NOV/DEC FEATURE - Health Fitness and Beauty Franchising Business Franchise Australia and New Zealand

VOL 15 ISSUE 01 november/december 2020

health, fitness & beauty franchising

why now is a great time to get into the

fitness industry

how technology is changing the fitness industry pushing through awkward to

positive growth

8 ways to grow your beauty or wellness business faster Business Franchise Australia and New Zealand 33

what’snew!

SMALL BUSINESSES REMINDED TO REACH OUT FOR MENTAL HEALTH Speaking during World Mental Health Day on October 10, Australian Small Business and Family Enterprise Ombudsman Kate Carnell urged struggling small business owners to reach out for help through government support services.

Ms Carnell was referring to the Federal Government’s commitment of $4.3 million in the Budget to rolling out a new mental health program for small business owners called NewAccess for Small Business—addressing the enormity of the lockdowns and the psychological distress it has caused many small business owners.

“This new program has formed part of the government’s $5.7 billion commitment to mental health, including $100 million to double the number of Medicare-subsidised sessions with a psychologist from 10 to 20 per year.

“The NewAccess service, to begin early next year, will provide small business owners with access to free one-on-one telehealth sessions with specially-trained mental health coaches.

NewAccess and connect small business owners with the service via their call centre and assistance team.

“Crucially, the NewAccess coaches providing support to small business owners on strategies to manage stress, actually have experience in small business themselves. This approach will make a real difference,” she said.

“It’s vital to seek help if you need it. Our My Business Health web portal provides free practical resources to help with running your business and also links to leading mental health organisations such as Beyond Blue,” she added.

Ms Carnell said her office would be working in partnership with Beyond Blue to promote

www.asbfeo.gov.au/my-business-health/ home

NO CUTTING CORNERS FOR HAIR SALONS STAYING COVID SAFE Maintaining simple health and beauty rituals—like visiting the hairdresser—has been difficult during COVID lockdowns.

Now, as Victoria starts to join the rest of the country in easing lockdown restrictions, salons are placing a renewed focus on hygiene and safety initiatives to keep staff and customers safe.

Australian hairdressing franchise Just Cuts is staying a cut above by taking extra measures to not only maintain COVID-safe practices, but to educate staff and clientele about what to expect during a Just Cuts appointment.

In addition to the recommended measures of distancing, additional cleaning, sanitising each styling station, cape and tools before and after each client using hospital grade sanitiser, and constant use of hand sanitiser, Just Cuts have strongly enforced the following protocols throughout their salons: • no refreshments or magazines for clients • contactless payment methods • floor stickers so guests can easily observe social distancing • restricted number of people in each salon with recommended distances between styling stations

celebrating this easing of restrictions in Victoria with a banishing of COVID hair,” said Just Cuts CEO Amber Manning.

• PPE masks for all stylists and clients

“Our salon owners and stylists are grateful for the ongoing support of our loyal clients and their many messages. We are grateful for the ongoing professionalism and enthusiasm of our team.”

“Just Cuts’ focus is and has always been on the safety of our stylists and clients and we will continue to take all measures necessary to protect our community. We look forward to working with our clients and

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franchising.justcuts.com/franchising/

GOLD COAST PHYSIO FOCUSES ON WORKPLACE WELLNESS Australia is experiencing a cultural shift as employers, health system payers and individuals are now recognising the workplace as a beneficial setting for optimising physical, psychological and social health.

With the cost of absenteeism estimated at $7 billion each year—and that of presenteeism (whereby medical conditions impact the ability to function fully at work) almost four times as much at almost $26 billion—the inequity in resources available for the treatment of chronic disease versus prevention is no longer sustainable, according to the Workplace Wellness in Australia Report.

Rooted in a desire to provide holistic solutions, genuine ongoing after-care and sustainable outcomes, Back in Motion’s goal is to help clients achieve optimal, life-long physical health through education, treatment and preparation of patients for tomorrow and beyond.

Recently opening his third Gold Coast practice, physiotherapist Justin Mistry is taking a uniquely corporate approach to his service offering, forging an accessible pathway for corporate organisations large and small to tap into better workplace health.

Mr Mistry said the plan is to proactively deliver a service that helps to prevent workplace injuries using a holistic approach.

“By identifying how we can prevent injury, we can reduce the risk and likelihood of workers compensation claims, while also reducing absenteeism and boosting productivity, which is a huge win-win for businesses and employees. These initiatives can be delivered to both ‘blue-collar’ and ‘white-collar’ workplaces.”

Already partnering with The Star Casino in an Early Intervention Program for injured workers, Justin’s Back In Motion practices on the Gold Coast will focus on a businessto-business service provision that delivers not only injury rehabilitation services, but also injury prevention and health promotion services.

The Back in Motion Health Group franchise has over 130 locations across Australia and New Zealand. www.backinmotion.com.au

GECKOSPORTS OFFERING COACHES A CHANCE TO KICK-START A BUSINESS FOR JUST $5,000 Ms O’Donnell added: “We’re looking for motivated and passionate sports coaches who want to earn good money in a career they love, or perhaps you may be a sports lover who wants a career change and couldn’t imagine an opportunity like this, not only exists, but could be affordable and FUN!”.

GeckoSports is offering talented coaches the opportunity to become a business partner and kick start a life-changing career with a small upfront investment.

“We want to support Aussies during this uncertain and stressful pandemic by offering them a real chance to create an all-new, fulfilling and profitable career,” said Kim O’Donnell, Director and Owner of GeckoSports.

“Working with children every day and having the freedom to be outdoors, in a mobile active job, is a dream come true for many and we are thrilled to be able to offer this opportunity to others”.

The franchise offer comes in the wake of GeckoSports launching their new ON DEMAND online program. For parents home-schooling or with children home on school holidays, the program ensures children’s physical education doesn’t get forgotten. GeckoSports have formulated their kids’ programs for ‘real results’. The programs are aligned to the national PDPHE physical education curriculum and designed for school-aged kids.

Some of the sports and fun fitness programs include soccer, basketball, rugby, cricket, athletics, netball, AFL footy, mini olympics, boxing bootcamp, strength fitness, cardio fitness, ninja fun fitness challenges, and family fitness bootcamps. geckosports.com.au/join-us

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FE AT U R E A R T I C L E

HEALTH, FITNESS & BEAUTY FRANCHISES #3 Rules for Surviving and Thriving in the New COVID Normal The ongoing COVID-19 health crisis caused many of us to retreat to our cocoons. But as restrictions on social gatherings slowly begin to lift around the country, life is steadily returning to a new— highly sanitised—normal.

Health, fitness and beauty franchises which had been heavily impacted by lockdown laws are starting to see a resurgence of customers wanting to dust off the cobwebs and start looking and feeling good once again.

But visiting the gym, salon or hairdresser at the close of 2020 looks a whole lot different to what it did at the start of the year. Stricter hygiene and safety measures may be here to stay, and new technologies are changing the way service providers and their customers interact.

Service-sector franchises that not only accept the new order but lead the way in introducing these changes, will be the ones to flourish.

These are the businesses that have embraced the first golden rule of surviving and thriving in the new COVID-normal: to meet this challenge (and in fact any challenge life throws your way) you must…

#1: Embrace necessity The old saying “Necessity is the mother of invention” is being played out before our eyes during this pandemic. Businesses who may have been experimenting or simply thinking about incorporating new technologies into their business model before COVID-19 have suddenly found themselves thrown into the deep end, forced to sink or swim.

Some concepts have been relatively simple and easy to implement, like: • Creating online content to keep customers engaged (think fitness

“Visiting the gym, salon or hairdresser at the close of 2020 looks a whole lot different to what it did at the start of the year. Stricter hygiene and safety measures may be here to stay, and new technologies are changing the way service providers and their customers interact.”

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classes shared through Zoom, makeup and skin care tutorials shared on Instagram, or online consultations for spas and salons to lessen the amount of personto-person contact) • Downloading QR codes for touchless customer sign-in and using contactless payments for transactions • Informing clients about COVID-safe policies by updating content across all communication platforms (from the company website and social channels to email campaigns and booking confirmations) Fortunately, many of these concepts were well underway in most businesses. Cashless, touchless payments, for example, have been standard business tools for quite some time. And many businesses have been sharing content on their social channels and building a steady audience of engaged users since platforms like Facebook, Twitter and Instagram first came onto the scene. But there have always been some businesses who have hung back, hoping for these trends to pass, lacking the time, money or resources to properly implement these strategies. Now, they are running to catch up.

Other concepts have involved a lot more effort and expense, but for those businesses determined to be ahead of the curve, they will no doubt continue to pay dividends in the long run. Concepts like: • Creating branded apps for customers to download and maintain their engagement (like fitness apps that track progress and keep the connection between trainer and trainee outside of the gym) • Developing e-commerce platforms to encourage product sales during slow service times (allowing customers to purchase their favourite spa and salon

products online to maintain their beauty regime even during lockdown) It’s this ability to look ahead to see what trends and emerging technologies are going to shape the way they operate that makes a successful franchise. Rather than naively hoping the global health crisis will go away so they can return to old ways of doing business, these forward-thinking enterprises…

#2: Look beyond the pandemic A study published by the Journal of Service Research has found that these new necessityinspired ways of interacting with customers will become the new ‘business as usual’.

Even simple safety measures like implementing hand hygiene stations and creating awareness around personal space and social distancing are likely to be concepts that will carry into the future, long after COVID-19 has passed.

“Making people feel both safe and embraced during a pandemic is tough because contact—customer-to-customer, customerto-employee, and employee-to-employee— may lead to serious illness or even death,” said Professor Tracey Danaher of Monash University who collaborated on the ‘Service Safety in the Pandemic Age’ study.

“Reimagining service design, strengthening organisational trust through information safety, and better understanding service separability—these new realities illustrate how COVID-19 is opening broad pathways for service research.”

Business owners that have reimagined the way they do business are not only keeping their customers and staff safe, but keeping their businesses going when times are tough.

“This pandemic has provided opportunities

for the service sector to rethink how they conduct and deliver business, leading to innovation that not only makes everyone feel safer, but also improves the service experience in the long-term, regardless of whether a public health crisis is present,” added Professor Danaher.

It’s important to remember during all of these changes and innovations to your business the reason you are making them: it’s not just about growing the business, boosting revenue and gaining new customers—it’s about keeping everyone safe during uncertain times. That goes for your customers and your staff. This golden rule comes down to one simple ethos…

#3: Put people first By creating a safe, hygienic space for your employees and their clients and introducing new systems and technologies to improve their interactions, you are building an environment of trust and wellbeing.

No matter what stage of lockdown or total freedom your state or territory is currently in—and we are all constantly learning how fickle that freedom can be—it’s essential that you follow your COVID-safe plan to the letter and keep your people safe. In doing this, you will keep them coming back, and that’s got to be good for business.

Thinking of running a health, fitness or beauty business?

Rather than going it on your own, joining a franchise offers security in uncertain times.

Reputable service-based franchises have now had plenty of time to implement COVIDsafe plans and find solutions to any practical barriers regarding customer safety. Many franchises have also introduced innovative technologies to keep their customers engaged and keep their businesses moving onwards and upwards.

To see what franchises are available, explore our Franchise Directory: www.businessfranchiseaustralia.com.au/ directory

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“Other concepts have involved a lot more effort and expense, but for those businesses determined to be ahead of the curve, they will no doubt continue to pay dividends in the long run.”

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e x pert adv i c e

Why Now is a Great Time to Get into the

Fitness Industry

Whilst the world has changed forever, some changes which we have been forced to make across the fitness industry will be for the better in the long run.

I’m a firm believer that the fitness industry has a very exciting future, especially once COVID eases. In hindsight, we will look back at the incredible new innovations and upgrades we have made to our products and services and really appreciate this heavyhanded opportunity we had been served due to this global pandemic!

Now is a great time for switched-on, entrepreneurial-minded individuals to capitalise on what could be the best opportunities the fitness industry has to offer. Whilst these are really difficult times, we—the insiders and operators—are very optimistic about new opportunities that exist. I mean, really, the current situation cannot and will not last forever. And people will, and have, already begun to get back to their ‘as normal as can be’ lives.

We are seeing more exciting strategies put in place by the best brands in the fitness industry that will see them benefit from the

“Along with many others, I am predicting there will be a very lucrative fitness industry comeback. We have to remember that, pre-COVID, the fitness industry had already been enjoying tremendous and steady growth.”

Adala Bolto | ZADI

predicted spike in demand for higher quality fitness facilities and services.

Reported surveys have been continuously revealing the real facts which will shape the future of the fitness industry. These surveys have shown a surge in fitness products consumption. Fortunately for the fitness industry, which was one of the hardest hit sectors during the lockdowns, we were able to re-open our doors with projected revenue as our business is membership based, with low overheads.

Here in NSW, post-lockdown we have seen a very positive response towards fitness from consumers who are keen to return to normality, which includes training in our studios. The current climate has highlighted the importance of health and fitness, and as a result, fitness facilities are experiencing substantial growth with more and more existing and new members returning to their

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beloved fitness community or becoming a newbie. From personal experience, reopening ZADI was more exciting than our initial grand opening! Our members were ecstatic to get back into the studio and from day one after lockdown our allocated sessions were booking out.

Another reason why now is the best time to get into a fitness business—despite some of the unfounded misconceptions about its future—is due to the ongoing and worsening retail challenges. An overwhelming number of retail stores are closing down. New fitness studio owners will have greater choice of high-quality sites to choose from to open new facilities. Prime locations will add to the convenience and success. Landlords will be determined in finding long-term tenants and will provide much better deals to secure them. Part of our franchising COVID package at ZADI is to assist our franchisees

FE ATUR E : h e a lt h, fi t n ess & b e au t y fr a nch isi ng throughout their site selection and negotiations with landlords phase, helping them get the best deal possible.

The best supported and well-backed brands and fitness centre owners will not just survive, but thrive, during this transitional high demand phase. We know this and have really stepped up the planned support, training and recourses to support our franchisees.

Along with many others, I am predicting there will be a very lucrative fitness industry comeback. We have to remember that, preCOVID, the fitness industry had already been enjoying tremendous and steady growth. This is not surprising, as the demand is a direct result of the growth in fitness consumers. This growth has also been dialled up by a fast-growing demographic which had not previously been a focus in the fitness industry: gen Z and millennials.

Fitness consumers will want only the best.

They now expect more high-service clean and hygienic spaces, supervised, controlled environments and specialisation. Nobody will want to see gyms go back to the ‘old normal’ where wiping down equipment was merely a suggestion. Packed and overcrowded group sessions will be a thing of the past. After experiencing a global pandemic and its huge impact, it’s safe to

“We are seeing more exciting strategies put in place by the best brands in the fitness industry that will see them benefit from the predicted spike in demand for higher quality fitness facilities and services.”

say fitness centre patrons will expect to see their facility to continue to have a ‘hygiene marshal’ equivalent and some form of social distancing to stay in place making personal space in a controlled environment the ‘new normal’.

I have led ZADI during COVID in the same way, focused on making sure our members feel safe. We take a very stringent and detailed approach to every action throughout the member experience and have made necessary changes to achieve two key outcomes: The first is to stay true to the ZADI experience that members love while helping them achieve their goals, and the second is to make them feel safe and looked after.

The hygiene process has been crucial. Our members are not only being told that our facility is safe and hygienic via signs, posters and a barrage of COVID-safe emails, it is apparent via our continuous and consistent daily actions.

Now is a great time for a savvy investor to

recognise the opportunities and capitalise on them. Many fitness franchisors, like we here at ZADI, have a plan to help franchisees become more successful than ever before.

Adala Bolto has excelled in her career as a personal trainer, group fitness instructor, and club manager (later franchisee) of leading female fitness brand, Fernwood.

Adala saw a gap in the Australian market for a bespoke fitness program targeting women who want a more specialised approach while training with likeminded strong women. In 2017, Adala launched her first two ZADI studios in Sydney.

ZADI has a strong reputation for its unique badass member experience and a strong ethos to ‘Get Sh*t Done’.

Adala’s vision for ZADI is rapid growth locally and internationally while continuing to build authentic and innovative systems, company culture and community of extraordinary women. www.zadi.com.au

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e x pert adv i c e

Pushing through Awkward

to Positive Growth Seven years ago, I assisted seven sporting clubs, one after the other, to overcome the heartbreak of suicides within their communities. At every club I assisted, I heard the same message, “We never saw it coming.”

These were institutions that had teamwork at the very core of what they did, but they had blind spots when it came to identifying mental health issues amongst their communities.

I founded SALT with a view to taking the values and strengths that Australians demonstrate when they are playing team sport and challenging them to apply these values to other areas of their lives. I was also determined to identify some of these blind

“I founded SALT with a view to taking the values and strengths that Australians demonstrate when they are playing team sport and challenging them to apply these values to other areas of their lives.”

Dave Burt | Founder | SALT (Sport and Life Training)

spots that existed, to save lives and to help clubs become stronger, braver communities of care and in doing so, make lives richer and better lived.

Over time it became obvious that the formula we used in coaching mental fitness for sporting teams was equally applicable to business teams, in the classroom and for other community groups.

Now, as we move into COVID-Normal, it’s vitally important as franchisors that you look to your teams, your franchisees, and help them become resilient, mentally fit and

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in doing so, you can develop better people, better employees, better businesses.

Consider this. When we play a team sport, we show courage, sacrifice, and self-control.

We make good decisions under pressure, we are clear communicators, we have the backs of our teammates. Yet often, we are not as dedicated or connected to the very facets of life that matter far more than sport—our relationships, our education, our vocation.

Imagine what we would be like as a society if everyone was consistently this best version of themselves; the version that turns up when

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“Now, as we move into COVID-Normal, it’s vitally important as franchisors that you look to your teams, your franchisees, and help them become resilient, mentally fit and in doing so, you can develop better people, better employees, better businesses.”

“Positive psychology talks about five factors that are necessary for people to feel fulfilled and motivated. Sporting clubs fill most of them, but workplaces can too.”

we play a team sport. The fact is, if we are strongly invested in what we are doing, we will want to be our best selves. Can we create workplaces that create this motivation? The answer is yes, if we really understand the why.

If I ask “Why do you come to work?” The first answer many people give is “for the money.” So, if we assume that an employee is worthy of a fair rate of pay, we can forget about money and focus on factors that are much stronger drivers for invested, motivated team members.

Positive psychology talks about five factors that are necessary for people to feel fulfilled and motivated. Sporting clubs fill most of them, but workplaces can too. The PERMA model (scientific formula for happiness) says that people need: 1. Positive emotions – we have good times together.

2. Engagement – we get caught up in our work, our minds are in flow.

3. Positive relationships – we like and trust the people we work with.

4. Meaning – we are doing something that benefits others, contributes to the world.

5. Accomplishment – we are growing as people and achieving high standards If workplaces can focus on providing people with as many of these factors as they can, then there is every chance that they will

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“How are you going? No really, how are you going?”

The first question is really a greeting, the second part of that question says, ‘I mean it and I really want to know how you are genuinely feeling’.

great question that helps people who might not be able to explain in words how they are feeling. It gives you an immediate gauge of where they are at. If someone says, “I’m a four,” you might reply with something like, “Sounds like you’ve got a bit going on. I’m happy to chat if you’d like to.”

Sometimes we are hesitant to do this because we fear opening up a can of worms. What if they start confiding in us and we don’t know how to respond? The answer to this is that you don’t have to have the answers and it’s not your job to fix them. It’s your job to listen, to care, to empathise, to ask some questions, to let them know you’re available if they need someone to talk to. Research shows that this low level of intervention offered by people who care is highly effective in helping people deal with their difficult issues. We all need a team of people around us who care, who actively listen and, if necessary, will help us access professional help.

So, in conclusion, does your franchise strive to create positive emotions, engaging work practices, strong relationships, meaning and purpose? Do you see yourselves as a connected, caring team? Are you willing to push through awkwardness and, in these trying times, provide the connections that everybody needs to emerge from this time with optimism, hope and support?

create the environment where people are willing to act like a team.

So, what makes a good team, or better yet, what makes an excellent team? A good team is a group of people who know their roles and fulfil their duties without being watched over or pressured. They know what they have to do, and they take responsibility for doing it.

But that doesn’t make an excellent team.

An excellent team is one that has all the attributes of the good team but is also deeply invested in how their teammates are performing and coping, both at work and outside of work. They are invested in each other.

When we are invested in each other to this

degree we develop the courage to step out of our comfort zones and ask each other some essential but difficult questions. This is particularly important at a time when we know people have been traumatised by ongoing restrictions and lockdowns. When I say ‘difficult questions’, they feel difficult until we try them and after that we quickly realise, they are not that difficult, really.

Questions like, “How are you going? No really, how are you going?”

The first question is really a greeting, the second part of that question says, “I mean it and I really want to know how you are genuinely feeling.” Similar questions include, “Are you OK?” “Do you need help?” or “On a scale of 1-10, if 10 means great and 1 means terrible, how are you going?” This is a

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Dave Burt is the founder of SALT Sport and Life Training, a not-for-profit, health education company that takes the values and strengths that Australians demonstrate when they are playing sport and encourage them to apply these to life.

Dave and his team educate and challenge clubs, businesses and schools to become stronger, braver communities of care.

SALT have developed an online session to help businesses re- emerge from this pandemic in the best possible shape.

‘Workplace Re-emerge’ is aimed at building teams that connect and support each other with a focus on becoming stronger, better and more positive about the future than they have ever been.

For details call 1300 980 424 info@sportandlifetraining.com.au

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8 Ways to Grow Your Beauty or Wellness Business Faster If you have a wellness or beauty business, you are well positioned to capitalise on current concerns around health and wellbeing.

More and more people are shopping online for beauty and wellness products—often simply to relieve boredom and treat themselves by receiving a parcel while in lockdown—but generally because they want to make themselves look and feel better.

But with COVID-19 at play restricting bricks-and-mortar trading, many businesses are now ready to look at their digital transformation as we change our shopping habits.

According to Google, “over the last six months, businesses have embraced digital transformation and thrived. It’s not just or even primarily about building a better e-commerce site (as important as that is). It’s about using data and technology to inform your new product strategy, to alleviate uncertainty in your channel capabilities, to satisfy dynamic customer demand, and to meet customer needs with meaningful action.”

Australia Post says, “2020 has been a year like no other for eCommerce. The latest statistics show that growth was up over 80% year on year (YOY) in the 8 weeks since the COVID-19 pandemic was declared by the WHO, making it clear that the industry has not only kicked up a gear, it has gone into overdrive.”

How do you prepare your franchise business for this “new normal”?

Here are 8 strategies to help grow your business faster:

“Along with many others, I am predicting there will be a very lucrative fitness industry comeback. We have to remember that, pre-COVID, the fitness industry had already been enjoying tremendous and steady growth.”

Danielle MacInnis | Owner | MACINNIS MARKETING

1

You don’t need to guess. Using crowd sourcing tools like social media, you can ask your ideal audience what they want using surveys, polls and competitions and let these inform your product strategy going forward.

Google Analytics can provide some great insights if you have it set up correctly too!

that innovated kept cash flow positive.

Film studios used streaming instead of theatre releases for new films, restaurants used take-out and packaged meals and airlines changed routes and partnered up with other competitors to offer more domestic flights. Offering virtual consults and demonstrations, bundling offers and sending samples can all keep your customers engaged.

2

3

Let data inform your new product strategy

Change up your channel strategy

When hairdressers, airlines and restaurants were faced with uncertainty with their channel to market they had to innovate new channels or face no business. Those

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Satisfy consumer demand

Millions of consumers have moved from offline to online purchases. Social distancing, self-isolation and the closure of bricks-and-mortar stores have meant online has become not just the preferred way to

4

Buy Local

There has been a significant voice around supporting local businesses with several projects aimed at supporting local manufacturers and small businesses, including: • Click for Vic - supporting Victorian businesses www.visitvictoria.com/clickforvic • Spend with Us - supporting bush and rural businesses www.spendwithus.com.au • Melbourne Farmers Markets supporting local markets www.spendwithus.com.au • Openfoodnetwork - farmers produce available for order every week openfoodnetwork.org.au/melbournefarmers-marketplace • Buy Aussie Now - online shopping for Australian brands www.buyaussienow.com.au

If you have a local angle to your brand, emphasise it. People love to support small business, home grown products and local jobs.

5

Move offline spend to online

Move your traditional offline spend for trade shows and business development reps to online spend such as Facebook ads, social media posts, search, email and SMS campaigns. It makes more sense to spend your budget where your audience spends the most time.

6

Keep it inspiring and meaningful

Ads that are both inspiring and highly targeted drove up to 30 per cent higher click-through and more than 15 per cent higher purchase intent. These ads worked not because they were personalised, but because they were meaningful. Know your audience and if you are not sure, use social media or a survey to ask questions to build a persona of your customer.

7

Decode the customer journey

As consumers, we make thousands of decisions around purchasing around offline and online touch points. How do you ensure shoppers can discover your brand when there are no physical stores? This is the question that many small businesses have had to

answer over 2020. What if your supply chains are disrupted? There will always be another pandemic, recession or bush fire. It is how we build into our business models the flexibility to adapt to the environment and our customers that really matters. Those that are reviewing the customer journey quickly will always be on the front foot in business.

8

Deliver meaning

More than ever before it will be those businesses that can deliver meaning to the customer experience that will stand the test of time with consumer loyalty. Delivering real value to customers requires a customer centric mindset. There is more involved than just that marketer strategy of high keywords and other lead generation tactics.

What a consumer last did on your website is a transactional view. To understand a customer’s viewpoint, you need to look along the entire customer journey at what their needs and aspirations are. These deep-seated needs are driving buyer’s intent, but more than that, by being helpful, inspiring and engaging businesses can gain real customer trust over time.

Danielle MacInnis is a customer-centric marketer with over 20 years of experience in marketing specialising in the health and wellness sector. www.macinnismarketing.com.au

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shop, but arguably the only way to shop, prompting unprecedented online growth as retailers and shoppers alike adapt to a new normal. So far in 2020, we have seen more people shopping online than ever before, up 31 per cent in April to 5.2 million. (Australia Post Report, April 2020). You need to go where your customers are. Using tools like Instagram and Facebook and setting up a shopfront can help get your products in front of your buyers.

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e x pert adv i c e

How technology is changing the fitness industry The fitness industry is an ever-changing landscape, largely driven by consumers’ shifting demands for how they want to receive and experience fitness.

Technology has encouraged tremendous adaptation in various industries and shaped a convenience economy that demands accessibility and greater consumer control.

Fitness providers globally have been

challenged to innovate their products to meet these emerging needs, stay ahead of trends and remain relevant to the consumer.

Innovation has occurred to evolve not only the product, but the systems and operations behind the delivery of those products. These developments provide efficiency to operators, allowing them more time to focus on enhancing the consumer experience.

Reaching untapped markets Technology has provided incredible accessibility for consumers, where they can now access fitness options digitally via their

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mobile devices, away from the traditional bricks and mortar fitness facility. The fact that the services are available on demand, anywhere, anytime can make them a lot more attractive to time-poor individuals, or those who feel intimidated by a physical gym environment. Typically, these offerings provide a comprehensive service with access to new daily workouts, progress tracking tools, access to support and may even encompass nutrition with meals plans and recipes. However, since the COVID-19 pandemic forced worldwide club closures, the industry has seen numerous providers

Tim West | Founder | 12RND fitness

fast-track the release of “lite” training apps that offer a simplified version of these online services.

Moving forward, providers that now have an app as part of their product offering can integrate it into their existing in-club service and offer hybrid memberships with tiered pricing to suit varying customer needs. They can now also continue to market this product to consumers in areas which they don’t yet have a physical presence, and use it as a highvalue entry offer to familiarise new customers with their brand and what they offer. For instance, a club that offers a specialised style of training, eg. HIIT combined with boxing and strength training, can offer their workouts via an app that follows a training program consumers can do with minimal equipment, and complete independently.

Over time, if they enjoy the workout, they may be further inclined to seek out a location and visit a club in person. Also, for expanding businesses, they can build up a loyal customer base prior to opening a club in that area.

“Technology has provided incredible accessibility for consumers, where they can now access fitness options digitally via their mobile devices, away from the traditional bricks and mortar fitness facility.”

Increased gamification Gamification is the application of gamedesign elements and principles in non-game contexts and has been integrated into the fitness experience to increase member retention. One example of this is the use of heart rate monitors throughout a workout to track the output of an individual as unique to them and their current fitness level.

This tracking occurs during the activity and provides an overview of their efforts post-workout. This real-time information encourages users to work harder and challenge themselves to achieve greater intensity in their workout, which therefore leads to greater results, faster.

Furthermore, it allows the fitness provider to set challenges, goals and benchmarks for members that are achievable based on their individual physical conditioning and athletic capacity. This kind of integration is

most effective when hardware and software solutions work in tandem to specifically gamify elements that enhance both the enjoyment of the activity and the results gained through performing it.

When members enjoy their workout and are seeing results, they are more likely to stay longer and remain more consistent in their training, which benefits both the user and the provider.

Data-driven business decisions Technology not only facilitates greater innovation by allowing fitness providers to act upon emerging industry trends and evolving consumer needs, it also offers the ability to track the changes and shifts in these trends and needs in real-time, providing high value data to inform further developments.

Most fitness providers now incorporate a

Business Franchise Australia and New Zealand 47

FE ATUR E : h e a lt h, fi t n ess & b e au t y fr a nch isi ng

“Our economy will always have a demand for fitness, especially with growing trends towards self-care and greater insight into the importance of fitness for overall health and wellbeing.”

FE ATUR E : h e a lt h, fi t n ess & b e au t y fr a nch isi ng

e x pert adv i c e

“Gamification is the application of game-design elements and principles in non-game contexts and has been integrated into the fitness experience to increase member retention. One example of this is the use of heart rate monitors throughout a workout to track the output of an individual as unique to them and their current fitness level�

combination of different technology into their back-of-house systems to improve efficiency and enhance the experience for both the operator and the consumer.

Programs are now widely available that are specific to the fitness industry, such as Customer Relationship Management (CRM) software that can track member leads, and trigger funnels based on that lead’s entry point and customer journey, and Member Management Systems (MMS) that have built out templating tools for streamlined communications.

Harnessing the information obtained from these platforms, in conjunction with data from apps and wearable technology (such as heart rate watches and belts), businesses within the fitness industry can now see how their customers interact with their brand and how they utilise their services with greater accuracy. Through looking at variables such as attendance, length of stay, demographics and geographic location, as obtained via

the MMS, providers can develop a deeper understanding of who their prospective longterm members may be, and how to better reach them. Furthermore, they can look at how often members train and what time of day to better inform staffing needs.

Importantly, monitoring financial and nonfinancial business metrics in real (or close to real) time allows for informed business decisions rather than acting on subjective or historical data alone.

Our economy will always have a demand for fitness, especially with growing trends towards self-care and greater insight into the importance of fitness for overall health and wellbeing. However, it will be the companies that can best introduce technology across all areas of their offering that will maintain a competitive advantage.

Today, the fitness industry is highly diversified, with specialised areas and a strong mix of small to large businesses, from

48 Business Franchise Australia and New Zealand

24/7 models to boutique fitness providers, all designed to suit the varying needs of the market. In a highly saturated industry, fitness franchise models present an attractive investment opportunity for those looking to get involved in this growing market without prior experience in business or in fitness.

A franchise opportunity offers access to a proven model with an established network and support systems, and the scale to innovate as the industry evolves.

Tim West began his career as a personal trainer. He launched his first business venture in the tech-fitness space in 2003. From there, he went on to be one of the first Jetts franchisees. He began 12RND Fitness after identifying a gap in the market for a form of fitness that was sports-oriented, in a group-fitness setting, focussing on skill-development for motivation; where physical transformations were an additional benefit to the enjoyment of the workout.

4 x world champion Australian Boxer, Danny Green became involved alongside Tim as co-founder to launch their first club in Brisbane, Australia in 2014, before commencing Franchise sales in 2016, and launching UBX Training, their international brand, in 2019.

12rnd.com.au

A major new investment opportunity to franchise with IWG <PM OTWJIT TMILMZ WN Ã&#x2020;M`QJTM _WZS[XIKM IVL KW_WZSQVO 75%* NE ODNOKD FKNA@KKX BNMRHCDQ ƦDWHAKD VNQJHMF SN AD SGD MDV MNQL@K (6& HR SGD VNQKCÅ&#x2014;R KD@CHMF OQNUHCDQ NE ƦDWHAKD VNQJRO@BD BNMMDBSHMF NUDQ LHKKHNM ODNOKD @MC ATRHMDRRDR @BQNRR SGD FKNAD 2HST@SDC HM DUDQX SNVM BHSX @MC SQ@MRONQS

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Four global brands to choose from

If you have the drive, resources and commitment to be part of our global growth story,

visit franchise.iwgplc.com SNC@X NQ DL@HK TR @S franchise.AU@iwgplc.com

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fo c us feature : I WG

IWG: THE FUTURE OF FLEXIBLE WORKING Australia has always been an early adopter of flexible working culture and, in recent years, the flexible workspace market has been booming.

In 2019, the Australian Co-working Market Report found a 41 per cent year-on-year increase in the supply of flexible workspaces.

Fast forward to late 2020, and the introduction of flexible work as a part of corporate businesses real estate strategy is skyrocketing. People want the comfort, safety and personal productivity benefits of living and working how and where they want.

COVID-19 is literally changing the landscape of work.

Business Franchise spoke with Mark Bhardwaj, Head of Partnership Growth, Australia/New Zealand and Damien Sheehan, Country Head, Australia, of IWG Group—a global leader in flexible workspaces and coworking— about expanding further in the Australian market and the future of work as we know it.

“All our spaces are designed for productivity and come with everything included, whether it’s industry-leading technology, a professional reception service or quality food and drink.”

COVID-19 has forced businesses all over the world to rethink the way they work. How is IWG leading this workspace revolution?

IWG: IWG has provided solutions for over 30 years in delivering the best real estate solutions for businesses and individuals. With the shift in focus from the traditional HQ office model to a more balance / suitability approach, the need to work from home or close to home has never been more prevalent.

As such, occupancy in our suburban / regional locations has increased significantly in the current environment. We believe this trend will continue as companies rethink the traditional HQ space.

What service does IWG provide?

IWG: We have a number of products and services available for our customers; from

50 Business Franchise Australia and New Zealand

private offices and co-working options to virtual office and membership options—all designed to be risk-free and have a zero balance sheet impact, so our customers are free to focus on their core business.

What does a typical flexible workspace look like and what does it offer that makes it more appealing than, say, working from home?

IWG: All our spaces are designed for productivity and come with everything included, whether it’s industry-leading technology, a professional reception service or quality food and drink. From our core brands—Regus and HQ—to our more premium brands—Spaces and Signature—we have a solution for all our customers’ needs.

“From individuals to SMEs and large enterprises, we cater to all and have the products and services available to meet the customer’s needs.”

Who is a typical customer of the flexible workspace?

IWG: From individuals to SMEs and large enterprises, we cater to all and have the products and services available to meet the customer’s needs. No two customers are the same and the ability to pick and choose options for your business needs is what makes IWG the global leader in flexible workspace and co-working.

• design of centre layout

What type of person would ‘fit’ your franchisee profile?

• professional support with recruitment and training for your team

IWG: We are looking for entrepreneurial customer-oriented partners to join the IWG franchisee program to capitalise on the increased demand for flexible workspaces and coworking within a given territory. The program is open to individuals / companies alike, with the ability to open multi centres over a predetermined timeframe.

• access to marketing collateral

How do you look after your franchisees? (e.g., what support, training or resources do you offer?)

• inventory management administration

IWG: We provide several supporting functions to assist our partners grow their business, all designed to be a plug-in approach for simplicity. Key support functions provided include:

• website / app set-up and search engine optimisation for your location • lead generation • IT&T global customer support • back office support billing, invoicing and cash collection • office service agreements and auto-renewal functionality.

What’s your focus for the year ahead?

IWG: We will continue to focus on expansion in the Australian market, particularly in suburban and regional areas. These are key

locations in our national expansion plans as the demand for flex workspaces and coworking in these areas’ skyrocket.

IWG has more than 30 years’ experience launching and running flexible spaces all over the world—with 3,300+ locations globally in 110+ countries and an array of established flexible office and coworking brands under its belt to match the different demographics and business needs of its customers.

IWG currently operates in 77 locations in Australia, adding two new locations to its portfolio in the first half of 2020 with the opening of Spaces Riparian Plaza in Brisbane and Spaces 60 Martin Place in Sydney. In early November, IWG is adding a third location to its portfolio with Spaces Two Melbourne Quarter set to open.

Find out more at www.iwgplc.com

Business Franchise Australia and New Zealand 51

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Labour wants extra penalties, up to $10 million, for dodgy franchisors, as outlined in an article in Smart Company by Shadow Minister for Employment, Industry and Small Business Brendan Oâ&#x20AC;&#x2122;Connor, who was a committee member for the parliamentary inquiry into franchising.

Legislation unlikely to be the answer to stronger franchise sector 52 Business Franchise Australia and New Zealand

He suggests the reality of franchising has seen “decent people struggling with failing businesses and facing financial ruin, because they were set up to fail.”

As someone who has worked in the franchise sector for nearly two decades, I couldn’t agree more.

And while no one wants to see any franchisee fail, I do agree that yes, some franchisors have played a very big part in this.

Yet franchisees need to take greater responsibility too. Prospective franchisees have to take better control of their decisions and learn as much as they can before they buy a franchise. Both extensive research and the Parliamentary Inquiry Committee report reveals this to be the case.

Of the parliamentary committee’s 71 recommendations released in early 2019, several of these refer to the need for greater education and advice for prospective franchisees. Education is likely to be equally, if not more powerful than legislation.

The Parliamentary Inquiry report says: “Education is vital in equipping prospective franchisees with the knowledge and skills to better inform themselves about the risks and responsibilities of becoming a franchisee.

Many prospective franchisees do not have ready access to services that can help them understand those risks, and some franchisees have not undertaken sufficient due diligence, or sought sufficient and appropriate legal or accounting business advice.”

Again, this is spot on. What’s really important is prospective franchisees do their due diligence research on the franchise and educate themselves. It is not an easy task, but an essential one considering the sizeable investment of many franchises.

In many cases, where an unscrupulous franchisor exists, investing in the franchise could be avoided by speaking with existing and former franchise owners, and conducting other forms of thorough due diligence. No stone should be left unturned.

And while some in the sector argue there isn’t enough information and support available to franchisees, the truth is there are numerous resources available. Franchisees just need to look and invest the time and resources into finding them. The Australian Competition and Consumer Commission (ACCC) has sponsored a free franchise pre-entry program for nearly a decade, which prospective franchisees can complete online at their own pace.

There are independent franchise ranking systems which publicly promote their findings

“What’s really important is prospective franchisees do their due diligence research on the franchise and educate themselves. It is not an easy task, but an essential one considering the sizeable investment of many franchises.”

Kerry Miles | Director | Franchise Ed

“Education is vital in equipping prospective franchisees with the knowledge and skills to better inform themselves about the risks and responsibilities of becoming a franchisee.”

that can assist with making an informed business decision.

There are also a number of franchise specialists, who businesses are dedicated to assisting people to make the best business decision for their individual circumstances when buying a franchise, all offering services at a range of price points. Again, with the smallest amount of research these expert practitioners can easily be found, and are indeed used by a number of prospective franchisees with great success.

In fact, many of Australia’s leading franchise experts are giving their time later this month, coming together online for the sole purpose of providing education and best practice tips to aid prospective franchisees with researching franchise opportunities. So, despite COVID19 restrictions, it actually has never been easier for prospective franchisees to access education and advice, to empower themselves to make good business decisions.

The ACCC are also participating, revealing what prospective franchisees need to look out for, which other people are unlikely to tell them. Small Business Commissioners from

Victoria and Queensland, along with the Deputy Australian Small Business and Family Enterprise Ombudsman, are also offering their advice via panel discussion.

One of the themes which comes across in the Parliamentary Committee report is advising people to better inform themselves about the risks and responsibilities of franchising.

Information, education and advice are all readily available for prospective franchisees.

It’s the franchisees themselves that need to step up and access it, otherwise they’re setting themselves up to fail.

Ms Kerry Miles is Director of FranchiseED, Founder of Australian Franchise Expo Online, a Franchise Mentor & Coach, and Adjunct Research Fellow at University of the Sunshine Coast. She has nearly two decades of experience in the franchise sector with clients including small and large franchises and government organisations with an interest in the franchise sector. www.franchise-ed.org.au

Business Franchise Australia and New Zealand 53

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Is your franchise business COVIDSafe?

1 in 3 Aussie workers have not been shared a COVID-Safe plan by their organisation As organisations in most States and Territories begin to welcome employees back to the workplace, it is crucial they have a COVID-19 risk management plan in place to minimise the spread of infection. However, our latest research has revealed a third (33 per cent) of employees have not been shared such a policy by their organisation.

Worryingly, the results found that small businesses are less likely to have a policy to minimise the spread of COVID-19 in the workplace. More than half (53 per cent) of employees in micro-businesses (up to 15 employees) and 33 per cent in small businesses (15-50 employees) have not received such a policy. This compares with just 24 per cent of those in organisations with more than 50 employees who have not received a policy.

Those working in the construction and media and entertainment industry are also least equipped to re-enter their workplace: 43 per cent of respondents in the building industry, and 40 per cent in the media and entertainment industry, admit their employer has not given them a COVID-19 risk management plan, compared with just 27 per

54 Business Franchise Australia and New Zealand

cent of respondents in professional, scientific and technical services, and 20 per cent in healthcare.

Employees are also likely to be concerned about potential infection risks in the workplace. In fact, nearly one in two (47 per cent) Aussie workers are worried that the use of shared workspaces—such as co-working spaces, hot desks, and meeting rooms—could carry an increased risk of infection. A similar proportion (47 per cent) admitted they are worried about being around colleagues who might have been exposed to the risk of infection during the evening or on the weekend. Meanwhile, 46 per cent are worried about using shared ‘touchpoints,’ such as security buttons or door handles.

Business Franchise Australia and New Zealand 55

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“Consider equipping each employee with their own bottle of hand sanitiser, hospital-grade antiviral disinfectant, and cleaning cloth when they return to the workplace.”

staff to ‘own’ a different desk to what they are used to.

4

Create a plan for ongoing sanitisation

“If organisations do not upgrade their regular cleaning practices to meet the new risk environment, they could open themselves up to the risk of infection, which could ultimately lead to Work Cover claims, negative publicity, and other significant financial costs.”

Lisa McQueen | Co-Founder and Director | Cleancorp

Safe Work Australia has strongly advised organisations ensure their employees keep a physical distance of at least 1.5 metres from each other and limit employee numbers in elevators. Despite this, our survey found an equal two in five (39 per cent) respondents are worried about the risks of working in an enclosed office space with other people all day, and the risks of interacting with visitors in the workplace, such as customers or couriers. Thirty-six (36) per cent are worried about shared items, a third (33 per cent) are concerned about transmission risks on public transport, and 28 per cent about how best to manage appropriate spacing in elevators, stairwells, and corridors.

With many employees’ anxious about heading back to the office—and a concerning number having not been shared a COVID-19 risk management plan—here are five tips for minimising COVID-19 risks for employees, customers, and visitors in the workplace.

1

Manage employee expectations

To ensure a successful transition back to the office, employees need to feel their employer has done everything to maximise their safety at work. Before you re-open, organise a full disinfection coronavirus precautionary clean, which includes a precautionary cleaning of all personal

spaces in addition to shared touchpoints, such as door handles, remotes, kitchen taps, microwaves, fridges, and coffee machines.

2

Plan your space using the four-square metre rule

The old seating or working plan of your workplace may no longer be viable for the distancing rule of four-square metres per person. To determine how many staff members you can have on the premises at once, calculate the area of the workspace in square metres and divide it by four.

To allow for objects, such as desks and boardrooms, divide the space by eight. For example, if your office is 160 square metres, you could only have up to 40 people in the room, to allow each person to have four square metres of space.

3

Initiate a rotational working system

Once you have calculated how many employees you can have on site, create a roster system that includes all relevant employees. For example, if you employ 100 people, divide that by five working days, and you’ll find yourself with a 20 person ‘team’ that can come into the office on a set day per week. However, don’t forget the four-square metre rule, which can be achieved by re-configuring furniture to increase physically distancing or getting

56 Business Franchise Australia and New Zealand

Consider equipping each employee with their own bottle of hand sanitiser, hospitalgrade anti-viral disinfectant, and cleaning cloth when they return to the workplace.

Having individual sanitary equipment will also alleviate any worry that multiple people are handling the disinfectant.

5

Consider a cleaning concierge service

Most organisations—especially larger ones—have high-risk shared touchpoints used by site visitors and staff. These are best managed by a fully trained day-cleaning team who are uniformed and equipped to sanitise and disinfect touchpoints all-day long, whether they be kitchens, bathrooms, or meeting rooms. Though some might regard it as extreme, having an on-demand cleaning service will restore stakeholder confidence in your organisation’s hygiene standards day-in and day-out.

The importance of cleaning all shared surfaces and high-traffic areas—from door handles to remotes, and coffee machines—should not be underestimated. If organisations do not upgrade their regular cleaning practices to meet the new risk environment, they could open themselves up to the risk of infection, which could ultimately lead to Work Cover claims, negative publicity, and other significant financial costs.

Lisa Macqueen, Co-Founder and Director at Cleancorp (www.cleancorp.com) has more than 25 years’ experience in sales and marketing for large international hotel chains and has developed strong expertise in strategic marketing and automation. A highly regarded media commentator, Lisa has appeared regularly on the Brian Tracy Show on CBS, NBC, and FOX Affiliates in the US, as well as the ABC in Australia.

Lisa is co-author of Power Principles for Success – Volume 2, which achieved bestseller status in two Amazon.com categories.