more and more, drug- testing is becoming a crucial part of that,” he said. According to Robert Graham, Managing Director of CEO Consulting, a company that specialises in franchising, the ADDA is well positioned to be the number one in the industry, following on from its considerable success in New Zealand. As an expert in franchising and bringing new business concepts to market in Australia and internationally, Robert has expressed excitement about the dominant position that ADDA will quickly develop in the Australian market and the opportunities that brings for all participants in the business, including franchisees. “Extensive work has been undertaken to research the market opportunities in Australia and to customise the local

franchise model to ensure the growing pipeline of clients can be served efficiently and to the professional standards that ADDA imposes on itself,” Robert says. New South Wales and Victoria are seen as key markets in Australia for the ADDA and Robert has been working closely with the NSW and Victorian teams to prepare for launch. “NSW is launching now with Victoria soon to follow with a systematic and in depth training and business support program for new franchisees,” Robert said. “The power of the brand and services coupled with the resources being invested and quality of leadership in the franchise will see ADDA quickly claim ownership of the sector as its national network rolls out. “It is exciting to see a major group form and mobilise to raise the standards in a currently fragmented but high growth industry,” he said. “Every employer, regardless of industry, should be interested in the impartial and unique workplace drug testing services offered by ADDA because this is not just about finding employees under the influence – it is also about governance and risk management programs that impact company reputations, insurance, workplace safety and legal liabilities. “Directors and senior management now have an independent and highly professional education, testing and compliance partner to handle an otherwise costly and sensitive issue of drug affected employees in the workplace. “You will see it rapidly become commonplace for employees to undertake regular substance tests and employers will increasingly use this cost effective service to

42 Business Franchise Australia and New Zealand

screen job applicants in blue and white collar roles,” said Robert. ADDA was established in February 2011, following the considerable success in the New Zealand market. The aim is to become a market leader in on-site workplace drug and alcohol testing, education, training as well as Company drug and alcohol Policy development. Formed in 2005, the New Zealand operation has grown to include 45 mobile testing units across New Zealand which conduct over 70,000 drug tests every year. “We have experienced growth of around 30 to 40 per cent year on year and continue to grow,” says Kirk. “Now we want to take our learning’s from the much smaller New Zealand market into the Australian workplace. Given that the Australian market is an estimated 20 times larger than New Zealand, we expect an excellent return on our investment.” The ADDA’s first Australian franchises were launched in Queensland last year. Opportunities are now available across Australia for both master (State) franchisees and sub-franchisees. Kirk says that potential franchisees need to possess excellent people skills along with the ability to conduct themselves in a highly professional manner, and a commitment to safety in the workplace and to implementing the disciplined and proven practices of the ADDA. If you like to find out more the ADDA and how you can contribute to the safety of your community whilst building a successful business contact: Email: kirk.hardy@tadda.com.au Web: www.tadda.com.au


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The Australian Drug Detection Agency wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The is aDrug proven business model provide financial rewards for those who TheADDA Australian Detection Agency wants that highlywill motivated andexcellent independent people to join The Australian Drug Detection Agency wants highly motivated and independent people to join team, as either Master or Regional arethe prepared to work hard and fit Franchisees. the criteria. the team, as either Master or Regional Franchisees. TheisADDA is a opportunity proven businessfor model that will provide excellent financialwho rewards forserved, those or are currently in This a huge business-orientated individuals have Thewho ADDA isprepared a proventobusiness model that willcriteria. provide excellent financial rewards for those are work hard and fit the law the hard emergency who enforcement, are prepared to work and fit theservices criteria. or the armed forces, to get in at the ground level and grow own enterprise. This their is a huge opportunity for business-orientated individuals who have served, or are currently Thisinislaw a huge opportunity business-orientated individuals who have or are currently enforcement, the for emergency services or the armed forces, to getserved, in at the ground level Are you ready to join our experienced group and secure a lucrative future? in law enforcement, the emergency services or the armed forces, to get in at the ground level and grow their own enterprise. and grow their Our guess is own Yes,enterprise. you are! Are you ready to join our experienced group and secure a lucrative future? AreFranchises you ready to join our experienced group and secure a lucrative future? selling fast Our guess is Yes, you are! Email: kirk.hardy@tadda.com.au sold QLD/NSW/VIC OurMasters guess is Yes, youinare! Website: www.tadda.com.au franchises still Email: kirk.hardy@tadda.com.au sSub Franchises selling fastavailable in all States. Email: kirk.hardy@tadda.com.au s Franchises selling fast s Masters sold in QLD/NSW/VIC Website: www.tadda.com.au s Masters sold in QLD/NSW/VIC Website: www.tadda.com.au

• • •

Business Franchise Australia and New Zealand 43


e x pert advice

WANT BUSINESS SUCCESS? Create Value!

There was a time when a business ably competing on the basis of quality, price and/or services, could expect reasonable prospects of success.

needed to run smoothly at a profit.

Growth came from scaling up, and as the business became more complex adding a manager or two, an operations manual and a good accountant was all the infrastructure

Seeking advice often adds to the confusion. Do you need a business plan? A strategic plan? Hire a business coach? Start a Facebook page? Train staff? Add an

Business owners know conditions are tougher now and operating successfully requires wider expertise: marketing, social media and sourcing for instance. And it is more complex: more legislation, more red tape. Trying to compete on value is almost impossible when everyone else is competing on price including international players with lower cost structures.

incentive program to make sure trained staff donâ&#x20AC;&#x2122;t leave? Just finding the time to do this is a task in itself. To compete without going broke in the process needs a different solution to 20th century management methods because business has changed. Not understanding this change not only means your business leaves â&#x20AC;&#x2DC;money on the tableâ&#x20AC;&#x2122; from unrealised value, but you risk being out-managed, out-performed and out-grown by your competitors. With a business structure adapted to the technology-facilitated knowledge economy you can:

44 Business Franchise Australia and New Zealand AU


Business Franchise Australia and New Zealand 45 AU franchise mag V3a 24March 3778.indd 1

26/3/13 9:54:05 AM


e x pert advice

• Add as much as 80 per cent to the business’ total valuationi. • Increase productivity (doing more with the same resources) without straining the businessii. • Achieve revenue increases by as much as 20 per cent on a shift-by-shift basisiii. • Achieve above-average performance in all financial measures including EBITDA (by 2.2 times), growth in value (by 1.8 times) and income to sales ratio (by 1.5 times)iv. Intangible assets have been around for as long as there have been businesses, but it is only since early 2000s that their ability to create value has really been recognisedv. An analysis of the US economy shows while intangible assets accounted for 30-40per cent of growth throughout the 1900s 90 per cent of all growth in the US between 2001 and 2003vi was created through intangible assets. Broadly classified in three categories: legal intellectual property (IP) (trademarks, copyright, patents, etc.); trade secrets (such as software, new product development, market research and activities to create brands); and organisational intellectual property (business models, corporate cultures and structures and expenditure on firm-specific training), there are two sources of intangible asset creation: people and how they are organised (you often hear of ‘knowledge capital’ and ‘social capital’ being the new sources of competitive advantage). Franchisors are particularly aware of the value of intangible assets. The very business of franchising is based on licensing intellectual property however franchisees may be old-school operators who think they are investing in bricks and mortar, equipment and stock. In a traditional company physical assets were everything: premises, machinery, uniforms, equipment, factories, warehouses; even labour was treated as a physical asset (‘human’ resources) and managed as part of production. As the business could afford it, another person was hired, another outlet added, stock levels increased – they generated the business returns. Today returns come not from physical and operational investment alone but from simultaneous investment in intangible assets. Although every good manager intuitively

understands that the right people doing the right things at the right time is essential for a successful business, they rarely do much about it, relying mostly on their own skills and knowledge in people and organisational management. They think of organisations as charts, people as labour, managing them as ‘soft skills’, and expect unrealistic results from leadership training, corporate team building and other ‘people initiatives’. Ignorant to the fact that it is organisational intellectual property that realises returns from investment in the business, it has been estimated that for every dollar spent on intangible assets, one dollar is lost in unexploited benefits. No company would spend $100 on stock and allow half of it to spoil, yet this is exactly the situation with intangible assets. To create value and improve performance there are several things a business can do. 1. Get the employment basics right. It is not enough for a franchisor to give franchisees ‘the manual’ and then be on standby should something go wrong. Poor employment practices are a fast-track to demotivated workers who do less, make more mistakes and take more sick days. Managers playing catch up with staffing concerns or compliance issues are a major distraction to the business. 2. Create and prioritise your own recipe for your unique approach. Looking for the frustrations in your business is a good place to start. If you copied your systems and procedures from another business or have adopted the ‘normal’ standards, all you have is a recipe for mediocrity. 3. The same goes for structure. Find ways to grow and manage an expanding workforce to suit your goals. Hierarchies are expensive to run and are responsible for most wasted efforts. Consider:vii • Carrots and stick incentives are least effective of the options commonly used to motivate and encourage workers to perform and stay with a company. • KPIs and the like (such as performance contracts) are among the least satisfactory options for improving accountability. • The detailed strategy and plan is far from the most fruitful way to set

46 Business Franchise Australia and New Zealand

company direction. • Command-and-control leadership — telling people what to do and checking on them to see that they did it — is among the least effective ways to direct the efforts of people. 4. Train managers to coach and insist that they do it. Managers who coach are not only perceived to be more trustworthy, better communicators and more sincere by workers, but their people will typically improve performance by four-fold compared to those who were trained but not coached. 5. If using professional services for recruitment, training, operational improvements or any other function that impacts people and their work environment, ask for their credentials in creating sustainable organisational value. Otherwise you will pay twice: once for the services, and again when you miss out of the benefits of intangible assets not maximised. Franchisors and franchisees both benefit when better organisational practices are implemented: for the franchisor there is more ‘bang’ for its brand buck; and for the franchisee, better management processes give them more confidence for achieving better organisational results. i

Standard & Poor’s 500 valuation of tangible to intangible assets, 2010 (of the Nasdaq Index companies, 85% of their valuation lies in the intangible assets)

ii

UK Commission for Employment and Skills, Skills and economic performance: The impact of intangible assets on UK productivity, Evidence Report 39, October 2011

iii For example, Wharton University of Pennsylvania’s Dr Adam Grant Call Centre Research, January 2013 iv McKinsey & Company, Organizational health: The ultimate competitive advantage, June 2011 v

In 1999, by the OECD in their report, The Knowledge-based economy: A set of facts and figures, Paris.

vi Robert J. Shapiro and Kevin A. Hassett, The Value of Intellectual Property, 2005 vii Keith Leslie, Mark A. Loch, and William Schaninger, Managing your organization by the evidence, August 2006

Meta Management has been working with clients since 2003 to create value from their organisation’s intangible assets using practical solutions designed for businesses with limited time and resources. Phone: (03) 9016 3827 Email: service@metamanagement.net.au Web: www.metamanagement.net.au


Assured monthly income stream of $5000 each month for the first 3 months! (inc GST)

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Focus : Sherpa K ids

Sherpa Kids re ch eng ge ch llenge Sherpa Kids is a franchised Out of School Hours Care (OSHC) business which aims to establish quality, structured onsite OSHC / OOSH programs throughout Australian schools. Programs are structured, fun, safe and educational with services that recognise

and cater to the varying needs of different communities and cultural diversities. Sherpa Kids focuses on providing primary schoolaged children with meaningful learning and recreational experiences that complement what they are taught during normal school hours. After a long period of searching for the right business opportunity, Phil and Allison Paterson opened their first Sherpa Kids service in June this year. Allison and Phil had been on the lookout for the opportunity to buy their own business for a number of years, but nothing was the perfect fit. A local newspaper article about

the history of Sherpa Kids caught their eye, which led to their decision to buy the first South Australian franchise. Allison’s successful history of working within the child care after hours industry as an OSHC Director made Sherpa Kids franchise the perfect choice. It enables her to utilise her skillset of onsite management, staff engagement and her passion to continue working with children. Phil’s corporate business experience enables him to provide administrative, financial and marketing elements to the business. “The beauty of being part of this franchise, as opposed to being a stand-alone business is that you instantly have commercial credibility. This can take years to build from scratch, and with Sherpa Kids the reputable and credible brand and highly advanced processes and systems have already been built for you. The ongoing support for both the onsite element and business elements (business analysis), and constant communication with Head Office is also of great benefit. We are not alone. “From the outset the training was informative, structured and fantastic with the whole system being very user friendly and extremely relevant to cater for all – whether you come from within the industry or from without,” Phil said.

L-R: Allison Paterson - Franchisee; Shauna Thompson - Employee; Vicki Prout - Managing Director and Emma Higgins - Employee

48 Business Franchise Australia and New Zealand

“When parents seek enrolment the key question is whether there was a care option for their child. Parents are under increasing pressure to remain in the workforce while raising their children. This alone is driving demand for safe and engaging out-of-schoolhours care for primary school children,” said


Ms Prout, Managing Director and a former Navy officer who has since become a four time winner of the Franchise Council of Australia’s SA Franchise Woman of the Year. Now, thanks to Sherpa Kids, there is a quality program, and parents, principals and children have warmly welcomed our programs into schools across the country. “Schools are seeking fun and structured services that engage children while connecting with the school’s curriculum and philosophies. All this occurring on school grounds, under the watchful eye of full trained and engaged staff. Parents want a service with learning based programs in a safe and happy environment outside the normal school hours. We even have homework sessions – we are not a babysitting service! “Importantly, we will engage with local school communities and dedicate ourselves to improving the outcome for principals and teachers, while supplementing good parenting standards too. “We are extremely aware our service and position within the school plays a pivotal role to families and communities,” said Ms Prout. Sherpa Kids was launched in Australia in mid 2011 by Vicki Prout to provide structured in-school care for primary school students, offering before and after school and vacation care services. Ms Prout, who is also director of franchising consultancy Sherpa Group, has already grown Sherpa Kids to 13 franchises across Victoria, New South Wales, Western Australia and South Australia, with the on the ground support of two Area Developers in NSW and SA/NT. Now, in alliance with her business partner in New Zealand where the concept originated in 1996, Ms Prout has recently helped expand the business into Europe following a landmark deal to sell the master franchise rights in the UK. “We have a solid history, underpinned by a high level of knowhow, integrity, expertise and knowledge that professionalises our brand, our systems and most importantly our people since 1996.” We are looking for family friendly entrepreneurs to join us today. Visit: www.sherpa-kids.com.au or call us direct on 08 8354 4886.

Sherpa Kids will work in your territory and sign up your first school for servicing. Once you give them the go ahead that you wish to join - they are underway.

The Facts • Market demand in many areas

• Massive growth industry for Australia • Potential to become a multi-unit franchisee

for your engagement that align with national regulations

• Set programs for before school care, after school care and vacation programs

• Work within school grounds – operating onsite at the school provides familiarity for parents and children

Business Operations • Business mentoring

• Grow your program in a number of schools – we are not looking for you to operate in one school but several

• Extremely strong successful track record in New Zealand and just launched into the UK

Your Role: Your role is to manage your staff, develop the relationship with the school community and grow the business as the demand of your services increases with enrolments. We see our business as a management franchise that provides services to the childcare industry.

Financial: • No expensive and high long term retail rents – in some cases no lease fees paid at all

• Business planning

• Suite of operations manuals including HR, Marketing, Administration, Business Operations, Finance, Onsite Policies and Procedures

Lifestyle • Flexibility with hours YOU want to work in the business

• Can be a part time lifestyle business

Support • Support by a highly skilled and trained franchise team • Ongoing business support and opportunities to up-skill and build a strong financially sound business

• Marketing assistance (10 x 10 marketing plan)

• Low cost entry

• Strong networking base with other business owners

• A Rapid return on investment

Administration

• A Proven business model • Recession proof

Operational Onsite • Highly structured programs ready

• Online platforms for business administration

• CCMS software linked to Government rebates

Business Franchise Australia and New Zealand 49


legal advice

FIVE COMMONLY ASKED LEGAL QUESTIONS BY FRANCHISEES

In what circumstances may a franchisee terminate the franchise relationship? Generally speaking, a franchisee may terminate the franchise relationship in four circumstances. (a) Within seven days after signing the franchise agreement or making a payment under the franchise agreement.

This is called a ‘cooling off period’ and is the right given to franchisees by the Franchising Code of Conduct (“the Code”). However, it should be noted that the right of cool off does not apply to any renewals, extensions, extensions of scope or transfers of existing franchise agreements.

(b) If the franchisor consents to early termination.

There may be circumstances where the franchisor will agree to let the franchisee out of the franchise agreement early with no or minimal penalty imposed on the franchisee. These circumstances are rare.

(c) In accordance with any other rights under the particular franchise agreement if the franchisor is in breach.

50 Business Franchise Australia and New Zealand

If the franchisor has breached an essential or fundamental term of the franchise agreement and has not remedied the breach within a certain


“Legal advice is vital for potential franchisees. Here are five commonly asked questions by franchisees.” Jane Garber, Senior Associate, Mason Sier Turnbull.

timeframe after receiving a written notice from the franchisee outlining the breach and how it can be rectified, the franchisee may be entitled to terminate the franchise agreement. (d) At common law if: (i) the franchisor has repudiated the franchise agreement by indicating that it no longer wishes to be bound by its terms; (ii) the franchisor breaches an essential term of the franchise agreement; or (iii) the franchisee was induced to enter into the franchise agreement by a false representation or statement and, since becoming aware of the falsity of the representation or statement, has decided to terminate the franchise agreement. Franchisees should only terminate franchise agreements based on their rights at common law upon receiving legal advice, because if the termination is held to be wrongful, the consequences for the franchisee can be drastic. Such consequences may include requirement to pay all fees otherwise due and payable to the franchisor for the remainder of the term of the franchise agreement, the legal costs of the franchisor and compensation awarded by a judge. It should be noted that the current laws governing franchising do not provide any rights to the franchisees to end the franchise

agreement early or cease paying any fees due under the franchise agreement if the franchisor becomes bankrupt or insolvent. Further, apart from the cooling off right provided to franchisees by the Code, it is rare to see an early termination clause in the franchise agreement that allows the franchisee to terminate the franchise agreement on notice and without cause. Usually, early termination is tied to a requirement for the franchisee to pay an exit fee or other money to the franchisor.

May a franchisor restrict a franchisee’s ability to transfer its franchise or restrict transfers of ownership interests in a franchisee entity? The Code provides that the franchisor may not unreasonably withhold its consent to a transfer. ‘Transfer’ is defined in the Code as an arrangement, in which the franchise is granted, transferred or sold. The Code then gives some examples of the circumstances in which it would be reasonable for the franchisor to withhold consent to a transfer. These circumstances include where: (a) the proposed purchaser is unlikely to be able to meet the financial obligations that the proposed purchaser would have under the franchise agreement; or (b) the proposed purchaser does not meet a reasonable requirement of the franchise

agreement for the transfer of the business; or (c) the proposed purchaser has not met the selection criteria of the franchisor; or (d) the proposed transfer will have a significantly adverse effect on the franchise system; or (e) the proposed purchaser does not agree, in writing, to comply with the obligations of the franchisee under the franchise agreement; or (f) the franchisee has not paid or made reasonable provision to pay an amount owing to the franchisor, including outstanding fees such as royalties and marketing fee as well as a transfer fees; or (g) the franchisee has breached the franchise agreement and has not remedied that breach. Additional conditions may be imposed by the franchise agreement for obtaining the franchisor’s consent to a transfer. A common condition is the requirement that the franchisee pay a transfer fee, usually a percentage of the sale price payable by the purchaser. Transfers of an ownership interest (e.g. shares) and/or change of control in a franchisee are often deemed by the franchise agreement to be an assignment or a transfer by the franchisee and will trigger the transfer provisions.

Business Franchise Australia and New Zealand 51


l egal a dv ice

(b) the franchisee no longer holds a licence that a franchisee must hold to carry on the franchised business; or (c) the franchisee becomes bankrupt, insolvent, under administration or an externally administered body corporate; or (d) the franchisee is convicted of a serious offence, which is defined in the Code; or (e) the franchisee voluntarily abandons the franchised business or the franchise relationship; or (f) the franchisee operates the franchised business in a way that endangers public health and safety; or (g) the franchisee is fraudulent in connection with the operation of the franchised business; or

May a franchisor refuse to renew the franchise agreement with a franchisee? There is no obligation on the franchisor to renew the franchise agreement unless a contractual right of renewal is granted to the franchisee by the franchise agreement. However, even with a contractual right, the franchisor may refuse to renew the franchise agreement in certain circumstances. Such circumstances usually include, amongst others: (a) the franchisee not advising the franchisor, in writing, during a specified period of time (usually between nine to seven months before expiry of the term of the franchise agreement) of its intention to renew; or (b) the franchisee being in breach of the terms of the franchise agreement at the time of renewal or during the term of the franchise agreement; or (c) (where relevant) the lease of the business premises not being renewed by the landlord; or (d) the franchisee refusing to sign the required franchise documentation for the renewal to take place within the time specified by the franchisor; (e) the franchisee not upgrading the premises from which the franchised

business is conducted to suit the franchisor’s current image; or (f) the franchisee failing to pay moneys owed to the franchisor, in particular, the renewal fee payable under the franchise agreement. When buying a franchised business, franchisees should understand that there is no automatic renewal right provided to them by the Code and any renewal will be subject to the conditions of the franchisor’s franchise agreement.

In what circumstances may a franchisor terminate the franchise relationship? Generally speaking, a franchisor may terminate a franchise relationship in the following circumstances: (a) the franchisee breaches the franchise agreement and does not remedy that breach within a reasonable time (which does not have to exceed 30 days) after being given notice by the franchisor to remedy the breach. The notice issued by the franchisor must outline to the franchisee what must be done to remedy the breach and the timeframe within which the breach must be remedied (this time frame will be what the franchisor considers to be a reasonable time for remedy); or

52 Business Franchise Australia and New Zealand

(h) the franchisee agrees to termination of the franchise agreement. Pursuant to the Code, the franchisor may terminate the franchise agreement immediately and without any prior notice in the circumstances set out in paragraphs (b) to (h) above. Franchisees should note that some franchise agreements contain provisions by which the franchisee agrees on circumstances that would entitle the franchisor to terminate the franchise agreement immediately. Franchisees should review the proposed franchise agreement carefully prior to signing it and obtain proper legal advice in relation to the circumstances that will entitle the franchisor to terminate the franchise agreement.

What actions are available to franchisees if a franchisor engages in misleading or deceptive practices in connection with the offer and sale of franchises? If the franchisor engages in misleading or deceptive practices, the franchisee may seek remedies under Schedule 2 of the Competition and Consumer Act 2010 (Cth) (“CCA”), known as the Australian Consumer Law (“ACL”) and generally under the CCA itself. These remedies are found under the prohibition on misleading and deceptive


conduct provisions of the ACL and also at common law on ground of misrepresentation. The remedies available under the ACL and CCA include, but are not limited to: (a) the franchise agreement being declared void and the franchisor having to refund all funds paid by the franchisee; (b) damages; (c) injunctions; and (d) in certain circumstances, declarations of certain matters by the franchisor. If a breach of the CCA is involved, franchisees may also seek the intervention of the ACCC. The ACCC may seek the following: (a) a redress order (other than for damages) in favour of the franchisee(s); (b) non-punitive orders, e.g. community service, establishment of a compliance program, establishment of a training

program and engaging in corrective advertising, etc.; (c) an adverse publicity order; and (d) an order disqualifying a person (director or directors of the franchisor) from managing a corporation. Franchisees should note that the ACCC is selective in which matters it pursues based on public interest and also based on the evidence available in relation to the allegations of the franchisorâ&#x20AC;&#x2122;s misdemeanours. On the other hand, at common law a right to terminate the franchise agreement may exist where a party has entered into a franchise agreement as a result of an inducement by a franchisor making a false representation. If the franchisor is found to have misrepresented information to the franchisee by the court, depending on the circumstances of the case, the court may award the franchisee damages.

Franchisees should bear in mind that proving misleading and deceptive conduct and misrepresentation is not an easy task and requires solid evidence against the franchisor. Therefore, franchisees should keep accurate file notes of all conversations with the franchisor and confirm all things, in writing, to be able to produce such records in the future, if required. Located in Melbourneâ&#x20AC;&#x2122;s industrial heartland, Mason Sier Turnbull has strong commercial law skills and prides itself on providing clients with great service and sensible solutions. Jane Garber is a Senior Associate at Mason Sier Turnbull. Contact Jane on: Phone: 03 8540 0271 Email: jane.garber@mst.com.au Web: www.mst.com.au

Business Franchise Australia and New Zealand 53


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 - $250K - $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 - $300K - $650K Number of outlets - 165 Opportunities available - Nationally

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

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

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

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

HAND CARWASH

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

Capital required - $300K + Number of outlets - 1 Opportunities available - Nationally

Capital required - 70K+Australia and New Zealand Capital Required - 250K 54 Business Franchise Number of outlets - 4 Opportunities available - nationally

Number of outlets - 100+ internationally Opportunities available - nationally

WW PHO 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 - $400K + Number of outlets - 5 Opportunities available - Nationally

Capital required - $250K + Number of outlets - 8 Opportunities available - Nationally (Except WA)

Capital required - $350K - 650K Number of Outlets - 47 Opportunities - Nationally

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

Connecting people to opportunities Choose from Australia’s best selection WWW.FRANCHISESELECTION.COM.AU Visit www.franchiseselection.com.au or PHONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624) Business Franchise Australia and New Zealand 55

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fi nanci al A dv ice e xpert ADVICE

“It is important to remember that growth and success in your business can be managed better when a robust business plan is developed.” Labrina Tsekouras, Senior Business Development Manager - VIC & TAS, Franchise Sector, Westpac.

Planning for growth and success Planning to grow your business? Then give yourself a greater chance of success by developing a robust plan rather than just ‘winging’ it. The Importance of Planning Planning is important because it helps you work smarter rather than harder. It keeps you future-oriented and motivates you to achieve the results you want. Moreover, the process of completing a business plan enables you to determine what commitment you are prepared to make to the business. Planning significantly increases your chances for survival and prosperity by focusing your attention on areas in which small business operators sometimes get lost. It is easy to become excessively optimistic about a new idea. Planning helps to prevent you from viewing the future in ways that the facts do not support. Planning enables you to recognise problems that call for outside sources of information and assistance. The nature of markets and

consumer needs change rapidly. Planning cannot predict change, but it helps you to recognise it and to construct your business strategy accordingly. Small businesses tend to grow either too fast for their capital base, or too slow to maintain profitability and an adequate return on investment. Planning helps you to achieve smooth growth and to avoid unexpected crises. A business plan enables you to monitor your results against a set of goals and performance standards. When someone puts money into your business, they want to know what to expect. A business plan not only enables you to plan your capital needs in advance, but also provides the information that financiers need to evaluate your application for further finance. A business plan is not a guarantee of

success, but it does increase your chances of survival. It’s like a road map - a good plan will outline where you want to go and how you want to get there. It may only be a few pages in length, but you should review it often. It needs to be flexible enough to meet new challenges and take advantage of new opportunities. Preparing a business plan will help you think through all the aspects of running your business and to examine the consequences of different strategies you might want to take. For help in preparing a plan and to get a useful template, see the Westpac Online website at www.westpac.com.au/businessbanking/solutions/starting-a-business/ planning-my-business/business-plan-tips/

SWOT Analysis Undertaking a SWOT analysis is a useful part of any planning. It helps you focus on your strengths, minimise weaknesses, take the greatest possible advantage of opportunities and reduce the threats. You can carry out a personal analysis to assess whether you are right for a particular business opportunity, or you can use the SWOT analysis on the business itself or a particular growth opportunity, or even on

56 Business Franchise Australia and New Zealand

WB


unlocking opportunities The key to real estate is spotting value. Our real estate specialists have expert industry knowledge to help you with anything from a simple and secure rent collection system, to the purchase of rent rolls (thanks to our tailored rent roll funding). So you can spend more time growing your business.

Talk to our National Head of Real Estate about how we can support you: Jason Roach on 0448 455 556 Or visit westpac.com.au/industry

Š2013 Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.

WBC3174/RE

Business Franchise Australia and New Zealand 57 WBC3174_Real Estate_297x210_4.1.indd 1

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your competitors. To carry out a personal SWOT analysis, answer the following questions.

Strengths What advantages do you have? What do you do well? What relevant resources do you have access to? What do people see as your strengths? Think about your strengths in relation to your competitors. If all your competitors provide high quality products, then a high quality production process is not a strength in the market, it is a necessity.

Weaknesses What could you improve? What do you do badly? What should you avoid? Consider your weaknesses from an internal and external basis. Do other people perceive weaknesses that you do not see? Are your competitors doing any better than you? Be realistic and face any unpleasant truths as soon as possible.

Opportunities Where are there good opportunities facing you? What are the interesting trends you are aware of? Useful opportunities can come from such things as; changes in technology and markets on both a broad and narrow scale; changes in government policy related to your field; changes in social patterns, population profiles or lifestyle changes. Look at your strengths and ask yourself whether these open up any opportunities. Look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them.

Threats What obstacles do you face? What is your competition doing? Is changing technology threatening your position? Are the required specifications for your job, products or services changing?

threaten your business?

• Is additional or specialised training required?

The keys to an effective SWOT analysis is to be thorough and honest, and to act on your findings by talking to your financial advisor or accountant.

Key tip: identify the key points about your business that need to change, then work out how you will manage that change.

Planning for growth

3. How will I protect my business after growth?

With growth comes scale, more profit and greater returns on your investment, right? But it doesn’t always seem to work out that way. Planning can assist you understand the potential pitfalls and benefits as you achieve your desired growth. Business plans don’t have to be long and complicated. When planning for growth you can start by answering the following simple questions: 1. What do I want my business to look like after it has grown? 2. How will I achieve that growth? 3. How will I protect my business after I have achieved that growth? 1. What do I want my business to look like after it has grown? Know what you want to achieve. Have a clear vision of what your business will look like after growth. Consider what you mean by ‘growth’. • Is this an increase in profit, cash flow, margins and flexibility? • Or an increase in retail outlets? • Or do you want to trade overseas or increase a service for a local market? Key tip: work out what you want, and you will have a better chance of making it a reality. 2. How will I achieve that growth? Successful growth doesn’t happen by itself. It’s important to understand how the future vision of the business impacts current operations. For example: • What processes need to change in order to make that goal a reality? • Will it require new equipment or more space?

Do you have bad debt or cash-flow problems?

• What will it cost, and where will the funding come from?

Could any of your weaknesses seriously

• Do you require more people?

58 Business Franchise Australia and New Zealand

Unless managed well, growth could potentially hurt a business. Growth generally means more equipment, people, customers and more competition. Growth in each of these areas has its potential downside, including a possible strain on your cash flow. Key tip: understand the potential downsides of growth so that you can be better placed to overcome them. In summary, it is important to remember that growth and success in your business can be managed better when a robust business plan is developed. Furthermore a detailed SWOT analysis is a useful tool that can be used to assist you to focus on your internal and external business environment during planning. More information on Business Planning and Growing your Business is available from Westpac’s Davidson Institute. The Davidson Institute provides financial education on a wide range of topics in both face-to-face short courses, and online at www.davidsoninstitute.edu.au Labrina Tsekouras is the Westpac Senior Business Development Manager for Victoria and Tasmania and specialises in the franchise sector. Westpac continues their long-term commitment to franchising in Australia. The bank has a national network of franchise specialist business bankers who are able to deal with the specific needs of the franchise sector. Contact Labrina at: Phone: 0418 246 903 Email: ltsekouras@westpac.com.au Web: www.westpac.com.au/business- banking/franchising/


Do You ȗ Have a teacher qualification or degree or wish to engage teachers to work in your franchise business? ȗ Still love teaching but want to be your own boss? ȗ Have a passion for education and literacy? ȗ Want to increase your earning potential with no upper limit? ȗ Believe in using the latest technology to help make learning easier? ȗ Want to work from home, start part time and build up?

A tutoring system with a difference! Using a unique curriculum plus multi-sensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study. The program has been developed by a literacy expert and a team of specialists in reading and multi-sensory learning. Co-founder and Director Catherine McLennan has 26 years of teaching experience specialising in teaching reading. Individual training with Catherine ensures success for all franchisees.

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.

Reading difficulties often arise when the student’s visual and auditory processing channels are weak and require further development.

Early trials have shown most clients make gains in their reading age of up to two years, in just 12 weeks. Listen to Read is a proven system combining a practical reading curriculum with Sound Therapy and progressive multi sensory programs for ipad or computer.

Email:

hello@listentoread.com.au

Phone enquiries:

1300 473 234 / 0410 618 472

Website:

www.ListenToRead.com.au

Our brand portfolio includes:

Ranked #6 in Passion* in the 2012 10ThousandFeet Survey (topfranchise.com.au) *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: brighteyes.admin@luxottica.com.au

...and many more


PROFILE : Su m osala d

SumoSalad:

Now offering even more options to franchisees SumoSalad is excited about the launch of four new store models, bringing fresh and healthy food to more locations than ever before. Meeting the needs of their customers, SumoSalad plans to continue to offer their great food in new and innovative ways, by coming to consumers in various forms such as kiosk, in-line, café concept and express locations in high footfall areas such as regional shopping centres, high performing sub-regional shopping centres, strip sites, airports, railway stations and entertainment precincts. SumoSalad’s General Manager of Business Development and Strategy Steve Shirley said that the four new models, in addition to the current models, offer flexibility in terms of size and cost to franchisees. “With the new concepts we can offer a lower entry cost for some of the smaller options, as well as different lifestyle opportunities for franchisees. For those store concepts which operate outside the shopping centre environment we are opening up longer trading hours, reaching breakfast and night trade outside the standard traditional food court operating hours. “With an ever-changing retail landscape it’s

important that a business be adaptable to different environments. At SumoSalad, there are a number of concept options suitable for success in different regions, locations and countries,” Steve said. “Our dynamic selection of concept options makes us unique in the food retail business and provides us with the ultimate flexibility to match the right location with the appropriate store type,” he said. The four new models, which add to the existing and very successful inline and kiosk store models, seek to take the concept of good fast food out of shopping centres and on to the high street. “The SumoSalad café concept has a larger footprint requiring around 100sqm, and provides table and chairs and table service to customers. They are generally located in the CBD of regional towns. “Regional towns and areas are on the lookout for opportunities to help their communities find healthier food options. People in these areas typically have limited restaurant choices, so the SumoSalad café concept provides a terrific answer to offering more choice in these areas,” said Steve. “The SumoSalad Fresh Express (hole in the wall) concept requires around 15-25sqm and is generally located in the CBD of major metropolitan areas. The Fresh Express concept makes the most of limited floor space, but still offers the best of SumoSalad – providing customers with a healthy choice

60 Business Franchise Australia and New Zealand

every day and in every way. “The other two exciting new concepts include a Container concept, which involves the refurbishment of shipping containers into a small site store, and a Pop-up concept which is a modular low cost model deigned to go in temporary spaces, such as office foyers,” said Steve. “With this model we’re bringing a healthy food offering directly to the office spaces,” he said. “All of the new concepts enable SumoSalad to bring their fast healthy food offering to more people in more locations than ever before. “We’re currently franchising Australia-wide; with a strong focus on the east coast. We’re looking to speak to anybody interested in any of our store concept models. “Existing franchisees may be interested in expanding their SumoSalad business, adding a different concept to their offering. For example, the Pop-up concept could be perfect for someone currently operating an inline or kiosk store; adding another avenue for trading to a wider audience,” said Steve. If you would like further information about any of the SumoSalad store concepts contact Steve Shirley. Phone: 0401 055 437 Email: steves@sumosalad.com Web: www.sumosaladfranchise.com.au


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Shopping for a franchise? Consider Retail!

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Helping take the guesswork out of buying a franchise

64 Business 64 Business Franchise Franchise AustraliaAustralia and Newand Zealand New Zealand


feature have strong interest in both these states and are looking to open stores in these regions in the near future,” Mr Beaty said. Snooze has recently announced vendor finance options to help prospective franchisees, and is also bank accredited with both the NAB and ANZ banks.

The bedMATCHTM system Simon Beaty, Managing Director, Snooze.

According to Snooze Managing Director Simon Beaty, “Attitude is everything” when it comes to success as a franchisee. “In franchising obviously it’s important that the franchise system is solid and provides franchisees with all information and training required to successfully operate that business, but it’s equally important that the franchisee has the right attitude to create their own success. “The retail industry is very people oriented – we’re looking for franchisees that enjoy dealing with people. Business acumen and retail experience would also go a long way; however the defining factor is the attitude of the person joining the system,” Mr Beaty said. “What makes a franchisee successful is a blend of the systems and processes provided by the franchise system, and the drive and determination of the franchisee. They need to have the drive to take their business and the company forward. “In my experience, I’ve seen franchise partners that have sold, and then the incoming franchisee has taken that business to new heights – and their attitude was the key attribute to their success,” Mr Beaty said.

STRONG HISTORY IN FRANCHISING As one of Australia’s longest-running franchised business, Snooze prides itself on its service, high quality product, dedicated staff and strong community ties. With more than 70 stores operating across the

country, Snooze has proven itself to be a consistent franchise performer, voted amongst the Top 10 Australian Franchise Businesses in 2012 by topfranchise.com.au. From humble beginnings as Capt’n Snooze in 1974, the business rapidly grew into six specialty stores offering new standards of service, expertise and range. In 1976, they began to franchise, opening stores across Victoria and New South Wales. And then in 1992, as Capt’n Snooze, the franchise merged with the Queensland franchised bedding group, Bedpost. This established them as one of the largest specialist franchised bedding chains in Australia. In 2001, the franchise became part of an international group, Steinhoff Asia Pacific, which also operates the Freedom and BayLeather Republic brands. By consistently striving for innovation and quality, Snooze remains an industry leader, empowering franchise partners to exceed expectations and provide an awesome retail experience for its customers. With an aggressive growth strategy firmly in place, Snooze plans to reach 90 plus stores in the next three years. Mr Beaty says that across the franchising industry new franchisees seem to be cautious about entering the market. “Whilst people across the industry are being cautious, we’re seeing great success with existing franchise partners expanding their business and becoming successful multi-site franchisees,” he said. “We also have new franchisees opening stores across the country.” Opportunities currently exist Australiawide for new franchisees, in both regional and metropolitan areas. “Snooze has over 70 stores operating across Australia, with the exception of Tasmania and the Northern Territory – however we

“We’ve always tried to do things differently from our competitors. One of our most successful initiatives is the bedMATCHTM system,” said Mr Beaty. “Buying a bed is a confusing thing to do – a customer walks onto the shop floor and sees many options before them and doesn’t really know where to start - we aim to take the guesswork out of buying a bed. “The bedMATCH™ system, powered by Sleep to Live matches customers to a selection of mattresses that may suit their individual needs more. By lying on the test bed, the system takes a number of measurements to narrow the field of suitable mattresses, simplifying the whole bed-buying experience,” Mr Beaty said. “It’s a system that’s been well received by our customers. A mattress is a comfort related purchase, and one that takes a lot of consideration, and usually this purchase is only made every seven to 15 years. By reducing the number of options suited to the customer’s needs we’re helping to ensure that their purchase is more likely to be the right one. “All of our franchisees and store staff are trained in the bedMATCHTM system.”

THE IMPORTANCE OF GOOD SUPPORT With almost 40 years’ experience in the bedding and home furnishing business, the team at Snooze understand the importance of sharing knowledge and expertise among their entire network, ensuring an exceptional level of service, with ongoing support provided to franchise partners across marketing, product and sales training, visual merchandising and IT – allowing stores to perform at their optimum level and meet the needs of their local market. Snooze also hosts regular meetings, forums and conferences for franchise partners to network with colleagues and learn more about the business, ensuring they’re aware

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Snooze

of company news, able to speak directly with the senior management team, and be the first to view new products and technologies from suppliers. In addition to ongoing training, Snooze offers a superior product range. Snooze product managers don’t simply select products from catalogues; they work hand-in-hand with suppliers from all over the world to identify products that are innovative, unique, and of a superior quality to other products on the market. Snooze stores also stock an extensive range of brands and technologies which are exclusive to Snooze. As part of the Steinhoff International group (which also own Freedom Furniture and BayLeather Republic), Snooze’s industry connections are second to none. “The Snooze support centre is very comprehensive. We want to be sure that our franchise partners are well supported to get the most out of their investment,” said Mr Beaty. “I was in head office not so long ago talking with one of our new franchise partners about the training process he’d been through. This man made an excellent observation that epitomises the important role attitude plays in success. “He said “I’ve been given the knowledge to run my new business in the best way possible; the manuals, the support and the training. Now it’s all down to what I do with the business from here.” “I couldn’t agree more. We’ll do everything we can to help you be successful – but at the end of the day it’s up to the individual franchisee to make the most out of their business,” he said. Mr Beaty said that the future for Snooze is looking very positive. “We’re targeting growth in the number of stores, as well as the performance of existing stores, and we believe that Snooze has a very positive future ahead.” If you’re an enthusiastic individual, identify with the Snooze brand, and are willing to work hard to reap the rewards, contact Alistair Browne, Snooze Franchise Network Development Manager. Phone: 0427 401 169 Email: franchising@snooze.com.au Web: www.snooze.com.au

The following eight points form the basis of Snooze’s franchise support system: Marketing and promotional support Snooze has a strong history of effective marketing campaigns which have created strong brand image and consumer awareness.

Sales and merchandising support Snooze’s sales process has been customised for Snooze, and is tried and tested.

Product training Snooze has accumulated invaluable knowledge during its 30+ years in the bedding retail industry. This experience is passed on to franchisees via a series of training courses.

Business management support Franchisees can rely on a network of Regional Managers dedicated to assisting them and their support staff.

IT services Snooze provides a range of IT and help desk support, as well as operational support.

Benchmarking & KPI measurement and comparison Snooze maintains financial, product and retail benchmarking, providing each store with individual financial and business models.

Site selection and property negotiation Snooze provides assistance in negotiations with centre management or landlords, as well as drafting plans and approvals.

Store design & layout Snooze offers in-house expertise in store layout, design, fixtures and fittings, as well as hands on visual merchandising support

66 Business Franchise Australia and New Zealand


feature “I hope in this article you will get some insights into what I have learnt and what I believe makes a successful business.” Janine Allis is Managing Director of Retail Zoo.

Retail is detail When I first started Boost in 1999, I read in a financial magazine the horrific stats on new startup businesses with regard to their success rates. I was mortified to read that four out of five new businesses fail in the first five years. Fast forward 14 years and I can see clearly why some businesses succeed and others fail. I hope in this article you will get some insights into what I have learnt and what I believe makes a successful business. People’s expectation when they start a business is nearly always bullish; they just expect the customers to come. I often see a new business spend a fortune on a new office fit-out, a fancy car and pay themselves a large salary because they think they deserve it, or need it to survive. This is often the downfall of a business in its early days as a fancy fit-out and a nice car does not turn into profit. One thing is guaranteed, that like a baby, a new business is totally reliant on you for its survival and whatever time you think it will take to be successful - double it and with the estimate of money you think it will take to succeed, triple it and then you may be close to the

reality. This is not meant to put anyone off going into business, but it is designed to make sure every dollar that is spent is spent wisely. Now I do not want to sound so downcast in the opening paragraphs when I am writing about creating a successful business, because I have had the time of my life creating our business, BUT people can and do enter into their own business with rose coloured glasses and it takes every atom of your soul to be successful and lots of sacrifices are needed. Here are some areas to focus on to create a successful business:

People People will make or break you in business and in life. Surrounding yourself with great, experienced, dedicated people is critical for the success of your business. Take your time to interview, reference check and train your new employees, but equally if they are not right, do not delay in replacing them, as I have seen many great ideas and businesses fail because of the people chosen to be part of the business. It is identical to creating a top sporting team, you must have a mixture of different skills and types to be successful, but at the end of the day for you to win the flag you need to be ruthless in your approach to having only the best. Hiring the best also attracts the best, because great people want to be with great people and be challenged to continually lift the bar.

Money Being undercapitalised is also another way for a business to fail. There are some great potential businesses out there that have failed because of a lack of cash. It is better to have a small piece of a big pie than a large piece of a small pie. But make sure you get the balance right. You need to value the investment that people make into your business; I have seen people get bitter that they are doing all the work but have to share the profit with the silent partner. But they forget without the capital to grow the business, it would not be where it is.

Customer is King Customer focus: The basic law of marketing and business is to find out what your customer wants and give it to them. Simple, right? Then how come so many businesses do not listen to their customers, they don’t make it easy for feedback and don’t make changes to meet the customer’s needs. Often, very often, retail businesses think too short term, they have extremely strict return policies and do not value the customer’s needs. For example, I purchased a jacket from a large department store, I followed the washing instructions on the label but despite this after one wash it looked like it was a year old, instead of a week. When I returned it, I was given the third degree, she made it clear that she did not believe me and told me that the manufacturing company had this machine to be able to tell if I actually washed it correctly or not. I had to get the

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E x per t Advice

supervisor to eventually allow me a credit note. To this day, I will avoid the store. Where a different outcome would have left me feeling great about the store and given me confidence in shopping there again. Great retail businesses shine when things go wrong, not when all is normal. To be great, you always need to put yourself in the shoes of the customers, how would you feel if you had a bad experience? We all have them, but we love the retail stores that are flexible and willing to help in any way. I would want my time respected, I would want an acknowledgement that there was a problem, I would want them to give me a reason to tell my friends how great the store was, not how horrible or rude they were. In retail things go wrong all the time, in our case blenders break down, deliveries can be late, registers sometimes do not work. Customers understand that stuff happens now and then, but it is up to us as retailers to give them a reason to rave about us, to go above and beyond. Surprise and delight, we all have regular customers. Every now and then treat them with something you think they will like.

Product The product you sell must be amazing and what the customer wants. You need to be

obsessed with getting your product right. I know this sounds obvious, but I walk into food courts and see food that looks like it’s days old and I wonder if the owner of the food outlet would in fact actually eat that food and if they were passionate and obsessed about getting it right, would they serve this food. That is one of the reasons at Boost and Salsas we always make it fresh, it is because that is what our customers want, and that is what I would want from a food outlet. It is because we are obsessed about getting our product right and tasting great that we are successful. It does not matter if you are in food or other retail, the product has to be perfect and if it is not, you have to have mechanisms in the business so that the customer can let you know and then you fix it.

It is all in the detail We have spoken about people, product and customers, but you will have no business unless you know the detail. I am sure you have heard before “retail is detail”, which means it is about the little things that make a big difference. It is about knowing every part of your business and that includes the financial numbers. Reading your numbers tells you a story about your business. For example, what products are selling, what

68 Business Franchise Australia and New Zealand

are the most expensive products, what products should I be marketing more, am I managing my wastage, am I overstaffed, understaffed, are my staff stealing from me, do I need to open earlier? I am constantly surprised when retail people do not know their numbers, it is also not a surprise when the most successful retail business people I know can roll off their tongue exactly how much they are making and all the details that the numbers offer. You read your numbers like you read a story about your business; you need to learn the language to truly be successful in retail. Retail is detail in every aspect. Janine Allis is Managing Director of Retail Zoo, holding company of Salsa’s Fresh Mex Grill, CIBO and Boost Juice and the Founder of Boost Juice Bars. Boost is now in more countries than any other juice bar in the world. For more information contact Retail Zoo franchising sales. Phone: 03 9508 4400 Email: aussiefranchising@ boostjuicebars.com Web: www.boostjuice.com.au and www.salsas.com.au


feature “I firmly believe that there is always enough business for those doing marketing and looking creatively at “Well, what can we do?”” Katherine Grace, Director, Graceful Solutions Marketing.

Increasing Your Retail Sales

“Retail’s waaaay down;” “People are buying overseas;” “Consumer confidence is bad;” “The online market is killing us;” “Big chains beat us on price,” and so on. While these all may (or may not) be true for your street, your precinct or your industry, the fact of the matter is that if you are to remain in retail (or sell out at a reasonable price) then the only choice is to work out a way to be successful despite the always present external factors. Because even if less people are buying retail, some still are, and so it falls to those retailers putting up their hand (or waving frantically if required) to pick up the majority of the pie. I firmly believe that there is always enough business for those doing marketing and looking creatively at “Well, what can we do?” Add to this an improving market and a definite trend and social media movement towards buying and supporting local

Business Franchise Australia and New Zealand 69


feature

E x per t Advice

them know about sales, new products, special events and even personal news about the staff (people love to hear your stories). And of course, to ask for their support in referring their friends.

Collect a database (name and email is essential - mobile is also good, SMS marketing fits very well with retail) either by offering an incentive “Join our VIP Club for advance news about sales and receive a $10 gift voucher as a thankyou gift.” or by running a competition “Enter here to join our VIP list and go into the running for this hamper of products worth over $500!”. And don’t overlook that either offer can just as easily be placed outside your store to pull in people who might not have met you yet (I have placed hampers at schools, major restaurant foyers etc.).

2. Increase your average register ring

independent businesses, and it’s actually looking up for retail at the moment. You may also take heart in the fact that all of my retail clients (and most services) have experienced between 15-30 per cent growth every year since 2010. Consequently, their businesses not only pay them back for their effort but they are looking more and more attractive to a potential buyer, at a time when many businesses are worth just the value of their stock. How? By doing stuff.

As a starting point, here are some specific strategies which will increase your retail sales - by a little if done poorly, by a lot if done with gusto and commitment, but always by something. If you haven’t tried all of these yet then they are a good place to start. If you have, have a look at my website www.graceful solutions.com.au

If a register ring means $10 to you at the moment, what would happen if it meant $15? Yep, your business would increases by 50 per cent, all without a single cent on marketing.

Observe what you do with customers (the owner is usually the best salesperson by a mile) and train your staff to do the same things. Show them how ‘upselling’ is not a dirty word if it genuinely helps the customer. Offer product training nights (get the reps to present and even pay for dinner!) to engage your team in your products and make it easy for them to convincingly sell them. Even better, let them take the occasional (high GP) product home to experience it and be able to say “I use that at home”.

Measure the average sale, by person if you can or by the team if you can’t, and reward anyone hitting your new goal. Go through scenarios with them brainstorming examples of where that extra $5, $10, $500 might come from in each case (sometimes you can even have a formal ‘fries with that’ menu for everyone to refer to, i.e. “If customer buys X try suggesting they also consider getting Y or Z”).

as there is a list of marketing strategies to choose from.

1. Get a database

So, what can we do? The most important thing is to do anything, as activity leads to energy leads to sales.

Service based businesses with regular clients (such as hairdressers, gardening, allied health, etc.) tend to always have databases as it is a necessary part of their operating model. Retail businesses tend to be the least likely to have them. I once convinced my client to get their friend, who had just opened a fish and chip shop, to start a database - and soon you will understand why. Having a list of all your clients gives you the power to control the flow of business, as well as what people buy. My toy store client has seen her takings increase by over $1,000 each time she has a sale, in line with her increasing database size (quite simply, more people know it’s on). Call them your VIP clients, and contact them often to let

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feature 3. Get people to visit more

Imagine if your store was so welcoming that people dropped in just to say “Hi” to you and your team! Work on making your store an amazing space to be and your customer experience an unforgettable one. People will come back more often and refer many.

On top of that, engage your customers in a community and let them know that their support keeps another family business alive. Use social media, database marketing and just day to day chit chat. Invite them to sales, product launches, VIP nights, open days and even just social, getting-to-know-you evenings. Send them timely newsletters reminding them you are the perfect place to visit before summer, winter, Christmas, school holidays, etc... If your efforts result in just one extra visit by each customer each year, what is that worth?

4. Be intuitive in your buying

Or rather, ask, listen and respond to what your customers want. The best way to sell more is to stock more of what people want, or stock items they are already buying from others but would buy from you if you had them (or in some cases knew you already do have them!). It’s a great idea to survey your best customers (via email, phone or just as they come in) and find out what they like best about you, what else you could stock and how you can add to their convenience and your sales figures at the same time. For example, a lingerie store found that many of their clients were buying sleepwear as gifts for friends, so they expanded on that range and added a few other gift lines that were in keeping with the atmosphere of the store. It went gangbusters, in part because the clients who gave their opinion also felt indebted to buy the things they had suggested.

5. Make it easy to buy

You wouldn’t believe the amount of businesses missing out on sales because they are not forward thinking or flexible in how customers can buy. Depending

on your industry, you can offer credit cards, lay by, renting, special orders of things you don’t have, interest free financing.

6. Add value

Rather than thinking about the disadvantages you might be facing, look at the advantages. If you are an independent, or your local area marketing rules allow it, you can offer your clients a large range of valueadded services just by partnering with other independent businesses either within your industry or in your shopping precinct. Think about strategic alliances that would please your customers, such as a coffee shop offering customers five per cent off a clothing boutique in return for the clothing clients being given a free coffee - both businesses will expand their clientele as well as making current ones happy. Also, in many cases your franchisor will have connections or a loyalty program ready-made to help you over deliver to your customers.

As I said earlier, doing any of the above well will definitely result in an increase in

your sales, as well as reinvigorating you and your team to be working on deliberately building the business rather than ‘getting through a tough time’. How you think about the market at the moment is as much about your opinion (and those of your neighbours) as it is about what is actually happening - and I can confidently say that there is a lot to be gained by ignoring the press. 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, lowcost 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. Phone: 0400 865 277 Email: Katherine@gracefulsolutions. com.au Web: www.gracefulsolutions.com.au

Business Franchise Australia and New Zealand 71


DONâ&#x20AC;&#x2122;T MISS OUR NEXT ISSUE!

Food & Drink Want to learn more about trends and growth industries in franchising? Need help making the big decisions? Every edition we feature advice from the experts to help you on your franchising journey.

Find out more about Food and Drink franchises in the September/October edition of Business Franchise Australia and New Zealand. 72 Business Franchise Australia and New Zealand

On sale 6th September 2013.


Business Franchise Australia and New Zealand 73


PROFILE : T PR grou p

Healthy Office Solutions TPR GROUP is the leading provider of healthy office solutions, adding value to workplaces by creating healthy happy and productive environments.

Founded over 25 years ago as Tropical Plant Rentals when owner Stuart Swaddling had the foresight to bring ‘green’ indoors, the company evolved in recent times to TPR GROUP. TPR GROUP now provides a suite of office wellbeing products and services to businesses in commercial, hospitality, retail, professional and government sectors, Australia-wide. The various arms of the business include:

Tropical Plant Rentals • Indoor plants are installed and maintained in workplaces – an extremely beneficial service in not only enhancing office ambience but cleaning the air people breathe by removing poisonous toxins called VOC’s from the air. Living plants are so important in fact that Workcover Authority of NSW recommends using plants in the workplace to alleviate characteristics of Sick Building Syndrome.

beneficial service in stopping cross contamination of germs in the workplace and reducing absenteeism.

Office Artwork • Aquariums, Sculptures, Artvases, Water Features, Wall Art and Eco-friendly Heaters are installed and maintained in offices – an extremely beneficial service in helping to create a positive ambience, improve employee wellbeing and increase productivity.

Pot Plant Advertising • TPR GROUP patented plant pots featuring “mini billboards” on four sides are installed and maintained – an extremely beneficial service in providing clients with opportunities to reach their customers with key messages 24/7 while also enjoying the ambience and clean air indoor plants provide.

Aarons Coffee at Work

Franchisee Testimonials

• Quality espresso coffee machines are installed and maintained in workplaces – an extremely beneficial service in boosting morale, increasing productivity and saving time and money.

Microbe Shield Treatment

“I have been a franchisee for 17 years and during this time as a single Mum I have managed to educate both my children through the private school system. Now that I am a little older, I pursue bridge one day a week and take time for regular massages and overseas trips too! – Liz

• Surfaces are treated with a non toxic patented technology that kills 99.9% of viruses, germs, bacteria and flu bugs including swine flu – an extremely

The TPR GROUP system has allowed me to buy my city unit and purchase my property outside of Forster where I spend a great deal of my time. I have been able to spend great

74 Business Franchise Australia and New Zealand

times with my kids and see them grow and now have one of the largest TPR GROUP franchises within the network. My goal is to retire in 10 years but to still keep the regular cash flow of a TPR GROUP franchise.” – Graeme

What a TPR GROUP Franchise provides: The TPR GROUP dynamic service-based franchise system provides franchisees with the exciting opportunity to effectively operate multiple franchises under the one banner at no extra cost. “Franchisees have the opportunity to grow their business while enjoying many benefits such as: a flexible lifestyle; cashflow from an existing client base; security knowing they’re part of a long established franchise; training; low overheads and on-going support”, said Franchisor Stuart Swaddling. For more information contact: Phone: 1800 631 365 Email: admin@tropicalplantrentals.com.au Web: www.tpr.com.au


ES

BLISHED TA

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25 YEA

FO R OVE

THE CHOICE IS YOURS AT NO EXTRA COST!

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e x pert adv A dv ice

The FRI Team’s Tips for Being a Successful Retail Franchisee The Franchisee Success Study we conducted at Franchise Relationships Institute (FRI), found that franchisees working longer hours performed significantly worse in terms of financial achievement, customer satisfaction and their active participation in the franchise network. And they experienced higher levels of burnout. Our research suggests that on average, franchisees in the retail sector are

working longer hours than their mobile or business-to-business counterparts, and are less satisfied with their work. This was particularly the case for franchisees in retail food. We work with a lot of retail clients across many industries. In our privileged position as advisors, we see what works and drives success in retailing. Our mission as a business is to help drive excellence in the franchising sector. So here are our top ten tips from 24 years in business, working with hundreds of clients around the world.

It all starts with you

1

Love Thy Brand

Our research indicates that your belief and sense of pride in your brand is the single biggest predictor of your success. Franchisees with higher levels of brand passion had higher financial performance,

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participated more in the franchise network and provided a better customer experience. Ask yourself these questions to test your brand passion: • Are you proud to tell people you belong to the brand? • Does your brand feel like a perfect fit for you? • Do you believe in what your brand stands for?

2

Lead The Way

Remember your attitude will influence the beliefs and behaviours of the staff you are leading. Not only do you set the goals and direction for your business, but you have the starring role in setting the culture. Culture comes from the top and it is ‘caught, not taught’. This means the extent of your belief in and passion for the brand will be picked up and reflected by your team. This


“Our research indicates that your belief and sense of pride in your brand is the single biggest predictor of your success.” Karli Furmage, CEO, Franchise Relationships Institute.

in turn will be perceived by your customers, usually without them even realising it. There is a significant link between the extent to which you are comfortable leading and motivating others (your leadership potential) and your business performance. In particular, franchisees with high leadership potential were found to have significantly better sales and profitability . Leadership is like any other skill, it can be improved with knowledge and practice. • Do you enjoy being in charge of a group? • Are you good at influencing others? • Do you model the behaviour you want in your business?

Your People

3

Set Your Team Up For Success

The people you hire are your representatives – the face of your business. Think about who you need in order to achieve your goals and deliver excellence, and hire accordingly. One fact of retail is you will more than likely need to hire young people. Be clear on what you are recruiting for, provide structured training and reward good performance. Once you have the right team in place, look after them. If they are engaged and interested they will be motivated to perform at a higher level. If they feel you care about them, they will be more likely to care about you and about the business. • Do you have the right people in your business? • Do they have the tools and training they need to succeed?

4

Empower Your Team with Information

• Do you ask for feedback and action good ideas?

Teach your team how to drive sales by turning your targets into relevant, practical goals. For example, a target of making $1000 might equate to ‘sell five extra coffees each hour’. Breaking your targets into small, achievable sales is far more motivating for your team, as well as being easier to understand and remember. Make sure your team understand what it costs to sell one of your products or services. Once they understand all the costs that go into one product (rent, electricity, phone, wages), they’ll start to get a greater understanding of what it costs to run a business. This should impact positively on their care and productivity levels. • Do you communicate your sales goals in an easy to understand way? • Do your team understand the fundamentals of running a business?

Your Store and the Customer Experience

5

• Do you review your store through the eyes of your customer?

6

Prioritise the Customer Experience

You may have the best team and the best looking store, but the real measure of retailing success is what happens when the customer steps through your doors. Customers buy the messenger before they buy the message, and staff presentation is an integral part of this. For example, the appearance of staff in dirty uniforms might say ‘I can’t even dress myself, what do you think I did to your food?’ Just because you have a counter doesn’t mean you have to stand behind it! In business there is always some kind of counter; it can be a big wooden bench, a small clipboard, or even a metaphorical counter in the form of a mindset. Get rid of the things that stand between you and your customers. Make connections on a real, person-to-person level. • Do you operate from the framework of meeting a need for a person, rather than selling a product to a customer?

Your Store is Your Temple

Don’t underestimate the power of the basic rules of retailing. Spend twenty minutes each morning ensuring your store is neat and clean, well stocked with pricing visible, good lighting, and appropriate music. One simple and effective way to know your customers, is to spend time talking to your customers and asking them what they like about your store, as well as suggestions for improvement. People are usually very willing to give genuine feedback if you show interest in their opinion.

• What ‘counters’ do you have in your store and how do you remove them?

7

Build Your Supporters

We define supporters as people who willingly invest time energy and resources in your business. Building the commitment of the people on whom your business depends is critical. Your staff, landlords, customers and suppliers, all play a critical part in your success. Building relationships with other local businesses,

Business Franchise Australia and New Zealand 77


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sharing your goals with your centre manager, asking your customers their opinion, give your supporters the opportunity to contribute to your business. Your franchisor is a critical supporter and knowing how to communicate best with them; this [through an operations/ field person assigned to you, or in some systems directly with each department], ensures you can work constructively together and support each other for mutual benefit. • How do you build the support of the people on whom your business depends?

8

Maintain Family and Social Support

Running a small business can be tough and often lonely work. Our research found family and social support is the second highest indicator of franchisee success. Having people in your corner who want you to succeed is critical. Share your goals with those around you, let your family and close friends know what you want to do, ask for help.

• Do you share your goals with your family and friends?

9

Master What Matters

Retail can be a complicated business, managing stock, labour, fixed costs, training people, serving customers …there is a lot to manage. The things you need to manage closely when you first open, as opposed to three years into running your business can be very different. Manage with accurate data and set a process to continually improve. Allocate time each week to spend on your business, communicate this clearly with your team so they know you are unavailable to work in the business or with them during this time. Be strict to keep to this and form a habit of regularly focusing on your business. • Do you know the critical KPI’s you need to manage at each stage in your business journey?

10

Take Action Do stuff! It is that simple. You can’t expect to be successful if

you wait around for someone to give you all the answers. Successful retail franchisees in our experience, don’t wait for a silver bullet. No set of tips that once read will change your fate. You have to be on the lookout for information and apply it to your business. Some things will work and some won’t. The only people who have ever truly failed are those who at some point gave up. How about taking 10 minutes now to reflect on this list and choose something you can action to be a great retailer. The Franchise Relationships Institute was established 24 years ago to help equip franchisees and franchisors with the knowledge and skills to be successful at the business and personal levels. Our team of psychologists and franchise practitioners are regularly out there looking for ideas, evidence based research and practical strategies to make a difference. We hope you’ve found this article helpful. Contact us at: Web: www.franchiserelationships.com Email: info@franchiserelationships.com

W I 78 Business Franchise Australia and New Zealand


CHECK OUT THE BEAUTIFUL FIGURES COMING OUT OF OUR NEW FRANCHISE.

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 www.brazilianbeauty.com.au Business Franchise Australia and New Zealand 79


PROFILE : B rot zei t® g er m an b i er ba r & r estau r an t

Willkommen!

New franchise on its way 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 world famous quality German beers and authentic Bavarian cuisine 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 world-class franchisor and was recently awarded the Singapore ‘Franchisor of the Year’ Award by the Franchising and Licensing Association of Singapore (FLA). The awards recognise the most thriving franchise businesses in Singapore. Brotzeit® has sold 10 franchise markets, in addition to its corporate market. Brotzeit® currently operates thirteen outlets in Singapore, Malaysia, Vietnam, Hong Kong, China and most recently in the Philippines and Thailand. All Brotzeit® outlets engage guests with chic décor through the use of German inspired 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 pure 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 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.

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 system entering Australia.

“Our success has delivered results with over 32 signed units across 9 territories in the next coming years. We continue to look for partners in North Asia, Korea and Japan and are looking to expand into North America in 2015.” Franchisees have full access to Brotzeit® Franchise Resource Centre, where they can download manuals, marketing materials and R&D items. Each franchisee outlet is given its own website under the www.brotzeit.co domain. Brotzeit® will provide both initial and ongoing support to every franchisee, including but not limited to:

“Brotzeit® offers best in class returns for its shareholders,” said CEO Mr Aiden Hay. “It’s comprehensive set of franchise systems, manuals and tools, support all aspects of the business from pricing strategy, marketing materials, real estate criteria, asset layout, architectural and design principles, to operations and training.

• Initial Support

“We have established systems that make it easier for our partners to open successful and profitable restaurants offering authentic recipes using our proprietary spice blends imported from Germany,” he said.

• Operations Efficiency

“Brotzeit’s franchising model is based on integrity and transparency. Our team of industry experts are passionate and hands on to ensure that we open successful businesses across the world.

80 Business Franchise Australia and New Zealand

• Site Evaluation and Approvals

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

• Store Opening Support • Ongoing Support

• Research and Development • Marketing

• Finance and Reporting. For more information about this exciting new opportunity arriving in Australia visit: Web: www.brotzeit.co


Business Franchise Australia and New Zealand 81


Fr a nchisor in d ep th : T h e O r ig i na l Ca l i fo r n i a Bu r r i to Co m pan y

Get your very own

piece of California Want to become a part of the Mexican food phenomenon that’s sweeping Australia and New Zealand? Looking for an opportunity to become part of a successful franchise system that looks set for success around the world? The Original California Burrito Company could be the right choice for you. This exciting healthy fresh food brand is a turnkey franchise offering that is spreading quickly across New Zealand, Australia, and even the Netherlands.

From humble beginnings Back in 1992 in small storefront in the West Village of Manhattan (NYC) a Cal/Mex phenomenon was born. The Original California Burrito Company quickly grew from its humble beginnings to become one of the most recognisable food brands in NYC. Through its multiple store locations thousands of hungry New Yorkers were served the freshest Cal/Mex Burritos, Quesadillas, Salads and Tacos on a daily basis. Fast forward 21 years and the first Original California Burrito Company opened in Auckland, New Zealand.

82 Business Franchise Australia and New Zealand

An instant success, the brand became a staple for young Aucklanders and Mexican food fans alike. One year on, there are nine stores across Auckland, Australian stores in Sydney, Bondi Beach, Toowoomba and George Street and even a brand new master franchise currently rolling out across Holland, with an expectation of at least 20 stores across The Netherlands in the next few years.

Strong driving force At the helm of The Original California Burrito Company are two highly successful entrepreneurs. Managing Director Jeff Moss started his business career at the age of 18, opening his first food outlet in Sydney, a second store was opened and in 1987 the business was sold to enable Jeff to focus on a new fashion venture, Pretty Girl Fashion Group. That venture would become one of Australia’s largest privately owned Apparel wholesale and retail companies, with over 500 stores nationwide, gained through organic growth and acquisitions, and annual sales in excess of A$250 million and 3500 staff. Following the sale of his Apparel group in Melbourne in 2010, Jeff moved to New Zealand and has established the California Burrito Company locally and owns the master franchise rights for Crust Pizza. Director David Rosenberg is an entrepreneur with over 25 years’ experience developing


new business concepts and taking them to the market. David was one of the original founders of the California Burrito chain in New York and the driving force behind its development and growth. David’s business involvements over the years have been varied and based on identifying gaps in the marketplace and being very brand focussed. According to Jeff Moss, the Mexican food market has huge potential. “Mexican is a part of the staple diet in the US, and people in Australia and New Zealand are now recognising that Mexican food can be both delicious and healthy and fresh. “That’s what defines Cal/Mex food – originating in California, it’s a healthy and fresh take on Mexican food. In our stores, all food is made on the premises, it’s fresh and fast – and it exactly what customers are looking for,” Jeff said. “Our expectation is that Mexican has the potential to become staple food here too – in the same way Chinese or Indian food has infiltrated our regular diet over the past 20 years.”

Franchise opportunities After more than twelve months of developing and refining the franchise system, California Burrito Company began franchising the model in November 2012. This full ‘Turn-Key’ solution includes sourcing of suitable location in your chosen area, negotiation of the lease, store design and full council submissions, store build and fit-out, architect plans, set up of

POS systems, training of staff and initial marketing of your store - total cost as follows: Franchise fee $50,000 Initial training fee $9,000 Initial marketing fund $15,000 Kitchen equipment costs $110,000 Store fit-out costs $100,000 Design, architect and project management fees $25,000 Total $309,000 (plus gst) “The cost of entry is a lot lower than some of the established food franchise systems, it’s a great opportunity for a new franchisee to enter the industry for this lower investment cost,” said Jeff. In terms of the ideal franchisee profile, Jeff says that the opportunity has proven to be of interest to both owner/operators and investors alike. “We’ve had interest from owner operators who already have experience in food, although there are others with no experience in this area. It’s a simple franchise model and is easy to operate, so anyone with the right ambition and skill sets could be successful. “Alternatively we have investors; those who appoint a manager to run their stores, and the returns have proven to be fairly strong. “We’ve even had interest from outside the box – a TV cameraman has recently bought into the system and is having great success despite having no experience in either food or franchising!”

What makes a successful franchisee? A passion for retail and customer service A willingness to motivate and lead a small to medium sized team Total commitment to developing a successful business Understanding the advantages of being in a franchise system “With 14 California Burrito Stores already established, and a further five new franchised stores in discussion within New Zealand, The Original California Burrito Company is going from strength to strength,” says Jeff. “In addition, a New Zealand South Island master franchise is currently being negotiated which will expand the business dramatically in the lower half of the country. “We’ll be launching the Australian Franchise System in the coming months, reinforcing California Burrito as a strong, dynamic new fast food and dine in model. “In April 2013, the first store in the Netherlands opened in the middle of Amsterdam. With a projected six Dutch

Business Franchise Australia and New Zealand 83


Fr a nchisor in d ep th : T h e O r ig i na l Ca l i fo r n i a Bu r r i to Co m pan y

The advantages of The Original California Burrito Company franchise system GROUP BUYING POWER Extensive local and overseas supply networks ensure they source the best deals, many of which are exclusive to The Original California Burrito Company.

A PROVEN BUSINESS MODEL Only in business for one year in New Zealand, they’ve managed to create a brand which is sustaniable and profitable. Their product is specifically structured for franchises to be able to offer customers the lowest retail prices while keeping their profit margin intact.

AN INSTANTLY RECOGNISABLE BRAND An unforgettable brand and identity, tens of thousands of customers can’t be wrong. These customers are loyal and guarantee return and referred business.

SOPHISTICATED POINT OF SALE COMPUTER SYSTEM The Original California Burrito Company’s computerised point of sale equipment is interfaced with a very easy to use accounting package. Designed for fast food, the stores opening in the next two years, The Original California Burrito Company future is looking rosy,” Jeff said.

POS system has been specifically modified to handle virtually all aspects of their franchises’ day to day operations. Extensive in store training is provided on this system.

Training New franchisees undertake two weeks training covering all aspects of operating the franchise system, as well as all aspects of food preparation, customer service and the day to day operations of running the store. Jeff says that the future for The Original California Burrito Company looks very positive and he looks forward to hearing from interested potential franchisees. “It’s an exciting opportunity to get in at a great low price, the system is easy to run and we currently have lots of opportunities available across both Australia and New Zealand.

SUPPORT YOU CAN COUNT ON With decades of experience in all aspects of retailing and hands on business management, the team can support and guide you through every aspect of setting up and operating your franchise operation. From staff training and business planning to sort out even the most unusual problems, help is always there when you need it.

IN-HOUSE MARKETING - RASCALS California Burrito has its own in-house dedicated marketing team of four creatives. Rascals advertising, helped build the brand from the beginning and has been the right hand partner of the directors since the get go. Rascals has an architect, art director and two designers who all have lived and breathed California Burrito since its inception reinforcing the brand

“We’d be happy to discuss the matter further with anyone interested in becoming part of the growing Cal/Mex phenomenon,” said Jeff. Contact: Phone: +64 9 354-4815 (NZ) Email: jeffmoss@gilmoss.com Web: www.californiaburrito.com.au

84 Business Franchise Australia and New Zealand

in the marketplace. Rascals understands the brand’s personality of California Burrito and has been at every shop opening, event, product launch and has created marketing materials for each one respectively. Rascals will be with you, once you join the California Burrito family, creating content and in-store materials for your new branch - further building California Burrito as New Zealand’s number one Mexican food chain.


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PROFILE : Fl i p Ou t T r a m p o l i n e A r ena

Flip Out

for this exciting opportunity! Flip Out Trampoline Arena, Australia’s first and largest trampoline playground, is an exciting new franchise bringing fun, and health benefits, to people of all ages across the country. According to Owner and CEO Brent Grundy the most attractive aspect of the Flip Out facility is its ability to bring the community together. “We’re all about engaging with the community. The trampoline arena is suitable for the whole family. It’s not just for kids – it’s for people of all ages. “Play unites people. It can break down language barriers, cultural barriers, and anyone can get involved. We aim to engage with the community as much as possible through sponsoring local sporting teams, becoming involved with the local hospitals, and bringing people together to have some fun,” Brent said.

Apart from the fun that can be had, the health benefits of trampolining are outstanding. “For older people, trampolining can improve bone strength and fast twitch muscle fibres. In a society where childhood obesity is on the rise, the trampolines are a fun, low impact way for children to keep fit and active,” said Brent. Flip Out centres run a number of classes such as ‘Little Ninjas’ - teaching children to ‘move like Ninjas’, and agility classes for adults. As an Australian owned company, Flip Out™ has been a work in progress for over two years in the making - before the first arena in Penrith opened in December 2012. The idea first came about while he was sitting in a play centre waiting for a kid’s party to finish and get over with. He looked around and noticed that half of the play centre was full of kids that were either too big to play and with people with nothing to do but wait; parents and guardians are extremely bored and drained from the noise. He then decided to create a facility that would not only entertain the kids but also

mum and dad, and even the grandparents... So Flip Out™ was born. The jumping arena measures over 600 square metres. “Unlike the traditional backyard trampoline, the Flip Out™ trampoline arena structures are industrially made to withstand normal wear and tear of commercial use. “What makes us different from the others is that our arena is made water resistant making it suitable whether for indoor or outdoor locations. In warmer weather the trampoline arena can be erected outdoors and with the addition of water to the arena, becomes a slip and slide!” According to Brent, the Flip Out investment is one of the fastest recouping investments available in the franchise industry. “We’ve had over 200 enquiries. Not surprisingly, many of these have come from those with accounting backgrounds – the figures are so strong, they speak for themselves,” Brent says. “We opened our first centre in Western Sydney, and soon most regions or suburbs around the country will have a Flip Out™ centre. I have financially committed myself to 80 Flip Out™ Super Trampolines to hit the Australian market over the next 24 months, and with franchise enquiries going through the roof, the expansion of Flip Out looks set to sky rocket,” Brent said. “We will fully support all of our franchisees with two weeks initial training, followed by 10 days support at your centre to help establish the day to day operations and processes, and a full support team to back you up whenever you need it,” he said. If you are interested in the Flip Out opportunity contact: Phone: 1300 FLIP OUT Web: www.flipout.com.au

86 Business Franchise Australia and New Zealand


Trampolines are a great Australian piece of entertainment, for most of us some of our first memories as a child involved a backyard trampoline. Jumping with friends, trying tricks or putting a sprinkler on the trampoline always made for a great summer treat and memories of lying on a trampoline at night under the stars was a great way to end a day. People of all ages get ready for the newest and most exciting entertainment that is Flip Out™.

THERE IS A NEW FLIP OUT™ PHENOMENON COMING TO TOWN It’s Australia’s Largest Trampoline Arena with over 600sq metres of jumping area to accommodate over 60 jumpers at once. Arenas are compatible for outdoors or indoor use. The big question is who wants to be responsible for bringing the Flip Out™ fun to your town? t5SBJOJOHQSPWJEFE t4VQQPSUQSPWJEFE t.BSLFUJOHQSPWJEFE

NO EXPERIENCE NEEDED

Call 1300 FLIP OUT for more details.

www.flipout.net.au Business Franchise Australia and New Zealand 87


e x pert adv ice

GET TO KNOW:

Franchising Code of Conduct

Every savvy franchisee should be aware of their rights under the Franchising Code of Conduct (the Code). This mandatory industry code sets out the legal rights and obligations of all participants in the franchising industry, and assists you in making reasonable and informed decisions about purchasing a franchise.

running your business successfully and interacting with your franchisor in the most effective way possible.

Before entering into a franchise agreement When it comes to business, failure to prepare may mean that you are preparing to fail. The Code places obligations on franchisors that can help you in preparing to run your business, and ensure that you are well informed before making any permanent decisions.

The Code provides you with certain protections during the term of your franchise and includes dispute resolution procedures. The Code also places obligations on your franchisor that impacts on the ways in which they can end your franchise agreement, and provides you with rights in instances where you choose to leave the franchise system.

The Code requires your potential franchisor to provide you with a disclosure document in the form set out in the Code, at least 14 days before you enter into, renew or extend a franchise agreement. This document will contain a lot of the key information about the franchise, including:

An awareness of the rights and obligations that the Code provides can assist you in

• whether you will have an exclusive territory

• what payments you’ll be required to make

88 Business Franchise Australia and New Zealand

• how goods and services are to be supplied • what happens when your agreement ends. It will also provide information about existing and past franchisees, the business experience of the franchisor, and whether the business or franchisor is involved in certain types of court actions. All of this information provides you with a clearer picture of how the franchise is run, and whether it is the right business opportunity for you. The Code also provides new franchisees with “cooling-off” rights. This means that you are able to terminate a new franchise agreement within seven days after entering into the agreement or paying any nonrefundable money (whichever is earlier). If you choose to exercise your coolingoff rights, your franchisor must provide you with a refund - minus any reasonable expenses they have incurred - within 14 days. The cooling-off rights only apply to new franchise agreements, and do not cover


“When it comes to business, failure to prepare may mean that you are preparing to fail.” Dr Michael Schaper, Deputy Chairman, ACCC.

agreements involving the renewal, extension or transfer of an existing franchise.

Running your franchise successfully The Code outlines what must be set out in a franchise agreement. The franchise agreement is the contract that outlines how you are to run your business and interact with your franchisor, so the support and framework provided by the Code can be very important. The Code requires that your franchisor must provide you with certain rights in relation to your franchise agreement. In particular: • A franchisor can’t stop you forming an association or associate with other franchisees or prospective franchisees for a lawful purpose. • A franchise agreement must not contain, or require you to sign, a statement that releases your franchisor from general liability towards you. • A franchise agreement must not contain, or require you to sign, a waiver of any verbal or written representation made by the franchisor. The disclosure requirements discussed earlier can also provide current franchisees with useful information. For example, the Code requires that your franchisor inform you of any materially relevant facts about the franchise in writing within 14 days after the franchisor becomes aware of them. As a current franchisee, you can also submit a written request to your franchisor for an up-to-date disclosure document at any time. Your franchisor is then obliged to provide

this to you within 14 days. However, keep in mind that you only have the right to make one such request every 12 months. During the term of your franchise agreement, hopefully you won’t find yourself in dispute with your franchisor. However, if this does happen, the Code includes measures to assist with the resolution of disputes. For example, if you want to raise an issue with your franchisor, the Code requires that you write to them first with details of your complaint. Before any other action is taken, you and your franchisor must attempt to resolve the dispute through negotiations. If the dispute remains unresolved after 21 days, either you or your franchisor may refer the matter for mediation. If you decide to request mediation, your franchisor is compelled to attend the session and genuinely try to resolve your dispute. The Code presents you with an option of referring disputes to the Office of the Franchising Mediation Adviser (OFMA). If you have a dispute with your franchisor that is unable to be resolved through direct negotiation, you may wish to contact OFMA in order to have your matter mediated. OFMA can be contacted on 1800 150 667. Being aware of your rights relating to ongoing disclosure and the framework for dispute resolution will help you get the most out of your franchise agreement during your term, and interact with your franchisor in useful and effective way. The Code provides a framework for various situations in which you may find yourself leaving your franchise system.

Leaving your franchise system before the term of your franchise agreement expires If you want to leave the franchise system voluntarily, by transferring your franchise to someone else, you must request your franchisor’s consent in writing. Your franchisor may not unreasonably withhold consent. The Code states that if your franchisor does not respond within 42 days, consent is taken as given. If your franchisor wishes to terminate your franchise because you have breached the agreement, they must give you reasonable notice of the breach, tell you what needs to be done to fix it and allow you reasonable time (but not more than 30 days) to do this. If you fix the breach within this time, your franchisor will be unable to terminate your franchise on this ground. If your franchisor wishes to terminate the franchise and you have not breached the agreement, the Code requires your franchisor give you reasonable written notice of the termination and their reasons for it. This right to terminate will not apply if the franchise agreement prohibits the franchisor from terminating the agreement prior to the expiration of the term.

Renewal The Code also places an obligation on your franchisor to provide you with notice as to whether they intend to renew your franchise agreement once the term ends, or if they want to enter into a new agreement. This notice must be provided to you at least six months before the end of the term, unless

Business Franchise Australia and New Zealand 89


e x pert adv ice

your entire term is for a period of less than six months. In this case, your franchisor must provide you with at least one month’s notice. In a franchise agreement, there may not be an obligation on the franchisor to renew a franchise agreement after it has expired.

The ACCC The ACCC is an independent statutory body responsible for promoting competition and fair trading. Its primary responsibility is to ensure that businesses and individuals comply with Australian competition, fair trading and consumer protection laws under the Competition and Consumer Act 2010 (the Act), which incorporates the Australian Consumer Law. The Code is a mandatory industry code of conduct, given the force of law under the Act. The ACCC consequently has a role in ensuring franchising industry participants comply with their obligations under the Code. The ACCC investigates alleged breaches of the Code and can take enforcement action

where appropriate. The ACCC cannot pursue all of the complaints it receives, and will exercise its discretion to direct resources to the investigation and resolution of matters that provide the greatest overall benefit for competition and consumers. The ACCC’s Compliance and Enforcement Policy, updated in February 2013, provides guidance as to the factors that influence the exercise of this discretion. The ACCC can institute legal proceedings against a franchisor if the Code is breached. However, the ACCC is unlikely to take action for a breach of a franchise agreement unless the conduct also forms a contravention under the Act or the Code. You also have a right to private action under the Act; if you feel your franchisor has breached the Act, you should seek legal advice. If you believe that your franchisor has breached the Act or the Code, you can also contact the ACCC on the dedicated small business hotline on 1300 302 021. Dr Michael Schaper is deputy chairman of the ACCC. The ACCC has several franchising publications containing useful information for prospective franchisees, including a Franchisee Manual and a DVD

90 Business Franchise Australia and New Zealand

about the code. These are available at www.accc.gov.au/franchising or by calling the ACCC’s Small Business Helpline on 1300 302 021. The ACCC in conjunction with Griffith University offers a free, online training course for potential franchisees. Franchisees can also learn more about their rights and responsibilities under the Act by accessing a free online education program for small businesses, funded by the ACCC. For further information and to access these courses, please visit www. ccaeducationprograms.org The Federal Government has instigated a review of the Franchising Code of Conduct which was made public in May 2013. Any changes which may flow from the review have not yet been announced. For more information contact: Phone: 1300 302 502 Web: www.accc.gov.au/business/ franchising


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91


Fr a nchisor in d ep th : ryco 24•7

Call Connect & Go! The machinery that operates in industries and manufacturing around the country is constantly in use. A breakdown can be costly in both time and money, so it is important that servicing is on hand 24 hours a day, seven days a week – and that’s where RYCO 24•7 comes in.

92 Business Franchise Australia and New Zealand


RYCO 24•7 offers a comprehensive service for the hydraulic industry with emergency break down, aftermarket business. Whether it is mining, marine, agriculture, defence, construction, industrial or utilities the team at RYCO 24•7 are on hand, anywhere, anytime, to offer professional assistance. “Professionally trained and dedicated teams are on programmed maintenance, Original Equipment Manufacturer support, installation and are on call 24 hours a day, seven days a week offering expert technical support for all types of hydraulic systems,” said Ian Morris, Business Manager, RYCO 24•7. With 27 locations all over Australia, RYCO 24.7 services clients via its Service Centres and through mobile units which can repair machinery onsite. RYCO 24•7 Service Centres, Mobile

Connector Specialists and Onsite Container Workshops offer extensive national contract and Original Equipment Manufacturer support through the development of hose assembly design, configuration, installation and aftersales service. “Quite often hose assembly plumbing can be an afterthought when designing complex hydraulic systems. With RYCO 24•7 support, our technical teams have the knowledge to assist with efficient and effective port to port solutions in the early stages of system design,” said Ian. “With comprehensive product and system knowledge, RYCO 24•7 Mobile Connector Specialists can be an integral partner in developing a marketing leading product including efficiency in system performance, warranty reduction and aftersales service.”

BACKED BY EXPERIENCE RYCO commenced manufacturing hoses, fittings and filters in 1946. As the hydraulics industry evolved so did the company. Over the years, RYCO has established a commitment to quality and to extensive research, to satisfy the needs and goals of stakeholders, customers and suppliers through the manufacture and supply of quality products. RYCO has continually expanded its product range of hydraulic hose and fittings to service the growing number of industries. During the 65 years of business, RYCO has increased its market coverage by establishing RYCO 24•7 Service Centres, Mobile Connector Specialists and Onsite Container Workshops in several countries around the world.

Business Franchise Australia and New Zealand 93


Fr a nchisor in d ep th : ryco 24•7

• Trained Mobile Technicians • On-site Installations • Services Contracts

RYCO 24•7 SERVICE CENTRE FRANCHISE STRUCTURE: The purpose of the RYCO 24•7 Service Centre franchise is to conduct the franchised business as its primary purpose to supply Hose Goods and Hose Services within its designated territory. The Mobile Operators are managed by a RYCO 24•7 Service Centre operation and can either be franchised RYCO 24•7 Mobile Connector Specialist or an Employed Mobile Operators. “When you invest in a RYCO 24•7 franchise, we provide all operating systems, technical expertise, marketing systems, management methods and all relevant information to make your business a success,” said Ian. “You will have access to all promotional formats, materials and methods. Our tested marketing programs will ensure your business grows faster and has a greater chance of achieving forecast results sooner. “You will be working in different locations and on different machines, from working in

a factory, a quarry, on ships, forestry, or big rigs; the variety of work is incredible.” Ian said that potential franchisees do not need to mechanically qualified. “Some of our franchisees have a background working with machinery, however it is not vital as we provide all training required to successfully operate the business,” Ian said. “The training undertaken provides all franchisees with a nationally recognised qualification, and we also provide ongoing training as required,” he said. Complementing the RYCO 24•7 Service Centres and Mobile Connector Specialists RYCO 24•7 has developed a new range of onsite hose assembly workshops and product storage containers – the RYCO 24•7 Container Program. The RYCO 24•7 Container Program provides an ideal solution for remote mining locations, construction sites, offshore and large manufacturing sites.

RYCO 24•7 SERVICES • Emergency Breakdown 24•7

94 Business Franchise Australia and New Zealand

• Quality Control • OEM Support • Know How By joining RYCO 24•7 you will become part of a national network of RYCO 24•7 Mobile Connector Specialist.

Fully accredited training is supplied along with a comprehensive RYCO 24•7 support package.

Satisfaction is achieved by you operating

your own business within the frame work of the RYCO 24•7 operation.

For further information regarding this exciting opportunity contact RYCO 24•7 today. Tel:

03 9680 8000

Email: enquiries@ryco247.com Web: www.ryco247.com


Business Franchise Australia and New Zealand 95


PROFILE : T el ech o ice

TeleChoice

Challenges the Telco Industry There’s an old story about a little boy David and a giant gladiator called Goliath. The story says that Goliath was big, fearsome and arrogant; he challenged and defeated all that he came across until no one dared to challenge him. Then little David came along to take the challenge and he outsmarted and defeated Goliath.

• Do major carriers automatically reduce a customer’s monthly plan at the end of their contract to remove the phone payment component? Never! But TeleChoice will.

The mobile phone retailing in Australia appears similar and is dominated by the three major carriers – until now. Because now, TeleChoice has begun to challenge the status quo! For example:

When you apply to become part of the TeleChoice family, they want to set you up to win. They start with a thorough process to ensure that the opportunity presented matches your goals and expectations. They follow that with four weeks comprehensive training and then continue with ongoing updates, training and follow ups to ensure that their dealers are knowledgeable in all the latest product releases, pricing changes, technology updates.

• Can customers upgrade their mobile phone before the end of their contract without paying hefty penalties? The big carriers will not allow it. But it can be done with TeleChoice. • Can customers reduce their Plan payments for their mobile phone before the end of their contract? The big carriers will not allow it, but it can be done with TeleChoice.

• Can customers get a home telephony/ broadband connected for under $2,000 minimum total commitment? With the big guys, no! But, at TeleChoice the minimum commitment is only $319. These are serious challenges to the industry and the major providers and TeleChoice is leading the path. A typical TeleChoice customer can save between $50 - $100 per month on TeleChoice’ mobile, internet and home telephony plans. That is why TeleChoice is “The People’s Choice”, and that is why this is an opportune time to become a TeleChoice Licensed Store Operator.

Setting you up to win

The continuity of training is supported by their Learning Management System. It is software that disseminates all new product information and training material to their

96 Business Franchise Australia and New Zealand

dealerships and all their staff. They also have a dedicated team at Head Office to support their dealers in every way to cover the operational side of the business. They are a successful network because they have so many successful network partners.

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 • excellent capital growth potential • high cash flow and earning potential • great brand recognition • an opportunity to own your own business • fantastic training and support Given this level of dedication to their network of dealers, it is no surprise that TeleChoice is the first choice for the entrepreneurial Australians who are looking to be independent business owners. Are you like David, confident and ready to take on big challenges like Goliath? If you’ve got what it takes; we would like you to become part of TeleChoice’ network of successful business owners. Phone: 03 8699 2555 Email: dealership@telechoice.com Web: www.telechoice.com.au/franchise


Business Franchise Australia and New Zealand 97


fr anch isi ng e x po

Turning ambition into action This year’s exciting series of Franchising & Business Opportunities Expos kicked off in Sydney last month, with thousands of visitors streaming through the doors of the Sydney Convention & Exhibition Centre to find out more about starting their own business. The dynamic show included more than 70 companies from a diverse range of industries, keen to share their knowledge and information about how to make the first step towards the freedom of owning a franchise.

In addition, those who were looking to franchise their own successful business were able to access information and advice. A popular stop for visitors was the Franchising Advice Centre, where they could benefit from free one-on-one sessions with lawyers from DC Strategy and finance experts from Yellow Brick Road. In addition there were free seminars from a range of successful franchisors about what it takes to manage a successful business. “The Sydney Franchising & Business Opportunities Expo gave visitors the opportunity to compare and research a diverse range of franchise opportunities with investment levels from under $10,000 to more than $500,000,” says Exhibition Manager Fiona Stacey. “In July and August the same opportunities will be available in Brisbane and Melbourne, as we roll out more exciting Expos with representation from hundreds of franchisors,

98 Business Franchise Australia and New Zealand

making it the best way to begin a new business search or finalise the decision making process.” Stacey adds that visitors who decide a traditional franchise operation is not right for them, can still learn about a wide range of other opportunities to earn additional income. “Entry is free if you pre-register online, and there is an abundance of information available on every aspect of being your own boss,” she says. “It’s really time to stop dreaming and start doing.” The Franchising & Business Opportunities Expo will be on at the Brisbane Convention & Exhibition Centre Saturday 20 July – Sunday 21 July and at the Melbourne Convention & Exhibition Centre Friday 30 August – Sunday 1 September. Entry at the door is $15, or pre-register for free at www.franchisingexpo.com.au.


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h ot to pics

Behind the

headlines Code Review recommendations receive cautious support Franchise sector participants have indicated cautious support for the 18 recommendations to improve the Franchising Code of Conduct arising from the current Code review, but have indicated that more detail is necessary to determine how practical some of the recommendations will be. The Franchise Council of Australia (FCA) has welcomed the report, noting that many of the review’s recommendations reflect suggestions made or supported by the FCA. See article on page xx for more about the Code review.

Grow-your-own marijuana franchisor jailed A New Zealand chain of 16 hydroponic gardening stores served as a “veneer of legitimacy” to shield the supply of marijuana and products used to grow and smoke marijuana, and which generated up to 95 per cent of its turnover through illegal and drugrelated activities, according to testimony at the trial of the company’s owner and general manager. Retail chain Switched on Gardener, which features a marijuana leaf in its logo, was found by a NZ court to have played a pivotal role in 106 cannabis operations. The company’s owner, Michael Quinlan was sentenced to four years and three months jail, with general manager Peter Bennett sentenced to three years and nine months. Two companies associated with Switched

on Gardener were fined NZD$125,000 each, but will continue to trade for the time being while the court pursues assets held by the company’s owner in Australia and New Zealand. The Switched On Gardener previously attempted to franchise its business in anticipation of a relaxation of NZ drug laws.

QLD Government announces review of Retail Shop Leases Act The Queensland Government has announced a statutory review of the state’s Retail Shop Leases Act, which will consider aligning more closely with similar Acts interstate, reduce red tape for tenants and landlords, and address imbalances in access to information and negotiating power, according to the review’s options paper. Submissions to the review close on July 3.

11 chicken restaurant customers hospitalised after caustic soda salt mix-up Eleven customers of the Chicken Treat franchise in the Western Australian town of Bunbury sought hospital treatment for burns, including two people who were airlifted, after eating food laced with caustic soda last week, according to media reports. The customers of the Bunbury franchise are believed to have eaten the food after it was sprinkled with caustic soda instead of salt. Chicken Treat has issued a statement apologising for the incident and indicating that no other stores are affected, and that the

100 Business Franchise Australia and New Zealand

Jason Gehrke, Director, Franchise Advisory Centre.

franchisee is working with local government health authorities and police to investigate the incident.

Telcoinabox rebrands and announces share market float Telecommunications aggregation franchise Telcoinabox has rebranded itself Inabox and has announced an initial public offering to raise $2.9 million, which values the business at $16.2 million. The company has also announced the appointment of advertising identity Siimon Reynolds as its new chairman. The company is offering 2.42 million shares at $1.20 a share, with an expected market debut date of June 26.

McDonalds to sell meat pies in NZ with the return of Georgie Pie New Zealanders will be able to reconnect with the nation’s favourite pie brand when Georgie Pie goes on sale again in June for the first time in 15 years. The brand had 32 retail outlets in New Zealand when it was bought by McDonalds in 1996, however 17 of the locations were subsequently converted to McDonald’s stores, and the 15 remaining properties closed and sold. However, New Zealand’s love affair with its favourite brand of pie has been revived in recent years with social media campaigns and petitions, culminating in an announcement by McDonald’s that one version of the pie will be trialled for sale through 10 outlets from June.


PROFESSIONAL SERVICES LISTINGS

HARMANS LAWYERS

Liston Landers

485 Papanui Road, Christchurch P +64 3 352 2293 F +64 3 352 2274 Contact Mark Sherry or Alan Prescott E mark.sherry@harmans.co.nz www.harmans.co.nz

242-246 Glenferrie Road, Malvern VIC 3144 P 03 9509 0366 F 03 9509 3076 Contact Shaun Newton or Kieran Liston

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.

www.listonlanders.com.au

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

Mason Sier Turnbull

E shaun.newton@listonlanders.com.au E Kieran.liston@listonlanders.com.au

We can help you to make strategic and successful franchise decisions. We are: Experienced: A Chartered Accounting and Financial Advisory Firm, acting in the best interests of clients (in Melbourne and regional Victoria) for over 30 years. Recognised as leaders in the field, with representation on the panels of ‘Big Four’ banks and Franchise Council of Australia membership.

Providers of a complete franchise solution: • Valuations (APES 225 compliant). • Establishment, expansion and recruitment advice for franchisors. • Selection, evaluation, purchase/sales and tax advice for franchisees. • Provision of annual tax and compliance services. • Independent appraisals. • Analysis of goals, risks and benefits. Knowledgeable: with a detailed understanding of over 30 franchise systems, and an ongoing commitment to continuing professional development. Reliable: providing valuation assurances to your financier and a five-day valuation turnaround. Client-focused: Direct and after-hours access to partners, professionalism and empathy for individuals and businesses. Committed to helping our clients achieve a lifetime of financial independence. Contact us today.

Revive Projects

Let Australia’s award-winning franchise marketing agency Attract + Engage + Retain your customers

315 Ferntree Gully Road, Mount Waverley VIC 3149 P 03 8540 0200 F 03 8540 0202 Contacts Raynia Theodore, Principal / John Sier, Principal E raynia.theodore@mst.com.au www.mst.com.au 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.

77-79 Canterbury Road, Canterbury VIC 3126 P 1300 836 863 F (+613) 9886 5371 Contact Maria Abadilla E admin@reviveprojects.com.au www.reviveprojects.com.au If you’re a franchise or considering expanding your business into one, you need solid marketing support. In-house marketing is expensive, and a small in-house team can only do so much. It’s also hard to keep the idea-well fresh all the time. Revive Projects has been helping franchises attract, engage and retain customers since 2007. Our multi-talented, hand-picked team of senior marketing executives, copywriters and PR specialists develops integrated and outcome-focussed solutions by catering to your unique business needs. As our clients, we can provide you with: • Increased visibility among your prospects • Franchise sales acquisition

• New market entry plan and execution • Targeted Local Area Marketing • Advertising & Promotions • Online marketing strategy

• Web and copywriting that converts

• Social media training delivered to your team

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Business Franchise Australia and New Zealand 101


FRANCHISE LISTINGS FRANCHISE APPLIANCE TAGGING SERVICES 80 Patterson Road, Bentleigh VIC 3204 Ph: 1300 287 669 Fax: 03 9557 4854 Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

ELECTRICAL TEST AND TAG

37

FCA

$32,500

$43,500 + GST + Vehicle

COMMERCIAL SEATING ERGONOMICS RETAIL HEALTHCARE

6 (@1/7/12)

FCA

$50,000

$150,000 + (DEPENDENT UPON SITE CONDITIONS)

BAKERY RETAIL BUSINESS

630 across AUS & NZ

FCA & FANZ

-

$30% or $150,000

BATTERY WORLD AUSTRALIA PO Box 46, Brisbane Market, QLD 4106 Ph: 07 3373 1764 Fax: 07 3373 1770 Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising

RETAIL OF BATTERIES AND PORTABLE POWER ACCESSORIES

79

FCA

$49,900 + GST

$250,000 + GST

BRAZILIAN BEAUTY (AUST) PTY LTD 45 Crosby Road, Albion QLD 4010 Ph: 07 3262 8984 Fax: 07 3857 6212 Email: headoffice@brazilianbeauty.com.au Website: www.brazilianbeauty.com.au

BEAUTY AND CUSTOMER SERVICE EXCELLENCE

15

FCA

$45,000

$250,000 - $350,000

SUNGLASS RETAILER

80

Franchise Council of Australia

$10,000 plus GST

Varies from store to store

GERMAN CONCEPT CASUAL DINING RESTAURANT

4 Corporate & 9 Franchised

Franchise Council of Australia

POA

POA

CAFE 2U Building 7, 81 Frenchs Forest Road, Frenchs Forest NSW 2086 Ph: 1300 223 328 Email: franchise@cafe2u.com.au Website: www.cafe2u.com.au

MOBILE COFFEE VANS

Over 200 worldwide

FCA, IFA

INITIAL FEE INCLUDED IN PURCHASE PRICE

FROM $129,600

CHIPMUNKS PLAYLAND In Port Building, 9-13 George Street, Port Chalmers 9023 Dunedin NZ Ph: +64 3 472 8480 Email: info@chipmunksplayland.com Website: www.chipmunksplayland.com.au

PLAY AREA AND CAFÉ

34

-

POA

POA

CREMA ESPRESSO 118 Varsity Parade, Varsity Lakes QLD 4227 Ph: 07 5562 5516 Fax: 07 5562 5543 Email: antony@cremaespresso.com.au Website: www.cremaespresso.com.au

PREMIUM CAFÉ FRANCHISE

9

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

DENTAL EQUIPMENT SALES & SERVICE

101

BACKCARE & SEATING 4 Guilfoyle Ave, Coburg VIC 3058 Ph: 03 9353 0500 Fax: 03 9353 0599 Email: mark.c@backcare.com.au Website: www.backcare.com.au BAKERS DELIGHT Level 1, 293 Camberwell Road, Camberwell VIC 3124 Ph: 1300 309 759 Email: franchiserecruitment@bakersdelight.com.au Website: www.bakersdelight.com.au

BRIGHTEYES SUNGLASSES 75 Talavera Road, Macquarie Park NSW 2113 Ph: 02 9815 2628 Fax: 02 9815 2650 Email: BrightEyes.Admin@luxottica.com.au Website: www.brighteyes.com.au BROTZEIT® INTERNATIONAL PTE LTD 56B Pagoda Street, Singapore 059215 Ph: +65 6222 6863 Fax: +65 6222 7069 Email: anz.franchise@brotzeit.co Website: www.brotzeit.co

ELLA BACHÉ 2 Lambs Road, Artarmon NSW 2064 Ph: 02 9432 5016 Fax: 02 9439 6267 Email: michelle@ellabache.com.au Website: www.franchise.ellabache.com.au FASTA PASTA PTY LTD 38 Barnett Avenue, Glynde SA 5070 Ph: 08 8336 5855 Fax: 08 8365 2524 Email: reception@fastapasta.com.au Website: www.fastapasta.com.au

SKIN CARE, BEAUTY INDUSTRY

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

160+ Franchise Council Nationally of Australia (FCA)

Dependent on Site conditions $250k$450K

$50,000

$50,000+

$22,000

$100,000 - $300,000

AUTHENTIC ITALIAN FAMILY FOOD FRANCHISE

38

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: fso@fastway.com.au Website: www.fastway.com.au

COURIER SERVICE

650+

FCA & FANZ

From $25K+GST

$25K+GST

FASTWAY COURIERS NZ Shed 5, Level 1, Lever Street, Ahuriri, Napier 4110 Ph: 0800 4 FASTWAY Website: www.fastway.co.nz

COURIER SERVICE

250+

FCA & FANZ

$10K

$10K

WOMEN’S HEALTH & FITNESS CLUBS

75

$55,000

$450,000

AUSTRALIA’S LARGEST BOOKKEEPING FRANCHISE

150

FCA, AAT, Inst. Of Certified Bookkeepers

$32,000 + GST

$38,000 (Franchise fee & equipment)

FLASH BY MORFFEW PO Box 626, Potts Point NSW 1335 Ph: 0416 225 311 Fax: 02 9389 8816 Email: mark@morffewphotos.com Website: www.flashbymorffew.com

POP-UP KIDS PHOTOGRAPHIC STUDIO

5

n/a

n/a

$80,000

FLIP OUT TRAMPOLINE ARENA 80 Mulgoa Road, Penrith NSW 2750 Ph: 1300-FLIP OUT Email: brent@flipout.net.au Website: www.flipout.net.au

TRAMPOLINES, BALL GAMES, EVENTS

-

-

Upfront $33,000 $127,000

Upfront $33,000 $127,000

MOBILE FRANCHISE – HATCHING PROGRAM DELIVERY

10

-

$10,000 (Incl. in cost)

$32,600

IN-HOME CARE FOR SENIORS

19

Franchise Council $52,000 inc GST of Australia

$80,000

GOURMET FOOD TO GO

54

-

$40,000

$220,000

FENCE INSTALLATION SERVICES

APPROX 150

MBA, FCA

Included in Purchase Price

From $50,000 + GST

HAIRDRESSING

175 across Australia & New Zealand

FCA

$38.5K

$160K-$240K

FERNWOOD FITNESS Level 1, 475 Flinders Lane, Melbourne 3000 Ph: 03 9630 8810 Fax: 03 9630 8830 Email: maree.rogers@fernwoodfitness.com.au FIRST CLASS ACCOUNTS Suite 8, 34-36 Glenferrie Drive, Robina QLD 4226 Ph: 1800 118 611 Fax: 07 5578 9028 Email: info@firstclassaccounts.com Website: www.firstclassaccounts.com

HENNY PENNY HATCHING PO Box 1376 Kenmore QLD 4069 Ph: 0402 853 213 Fax: 07 3201 0336 Email: hphdale@hotmail.com Website: www.hennypennyhatching.com.au HOME INSTEAD SENIOR CARE L3 Toowong Tower, 9 Sherwood Road, Toowong QLD 4066 Ph: 07 3720 8400 Fax: 07 3720 8644 Email: franchise@homeinstead.com.au Website: www.homeinstead.com.au JESTERS FRANCHISING PTY LTD Unit 1, 34 Prindiville Drive, Wangara Ph: 08 9309 2200 Fax: 08 9309 2199 Email: information@jesters.com.au Website: www.jesters.com.au JIM’S FENCING PO Box 686 Mount Martha VIC 3934 Ph: 131 546 Email: franchise.sales@jimsfencing.net Website: www.jimsfencing.net JUST CUTS™ Level 1, 4-6 Kingsway, Cronulla NSW 2230 Ph: 1800 334 498 Fax: AUS 02 9527 5144 Email: bdm@justcuts.com Website: www.justcuts.com LINK BUSINESS PO Box 12 324, Penrose, Auckland New Zealand Ph: +64 9 579 9226 Fax: +64 9 525 1457 Email: kevina@linkbusiness.co.nz Website: www.linkbusiness.co.nz

BUSINESS BROKING, SALES

6

None

From $5,000

-

LISTEN TO READ 2 Flagstaff St Engadine NSW 2233 Phone: 1300 473 234 / 0410 618 472 Email: hello@ListenToRead.com.au Website: www.ListenToRead.com.au

TUTORING AND MULTISENSORY READING INSTRUCTION

Franchise Council of Australia

$12,000

-

-

MAIL BOXES ETC Level 1, 117 Willoughby Road, Crows Nest NSW 2065 Ph: 1800 556 245 Fax: 02 8088 0773 Email: agnes.beugnon@mbe.com.au Website: www.mbe.com.au

POSTAL & BUSINESS SERVICES FRANCHISE

35

-

$50,000

$175,000

NATRAD 40 Overseas Drive, Noble Park VIC 3174 Ph: 03 9795 1255 Fax: 03 9795 0807 Email: haydn.roberts@natrad.com.au Website: www.natrad.com.au

AUTOMOTIVE RADIATORS AND AIR CONDITIONING

80

FCA, VASA

-

-

NOODLE BOX 13A/663 Victoria Street Abbotsford VIC 3067 Ph: 03 8851 4200 Fax: 03 8851 4277 Email: Michael@noodlebox.com.au Website: www.noodlebox.com.au

ASIAN INSPIRED QUALITY CUISINE

78

FCA

$40,000

$250-$300K

PALEO CAFÉ Suite 3, 140 Mulgrave Road, Cairns QLD 4870 Ph: 07 4225 5388 or 0438 140148 Fax: 07 4031 7472 Email: info@paleo-cafe.com.au Website: www.paleo-cafe.com.au

HEALTH FOOD STORE & CAFÉ

1

FCA

$25,000 + GST

$150,000 - $350,000

PARASERVE (VIC) PTY LTD 3/16 Turbo Drive, Bayswater North, VIC 3153 Ph: 1800 041 876 Fax: 03 9729 7722 Email: csc@paraserve.com Website: www.paraserve.com.au

COMMERCIAL & EDUCATION CLEANING SERVICES

4

FCA

From $15,000

$35,000 Including franchise fee

24 HOUR GYM FRANCHISE

97

IHRSA, FITNESS AUSTRALIA, FCA

$10,000

$289,000 INCLUDING EQUIPMENT

PLUS FITNESS 24/7 PO Box 76, Camden NSW 2570 Ph: 02 4648 2099 Fax: 02 8572 8222 Email: info@plusfitness.com.au Website: www.plusfitness247.com.au

102 Business Franchise Australia and New Zealand


FRANCHISE LISTINGS FRANCHISE

NATURE OF BUSINESS

OUTLETS

ASSOC MEMBER

INITIAL FEE

MIN INVEST

HUMAN RESOURCES CONSULTING FRANCHISE

4

FCA

$45,000 + GST

$45,000 + GST

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: gary.glen@red-rooster.com.au Website: www.redrooster.com.au

FAST FOOD OVEN ROASTED CHICKEN

370+

FCA

$50K

$450K+

RENT THE ROO PO Box 2150, Howrah LPO TAS 7018 Ph: 03 6247 3826 Fax: 03 6247 3853 Email: franchising@renttheroo.com Website: www.renttheroo.com.au

FURNITURE AND APPLIANCE RENTALS

60 territories

FCA

$150,000

$250,000

RYCO 24•7 19 Whitehall Street, Footscray VIC 3011 Ph: 03 9680 8000 Fax: 03 9680 8001 Email: sales@ryco247.com.au Website: www.ryco247.com

HYDRAULIC MOBILE CONNECTOR SPECIALISTS

46

FCA – Franchise Council of Australia

POA

POA

SHERPA KIDS 3 May Terrace, Brooklyn Park SA 5023 Ph: +61 8 8354 4886 Fax: +61 8 8121 1835 Email: Vicki@sherpa-kids.com.au Website: www.sherpa-kids.com.au

BEFORE, AFTER SCHOOL, VACATION CARE

10 in AUS, 50 in NZ

FCA, FANZ

$35K

$35K

MATTRESS RETAILER

22

Bulky Goods Assoc/FCA

$40,000

$180,000 - $220,000

24 HOUR FITNESS FRANCHISE

110

FCA

$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: nicholas.hudson@snapon.com Website: www.snapontools.com.au

MOBILE TOOL AND EQUIPMENT STORE

160

FANZ, FCA

$40,000

$37,000 with Snapon finance

SNOOZE SLEEP WELL PTY LTD 21a Shierlaw Avenue, Canterbury VIC 3126 Ph: 0427 401169 Fax: 03 9888 6327 Email: alistairb@snooze.com.au Website: www.snooze.com.au

BEDDING RETAILER

71

Franchise Council of Australia

$50,000

$450,000+

SOCIAL MEDIA MARKETING FRANCHISE

41

-

$49,000 plus GST

Finance Available

SAFETY & DECORATING TO ALL INSIDE & OUTSIDE CONCRETE

80

-

$15,000 (Licence Only)

$75 P/W

CONVENIENCE RETAIL

630+

SUMOSALAD Level 1, 1 Short Street, Leichhardt NSW 2040 Ph: 02 9569 7866 Fax: 02 9569 7811 Email: graham@sumosalad.com Website: www.sumosalad.com

HEALTHY FRESH FAST FOOD

90

FCA

$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: amigo@tacobill.com.au Website: www.tacobill.com.au

MEXICAN RESTAURANT, BAR AND TAKEAWAY

35

Restaurant Catering Victoria

$50,000

$450.000

TELECHOICE 74 Eastern Road, South Melbourne VIC 3205 Ph: 03 8699 2555 Fax: 03 8699 2550 Email: franchise@telechoice.com.au Website: www.telechoice.com.au

RETAIL TELECOMMUNICATIONS

143

FCA

-

From $100,000

THE AUSTRALIAN DRUG DETECTION AGENCY PTY LTD PO Box 300 647 Albany, North Shore City 0752 NZ Ph: +64 9 477 0032 Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au

DRUG TESTING & EDUCATIONAL SERVICES

20

-

POA

POA

THE INTERFACE FINANCIAL GROUP Level 14, Lumley House, 309 Kent Street Sydney NSW 2000 Ph: 1300 940 908 Email: ifgau@interfacefinancial.com Website: www.interfacefinancial.com.au

PROVIDES UNIQUE SPOT FACTORING PROGRAMME

150+ worldwide

FCA, IFA, CFA, Irish FA

$39,000

$50,000+

THE LEATHER DOCTOR 2/52 Export Drive, Molendinar QLD 4214 Ph: 1300 453 284 Email: info@theleatherdoctor.net.au Website: www.myleatherdoctor.com.au

MOBILE LEATHER & VINYL REPAIRS

55

-

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: info@thetimberdoctor.com.au Website: www.thetimberdoctor.com.au

MOBILE TIMBER REPAIRS

6

-

$35,000 (plus GST)

$60,000

TOTAL TOOLS 19 Grimes Court Derrimut VIC 3030 Ph: 03 9394 4300 Fax: 03 9394 1699 Email: newstores@totaltools.com.au Website: www.totaltools.com.au

TRADE & INDUSTRIAL TOOL RETAILER

35

FCA

$50K

POA

TPR GROUP National Service Centre, 6 Pedvin Place, Annangrove NSW 2156 Ph: 1800 631 365 Fax: 1800 631 265 Email: stuart@tpr.com.au Website: www.tpr.com.au

HIRING PLANTS, COFFEE MACHINES, AUSTRALIAWIDE

30+ Nationally

NGIA, Green Building Council, IPA

$25,000+GST

$25,000+GST for Shell

DOMESTIC AND COMMERCIAL CLEANING, GARDENING FRANCHISORS

1100

FCA

$17,500

$25,000

RECRUITMENT COACH Level 1, 265 Coronation Drive Brisbane QLD Phone: 1300 389 383 Email: enquiries@recruitmentcoach.com.au Website: www.recruitmentcoach.com.au

SLEEPY’S PTY LTD Unit 9/16 Metroplex Avenue, Murrarie QLD 4172 Ph: 07 3895 4100 Fax: 07 3395 6096 Email: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au SNAP FITNESS AUSTRALIA PO Box 41, Cannon Hill, QLD 4172 Ph: +61 435 841 811 Email: cmcgill@snapfitness.com.au Website: www.snapfitness.com.au

SOCIAL MEDIA BUSINESS BOOSTERS 39F The Promenade, Sanctuary Cove QLD 4212 Ph: 1300 298 898 Fax: 07 5577 8266 Email: max@socialmediabusinessboosters.com Website: www.SocialMediaBusinessBoosters.com SPRAY PAVE AUSTRALIA GPO Box 501, Green Acres SA 5086 Ph: 1800 688 888 Fax: 08 8266 5360 Email: spraypave@senet.com.au Website: www.spraypave.com STAR MART - CALTEX AUSTRALIA 2 Market Street, Sydney NSW 2000 Ph: 02 9250 5000 Email: franchdev@caltex.com.au Website: www.caltex.com.au

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

49 in Australia SUPPLY & INSTALLATION OF WATERPROOFING & UNDERFLOOR / 7 in New HEATING SYSTEMS Zealand

ZARRAFFA’S COFFEE 1/54 Siganto Drive, Helensvale QLD Ph: 07 5500 0800 Fax: 07 5500 0900 Email: franchise@zarraffas.com Website: www.zarraffas.com

SPECIALTY COFFEE PROVIDER AND FRANCHISOR

62

Franchise Council $150k to $800k of Australia

AUD +GST, FCA, FANZ, HIA, MBA $50K 50K NZD +GST FCA

$200k

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

$50,000-$75,000 depending on $400,000 - $600,000 store

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

Business Franchise Australia and New Zealand 103


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.

Bakers Delight Bakers Delight, Australia’s most successful bakery franchise, was established in 1980. An Australian owned company, Bakers Delight has over 700 bakeries employing more than 15,000 people, serving 2 million regular customers per week throughout Australia, New Zealand, and Canada. Bakers Delight holds a healthy 13.1 per cent of the Australian bread market (Roy Morgan Single Source

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.

S UNG L AS S E S

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

104 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 www.appliancetaggingservices.com.au

data December 2012) – a stable market based on Australia’s love for freshly baked bread, and growing demand for nutritionally sound produce. The fresh bread market in Australia is currently worth AUD $2.8 billion. For more information on becoming part of Australia’s most successful bakery franchise call 1300 309 759 or email franchiserecruitment@ bakersdelight.com.au.

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 www.batteryworld.com.au/franchising.

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 www.brazilianbeauty.com.au and www.salonfranchise.com.au. 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. brighteyes.com.au/opportunities to find out more. Alternatively, just contact the BrightEyes franchising team on (02) 9815 2628 or email brighteyes.admin@ luxottica.com.au. We would love to hear from you!


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.

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

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 twelve outlets in Singapore, Malaysia, Vietnam, Hong Kong and China (Shanghai), Philippines and Thailand. It has also signed development deals in China (Beijing, Guangdong), and Indonesia, with more territories in the pipeline. In recognition of its established franchise support system and its

• Low Fit Out Costs

CAFE2U

operates solo. The business is HACCP certified and offers a unique van fitout, with strong marketing support.

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 that delivers a minimum of $500.00 a day before the Franchisee

chipmunks Chipmunks Playland & Café is the largest franchise in indoor children’s adventure playgrounds and cafes in the South Pacific. Catering to all children aged 0 to 11 years, Chipmunks is an established franchise offering a proven system back with experienced staff and excellent training and support. Chipmunks Playlands & Café franchise owners experience multiple income stream including pay for play, parties, after school

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

FASTWAY COURIERS AUSTRALIA

• 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 anz.franchise@brotzeit.co

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 email: jstanton@cafe2u.com www.cafe2u.com.au

care, merchandise, holiday programmes, after hour functions and more. Established in New Zealand for over 17 years and now rapidly expanding throughout Australia and Indonesia with increasing interest globally. Flexible finance options available to approved buyers. To learn more about becoming a franchisee in your area please contact us by: Email info@chipmunksplayland.com or via our website www.chipmunksplayland.com

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 reception@fastapasta.com.au, or visit our website, www.fastapasta.com.au

• Low start up costs

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

• No weekend work

*Conditions apply

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*

Business Franchise Australia and New Zealand 105


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

flipout Flip Out™ Trampoline Arena is Australia’s new family entertainment, catering for all ages on our 50 plus Trampoline Arenas. Bounce off the walls and the floor while trying the tricks you’ve always wanted to try in a safe padded environment. Earn a great living and take on this awesome lifestyle. Are you ready to be responsible for bringing the coolest local entertainment to town. The name that everyone’s excited to talk about? All the kids want to have their next birthday there; all the adults want to play indoor sports like dodge ball or maybe just be known as the person responsible for making everyone who visits leave with a smile. Join the Flip Out Team and change your life now. Take charge and don’t wait for the best job in the

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

JUST CUTS™ Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you.

106 Business Franchise Australia and New Zealand

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

world - take it. If you love the concept that is Flip Out™ you better make your move fast and grab your part of this action now. Flip Out’s not work, it’s a fun exciting lifestyle that ticks all the boxes, it promotes healthy living, its fun, entertaining and very profitable. To own a Flip Out™ Franchise you DON’T need any prior skills, all training is provided, start up time from initial deposit approximately 6 weeks. A Flip Out™ Trampoline is coming to your town very soon. Now is your opportunity to own this very exciting Franchise, don’t let this pass you by because at this price they will all be sold soon. Email brent@flipout.net.au or visit www.flipout.net.au

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: terry.sherlock@jesters.com.au

• 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: www.jimsfencing.net or call us on 131-546.

At Just Cut Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price. Contact us today to find out more. Join the largest Hairdressing Network in the Southern Hemisphere. Contact: Luke Manning 1800 334 498 Website: www.justcuts.com


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.

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: kevina@linkbusiness.co.nz. Visit linkbusiness.co.nz, linkbusiness.com.au, linkbusiness.co.za.

Listen to Read

and Director Catherine McLennan has 26 years of teaching

A home tutoring system for reading with proven results.

training with Catherine ensures success for all franchisees.

Using a unique curriculum plus multi-sensory home study tools, Listen to Read repairs the gaps in reading ability. The comprehensive curriculum simplifies the reading process by breaking it down into 14 areas of critical development. Small group tutoring combines with a home study system using an App and workbook for self-regulated multi-sensory study.

experience specialising in teaching reading. Individual Early trials show students making gains in their reading age of up to two years, in just 12 weeks. A proven system combining a unique reading curriculum with Sound Therapy and multi-sensory programs for I-pad or computer. Email: hello@listentoread.com.au

The program has been developed by a literacy expert and a team of specialists in multi-sensory learning. Co-founder

Phone enquiries: 1300 473 234 / 0410 618 472

MAIL BOXES ETC

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

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).

Website: www.ListenToRead.com.au

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 agnes.beugnon@mbe.com.au.

NATRAD

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

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 78restaurants across the nation, making Noodle Box the fastest growing noodle franchise in Australia. The future “Tastes Like Happy” with more and more consumers responding to the fresh and healthy, fast good alternative Noodle Box represents. For more information see www.noodlebox.com.au/franchise or call our National Franchise Development Manager Michael Standley on 0416 256 338. Email: michael@ noodlebox.com.au

Business Franchise Australia and New Zealand 107


A-Z FRANCHISE DIRECTORY Paleo Cafe Paleo Cafe is a revolutionary health food store and cafe based on the most logical philosophy for optimal health; the Paleo lifestyle.

a loyal local customer base, particularly professionals and those with a health or fitness focus. In only 6 months, the flagship Paleo Cafe in Cairns has become one of the busiest and most successful cafes in the Far North Queensland area.

The Paleo lifestyle is about eating and living as Mother Nature intended. That means eating a good variety of lean meat, seafood, eggs, fruit, vegetables, nuts, seeds and berries. Avoid eating dairy, grains, legumes, sugars and preservatives which our bodies were not designed to digest. Make sure you get enough sleep, exercise, play time and laughter. Paleo Cafe attracts

Do you care about people? Do you have an interest in healthy fresh food and quality of life? Be at the frontline in this highly sought after business. Enjoy the benefits of a successful business system that won’t cost you the earth.

PARASERVE

Our franchisees are independent business owners supported by a successful, award-winning company established in 1979.

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.

plus fitness 24/7 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.

Franchising opportunities are currently available Australia wide.

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.

assured that your franchise will be success. A franchise model that provides fast breakevens, low staffing and impressive returns, Plus Fitness 24/7 is a ‘lifestyle’ business second to none. With 60 gyms open and a further 55 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 info@plusfitness.com.au.

recruitment coach

• HR/People Management/Business Professional background • Results driven • Hungry for success – make it happen • Puts your clients/customers at the forefront of everything • Flourishes in an environment that promotes working smarter not harder • Removes restrictions or constraints to bring you lucrative success • Want to contribute via your expertise – an over achiever that has built success through people

As a Recruitment Coach HR Franchisee you will provide small and medium sized businesses access to expert recruitment and retention advice, ideas, guidance and strategies. We are a personalised coaching and consulting service focusing on, in-house recruitment and retention strategies, dedicated to perfecting SME’s people strategies. We are seeking high calibre HR, People Management and Business Professionals to join our group via our partnership program which is low cost but high in support, ROI and personal satisfaction and fulfillment. Are these your personal and professional attributes?

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

108 Business Franchise Australia and New Zealand

Please call 1300 389 383 or email enquiries@recruitmentcoach.com.au

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


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.

Sherpa Kids Before School, After School and Vacation Care Take the quality of an Out of Hours School Care business to new heights with experts and build management business that will change your lifestyle.

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 www.renttheroo.com.au or contact Alan Carroll on 0408 178 858 or alan@renttheroo.com

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 www.ryco247.com

know-how, integrity, expertise and knowledge that professionalises our brand, our systems and most importantly our people since 1996. Our network has over 70 franchisees in over 100 schools. Low Entry Cost $35,000 REACH, ENGAGE, CHALLENGE – Make change today.

Our programs are structured, engaging, fun, sage and educational.

Further information on our business model is available by contacting Vicki Prout

Our services recognise and cater to the varying needs of different communities and cultural diversities.

vicki@sherpa-kids.com.au

We have solid history, underpinned by a high level of

www.sherpa-kids.com.au

Sleepy’s

With Sleepy’s low entry costs, simple business model, proven selling system and healthy margins you too will become a mattress expert!

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!

Head Office on +61 8 83544886

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: guy.elliott@mattressinvestments.com.au Website: www.sleepys.com.au

SNAP-ON TOOLS

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 www.snapontools.com.au

Business Franchise Australia and New Zealand 109


A-Z FRANCHISE DIRECTORY SNOOZE™

• NAB & ANZ accreditation

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

• Sales and product training

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

Email: alistairb@snooze.com.au

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

SPRAY PAVE AUSTRALIA Pty Ltd

• Learn a range of new lifelong trades.

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

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

110 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 www.SocialMediaBusinessBoosters.com

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

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 Steve Shirley, General Manager Business Development on 0401 055 437 or email steves@sumosalad.com 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 35 Taco Bill restaurants in Australia and 28 franchisees, Taco Bill Directors Tom Kartel and Stan Teschke are keen to increase Taco Bill’s Mexican wave with expansion plans nationally in metro and regional areas. If you’re interested in becoming part of the Taco Bill family call 9690 2077 or email amigo@tacobill.com.au


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

The Australian Drug Detection Agency The Australian Drug Detection Agency PTY Limited wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The NZ operation was established in April 2005 and consists of 15 regional franchisees throughout New Zealand, 18 offices and over 30 specialised on-site testing vehicles, employing over 65 staff and is recognised as the Market leader in the field of on-site drug, alcohol workplace

The interface financial group The Interface Financial Group franchisees provide shortterm working capital for small businesses by purchasing their invoices at a discount. In the current economic climate small businesses need working capital but banks are unwilling or unable to provide it. Many of these small businesses are turning to Interface for a solution. Interface has been in the ‘invoice discounting’ business since 1972, is the leading alternative funding source for small business, and employs its franchise network in

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 www.telechoice.com.au/franchise

testing and education services. The ADDA is based on the NZ business model, and will provide excellent financial rewards for those who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals, to get in at the ground level and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Email: kirk.hardy@tadda.com.au or visit www.tadda.com.au

Australia, New Zealand, Canada, the Republic of Ireland, Singapore, the United Kingdom, and the United States. • NO employees to hire or manage • NO lease payments for storefronts • NO purchasing or maintaining product inventories • NO high startup costs • NO retail/consumer environments • A proven track record – Interface has been in business since 1972 • Excellent Return on Investment • Exceptional training & support programmes from a management staff with more than 400 years of experience in the business

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,

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: info@thetimberdoctor.com.au or visit us at www.thetimberdoctor.com.au.

Business Franchise Australia and New Zealand 111


A-Z FRANCHISE DIRECTORY THE NEW LOGO

Stacked logo

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 www.totaltools.com.au or contact our Franchise Development Manager on (03) 9394 4300 or newstores@totaltools.com.au

TPR GROUP

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-

Available Australia-wide: Sydney, Brisbane, Melbourne, Perth, Adelaide, Canberra. Please contact us at stuart@tpr.com.au or phone 1800 631 365. www.tpr.com.au

V.I.P. Home Services australia

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

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

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

ZARRAFFA’S COFFEE

coffee the business. Since the opening of the first store in 1996, the Zarraffa’s Coffee experience has become something of an icon to many Queenslanders and since late 2012 has served coffee drinkers in Western Australia. The business has maintained a steady pattern of growth, as is evident both in gross turnover figures and a consistent increase in profile.

Award winning Zarraffa’s Coffee is a specialty coffee company that roasts and delivers the freshest coffee to its 62 stores across south east Queensland, northern New South Wales and Western Australia. The business is founded on the mantra ‘to create an individually perfect cup of coffee – every time!’ and, just like the giraffe on the logo, aspires to be ‘head and shoulders above the rest.’

AUSTRALIA AND NEW ZEALAND

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.

For further information call V.I.P. Home Services on 13 26 13 or visit www.vipfranchisesales.com.au

Applications are open now for various locations in South East QLD, NSW and WA.

Great service is the practice and fresh, quality

Visit www.zarraffas.com to register your interest.

business franchise australia and new zealand

For more information call 03 9787 8077

A-Z Listings are a great way to promote your

www.businessfranchiseaustralia.com.au or

business

www.businessfranchisenz.co.nz

112 Business Franchise Australia and New Zealand

(or +61 3 9787 8077 from outside of Australia) and speak to one of our Sales Executives or go to


SapientNitro FSNO 576

JOIN THE

DREAM TEAM

Vendor finance now available* *Available to approved applicants.

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

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

It’s amazing what a little snooze can do. snooze.com.au


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

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