Inside Franchise Business Aug/Oct 2019

YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE WWW.FRANCHISEBUSINESS.COM.AU

AUG/OCT 2019

ISSUE 32 VOL3

What’s brewing?

Get a taste for the coffee market

Working 9 to 5

Enjoy the freedoms of a weekday business

$100,000 – I can earn that!

How average revenue works

PR I N T P O S T A PPR OV E D 10 0 0 0 8121

AUS $6.95|NZ $7.95

Putting

Passion

to work

One franchisee’s Quest for success

Be the

LEADER OF N W O R U O Y SUCCESS Welcome to a world of opportunity, brought to you by 7-Eleven, the brand that’s world famous.

A 7-Eleven franchise is a partnership in success.

When you buy a 7-Eleven franchise, you buy two things. Firstly, a brand name that’s recognised around the world, and secondly a business system that works, one that provides more support than most other franchise networks.

BENEFITS OF BEING A 7-ELEVEN FRANCHISEE Our stores are open 24/7, so we’re with you 24 hours a day, supporting you in every part of your operation.

From setup, to training, to marketing, and even to book-keeping, we’ll help you turn your new business into a solid investment.

We set up shop for you and give you full training

We take payroll admin off your hands and help with the book-keeping

We deal with suppliers to get you the best products

We manage the fuel

We have brands you won’t find anywhere else

We provide advertising and promotional support

START YOUR SUCCESS STORY TODAY

I have been a 7-Eleven franchisee for over two years. My husband Robert Saleh and I operate a busy fuel site in a growing area.

Working with our Retail Business Manager, we’ve continually grown our store since it opened, and we now serve about 1700 customers a day. It’s great to see so many customers have become regulars who visit us every day for food on the go. Coffee and fresh food are really popular with our customers, we sell more than 300+ coffees a day and 75+ sandwiches and we’re building overall sales.

As a leader, I am passionate about mentoring and coaching my team to go the extra mile, while living our core values. My team are key to ensuring our business continues to grow.

I have a laugh with my customers all the time and this maintains a friendly and easy-going environment.

I have built a great relationship with our customers that I have grown to love like family. Being part of our community, and being present in it is really important to me. The best part about being a franchisee is the community and my customers.

GENEVIEVE SALEH

Franchisee, Carrara South – QLD

Financials An initial investment of between $400,000 and $1,000,000 + is what is required to become a 7-Eleven Franchisee, so it’s certainly a big decision to make.

The 7-Eleven franchised business model is one with a difference, because we tie our financial success to the success of our Franchisees. 7-Eleven shares in the profits, so it’s in our interest to ensure that we continually work with you to meet the needs of your customers to grow sales, and to grow profits.

Our gross profit split is determined progressively, and there are other shared income stream profits, such as commissions.

Contact Details Franchise Development Managers Brett Reading Queensland E-Mail: bzr@7eleven.com.au Mobile: 0407 877 674

Peter O’Hara Victoria / Western Australia E-Mail: pwo@7eleven.com.au Mobile: 0408 175 534

www.7elevenfranchise.com.au

Shayne Boogaard New South Wales E-Mail: szh@7eleven.com.au Mobile: 0418 136 156

FRANCHISING

Finance your Equipment & Fitout with Franchise Finance Australia Franchise Finance Australia is a specialist funder to the franchise sector. We have unrivalled knowledge of franchisees funding requirements and direct relationships with the franchise networks operating in Australia. Founded in 2014 by directors with a background in franchising, we have remained committed to offering flexible funding solutions that allow franchisees to start a new business or improve their existing business.

FRANCHISE

FINANCE AUSTRALIA

Call us on 1300 869 196

What Can We Fund?

Why Choose Us? - New Store Fitouts - Competitive Rates - Store Refurbishments - 24/7 Customer Service - Business Re-sales - Terms Start From Just 12 Months - Equipment Purchases - Flexible End Of Term Options - National Equipment Roll-outs - Fast Online Application Process - Vehicles, Trailers & Vehicle Fitouts - Repayments Can Be 100% Tax Deductible Whats The Process?

- Source the assets from your preferred Australian supplier - Apply online with Franchise Finance Australia - Choose from one of our industry tailored finance solutions - Sign the contract and we pay your supplier

Division of

GROUP

02 9571 4126

shift8.com

CONTENTS

REGULARS

LEADERSHIP

11 EDITORIAL 12 GLOBAL EYE 16 INSIGHTS 148 GLOSSARY 150 BUYING PROCESS 151 INFLUENCERS 152 CHECKLIST 153 RESOURCES

20 STUDY NOTES

Kids learning franchises to do your homework on.

24 COVER STORY

Inspiring Quest franchisee tale.

28 INDUSTRY EVOLUTION

JAX Tyres has been wheeling and dealing for 70 years.

SPECIAL FEATURE

30 THE DOMINO’S EFFECT

61 WORKING 9 TO 5

32 LIFE IN THE FAST LANE

Choose a weekday business and reap the benefits.

Stuart Preston has been with the pizza firm 25 years.

Millennial burger favourite Milky Lane.

FRANCHISE BASICS

66 WHAT’S BREWING?

109 HOW TO FIND A WINNING

74

Tips on searching for the perfect business for you.

BAKED TO PERFECTION?

Find out what it takes to run a bakery franchise.

Swimart gets a brand refresh.

36 IT’S NEVER TOO LATE

Senior franchisees who found their mojo later in life

48 THE HOME RUN

Luke Guanlao puts multi-unit franchising on the map.

51

APPETITE FOR DISRUPTION

Carl’s Jr. franchisee talks tactics.

54 MUM ON A MISSION

For Sally Johnson franchising is more than a financial asset.

58 DAY IN THE LIFE OF…

Joel Goodsir, Inspirations Paint.

SPOTLIGHT Pick up the buzz in the coffee sector.

34 THE WATER BUSINESS

FRANCHISE

130

GAME ON!

For a successful business, you need good training.

134 HOW TO WORK WITH YOUR FIELD MANAGER

80 SNAPSHOT

Let them help you succeed in your business.

84 HIGH-TECH HOUSEHOLDS Innovation in the homes and gardens

Getting out to the regions with the Franchise Council of Australia.

Why photography firms are still relevant in the Instagram age.

sector.

90 OUT OF THE CAGE

Why chicken is the tasty nugget in fast food franchises.

94 WINTER WARMERS

Heat up your ambition at the Melbourne Franchising expo.

102 VICTORIA’S SECRET

Hot property trends in the Victorian state.

104 IN YOUR SITES

Choosing the right location.

112 HOW TO SPOT FAKE FACTS

139

REGIONAL MATCHMAKING

140

DAMAGE CONTROL

Warning signs in a franchise agreement.

116 $100K – I CAN EARN THAT! The law of averages easily explained.

118 PUTTING YOUR WORKING CAPITAL TO WORK

How much will you need and how do you monitor it?

122 5 FINANCE ESSENTIALS Get the basics right for your business.

127 TO MARKET, TO MARKET …

But when should you start your marketing campaign?

AUG/OCT 2019 | 9 | WWW.FRANCHISEBUSINESS.COM.AU

Dispute resolution tips from the ACCC

147 HOW DOES A SUPPLY CHAIN WORK?

In franchising this can give you a competitive advantage.

162

MYTH BUSTER

I don’t need to work in my franchise.

Join a national franchise convenience store system that supports you every step of the way!

WHY NIGHTOWL?

SUPPORT

First franchised in 1987, we have never stopped growing and with an exceptionally strong brand presence, we now operate over 75 stores throughout Queensland and New South Wales.

•

YOUR SUCCESS IS OUR SUCCESS

•

If you want continued growth year on year, you’ve come to the right place. You’ll never be left without support. We continually invest in franchisee training, modern marketing methods, advanced technology and systems, profitable supplier relationships, store refurbishment and continued expansion into the convenience market.

•

•

• •

You are supported by a network with over 40 years trading history Your business is boosted with modern marketing via LED screens, Beacon Technology and NightOwl Mobile App You benefit from group buying and marketing power You are given the support of a recognised brand while maintaining flexibility to adapt your stock to suit local demographics You are investing in a proven Return on Investment (ROI) model You benefit from an on-going operations, training and merchandising support

YOU CAN KEEP GROWING NightOwl franchisees can operate a single franchise or multiple franchises within the group – and are given an exclusive territory.

Speak to us about franchise opportunities today

If you don’t have a location, we can help. We use specialist demographic and site analysis to assess an appropriate site for all new NightOwl stores.

Holly Usher Franchise Sales Manager Email: holly.usher@nightowl.com.au Mobile: 0475 980 219

NightOwl Owl Franchises AVA I L A B L E N AT I O N W I D E

nightowl.com.au

EDITORIAL

Turning dreams into reality Get inspired to take the next step to business ownership Some people just seem made for success, don’t they?

The opportunities that fall into their laps, the great ideas they follow through, the lifestyle and financial reward that comes their way … they make it all seem so simple. In this edition of Inside Franchise Business we highlight two franchisees who glow with good luck and fortune. Our cover star, Catherine Mapperson, has put passion into her Quest franchise and reaped the benefits. Anytime Fitness franchisee Luke Guanlao has snapped up an international opportunity and broadened his horizons with a second fitness franchise, Xtend Barre.

Catherine and Luke are brilliant examples of how franchisees can succeed – but of course the golden glow they emanate comes from hard work, determination, commitment, careful fiscal management, some good decisions, and yes, a little luck.

So are you ready for the challenge? After all, this could be you … even if you’re in the mature age bracket: check out our stories about mature-age franchisees who have realised it’s better late than never to be brave and bold and fulfil their dreams.

DO YOUR DUE DILIGENCE At Inside Franchise Business the message is all about good research and preparation before you buy a franchise so that you are well placed to make the most of your opportunities. This month the magazine shares advice on how to work out what it means when a franchisor gives you an average earnings figure; there are insights on the importance of working capital; what to look for in a franchise training program; and how you can make the most of your field manager. The Franchise Basics section starts with some crucial advice: how to find a winning franchise. Read the legal tips too on how to spot fake facts, and you’ll be ahead of the game.

Good luck with your franchise search …

PS … are you keeping up with the daily news at franchisebusiness.com.au?

Sar a h Sarah Stowe Editor

EDITOR

SENIOR ACCOUNT MANAGER

SUB-EDITOR

Marketing & sales co-ordinator

Sarah Stowe P: 02 8224 8371 sarah.stowe@octomedia.com.au

Karen Gee

JOURNALIST

Nick Hall P: 02 8224 8355 nickhall@octomedia.com.au

GENERAL MANAGER

Charlotte Redfern P: 02 8224 8373 charlotte.redfern@octomedia.com.au

Dali Hofmann P: +612 8224 8375 dali@octomedia.com.au

OCTOMedia

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AUG/OCT 2019 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

ALL INSIDE FRANCHISE BUSINESS MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN INSIDE FRANCHISE BUSINESS ARE NOT NECESSARILY THOSE OF INSIDE FRANCHISE BUSINESS OR OCTOMEDIA. © COPYRIGHT OCTOMEDIA, 2016 P R I N T E D BY: B LU ES TA R P R I N T 8 3 D E R BY S T R E E T, S I LV E RWAT E R N SW 212 8 P : 0 2 974 8 3 411

GLOBAL EYE

SPOTLIGHT ON BUSINESS The latest news in franchising

TAP AND GO PIZZA

Domino’s ‘Tap & Take Only’ concept store trial confirms the future of fast-food is officially cashless.

The trial sees five Australian stores take all forms of payment bar cash, in an effort to increase customer convenience.

Nick Knight, Australia and New Zealand CEO said “Our Tap & Take stores will enable our customers to get piping hot meals faster than ever; reducing in-store queues and delivery wait times.”

Customers trialling a Domino’s ‘Tap & Take Only’ concept store simply need to tap their card, phone, smart watch or finger on the keyboard before collecting their purchase.

Knight said aside from boosting customer experience, the Domino’s ‘Tap & Take Only’ concept store will increase team member safety.

“In addition to increasing convenience for our customers this new model will increase safety, with zero cash kept on the premises or carried by our delivery experts,” he said. n

NEW FRANCHISE MODEL

Bookkeeping and accountancy business NexZen Accounting has unveiled a new franchise model. The opportunity opens the door for workers with no experience in the finance sector to make a meaningful career move.

Mukesh Bajaj, NexZen Accounting founder and CEO said new entrants must be client focused and willing to commit to completing a Cert IV qualification.

While the franchise model is fresh to market, Bajaj has successfully run the accounting firm for over seven years. The NexZen Accounting founder said that he was passionate about helping small businesses achieve their goals.

“Seven years ago, I had a dream of reducing the high failure rate of businesses. I’ve already had the journey, and now I’m just giving that to the franchisees, so that they don’t have to start from zero.

“The good thing about our industry is that people change jobs; today they might own a restaurant, tomorrow a pool shop, but they still need an accountant,” Bajaj said. n

CRUNCH FITNESS ACQUIRED

Asset firm TPG has acquired multi-national gym franchise Crunch Fitness and will assume control of the chain’s corporate-owned outlets, in addition to its global franchising business.

Jim Rowley, CEO of Crunch said the deal with TPG reflected the hard work of franchise partners and the executive team alike.

“The investment from TPG is a testament to Crunch’s distinct brand, great facilities, and strong management and club teams,” Rowley said.

The fitness chain currently owns, operates and franchises more than 300 gyms in the US, Canada, Spain, with an emerging presence here in Australia.

TPG chief investment officer, Jonathan Coslet revealed the brand is actively pursuing further international franchise growth. “We’re excited to partner with the Crunch team as they look to continue their growth, including their global franchise network,” Coslet said. n

CHALLENGING TIMES

Embattled franchisor Retail Food Group (RFG) has confirmed specialist fund Soliton Capital has proposed a $160m re-capitalisation of the multi-brand business which could put an end to the company’s ongoing debt struggles.

In a statement to the ASX, the Gloria Jeans, Donut King and Crust franchisor said discussions are advanced but there is no guarantee of a formal agreement.

JUMP! Swim Schools has been dealt several blows with franchisor Jump Loops Pty Ltd placed in court appointed liquidation just weeks after alternate franchise entity Jump Swim Schools Services Pty Ltd suffered a similar fate.

The Jump Loops liquidation and wind-up decision marks a notable development in

the beleaguered franchise’s attempt to recover from a wealth of negative media attention.

In June it was revealed that Swim Loops owed creditors more than $15m, much of which came from internal Jump Swim franchise entities.

With two of its major entities now being wound up in Federal Court, the decision places Jump Swim in a difficult position.

The Federal Court has ruled to have asset freezing order extended to cover foreign entities and transactions. The move effectively put a halt to a proposed Deed of Company Arrangement.

The print, courier and mailbox franchise business PostNet Australia is in administration.

The administrator indicated there is

currently sufficient interest to ensure the business will continue either with the present management or an alternative party.

PostNet Australia holds the master franchise rights for Australia and has outlets in Brisbane, Melbourne, Perth and Sydney. There are 15 stores listed on its website.

US pizza franchise California Pizza Kitchen has folded less than three years after launching in Australia. Despite a solid global presence the pizza franchise failed to make an impact on Perth’s local dining sector.

Pizza Australia, the company that operates the business was wound up at a general meeting. n

AUG/OCT 2019 | 12 | WWW.FRANCHISEBUSINESS.COM.AU

BE PART OF THE SUCCESS STORY QUEST FRANCHISES NOW AVAILABLE With 170 locations, Quest is Australasia’s leading apartment hotel operator. Due to significant growth, Quest now has several franchise opportunities across Australia. Become part of the success story and manage your own hotel business following Quest’s proven format, a robust model developed and honed over the last 30 years.

Find out if being a Quest Franchisee is your next step at questfranchise.com.au

Visit questfranchise.com.au

GLOBAL EYE

JUST CUTS RAISES $30,000

Just Cuts has banded together with a local South Australian community, raising more than $30,000 for the Royal Flying Doctor Service of Australia (RFDS) in the process.

The annual Cut-a-Rama event brought together Just Cuts, members of the Renmark community, RFDS representatives and participants of The Outback Car Trek.

Denis McFadden, Just Cuts CEO and founder said the latest event allowed the brand to reach a milestone mark.

“This was the 21st Cut-a-Rama event that we’ve put on. We’re so proud to be able to support a charity that impacts the lives of so many people across Australia,” he said.

“We’re thrilled to announce that tonight’s donation takes Just Cuts’ total fundraising tally for the RFDS to over $500,000.” n

NARELLAN POOLS DIVES INTO US

Narellan Pools is partnering with North America’s largest pool company, Latham Pool Products.

The Narellan Group encompasses the company’s Australian, New Zealand and Canadian franchise and manufacturing businesses.

Narellan Pools’ long-time managing director Chris Meyer will continue to lead these markets, as well as provide strategic leadership to the North American market. He will also become a shareholder in the new enlarged Latham family.

An alignment with the largest fibreglass and vinyl pool manufacturer in the US will capitalise on the strengths of both businesses. Latham Pool Products will benefit from Narellan Pools’ expertise in the fibreglass pool market and leading franchise model.

Narellan Pools gains access to Latham’s manufacturing capabilities and investment in innovative technologies, such as robotics and automation.

“We have some great synergies,” said Meyer. “They want to give us capital to grow more aggressively if needed and give us some great resources we don’t have.

“We’re going to help them shift to more of a consumer focus.” n

FRANCHISEES’ BARGAINING POWER

Franchisees may be in for stronger bargaining power and network representation under a new proposal from the Australian Competition and Consumer Commission (ACCC). The ACCC collective bargaining proposal was floated last year, but after positive results the body is seeking feedback from the small business sector on the proposed plan.

The plan would allow small businesses to collectively negotiate with their suppliers and processors.

Mick Keogh, ACCC deputy chair, said the proposal meant less red tape for franchisees and more freedom to improve supply chain.

“Collective bargaining allows businesses to share the time and cost of negotiating contracts, and potentially gives them more of a say on contract terms and conditions,” Keogh said.

“This proposal would make it much simpler and less costly for eligible businesses or franchisees to collectively negotiate. However, the class exemption would not force anyone to join a collective bargaining group, or force a customer, supplier or franchisor to deal with the bargaining group if they did not want to,” Keogh said. n

THE LITTLE CHA IN VICTORIA

Home-grown bubble tea franchise The Little Cha has unveiled its first outlet in Victoria. The Little Cha Mill Park store opening demonstrates the growing western interest for Taiwanese bubble tea in Melbourne.

Located at Westfield Plenty Valley, north-east of city, the lively shopping centre houses over 180 specialty stores.

While bubble tea brands have traditionally targeted areas with a high Asian population, The Little Cha’s methodology is different. The brand was developed with a Caucasian consumer in mind.

Catering to the tastes of a western audience has allowed The Little Cha to expand quickly. The franchise now has 10 stores across New South Wales and Western Australia. The Mills Park outlet helps the chain break into the developing market for bubble tea in Melbourne. n Keep up to date with all the latest news online at franchisebusiness.com.au AUG/OCT 2019 | 14 | WWW.FRANCHISEBUSINESS.COM.AU

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READY TO BUY A FRANCHISE Are you committed to franchising and ready to buy a franchise? If so, you are in good company. In a recent poll on franchisebusiness. com.au which asked ‘Are you ready to buy a franchise?’ almost 40 per cent of participants said yes…

• 19.47% plan to buy a franchise and are seeking further information • 20.35% are committed to franchising but yet to choose a brand • 18% are sourcing the finances to get the deal over the line • 8.85% are ready but looking for a location • 32.74% of participants are in the research stage of the buying journey Speed up your franchise search and boost your research process... visit franchisebusiness.com.au.

INSIGHTS

TIME TO

TRIM THE FAT

AUG/OCT 2019 | 16 | WWW.FRANCHISEBUSINESS.COM.AU

Fast food and takeaway brings in a $20.1 billion income across Australia’s 26,194 businesses.

What’s the immediate future for this franchise favourite?

T

he five years from 2014 to this year have seen a 3.3 per cent annual growth in the sector.

However the growth prediction drops significantly through to 2024, with an almost static industry expected to grow just 0.5 per cent.

So if you’re looking to invest in a franchised fast food brand, what can you expect?

Analysis firm IBISWorld’s latest food report, Fast Food and Takeaway Food Services in Australia, April 2019, shows that consumer health consciousness is making healthier food a key ingredient in the sector. There’s been a significant shift in consumer attitudes towards fast food and healthy eating. This can be observed in the brands that have entered the market over the last few years, and the changes in menu that the fast food stalwarts have introduced to keep in tune with consumer trends.

The bad boys of the takeaway menu are sugar and fat and there’s been an effort among some of the traditional champions of fast food to limit their use and provide healthier alternatives.

And there will be further changes to come as competition hots up and takeaway brands need to adapt to gain market share from an increasingly demanding customer.

The market remains highly competitive, both from other fast food brands, from the development of ready meals as a supermarket offering, and from restaurants and cafes.

There’s a healthier focus on the food at convenience stores too, with 7-Eleven, for instance, adapting its merchandise offerings to provide healthier food options.

A consumer taste for good quality product has also affected the takeaway business.

In the April 2019 report, author Bao Vuong writes, “Australia’s food culture has significantly changed over the past five years. Food service outlets have been increasingly emphasising premium meals and takeaway options.

This shift, combined with foodie culture, has increased the number of smaller operators differentiating themselves based on quality.”

While major players have adjusted, some have not been able to change their brand

image, he suggests. “Consequently, major players such as McDonald’s have struggled to keep up with the strong growth of small premium operators such as Grill’d.”

Higher prices that deliver stronger margins in premium brands or gourmet meals, combined with well-controlled costs and food wastage, have boosted profit margins. But as growth is expected to be limited, its impact will be reflected in profitability over the next five years. Profit margins have been squeezed in some cases to encourage an increase in market share.

Wages and rents in particular are a challenge in this industry; both have risen as costs for franchisees and greater competition for sites is expected to drive rising rents over the next five years, suggests Vuong.

FOUR EXTERNAL DRIVERS 1. As health consciousness increases there will be a benefit to the premium, healthier categories in fast food rather than an overall decline in spend.

2. Real household discretionary income is expected to increase.

3. Restaurants are likely to attract more of a consumer’s dollar and expand their choices with an increased takeaway range. The older median age of the Aussie population translates to the increased demand for healthy food.

4. Consequently, traditional takeaway items are dropping as a percentage of industry revenue although the classic dishes (pizza and burgers) remain solid performers in the sector.

RESPONDING TO COMPETITION There may be businesses that exit the fast food scene as competition hots up, but Vuong suggests there will be plenty of new players eager to step into the healthy eating arena. Expect to see more stores as the well-established chains extend their footprint. Both of these developments will

AUG/OCT 2019 | 17 | WWW.FRANCHISEBUSINESS.COM.AU

INSIGHTS

push up employment numbers across the sector.

There will be some restructuring taking place, he predicts.

“In an attempt to improve profit margins, larger players are forecast to undertake refranchising, selling licenses for corporate-owned stores to new or existing franchisees.

“Refranchising stores is a trade-off for franchisors as it decreases marginal costs significantly but also loosens the franchisor’s control over the store network.”

Franchised businesses also face the challenge of adapting to shifts in pricing sentiment as trading conditions change.

WHAT ABOUT CHANGES TO FORMAT? Kiosks have been a popular solution to the difficulties of finding great locations at reasonable costs in shopping centres.

Some brands have introduced mini versions of their popular outlets, such as Walker’s Doughnuts. Others have resized their models and added small store formats to their options for franchisees – for instance Oporto with its Pequeno small store. Another option in the fast food arena is the mobile truck or van, an increasingly popular channel for takeaway distribution that offers flexibility in menus and operating hours: Boost Juice has been the latest business to introduce a store on wheels, the Boost Mobeel.

What these options share are flexibility in location, reduced ongoing costs and a much lower investment level for franchisees.

Disruptors like Uber Eats and Menulog have had significant influence on the fast food landscape.

A multimedia, high-tech approach is standard now in fast food firms.

WHO ARE THE LEADERS? We think of the household names when we consider fast food but less than 50 per cent of the business is given to major brands. Among these McDonald’s is the dominant player, taking the lion’s share with one quarter of the market. It’s still the leader despite the challenges raised above but over the past five years its revenue performance has fluctuated. Its nearest competitor, Competitive Foods, which owns the Hungry Jack’s brand, takes second slot for market share with just 8.6 per cent.

Yum! Restaurants Australia is the franchisor for about 430 KFC stores in Australia; another 200-plus are operated by major franchisee Collins Foods. The Australian subsidiary of the US based business garners 6 per cent market share.

Domino’s Pizza Enterprises Australia franchises stores across Australia and New Zealand, and a handful of northern European countries. The pizza brand accounts for 5 per cent market share in Australia and the franchisor’s profits have been boosted by its implementation of digital ordering technology and improved delivery service.

Craveable Brands operates three chicken fast food brands: Red Rooster, Oporto and Chicken Treat. The combined networks deliver a 4 to 5 per cent market share.

Collins Foods manages some KFC stores (as mentioned above) and has launched four Taco Bell outlets. It has a 3 to 4 per cent market share. The business is expected to further develop the Taco Bell chain.

Subway has been in Australia 31 years and now has more than 1400 outlets across the country, bringing it about 3 to 4 per cent market share. n

Source: IBISWorld Fast Food and Takeaway Food Services in Australia, April 2019

TECHNOLOGY TALKS Innovation has been a driver for fast food franchisors, particularly among the bigger, more established brands. Domino’s has led the way in app development, focusing attention on customer convenience; McDonald’s has introduced delivery.

AUG/OCT 2019 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

BE BOLD, BE PART OF A LEGACY Partner with Ella Baché to become part of Australia’s largest beauty business network.

YEARS

Are you ready to make your next Bold Move with Ella Baché?

65+

Market leading iconic brand established in Australia for over 65 years

Strong and unique business formula, proven years of success in the skincare industry

Ongoing support and training to enhance performance and profitability

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A brand committed to education, innovation and empowering our network

100% Australian owned and run with over 150 locations nationwide and growing

Contact Ella Baché and start designing your life today!

ELLA BACHÉ BUSINESS - E. business@ellabache.com.au T. ( 02 ) 9432 5054 | W. ellabachefranchise.com.au

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THE LIST

Study Notes

Nine education franchises

worth doing your homework on.

I

nvesting in education is increasingly popular among Australian parents.

So why not tap into the learning culture and buy a business that will fuel your future, and at the same time help the next generation of Aussies fulfil their potential?

Check out these nine brands, which are focused on spreading knowledge and learning skills.

Kumon

LCF Fun Languages

MindChamps

Mathnasium Math Learning Centers

The story of MindChamps began in Sydney in 1988 when Vietnamese-born Australian David Chiem applied his own acting and film-making experience to the challenge of transforming education. At its heart MindChamps has a 3-Mind philosophy based on extensive research in neuroscience, child psychology and theatre. The goal of the program is to release the potential in each child by unlocking their natural creativity and problem-solving capabilities.

It was further developed in the demanding educational environment in Singapore, where its preschool program has 32 per cent of the market share.

The program was brought back to Australia and there are now 12 MindChamps Early Learning Centres open across Sydney with further growth planned.

As its name suggests this franchise is all about numbers.

Mathnasium is a maths-only tutoring and learning centre that teaches students to think like mathematicians. Founder Larry Martinek was an experienced teacher and education consultant in the US who had a mathematically-gifted son. After spotting a disconnect between students’ basic skills training and the curriculum they would later need to work on, Martinek developed a complete curriculum from preschool to year 12.

Students are personally assessed and provided with a customised learning plan.

The Mathnasium Method has been in use for more than 40 years; the tutoring business began in 2002 and was franchised in 2003.

Now there are opportunities to develop this brand in the Australian marketplace. Franchisees will be developing the business and employing tutors.

It all began in 1945 when high school maths teacher Toru Kumon created worksheets for his son who was underperforming in maths. The focus was on calculation skills that would set up the student for independent learning. As other children in the neighbourhood started to study and improve their academic results, Kumon opened up maths centres in Osaka in 1958. Today the international business is teaching English and maths to school-age children across 51 countries.

This highly structured learning system involves a weekly centre-session for instructors to observe children’s working processes, and daily homework.

NumberWorks’nWords

Preschoolers and primary school children up to the age of 12 learn French, German, Italian, Mandarin or Spanish with LCF Fun Languages, a business developed in the UK 25 years ago. It’s been operating in Australia for the past 12 years, taking its language lessons to schools and childcare centres country-wide.

The focus is on learning through play – lessons include drama, storytelling, technology, songs, craft and games – with a goal of giving children the confidence to communicate in a new language.

Franchisees don’t need to have a second language themselves; bilingual and native speakers may choose to teach some of the lessons, but it isn’t required.

This after-school tuition model aims to put back the fun into maths and English. Because it relates to 11 levels of the school curriculum it is able to complement what students are learning at school.

NumberWorks’nWords caters for both underperforming students and high achievers, delivering an individualised approach to learning.

NumberWorks’nWords was founded in New Zealand in 1984. Five years later the franchise expanded to Australia, and it’s also in the UK and Singapore. Today it is part of the New Zealand-based global Crimson Education business which offers various pathways to academic success including university and medical school admissions support.

AUG/OCT 2019 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

build your successful business career AUSTRALIAN FRANCHISOR OF THE YEAR - TWICE!!

POOLWERX HAS THREE GREAT OPTIONS TO GET STARTED: Are1.you looking to build afrom positive future for yourself, not your current Grow your business a single-van operation employer? Are you ready to be a business leader with your own multi2. Acquire an existing business and take it to the next level franchise operation? Do you want to translate your business acumen into 3. Acquire multiple businesses and territories personal success?

Are you looking build a successful for yourself,tonot your Franchising withtoPoolwerx gives youfuture the opportunity own andemployer? operate Do you want to spendwhilst morealso timehaving at home your family, not outofworking? your own business, thewith support and stability a Franchisingrecognized with Poolwerx you you. the opportunity to own and operate nationally brandgives backing your own business your way, whilst also having the support and stability of a If you’re ready to takebrand the next step you. towards owning your ownthe franchise, nationally recognized backing If you’re ready to take next step chat to the teamyour at Poolwerx today chat about distinct career paths. towards owning own franchise, to their the team at Poolwerx today.

CONTACT US TODAY Poolwerx Global Support Centre 1800 245 447 poolwerx.com.au/franchising joinourteam@poolwerx.com.au

THE LIST

ScopeIT Education

The goal is simple: to provide students with the skills to harness their imagination through technological innovation and help future-proof their employment prospects.

The ScopeIT Education franchise brings a world class digital tech curriculum into Australian school rooms, providing instructors and lesson plans, as well as equipment, software and internet. Students learn to code, create apps and websites, study robotics, electronics and 3D printing and are educated about digital safety.

There are also after-school and holiday clubs and virtual classrooms for rural and remote schools.

The business is Australian owned and operated.

Seriously Addictive Mathematics

An award-winning curriculum based on a renowned education program, Singapore Math. The program for students aged four to 13 years old is classroom based with self-learning worksheets. The program applies mathematical constructs to real world situations, with maths concepts delivered through a three tier approach: concrete, pictorial and abstract.

The modular programs can be customised to a child’s needs and tailored worksheets encourage independent learning and self-discipline.

The Seriously Addictive Mathematics (S.A.M.) program began franchising in 2013 and is now taught in more than 160 centres across 16 countries.

The Music Bus Here’s a chance to get on the road for a musical journey with young Aussies. The Music Bus is a tuition program for primary schools, filling a gap where schools are unable to offer music lessons or supporting existing musical learning.

The high-tech air-conditioned bus is fitted out as a mobile musical classroom equipped to teach guitar, keyboard, singing, drums, ukulele. Bus Rock is the sole national rock band program of its kind, giving selected students the chance to rehearse and perform in a national competition.

Franchisees will be hands-on and need a passion for music, a driving licence and a Working With Children check.

Tutor Doctor

Home tutoring is a billion dollar industry and Tutor Doctor is tapping into the potential. Established nearly 20 years ago, the business is about making a difference, about making it easy for struggling students to gain educational advantages.

Tutor Doctor provides one-on-one tutoring on any subject at the student’s home. There’s a process for getting to know the student so the correct learning strategy can be identified and the perfect tutor matched to students based on their personality and interests.

Tutor Doctor franchisees don’t need to be experienced educators or teachers because they focus on managing the business and the professional tutors.

AUG/OCT 2019 | 22 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

A QUEST

FOR PASSION How did a part-time job turn into a lifetime passion for this Quest Apartment Hotels franchisee?

By Nick Hall

W

hen Melbourne university student Catherine Mapperson took a role as a casual hotel receptionist, she never expected to fall in love with the industry.

“I started with Quest not out of any desire to work in the accommodation industry. I came back to university to finish off an honours degree and needed a weekend job that would pay penalty rates,” she jokes.

More than 20 years on, Catherine is now the face of a new generation of Quest Apartment Hotels franchisees, helping to shape the evolving accommodation sector.

Her story is one of entrepreneurship and opportunity. From humble beginnings as a receptionist, Catherine quickly rose through the ranks to become property manager, before making the leap to franchisee.

“It was originally going to be just a 12-month thing, but because Quest was such a fast-growing company at that time, opportunities just kept opening up,” she says.

“I had to make a decision and I thought the whole Quest model looked like a good direction to go with.”

Modest to begin with, her original 15-apartment property in South Yarra set the foundations for what has become a lifelong franchise journey with Quest.

Quest St Kilda Road

Catherine Mapperson AUG/OCT 2019 | 24 | WWW.FRANCHISEBUSINESS.COM.AU

QUEST FOR SUCCESS While the inner-city property provided the perfect stepping stone into franchising, the small team and pint-sized outlet were never going to be enough to satisfy the inspired entrepreneur. After four years operating the business, Catherine made the decision to upgrade, adding a second franchise to her portfolio.

The addition saw her team of three staff grow rapidly to accommodate the new Quest on Dorcas site. But despite it all, Catherine reveals she never once felt overwhelmed by the jump in responsibility.

“The Quest format for franchised businesses is pretty straightforward, and that’s the real beauty of the system,” she says.

“It’s not just a case of ‘you buy the business and here’s the system’. There is ongoing support, research and development for the life of your journey with Quest and I think that is the thing that stands the business in good stead; that it’s backed by proven success.”

Catherine is living proof of that.

Since launching her first site back in 2000, the franchisee has gone from strength to strength, which she puts down to a clearly defined set of values.

“If you understand the principles and values behind the business, your chances of success are infinitely greater.”

“It isn’t just good luck or being in the right place at the right time, it’s about good solid structures and a framework for sustainable success.”

Quest St Kilda Road facade

INDUSTRY CHANGES

Quest St Kilda Road Studio Executive

Where Catherine has the drive, Quest has the vision. The multiunit franchisee says the brand’s willingness to adopt new technologies and commit to innovation is something that has allowed her business to stand the test of time.

“I’ve seen a lot of different uniforms, logos and branding, so visually I’ve been there for those updates over the years,” she jokes.

“I think that’s one of the exciting things about being part of a group like Quest. You always have people saying, ‘How can we grow and develop ideas to improve?’ You’re not solely responsible for keeping the brand moving forward.”

Like most industries, the last decade has seen the accommodation sector experience a period of rapid evolution, highlighted by a rise in digitisation.

It’s a far cry from her early days at South Yarra, Catherine reveals.

“We used ledger books at the start, where we would rule in bookings with a grey lead pencil, and if we needed to amend them, it meant getting the eraser out. We didn’t have internet, no emails, all bookings were done over the phone.”

While both Catherine and Quest have come a long way since then, the foundations that first attracted her to the brand have remained strong. The Melbournian explains that even after 22 years, she doesn’t plan on going anywhere.

NEW BUSINESS In fact, earlier this year, Mapperson successfully extended her portfolio for a third time, launching her largest venture to date: AUG/OCT 2019 | 25 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

Quest St Kilda Road.

“Because I opened Quest on Dorcas as a greenfield site, I forgot about some of the pain and stress of opening a new business,” she says.

“Not that I underestimated that St Kilda Road was going to be a challenge, but it’s certainly been extremely busy.”

What has made the experience easier, however, is geography.

Catherine’s latest venture is less than 2 kilometres from her existing location, meaning the hands-on franchisee can cover all bases at once.

“I believe that my strength is being involved in properties, in a very hands-on, operational role.”

“Because the property has only recently opened, the bulk of my hours are spent at St Kilda Road, but I’m still very much active in my work with Quest on Dorcas. Obviously, as the new business beds itself, the idea is that I will be able to be across the two locations evenly.”

While Catherine’s Quest experience provided her with the tools to hit the ground running, Quest St Kilda Road is a big step up from her previous operations. Her existing franchise, Quest on Dorcas houses 58 apartments, whereas the St Kilda Road venture has 104.

“There are long hours involved; in the first month or two it’s not uncommon to be working 15 to 20 hours a day, but that foundation period is the most important time to be focused and make sure that you really set your business up for prolonged success.”

The boost in size has been a challenge, Catherine admits, but taking on new challenges is something the multi-unit franchisee isn’t afraid to do.

LEADERSHIP Aside from being a successful entrepreneur with Quest, Catherine also sits on the Victorian state advisory board for the Accommodation Association of Australia. It’s an all-encompassing role that sees her, along with other industry delegates, shape the future of the sector in Victoria.

“We look at where the needs are, how we can work with government and other bodies to address the challenges our industry faces, as well as bringing tourism and guests into our state. You are far more powerful when you come together as a whole industry with one voice and say ‘this is what we need to address’.”

Taking on the responsibility of representation is not a new premise for the Victorian franchisee. Mapperson also spent five years on the Quest Franchise Advisory Council, acting as the link between head office and operator.

“I was really honoured to be part of the Franchise Advisory Council, because you’re not just there to speak for your own interest, but for what is best for the brand and the whole Quest network,” she says.

“As a franchisee you know what is important to you, but as an advisory council member, you have to make sure that the experiences from all franchise members are communicated.”

It’s been a long journey for the casual receptionist-turned-franchisee. Catherine admits she has learned a lot in her time with Quest and she sees the business from all aspects.

“It’s easy for us to think our universe is the correct one, so it’s eye opening to see what challenges each department or function of the business is facing.”

However, for all the industry updates and internal advancements, if she had her time again, Catherine reveals she wouldn’t change a thing.

“The foundations of Quest – hard work, honesty, commitment and dedication – have not changed. If you value your core business, where that comes from, what that does for your brand and what your brand can do for that market segment, it helps you to have a clear focus of where you need to be.” n

Quest St Kilda Road

Quest St Kilda Road one bedroom apartment living area

Quest St Kilda Road gym

Quest St Kilda Road two bedroom apartment bathroom

AUG/OCT 2019 | 26 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

INDUSTRY EVOLUTION The automotive industry has changed a lot in the last 70 years, and Aussie heritage franchise JAX Tyres has been there through it all.

By Nick Hall

“W

e need agility to service all technologies moving forward, especially in the automotive race to zero-emission targets.”

That’s the focus that is driving JAX Tyres CEO Steve Grossreider to revamp the brand’s approach to innovation, technology and training.

Since first launching in Sydney in 1949, the tyre experts have become a staple of the Aussie automotive industry, with more than 80 locations nationwide.

Now, with the industry on the brink of an electric evolution, Grossreider and the JAX team are investing heavily in ensuring franchisees remain ahead of the curve.

The CEO’s strategy isn’t simple. It takes guts to revolutionise a heritage brand, not to mention clarity of vision.

Inside Franchise Business sat down with Steve as he outlined the challenges and opportunities facing the evolving sector, explaining how he plans to take JAX into the future.

Q: CAN YOU TELL ME A LITTLE ABOUT WHAT JAX TYRES HAS BEEN DOING LATELY? A: Since the start of this year, JAX Tyres has established EV charging stations in a number of our stores across the country, including Woolloongabba in Queensland, Kwinana in Western Australia, and Warrawong in New South Wales. These stations are part of a 2019 nationwide roll-out to future-proof our stores in partnership with electric car utilities experts, EVolution. This is the latest development in our exciting coast-tocoast expansion and growth in the electric energy space.

Q: THE AUTOMOTIVE INDUSTRY IS ONE THAT IS DEEPLY RELIANT ON NEW TECHNOLOGY; WHAT IS JAX DOING TO ENSURE ITS FRANCHISEES ARE PREPARED FOR THE FUTURE? A: JAX is already a leader in the digital retail space. This year saw an upgrade to our existing omni-channel as we continue to focus and invest in providing an enhanced customer experience throughout

our network and more focused training for our franchisees. This year will see a full training facility constructed in our Sydney head office that will be a full replica of a JAX retail store, which will allow regular structured training for our franchisees and ensure all franchisor staff are trained around supporting the franchisees with our CX strategy. In addition, we will be making significant investments in ensuring our network is fully equipped and our franchisees are trained to service and maintain new vehicle technology, including the emerging electrical vehicle market.

Q: DO YOU PREDICT ONGOING INDUSTRY CHANGES SUCH AS AUTONOMOUS VEHICLES AND ELECTRIC-POWERED CARS WILL PRESENT ADDITIONAL CHALLENGES FOR JAX TYRES FRANCHISEES? OR AN OPPORTUNITY TO STAND OUT FROM THE CROWD? A: We definitely see diversification through EV and autonomous vehicles as a good thing for the automotive industry. We’re already taking steps to ensure JAX Tyres is ahead of the market in providing those solutions for customers in this space and JAX believes this fits well with our current operating model.

We need agility to service all technologies moving forward, especially in the automotive race to zero-emission targets. JAX Tyres has a very solid service network through our best-in-class franchisees and longstanding relationship with our trusted group of global top-ranked brand suppliers.

Through these relationships, JAX Tyres will keep its position as a leading innovative technology-driven retailer and our commitment to delivering market leading customer services.

Q: JAX RECENTLY OPENED ITS FIRST WA OUTLET; WHAT DOES COAST-TOCOAST REPRESENTATION MEAN FOR THE BRAND? A: Coast-to-coast representation is a significant milestone for the JAX Tyres brand and our growth strategy.

We started with our first store in Leichhardt, New South Wales. Nearly 70 years later, we’re thrilled to expand our strong retail network to 87 stores across

the country, with our Kwinana store opening in Western Australia this year.

This year will see the establishment of a strong national footprint that will enable JAX to retain its competitive position and continue market growth through its ongoing expansion.

Q: ARE THERE ANY OTHER EXPANSION PLANS ON THE WAY FOR 2019?

A: In 2019, JAX Tyres’ business strategy will focus on two key areas: firstly to expand nationally with our JAX installation footprint to maximise our digital omnichannel; and then explore international with strategically selected expansion opportunities.

Q: CAN YOU TELL ME A LITTLE ABOUT THE BEST-PRACTICE FOR FRANCHISEES? A: Our franchise platform is a highly disciplined vehicle for consistently developing the service proposition and retailing the core product. Our franchise platform is made up of a number of key components that all work together to create our unique franchise value proposition. Each of these components is measured to allow the identification of best practice, which is then shared across our network through our operational structures and our national conferences.

Q: WHAT ADVICE DO YOU HAVE FOR FIRST-TIME FRANCHISEES? A: As mentioned above, our franchise platform is a highly disciplined process and when adhered to, the business reaches an optimised level at a much faster rate. So my advice would be to follow the business model with a level of discipline and work closely with the franchisor to achieve mutual success.

Q: HOW DO YOU VIEW THE CURRENT FRANCHISE MARKET? A: The current franchise market is going through some dynamic changes that will cause some short-term pain through adjusting models to align with new legislation. I strongly believe that in the long term we will have stronger franchisee platforms and great alignment with franchisors that will allow sustainable growth into the future. n

AUG/OCT 2019 | 28 | WWW.FRANCHISEBUSINESS.COM.AU

We are also happy to accept applications from people with franchise and/or business experience who are interested in the benefits of owning 100% of the business.

LEADERSHIP

THE DOMINO'S EFFECT When you love a brand so much you just keep finding fresh new challenges.

That’s how Stuart Preston notched up 25 years with Domino’s.

By Sarah Stowe

I

t’s not just Domino’s chief Don Meij who started his stellar career as a pizza delivery driver.

Stuart Preston is celebrating 25 years at Domino’s and reveals his career so far has spanned many roles, from delivery driver to franchisee to head office support.

“I started back in 1994 as a delivery driver when Domino’s was known as Silvio’s Pizza. I was in year 11 at high school. It gave me extra money, I got my Ps, and I thought this was an easy job – delivering pizza listening to music.”

25 YEARS AT DOMINO’S When the franchisee he was working for started expanding, it was the first step in a whole new career. Stuart grabbed the opportunity offered to take on a job as manager-in-training.

“The only way my dad would let me leave school was if I had a full-time job,” he says.

The boy from Newcastle had his first main role as store manager. By 2000 he was already an area manager handling seven Sydney stores, then he took on a national compliance role. Before long it was clear to Stuart his immediate future lay in tackling the challenges of being a franchisee.

“There were so many good stores, so in 2002 I bought my very first store in Toronto, New South Wales. Then I grew to eight stores in the Newcastle and Hunter region.

“As an area manager you are still in the stores but you are working for someone. I really wanted to be my own boss and push myself instead of being told what to do every day. I backed myself.

“Being a franchisee there are so many moving parts: the technology, financials, marketing, promotions.”

Technology has been crucial for Domino’s and just in the back office Stuart has seen the business develop from book-based admin to fax, emails and now it’s all cloud based.

Stuart bought and sold his franchises, and was then tempted back into head office as national operations manager.

“What I bring to the role is knowledge of the business. I understand from a franchisee’s standpoint what they are going through emotionally and in business.”

TOP TIPS FOR FRANCHISEES So what have his 25 years at Domino’s and his time as a franchisee taught him?

HOW TO BOOST PROFITABILITY “The main drivers for business are food, labour and mileage. As a franchisee you have to control the costs. Employees don’t see the workers comp, rent, payroll tax, gas and electricity that you pay out of an order. If you teach managers that, it can flow on to other team members.”

Financial transparency is crucial, Stuart says.

“You’ve got to show your numbers to your team. It’s a guiding principle.”

He believes there are real benefits to introducing a bonus scheme.

“Lots of franchisees pay managers a good wage but don’t have a bonus structure. I had weekly bonuses motivating staff and this makes them more money focused.”

HOW TO FIND THE RIGHT FRANCHISE “Franchising has so many brands out there now, if I was looking to buy, I would do heaps and heaps of research. I would look at the competitors, two or three, and speak to franchisees in the business who are a really good sounding board.”

WHAT IT TAKES TO BE A GOOD FRANCHISEE “If you like going home at the end of your shift at 5 pm, don’t be a franchisee. You can’t be a time-watcher. It doesn’t work.

“You go through hard times and face tough competition but you never give up. Being a franchisee gives you a lot of great rewards, that’s why I love the business.” n

AUG/OCT 2019 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

“If I was looking for a franchise I’d want…

DRUGS Drug-safe workplaces

S G U R D A business with strong ethics, social values, good ROI and low entry costs

An asset I could grow for my future, but a legacy I could leave for my community

One of the best 30 franchises nominated in 2018 by the Franchise Council

A franchise that allows me to become an essential link in a National team

s e c pl a

A low royalty plan.

(We don’t have any royalties! Zip, Nil, Zero, None) **

k r o w e

World’s best-quality products at low purchase price (cost of goods)

f a s g ru

High profit margins with no limit on your earning capacity or client size.

D

A franchisor support team that understands how to build a success story A franchisor support team that believes “MAKE THE FRANCHISEE FIRST”

Where could I find an opportunity like that?

Call us now and find out why we’re market leaders 1300 378472 Visit www.team.drugsafe.com.au and check us out….before you apply.

Send an email to apply@drugsafe.com.au (** of course some T’s & C’s apply)

LEADERSHIP

A LIFE IN

THE FAST LANE In the burger world, bigger means better, and with a new outlet just unveiled, Bondi natives Milky Lane are looking to take a bite out of the sector.

By Nick Hall

S

ince opening its first location in 2016, Milky Lane has become synonymous with the extravagant edibles that Instagram influencers travel miles to photograph.

With a menu emblazoned with over-thetop desserts, cocktails and burgers, all set to a backdrop of hip-hop, the brand has struck a chord with millennials.

So strong is Milky Lane’s connection to the market, the brand has even taken occupancy in Sydney’s former clubbing district Kings Cross, promising to blur the lines between bar and bistro.

“We’re super excited for the Kings Cross ‘Late Night’ concept. We’ve partnered with a great team who excel at not only a dining experience but also bringing some of the world’s biggest artists to Australia,” Pete Haselhurst, Milky Lane managing director says.

Taking the reins of the entertainmentcross-dining destination is experienced events promoter and prominent Kings Cross personality, Rodd Richards.

The new franchisee says he found a synergy between his ideal business model and the values Milky Lane has established over the last few years.

“I have been an event and music promoter in venues across Sydney and Australia for over 20 years. I wanted to

apply my music and event insight into a permanent experience,” he says. “It doesn’t sit within any restaurant style that I have ever worked with and the vibrancy attracted me to this. It’s not just about the burgers but about the whole ethos of the place.”

The new Kings Cross location is one of seven now under the Milky Lane banner, with Haselhurst revealing eight additional sites have been sold, including two already under construction in Newcastle and Brisbane.

BOUTIQUE ATTRACTION It’s been a categoric rise for the late-night burger bar concept, which Haselhurst puts down to the boutique nature of the Quick Service Restaurant (QSR) market.

“It’s exciting, people like boutique and it also holds value and quality,” he says. “We focus on experience and deliver it throughout the Milky Lane journey.”

There’s a number of working parts that go into building the Milky Lane experience, and Haselhurst admits he doesn’t skimp on quality.

“Our stores each have a world-class design team behind them and are uniquely put together by Steel + Stitch before we fly the world’s best graffiti artists in to work on our famous art pieces and murals.”

It isn’t just a visual experience either.

The iconic feeds are created by Gordon Ramsey-trained head chef Scott Findlay, with the shakes and cocktails put together by two-time Australian and New Zealand flaring and mixology champion, Robbie Stowe.

Haselhurst says it’s all part of the boutique appeal, something that has helped the brand identify a clear path in the congested dining landscape.

“We’ve always seen Milky Lane as a boutique franchise model, and we’ve limited the number of stores available to only 40 throughout Australia to maintain Milky Lane as a destination experience.”

That focus on destination dining has paid off so far. Take a look at the brand’s over 100,000 Instagram followers and it’s not hard to see that the message is getting through.

SOCIAL MEDIA Getting social plays a big part in the Milky Lane model, with Haselhurst revealing there is more method than madness when it comes to posting.

“Social media is everything for Milky Lane, not only do we use it to drive our products, but we also use it for our research and customer feedback,” he says.

“We use our social channels to dictate

AUG/OCT 2019 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

where we open, and our audience tells us where they want Milky Lane. Some may see this as risky, but it’s been working extremely well for us.”

Using social media for more than just marketing is a premise that many franchises are now adopting. However, in the QSR space, the market has been slow with the uptake.

Haselhurst believes that for brands to succeed in the contemporary environment, having a strong social following is more than just a “nice-to-have”, it is essential.

“Burger brands have dominated the QSR landscape for over 75 years, the challenges of consistency and quality have always been primary focuses when establishing a brand but today our biggest challenge is ‘expectation versus reality’, and this is driven by social media,” he says.

For a brand with the growth rate of Milky Lane, the potential for variance between what is posted online to what is served instore is huge. Haselhurst acknowledges that in today’s day and age

of instant gratification, one bad customer experience can loosen the screws.

“This has compelled us as a group to improve our training systems so that we are more confident with every dish, drink or dessert that leaves our kitchens.”

INFLUENCERS It’s not the only innovative investment Milky Lane is making. The strong connection to the millennial market has seen the brand leverage a multifaceted approach to customer retention, including the use of influencers.

From chart-topping rappers like Coolio, to international fitness models such as Lauren Simpson, the brand knows a thing or two about celebrity street-cred.

“Working with influencers is something we strongly believe in – 2019 is a digital space where if you aren’t leading the race online or being creative, you’re falling behind,” Haselhurst says.

Milky Lane owners Scott Findlay, Patrick Killalea, Pete Haselhurst, Christian Avant

The return on investment has been extraordinary. Working on contra deals, offering food and drinks in return for content has grown the brand’s presence enormously, with little initial spend.

“The product cost to us is generally quite small and we can reach up to 1 million people around the world (we aren’t global yet but brand awareness is key in the growth stages also) and have noticed that this converts to sales for us, instore,” Haselhurst says.

“We have guidelines that we send to each person before we work together for the first time and we maintain these relationships throughout the year. It’s a coexistence that works well for us both.”

A MILKY LANE FUTURE While the brand has come a long way in just three short years, Haselhurst believes the best is yet to come.

“We have a very exciting future ahead of us; our aim is to have opened all 40 Australian locations by 2021,” he says.

Three additional New South Wales stores will open in 2019, with the brand now focusing on Queensland and Victorian expansion, but Haselhurst isn’t ruling out international expansion.

“We have a huge demand for our brand internationally and we look forward to overseas expansion in 2020 into multiple regions and countries.” n AUG/OCT 2019 | 33 | WWW.FRANCHISEBUSINESS.COM.AU

LEADERSHIP

THE WATER BUSINESS New logo, new vision, new future…

W

hen Swimart’s executive team announced a new three-year rebrand strategy to the nearly 200 delegates – including 65 Australasian franchise partners – gathered in Malaysia for its 2019 conference, it heralded an exciting phase for the 36-year-old pool and spa franchisor.

services and advice. And while the brand is well-known, we knew it was time to evolve.”

CUSTOMER RESEARCH INSIGHTS

What started out a year earlier as a business and marketing audit had culminated in a clear vision to cement Swimart’s position as a category leader.

Spearheaded by executive officer Rick Graham, marketing manager Nathan Hallahan and franchise development manager Alex Johnson, the announcement also coincided with the official reveal of Swimart’s new logo.

Swimart started the re-branding process last year by conducting research into the personality types of its current and future customers. The goal was to better understand what types of customers were attracted to the brand, as it would then give the franchisor valuable insights into why they behave the way they do.

“The data has since given direction to all brand cues including instore design and layout, staff training, website and social media, category treatments, and all aspects of customer interaction,” explains Hallahan.

“After analysing our target customers’ path to purchase, we now have a clearer idea of where our marketing spend should be and the types of promotional activities we need to invest in.”

“The theme of this year’s conference was ‘From Good to Great’ and that journey begins with the rebrand,” explains Hallahan.

BRAND STRATEGY AUDIT WITH INDUSTRY LEADERS

BACKSTORY TO ONE OF AUSTRALASIA’S LARGEST POOL AND SPA FRANCHISE NETWORKS Swimart was founded by ASX-listed Waterco Ltd in 1983 so that more people could have access to the world’s best water filtration products. What started as a single pool retail store in the Sydney suburb of Killara has grown into 75 franchise outlets across Australia and New Zealand, and a fleet of more than 250 mobile service vans.

“After 36 years, we know everything there is to know about pools and spas – and that’s why we make pool care easy,” says Hallahan. “Swimart sells pool and spa solutions, from an extensive range of supplies and chemicals, to trusted pool

Earlier in 2019, Swimart’s executive team held a brand strategy meeting to gain a deeper insight into one simple yet critical question: why does Swimart exist? Swimart invited a mix of franchise

Alex Johnson

partners, product suppliers and agency associates.

“We got down to the nitty gritty, like ascertaining who the “real” Swimart customer is (the one who takes responsibility for the pool as opposed to the one who is responsible for the pool),” Hallahan explains. “We talked about category tensions (unhealthy water) and barriers (complex chemical interactions and product information) and what it is that Swimart sells (ultimately, peace of mind). We also workshopped the company’s marketing assets and the journey a brand goes on.

“It was an eye-opening experience for everyone where we ultimately came to a single-minded proposition about the brand.

This became the foundation for what the brand has and will continue to evolve into.”

Swimart also concluded that it is not in the pool business but the water business. “There is a powerful simplicity in the molecular make-up of water,” says Hallahan. “Water doesn’t lie.”

From a new business perspective, Hallahan says this is an exciting time in the brand’s life cycle.

“We’re investing in the brand for future growth and working as one network on a strategy totally focussed on the customer needs, so they can love life in their pool, which is great for anyone looking to become part of Swimart’s franchise family.” he says. n

Nathan Hallahan

AUG/OCT 2019 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

Rick Graham

LEADERSHIP

IT’S NEVER

TOO LATE!

The ideal time to buy a franchise is when you are ready. Franchisees who have grabbed the opportunity to shape their future later in life are showing that age is just a number.

By Sarah Stowe AUG/OCT 2019 | 36 | WWW.FRANCHISEBUSINESS.COM.AU

COLIN AND GAEL BENZIE, 74 and 66, Muffin Break

CAFE CULTURE ATTRACTS FORMER RETAILER

“M

y wife had a brilliant idea … let’s buy a Muffin Break.”

Colin says the suggestion came completely out of the blue but it was perfect timing. “I was bored with selling houses,” he says.

Real estate had been Colin’s career for five years but it was never a great love.

He had previously spent 25 years owning and operating an independent menswear store in Sydney before relocating to Tweed Heads.

So when his wife Gael made her suggestion, Colin was more than ready to try something new.

They bought the original Muffin Break store in Australia at Coolangatta.

Then five years later they moved on and bought a brand new site in Tweed Heads.

Looking back, Colin can laugh at the initial trials of operating a cafe.

“We thought it would be fun to have a coffee shop. We didn’t realise it was as hard as it is. It’s full on from when you start at 6, till the shop closes. There’s always something to be done.

“In our two weeks at instore training we said to ourselves, ‘What have we done?’ We thought, ‘We’ll never handle this.’ It’s daunting, the first 12 months.”

Colin knew what it was like to run a business and he’s not afraid of the hard work – he had been a solo operator for all those years in menswear. What was refreshing was to have staff to work with, and a support team to back him up if needed.

“Muffin Break have been very good. If there’s a major problem there’s someone the staff can ring. If we go away, a consultant is just a phone call away. If you’re an independent you don’t have that luxury.”

What he loves about being in a Muffin Break franchise is that he can run the store as he sees fit.

“The beauty of the business is that you can earn as much as you want to, or go for a more relaxed lifestyle. When we first

bought Coolangatta I was doing 65 to 70 hours a week, Gael was working a 40 hour week.”

The profits were in accordance with the time and effort they put in to the business.

It’s a different story now Colin is only at work four days a week. But that’s fine with him.

“I’m 69 now. I’m not capable of doing what I used to do. I’ve got good staff and I can afford to take it easier. I don’t need to earn the same.”

Despite a natural slow down, Colin and Gael have proved they run an exceptional business, taking out the Muffin Break Queensland franchisee award in 2018.

He believes the key to the store’s high performance is a combination of atmosphere, treating everyone as one big happy family, and having the right product for the area.

“You can’t be all things to all people.

You have to go with your strengths. Pick your market and stick with it.

“Our clientele and the centre’s clientele are 60 plus. There are a lot of retirement villages around. Of course it helps that we are similar ages,” he admits.

“It’s easier for me to relate to over-60s than 25 year olds.”

Colin loves the lifestyle he has thanks to the financial benefits and the flexibility of the business.

The couple share Mondays and Tuesdays as days off together.

“The theory is we go to the beach. In reality we are gardening, and one day is bookwork and rosters. And we go off to lunch.”

He advises other seniors considering a late-life career move into franchising to be bold.

“Don’t be frightened, but don’t go into it if you think you can just sit back and do nothing. You’ll get nothing out of it.

“Age is only a number. We have some customers in the shop in their 90s who seem 70, and some 60 year olds could be 90. It’s all attitude.” n

AUG/OCT 2019 | 37 | WWW.FRANCHISEBUSINESS.COM.AU

“

We thought it would be fun to have a coffee shop. We didn’t realise it was as hard as it is. It’s full on from when you start at 6, till the shop closes.

There’s always something to be done.

LEADERSHIP

GARY CORMACK, 50, Snap printing GOLD MINER DIGS UP NEW OPPORTUNITY

G

ary has spent almost all his working life in the gold mining sector. A South African metallurgist by trade, he has worked as a consultant or freelance agent in Africa, the Philippines and Malaysia.

“I was approached to come to a mining operation in Kalgoorlie almost seven years ago. I worked there for six years and became an Australian citizen.”

But after 28 years of gold mining Gary was ready for change. Ready to make his own decisions about where to live and work.

“It had been rewarding but I needed a bit of a change. I was dictated to by the location of the mine. It didn’t always work for the family. I wanted to get into a small business that I could be operating.”

It took nine months before Gary came across a local, existing Snap business up for sale.

“I had a few discussions with the previous owner and it appealed to me because there was sales and production and design. It ticked all the boxes for me.

I would not be just sitting in a shopfront waiting for customers to come in. I’m out and about in the community, explaining what print can do.”

He did plenty of research to reassure himself that the business was well run.

“When I was starting to engage with Snap we got the disclosure documents and all the franchisees’ contacts. I phoned

eight or nine across the country, who were all very positive.”

Once Gary had made the decision to purchase the existing business it was full steam ahead to get up to speed with the business operations.

“There’s quite an extensive two-week training session in Sydney, and for someone like me who’s had no industry knowledge, it really gave me a good standing to go forward,” he says.

Gary took over the Kalgoorlie site in April 2019. He bought 70 per cent of the business outright and took out a loan for the remaining 30 per cent. He’s really happy with his decision.

“It was pretty good, the first month.

We achieved a lot but not everything we wanted to. I’ve been working on admin, which is critical. I’m used to having an IT or an HR department, so any problems you have you need to sort out yourself.”

Gary took on the business alone, and was naturally apprehensive. But his confidence grows daily, he says.

“At the moment I’m very comfortable with the processes. I have an area manager touching base frequently, there are a lot of people available to help.

“I want to grow the business a little, but it’s not about fast track growth. I want to have it sustainable and getting involved in the community. When you stay in smaller communities, everyone rallies around, helping out.”

His growth goals are focused on boosting revenue within the existing site

rather than adding an extra location – the community just isn’t big enough to sustain it, he says.

As the business grows Gary intends to employ a couple more staff members to add to the two part-timers and one full-time worker he inherited from the previous owner.

He has signed up for a 10-year term, with one option to renew. He is clear about business progression. Over the next six to seven years he plans to be very active within it, then step back from a fulltime role and nurture a new generation.

“Ultimately someone within will want to buy it,” he says. “It’s supporting my lifestyle and keeping me out of mischief.

I’m putting away some retirement funds to be a self-funded retiree.”

The reality of his franchisee lifestyle in the Snap printing business is a weekday work life.

“I’m actually working shorter hours than I was in the mine. I worked 5.30 am till 6 pm then. And I was away from home most of the time. Now the store is open 8.30 till 5, and I’m five minutes from home. I get to work earlier to get things done, but the hours are good.”

Gary has plenty of time to indulge in his favourite leisure pursuits: hockey and golf, bushwalking and hiking on the weekend.

“Monday to Friday is a good benefit,” he says. n

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LEADERSHIP

MALCOLM PRICE, 51, Poolwerx FINANCIER DIVES INTO MULTI-MILLION DOLLAR BUSINESS

D

riving a $3 million business is a great way to showcase senior skills, and that’s just what Poolwerx multi-unit franchisee Malcolm Price is doing.

He’s achieving great results – doing so well that he scored a trip to visit the Poolwerx US business as one of the network’s top performers.

Malcolm admits he might have an advantage when it comes to understanding the figures.

“I’ve been in the financial market almost 25 years in Australia and the US.” He worked with Deutsche Bank and J.P. Morgan. “It was pretty diverse. At one point I had about 60 people responsible for bringing the best equity ideas in to the US. The last 10 to 15 years was all about building businesses.”

That meant taking a business considered to be a low performer and turning it around.

And this has been the skill Malcolm has brought to his franchise.

Let’s flashback to the glamorous days of high finance in New York … Malcolm and his family lived in New York for a total of 10 years. But when his eldest daughter was ready for secondary school it was time to make a decision. With three kids three years apart it was going to be a long stint in the US if they decided to stay there for education.

And when Malcolm’s father became unwell with cancer, returning home made even more sense. So in 2013 the family

came back to Australia.

“For me it was a bit of a reflection point; where do I want to be for the long term? I semi-retired, and re-charged myself.”

He was tempted back into the corporate world by J.P. Morgan for a short while.

“But I decided I was ready for something different. I need to be stimulated, challenged and outside my comfort zone.

“What motivated me? Thinking about how I get the balance right between home and work. How can I be stimulated and challenged?”

Malcolm decided the next chapter would be about more autonomy, and buying a local business would allow him to give back to the community.

“I certainly wasn’t willing to sit back and play golf, I like to push myself and find a challenge. I like building things,” he says.

Malcolm looked at a few industries, then overlaid businesses for sale in his area to find one with the potential to be improved. He bought the first store in Killara in February 2018 and in partnership with another franchisee then acquired and converted an independent pool shop.

“We bought the business together then split the transaction and 80 per cent of the business came with me. It’s franchising innovation. Then we organised with the franchisor post-contract how to manage this.”

Today the business comprises the two stores, 10 service vehicles and 22 staff. The goal is to add another two sites to double business in the next five years.

“I see this purely as an investment,” he says. “How I preserve, value and grow it, working with the team in collaboration with Poolwerx.”

Malcolm’s creation of a corporate franchisee business is showing results. And the trip to the US gave him some more ideas about business.

“I think we all walked away with a couple of key takeaways for our own business, and it brought the franchise leadership group closer,” he says.

He plans to be a dominant player in the area.

“I could be quite unique, a multi-store business under one banner. Interaction, consistency, quick decision making are crucial.

“That’s one of the reasons I was attracted [to the industry], it’s still fragmented. I knew Poolwerx was the leading brand, better presented.”

Malcolm is planning his life in fiveyear blocks. In five years his children will have finished school and it will be time to evaluate the business, he says.

“This is a really good opportunity, it’s pretty motivating particularly when we get our wins.

“I’m very fortunate, I’ve built a great team and I have the opportunity to spend time with my family. I have flexibility and I am more in control of my own destiny and time.

“Franchising allows you get to a scale but it also enables you to not be there every day.” n

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LEADERSHIP

ISMAIL KHAN, 70, The Cheesecake Shop FAMILY FORTUNES FORGED IN BAKERY CHAIN

I

smail’s brush with small business started with a familyowned general store in Fiji – “Dad used to tell me, ‘look after the shop, look after the till’.” Today Ismail has embraced business ownership as a multiunit franchisee, a role he took on in his mid 60s.

His career path has been varied including a role at the Australian High Commission, airline work, owning community stores, and 10 years with the railways.

So what led him to become a franchisee?

“I had a friend who used to work in the Brisbane store who encouraged me to buy one. I wasn’t ready. But when I looked at the figures I saw the potential. You wouldn’t get this money elsewhere.”

Ismail has a hands-off franchise investment. He lives in Queensland and bought the Ballarat, Victoria store, which is now managed by his daughter Yashmin.

“I go and work there occasionally. I go three or four times a year,” he says.

When he does turn up on the baking frontline, the days are long. Working 10-hour days seven days a week over the Christmas period in particular is a challenge but Ismail, now 70, works for a month straight.

His second store, bought six months ago, is in his home state, in partnership with an experienced business friend.

Ismail is the silent partner. And now he’s

looking for a third store.

But while he is present on the bakery frontline just a few weeks a year, he always keeps on top of the financials. It helps him that the franchisor has a good admin system.

“The Cheesecake Shop is very well managed. There is an accounting team in Sri Lanka and all the paperwork is done but I follow the books. I do the right thing, I pay tax in time and don’t cheat and do the right thing. You pay the award wages, you pay super. We collect the GST, you have to prepare the money – it’s not yours, it’s the government’s.

“We have learned the right way to do the business. The franchisor is the best ever.

They look after you, you look after them.

We have to keep the brand image and its good name.”

If the brand reputation diminishes, so too does your business, he points out.

The key to his success has been investing in existing businesses that have potential for revenue growth.

“You look for the right locality, a store doing the right sales but that you can improve, bring in incentives and boost the profit. A lot of people don’t improve the business. It’s all about how you can make more sales and bring in more customers.”

It’s important for Ismail to reward good work and ensure the staff are delivering top class customer service.

“I don’t push, I encourage them. It’s teamwork. Keep them happy because

satisfied staff lead to satisfied customers.

Treat a customer as someone important who has entered your premises,” he says.

Ismail sees his business as a moneyspinner but also an opportunity for the younger generations in his family. He claims not to be ambitious but still has goals to pursue.

“I don’t have much ambition, I have a target of up to five stores and to just manage them,” he says.

He plans to buy another store for his grandson Zeb, who already works in the Ballarat store and will graduate with an accounting degree this year.

But this is no gift – Zeb will be buying him out.

“If you give it to them on a golden plate, they haven’t worked hard. I can help them and they can pay me off.

That’s the whole idea – you get involved, you’re running the family business, you’re reaping the harvest. Making money is the incentive. The money is lucrative.”

Ismail is putting his financial gains to good use.

“I have six or seven holidays a year. I want to see the world,” he says.

He plans to reap the benefits that come with successful business ownership for a few more years. And why not? The structure and financial performance of the business allows him enjoy his senior years before fully retiring. n

AUG/OCT 2019 | 42 | WWW.FRANCHISEBUSINESS.COM.AU

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LEADERSHIP

LORI LILLIS AND ANDREA MCKINNON 55 & 48, Fernwood Fitness MORE THAN GYM BUDDIES … WHEN MEMBERS ARE FIT FOR BUSINESS

“W

e met each other when pregnant in a fitness class, we’ve always been friends since we met. Our children are the same age, our families get on well.

We’ve always been compatible, we go on holidays together,” says Lori.

Andrea has run her own bookkeeping business for 18 years. Lori’s background is in office management, accounts and bookwork.

“Over the years I’ve had a couple of small part-time party plan businesses too.

Nothing like fitness!” she laughs.

The gym has been a personal pastime.

“We’ve been members for years and years,” says Lori. “While we knew nothing about the industry, we knew and understood Fernwood as members, what is needed, what the business is about.

“It was while waiting for a group class to start and we had one of those conversations you have together, if we owned this business we would … We realised that we had said that so many times, we’d be disappointed if someone else bought the business.”

It wasn’t for sale then … but it was a year later and they snapped it up.

Andrea says, “We made some changes in shifts, ensured equipment was properly maintained, we asked the personal trainers what they wanted and brought in new equipment, we made timetable changes and gave it all a very good clean.”

Making those changes boosted club membership, she says.

“Our retention went up, cancellation was at 5 per cent and it’s now down to about 3 per cent. We’re keeping the members we have – retention is a big thing for us.”

The pair counted many other members as friends, and they were “blown away” by the support from members and staff when they took off. That was two years ago, and they are still learning.

“Without any knowledge of the industry, we relied heavily on our staff, we appreciated that,” Lori says.

They have just appointed a former staff

Lori Lillis, left, and Andrea McKinnon, right member as manager but that won’t deter them from being at the club. “We like to be there, we’re always picking up something, cleaning, filling in for staff members.”

Their roles in the business have been organic rather than planned, she points out.

“It’s all just fallen into place. Without realising it, Andi and I have worked into roles we do best. Andi takes on finance and HR, and social media. I’ve become very good at maintenance!”

Andrea agrees. “If something needs doing in the gym, Lori’s into it. She finds solutions, she’s very practical.

“We found out different things about each other but we’ve also found our own strengths. It surprised me that I found new talents within myself. We complement each other well.”

Luckily for the friends the transition into business ownership has gone very smoothly, and there has been no conflict to upset the friendship.

“I think if anything, our relationship has got stronger. We’re very respectful of each other, we stand by each other and support each other,” says Lori.

The pair are happy working hard for themselves and achieving goals.

“I’m really pleased we’ve been able to turn it around,” says Andrea. “I’d like to grow it a bit further, jump forward in membership over the next year and look at other services. It’s always changing, there’s always something to be thinking about.”

Investing in a Fernwood franchise has given Lori and Andrea a brand new challenge. And they are geared up for the long term.

“I’m certainly not waiting for retirement,” Lori says. “I’m doing something I want to do. But there was no way in the world we would have done this without a franchise. Fernwood supports us, we are very lucky, we can rely on them to guide us and train us.

“We’ve got a membership number goal we hope to achieve in the next couple of years, and that will mean the finances fall into place. We want to keep moving, innovate, keep members interested,” says Lori.

The new FIIT30 half-hour program is right on trend for members – and Lori.

“I don’t use the gym as much as I’d like to, I end up cleaning something. But with this new program, I can do that!” n

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GRAEME GRANT 64, Appliance Tagging Services CORPORATE ENGINEER’S FLEXIBLE LIFESTYLE

E

ngineer Graeme was in Victoria working for a chemicals firm as a maintenance engineer and member of the leadership team. Returning to Adelaide for family reasons he took a job as a production manager.

“I didn’t really enjoy it so I left. Then I thought, what am I going to do? Do I really want to get back into the six to seven days a week working? You can’t let those jobs go, they live with you.”

It was at that point Graeme thought about buying a business for himself.

Graeme looked at car cleaning, retail franchises, and then he saw an ad from Appliance Tagging Services (ATS).

“When I was with Dow Chemicals, I looked after the safety side of things. They were very, very hot on safety. Probably about 50 per cent of my job was to look after the safety aspects of the team and contractors. I didn’t mind that. I felt I was doing something positive. I wrote a lot of OH&S procedures for them – it was a big job.

“It was good fun too, we got a lot of things done.”

At the time there were no franchises in Adelaide so he played a waiting game.

Now he says, “I lucked out into the best franchise I could have got. ATS provided enough work to keep me going, and that’s based on their national clients. They give you tools, too, and encourage you to develop your own client base.

“They seem to have the right tools in place to do it easily, and it’s not just a money making scheme for them, it’s more long term.

“I didn’t want to employ anyone. I don’t want to have to do insurance, super etc.

The job I have now is easy. I earn enough.

Why would you want to complicate things?”

Graeme and his wife Susan have six children and four grandchildren. Now he has priorities other than just work.

“I don’t really want to hugely expand the

business. If I was in my mid 40s it would be different. I could have made a lot of money out of this.

“What I’m making now is a lot easier, a lot less stressful. You work the hours you want. I start early, and finish early.

Normally I’m home by 2. I start between 7 and 8.

“There’s a lot of people to spread the load when there’s a team working with you. I do it all myself now, so I am getting my wife in for office work and scheduling.

“Even though you see people on a six or 12 month basis you get to know your clients. So I’m not working in an empty office. You talk and you chat a little.”

Graeme is city based, with neighbouring franchisees focused on rural territories. The advantage of franchising is that they step in for each other if necessary, so they can

AUG/OCT 2019 | 45 | WWW.FRANCHISEBUSINESS.COM.AU

take time off.

“All the time away has been planned.

All I’ve got to do is go into my calendar and block out a couple of weeks and it doesn’t get scheduled. I don’t have other people relying on me.”

Originally he went into the business for a semi-retirement role, working four days a week. But business is too good, so there’s a lot more work.

Graeme is clear about the benefits of being a franchisee.

“I work my own hours, I don’t have the stress of not pleasing a board of directors, I have time at home for hobbies. I have the lifestyle and the flexibility to do what I want.”

And that’s more time spent with family and restoring classic cars and hot rods, such as his prized 1966 Mustang. n

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LEADERSHIP

ROB BRUHL, 54, Drug-Safe Workplaces BANKING EXPERT SWAPS SMALL BUSINESS FOR FRANCHISE SUPPORT

A

fter 25 years working with a major bank, from financial planner up to senior executive level, Rob started up his own financial services business from scratch.

“You don’t have an HR department, you don’t have resources, it’s completely different when you step away from corporate.

“But I’d reached a point where I had lost faith in the direction of the business, the strategy and corporate life. I wanted to control my own destiny.”

Ten years on and he is still running the business, spending about 40 per cent of his time on the admin and back office commitments.

The other 60 per cent (and all the extra mental energy that goes into ideas and innovation) is spent on his Drug-Safe Workplaces franchise.

“I first heard about Drug-Safe on a Qantas flight. I heard founder Michael White interviewed about drugs and alcohol in the community. I did a bit of research on it and discovered he was looking to start up in franchising. I liked the strategic plan, I liked the story, and that kicked me off,” explains Rob. He had built his finance career on starting at the bottom. He took the same hands-on approach with the franchise.

“In banking I had legacy, I got my hands dirty,” he says. “I’ve still got my hands dirty. I need to know what’s entailed in the job. I’ve sat in dirty factories, knocked on doors.”

Drug and alcohol testing is legislated under workplace health and safety.

Typical clients are businesses in higher risk categories – manufacturing, transport, businesses that work at heights.

There is plenty of growth potential with about 12 per cent of businesses taking action to be compliant with the regulations.

Rob acknowledges it will become a more competitive field, but that only makes it more important to separate yourself from the average, he suggests.

And with a national brand, there’s an extra bonus.

“This is where franchising power works. The provider can do checkpoints everywhere in the country. A franchise allows you to get to that level. The brand makes a big difference.

“The founder did research in search engine optimisation (SEO) because the name is there to get you noticed, you need to get that right. That’s what people are looking for.”

Differentiation is crucial and for Rob it’s all about service not cost.

“There’s no point in price cutting to $50 if someone is selling at $49 – what’s the difference?

“Whatever kind of business you’re in, the question is, ‘Why would I deal with you?’”

Rob has worked on adding value in what has been a very transactional industry.

“People do ask how much it will cost

AUG/OCT 2019 | 47 | WWW.FRANCHISEBUSINESS.COM.AU

for a test but I tell them that’s not my value proposition. I ask a lot more questions about regulatory compliance and win a lot of business that way, because no competitors asked those questions.”

Not afraid to turn away work that doesn’t fit with his business ethos, Rob believes patience is crucial in business.

“You don’t get anything unless you have actions, you have to be well planned to get an outcome. In any business, you have to know what the inputs are to get the outputs. Work out what they are and commit. If you do things, every week, over time good times will follow.”

Rob has picked a business model that allows him to spread the workload so he can lead from the front but not do the transactional work and still get a good return on his investment.

He has big ambitions, planning to take the turnover up towards the million-dollar mark.

And Rob’s hands-on approach means he’s prepared to put in long hours if necessary.

“If I have to start at 5 am and work till 7 pm I will. But I always clock off at 2 pm on Friday and try not to work on weekends.” n

LEADERSHIP

THE HOME RUN

From western Sydney to the Philippines, franchisee Luke Guanlao is living proof that you can have it all.

“I

By Sarah Stowe knew early on the business was good; we sold 424 memberships and broke even on the first day.”

Luke Guanlao is a franchisee powerhouse.

Today he is not just the proud owner of four Anytime Fitness gyms in western Sydney and the newly minted owner of Xtend Barre’s Lane Cove studio with four more in the pipeline. Luke is co-owner of an astonishing 60 Anytime Fitness territories with 30 clubs opened across the Philippines, Malaysia and Australia.

So how did this corporate lawyer shift his career focus to international small business ownership in the fitness field?

“At the time I was investing in property and had sold one with a big profit. I was looking for a passive investment that would give me an income while maintaining a full-time job.

“I first used a gym at law school. I loved everything about fitness. That passion continued on but I didn’t have a chance to blend it with my career.”

GETTING STARTED He came across Anytime Fitness and liked what he saw – the brand colour schemes and fitout, good quality equipment, a favourable franchise fee and a global reach.

Luke signed up to a brand new territory in Glendenning, western Sydney. It’s an area he knows well having spent his youth there and has family and friends in the local Filipino community.

“When I saw the first site, I knew the area. I understood the demographics and behaviours, which is particularly important if the business is a community focused model.”

The business got off to a blistering start, breaking even on day one. And Luke had showed his business smarts early on. Even though the business had

been purchased as a passive investment, he wasn’t prepared to let someone else run it.

“I would finish my law work at 6.30pm and drive from the CBD to the gym and get involved. It felt like a six month MBA!” he jokes.

EXPANDING THE BUSINESS Luke then bought a brand new site in Westfield Mount Druitt. Despite its poor socio-economic profile, the suburb has proved a good location: the outlet was last year ranked as 17th best performer in the Australian Anytime Fitness network; Glendenning came in the top 10.

It wasn’t long before Luke took stock of his business and realised he needed to step out of his full-time lawyer’s role if he was to drive the gym business to the next level.

“I was on a good salary as a lawyer, but this was crazy, it was producing five times that amount. I was hungry.”

Luke wanted to test his business mettle in a new market and the familiar territory of the Philippines made sense. Through Anytime Fitness head office he got in contact with the master franchisee who holds the rights to Asia.

“I just wanted to talk about purchasing a territory but he thought there were some collaboration opportunities.”

One dinner later and Luke had partnered with the Anytime Fitness master franchisee in Asia to take on franchise development and support.

“I joined the equivalent of CWG [Australian master franchisor with multiple fitness brands] in the Philippines,” he says.

The business snowballed. Luke attracted investors from among his friends, and spent 18 months with his young family in the Phillippines running the clubs. With his partners he structured the model as a managed services business. They would

invest cash to acquire a franchise and Luke would earn a sweat equity stake - his managed services company would be paid a management fee for running the club.

“That model with one investor now has 25 investors in my group. We collectively co-own rights to 60 clubs, with 31 built, operational and fully under our management.”

The next move was to set up an identical model in Malaysia.

DIVERSIFYING BRANDS Back in Australia the ballet and Pilatesinspired Xtend Barre at Lane Cove is the latest business in Luke’s portfolio and there are another four to build.

“My understanding of the low-impact boutique space is it is a good place to be at the moment. I think it’s something up and coming in Australia; in the US, there are thousands of barre studios. CWG offer it as a franchise and I want to give this a go. I need to diversify into the next wave and do something fresh and new.”

This Australian multi-unit, multi-brand franchisee and CEO has his own in house lawyers, marketers, graphic designers, accountants, area business managers and and other back office staff. There are 60 staff across his Sydney, and Manila and Kuala Lumpur offices, and over 300 staff at club level (he has since bought Rooty Hill and Minchinbury territories).

Luke manages his businesses remotely and every four weeks travels to Asia.

And he somehow manages to fit in three children, aged five years, two years and nine months.

“They make everything I do a lot easier,” says Luke. “Being an entrepreneur is great – I can go to lunch, hang out with my kids, and when I travel I can I take them with me.” n

AUG/OCT 2019 | 48 | WWW.FRANCHISEBUSINESS.COM.AU

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To join a second generation family business phone 0431 649 450 or visit shingleinn.com/franchising/franchising-eoi/

LEADERSHIP

APPETITE FOR

DISRUPTION Cracking the high-flying burger market is no mean feat, but Carl’s Jr. franchisee Gaurav Bansal admits he’s always had an appetite for disruption.

Carl’s Jr.

By Nick Hall

“I

never tried the brand, I’ll be honest with you,” he jokes.

“But the hype, growth and response overseas were so huge that I knew we had to get the brand to Queensland.”

For years the Australian Quick Service Restaurant (QSR) and fast food market has been dominated by US burger chains. From the overwhelming success of McDonald’s to the hyper growth of Hungry Jack’s, the franchise burger scene seemed to be all but sewn up.

That was until Gaurav Bansal, director of family owned enterprise Bansal Group took note of the steadily growing interest in US mainstay, Carl’s Jr. “There was a lot of continuous hype on digital platforms for the Carl’s Jr. brand in terms of advertising,” he says.

Identifying a gap in the market between traditional fast food outlets and the emerging trend for boutique burger bars, Basal approached the global giant for the Australian rights.

It was a long process getting the venture off the ground, and Gaurav admits the barriers were many.

“The biggest challenge first off is getting the right location,” he says. “No one trusts the brand; you don’t have the history so it’s very hard to convince someone that the brand will work.”

It’s more than just convincing landlords and lenders as well, he says.

“Getting good managers to transfer from an established brand in Australia to a new brand like Carl’s Jr. was a major challenge.”

“Your managers are the front-face of your business – if they’re not trained well, your business will not survive more than six months.”

Bansal is a man who practises what he preaches. Since opening his first Carl’s Jr. outlet in January 2018 at Redbank Plains the Queensland entrepreneur hasn’t looked like slowing down.

Bansal Brothers

Carl’s Jr. outlet

In under two years, Gaurav and his team have taken the domestic market by storm, launching seven greenfield restaurants.

And their efforts haven’t gone unnoticed.

INDUSTRY ACCOLADES Earlier this year, Bansal Group was awarded the International Developer of the Year award from Carl’s Jr. parent company CKE Restaurants.

The prestigious honour is handed to the international franchise company that has made the most significant contribution to the growth and development of the CKE system during the fiscal year.

Gaurav reveals that being named as an international leader among CKE’s over 3800 restaurants is one of his proudest accomplishments.

“There are some incredible franchisors within the network, many of whom I admire as industry leaders, so it’s a great honour for both our team and myself personally,” Bansal says.

“That being said, I don’t think that anyone else has opened seven new restaurants in the world in one year. People have done takeovers and changeovers but no one has actually run from a greenfield site, seven restaurants. With the sales we did

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Gaurav Bansal with CKE’s Ned Lyerly

and the stability we have, it was really hard work paying off.”

DIFFERENTIATION The key to the brand’s growth is simple, Bansal says: differentiation. In its home country, Carl’s Jr. has carved out an impressive reputation as a staple of good old-fashioned American fast food.

The chain is now the third largest hamburger brand in the world, being named number 54 in Entrepreneur’s 2018

LEADERSHIP

Cinnabon

No one trusts the brand; you don’t have the history so it’s very hard to convince someone that the brand will work.

Top Franchise 500 list globally. The challenge for Bansal, however, was replicating that experience Down Under.

“A brand’s ability to globalise, whether it’s from the US, the UK or otherwise, is all to do with if it has a market in that particular region and if they can replicate their unique selling point in a way that resonates with that region’s consumers,” he says.

“I think the flavours in our food are very different to other brands. We have hand-scooped ice cream shakes, which no one does, we have hand-branded chicken tenders and we don’t use processed chicken.”

“Plus, we also bring the food to you. It’s more than just a regular QSR. We like to call it a casual dining American experience and it’s made fresh to order.”

While Gaurav has spent the better part of two years taking a bite out of the Australian burger sector, he is already gearing up for another monumental challenge.

CINNABON In January, the Queensland entrepreneur revealed he had secured the Australian

rights to fellow US franchise giant, Cinnabon.

With his Carl’s Jr. venture going from strength to strength, Gaurav says he is perfectly poised to launch the fresh bakery business.

“Cinnabon was one brand, unlike Carl’s Jr. where I actually tried the product and I approached while I was in America.”

Similar to the Carl’s Jr. approach, Gaurav says he identified a gap in the market for a hot bakery indulgence offering, once again taking note of the brand’s global hype.

“We have a lot of muffin brands and doughnut brands in Australia, but there’s nothing like a QSR bakery product that produces hot scrolls every 30 minutes.”

“We knew there would be a strong market for Cinnabon in Australia, but we’re already amazed by the fan base around the country begging us to open in their city.”

Bansal reveals that the strength of the Cinnabon brand is the low-cost operating model.

“Cost of goods for a scroll is sitting around 20 per cent, so it will be a high margin model, as compared to other QSR brands where your sales are high, but your cost of goods is also high,” he says.

“It’s a brand to look forward to for the Australian market and we are really hoping to do well in the future.”

FUTURE GROWTH While he admits his approach so far has been structured, the future looks wide open for the multi-brand franchisee.

Bansal reveals two new Carl’s Jr. locations in Rockhampton and Townsville are due to open in the next six months, but as far as long-term goals go, he says his focus is on the next three years.

“We don’t have massive plans for the future; we don’t have five-year plans, we go with the flow,” he says.

“The medium-term goal is to open 20 Carl’s Jr. in the next three years in total, so that means 12 more in the next three years.”

“The other goal is to launch Cinnabon.

We’ll open two stores this year and we’ll franchisee more in other states, but the plan is to have 50 Cinnabons in five years,” he says. n

AUG/OCT 2019 | 52 | WWW.FRANCHISEBUSINESS.COM.AU

Be the

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LEADERSHIP

MUM ON

A MISSION For Melbourne mum and entrepreneur Sally Johnson, her foray into franchising means more than just financial gain.

By Nick Hall

“S

ometimes I see the change happening in front of me and I have to stop myself from running in and giving everyone a big group hug.”

It’s a daily occurrence for the Aussie master franchisee and owner of special needs gym We Rock the Spectrum. Her Preston location opened last year, spearheading Australian expansion for the innovative US chain.

We Rock the Spectrum provides purpose-built equipment to aid sensory development in children with processing disorders and has been wildly successful in its home country. Now, 12 months on from her Australian launch, Johnson is seeing the same results.

“We’ve been so thrilled first off from a base level with the support from the local community with all of the things that we had hoped would happen in our single gym.”

The Aussie master franchisee reveals that while support from families of special needs children was encouraging, she had been overwhelmed by the amount of mainstream families looking to get involved.

“We have a great mix of mainstream

families and families with a special needs child and it’s been fantastic to see them learning from each other,” she says.

“That’s what I saw when I visited the gyms overseas and I thought I must find a way to bring this to Australia.”

MOTIVATION While We Rock the Spectrum’s Australian success has come quickly, Johnson is the first to tell you her journey with the brand started years before.

When her son Digby was just two years old, he was diagnosed with autism, leaving Sally considering a life of care-costs and specialised development therapy.

A chance visit to the US and a meeting with We Rock the Spectrum founder Dina Kimmel changed all that, however. The pair found mutual ground when Kimmel revealed that her own son, Gabriel, had received a similar diagnosis at the same age.

It was that revelation that prompted Kimmel to launch the first We Rock the Spectrum gym in her own home.

“When you receive that diagnosis, like I did with my son Gabriel, I’ve never felt so lonely in my life,” Kimmel says.

“I just wanted to do anything and everything for my son, and I was seeking a

community that didn’t exist five to 10 years ago. After seeing miracles happen with Gabriel and my daughter, who is not special needs, in terms of inclusion, I thought ‘there’s got to be more families out there who need this as well’.”

She was right.

Within 10 years We Rock the Spectrum grew from one home-based gym to a network of over 80 locations worldwide.

“It’s an awesome thing that happens when you do something meaningful, you see a growth and it’s organic,” Kimmel says.

With Johnson at the helm of the Australian business, that growth looks set to continue.

EXPANSION An outpouring of support from both her local Preston community and the wider Australian public has Johnson already gearing up for expansion.

At We Rock the Spectrum’s inaugural Team Australia conference, the brand added four new franchisees to the mix, with five new gyms to open later this year.

“We’ve seen interest from other families to open in their local communities. It’s happened faster than we expected, but we have great support from head office, so we aren’t overwhelmed,” she says.

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Dina Kimmel and Sally Johnson

The new gyms also mark We Rock the Spectrum’s first venture interstate, with two of the new locations set for New South Wales.

“We have another three happening in Victoria, in Geelong, Ringwood and Darebin, with the first two New South Wales locations in Wollongong and western Sydney to come.

“These were chosen as the initial round for a number of reasons, namely as they were people who stood out as ready to go, but also because they were in territories we knew would be successful and that had a real need.”

While five gyms in four months seems like a monumental undertaking, Johnson says she is employing a measured approach to the first round of expansion.

“We do have a very powerful team backing us, so it’s not like we can’t manage more gyms to roll out in the future, especially with the enormous amount of interest from around the country,” she says.

The “mumpreneur” jokes that support is so strong, We Rock the Spectrum’s original target of 30 to 35 Australian gyms seems underwhelming.

“Now just seeing the level of interest, not just from prospective owners but from regions, local councils and politicians saying ‘how can we help?’ I’m beginning to think that may have been conservative.

“We had close to 200 enquiries come in, nobody expected that, and what’s more, they were all amazing quality. They are coming from far-away places as well, perfectly positioned around the country, from Katherine to Margaret River, not places we’d put on our map.”

It isn’t just people with experience taking up the challenge either. Johnson says the new franchisees come from a range of professional backgrounds, but all share one key similarity.

“They are people that get the brand, they have a real fire in their belly and a passion for inclusion. We have the systems in place to turn those people into super business people.

“That’s the difference, we can bring to the table all the backup, we just need people who are comfortable leading the mission with passion.”

WE ROCK ON WHEELS It’s a mission that is set to change rapidly over the next few years as well. Johnson reveals she is pioneering We Rock the Spectrum’s latest network innovation: We Rock on Wheels.

The mobile model has been tentatively rolled out in the US to great success, with the Aussie entrepreneur eager to bring the model Down Under.

“The mobile business is a traditional American school bus that is fitted out as a small sensory space, with the ability for equipment to spill out, whether that be at a park, or school or childcare centre,” she says.

“Some gyms in the US have the mobile version alongside the bricks and mortar model, and we are very keen to get our first ones rolling out.”

While the We Rock on Wheels model opens up the opportunity for a

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lower investment cost option, Johnson says its real benefit is in cross-country representation.

“The We Rock on Wheels model caters to a more regional market, however it can also supplement the existing business. We do a lot of family-fun days, fetes and school incursions where we turn up, but to set up the sensory activities takes time.

“To be able to swing in with a bus, it’s exciting for us and the community.

It won’t just be regional areas, but it makes sense, particularly in regions that perhaps wouldn’t have the infrastructure or member base to support a bricks and mortar gym.”

MISSION FOR INCLUSION Along with Kimmel, Johnson has been instrumental in implementing We Rock the Spectrum’s mission of inclusion at all levels.

In fact, a number of her Preston staff members are also living with a disability, demonstrating her commitment not just as a community member, but also as an employer.

“That is another thing that’s been terrific. As business owners you get to see milestones reached by staff as well,” she says.

“On staff at Preston, we have some young people who are on the spectrum, two deaf staff members, as well as a couple of parents and grandparents who volunteer. People feel that when they walk into the gym and see that inclusion at all aspects.”

Johnson reveals it’s all part of the We Rock the Spectrum mission for change.

The budding franchisee believes that if the latest interest is anything to go by, the network will go a long way in achieving its business and cultural goals.

“We’ve had a few tears, not just appreciating the hard work that’s already paying off, but also the shift in the world that we’re a small part in creating. It’s heart-warming as a parent, not just as a business owner.” n

A FRANCHISE FOR THE st

21 CENTURY

As a PowerfulPoints franchisee These are just some of the companies you could get to work with Lee Featherby Chief Executive Officer

As a franchisee you do the Account Service and business development function. Our team of designers, copywriters and trainers work with you to deliver your clients brilliant presentations, videos, motion graphics and other collateral to help them get their message across. You don’t even need to know PowerPoint to be successful, you just have to love providing class leading service to your clients.

You will receive comprehensive training and ongoing support and the entire Australian geographic region will be your territory.

You will get to work with some of the world’s and Australia’s leading brands, working with a range of departments and personnel from marketing, sales, HR, finance…even the C-Suite. If you enjoy business, this is ideal for you.

A PowerfulPoints’ franchise stands out like an orange zebra.

Why? Well, because it really is unique.

1. It is a franchise that lets you use your business experience and relationships to build an asset and a substantial income.

2. It’s a white collar franchise that isn’t financially based (which, given the Hayne Royal Commission’s findings, can only be a good thing).

3. It has low fixed costs, and you can work from home.

4. There is no other franchise offering like this available anywhere, and there will only be around 25 in Australia.

For more information visit our web site today at: powerfulpoints.com.au/franchise-opportunity/ or email: franchising@powerfulpoints.com.au

5. Every business in Australia is a potential client, with the bigger the business, the more likely that they are to use PowerfulPoints’ services.

6. One of the most satisfying parts of our work is the thanks and accolades we receive from our clients and your clients really will thank you, 89% of our client’s said we made a significant difference to the outcome of their project.

LEADERSHIP

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A DAY IN THE LIFE OF

Joel Goodsir

Inspirations Paint head of marketing loves the breadth and depth of his role helping franchisees achieve profitability Q: How do you start your day?

JG: My day starts with an old school tradition: reading an actual newspaper over breakfast with the family … even though I’ve already read that news on Twitter the night before. However, I like the ritual.

Q: What are the responsibilities of your role?

JG: Leading the marketing function in a medium-sized business ($300 million annual turnover), I have a wide remit, starting with strategy. I oversee the segmentation, targeting and positioning decisions that determine our mix and branding. The core responsibilities are: advertising and promotions (local, regional, national), digital (e-commerce, web platforms, social media) and database (loyalty program, customer communications, marketing automation). Public relations and reputational risk management fall into the role, plus a strong focus on store development and customer experience (CX).

Q: What are the biggest challenges?

JG: Inspirations Paint is made up of 90 franchisees who own and run over 130 stores nationwide. Aligning our diverse group of franchisees, from different geographic and socio-economic regions, is the ultimate challenge.

Added to that, Inspirations Paint services dual markets: trade (professional commercial painters) and retail (DIY mum-and-dad customers). Being the market leader in the trade sector makes it challenging to also focus on building our (smaller) market share in the retail sector.

Q: How do you use social media in your role?

JG: I see it as an advertising medium. Albeit one with the benefits of geo, behavioural and contextual targeting and micro campaignbuilding abilities. I don’t invest heavily into social as an engagement platform, other than answering customer enquiries and building positive reviews. So many resources can be wasted on engaging with such a small proportion of our target audience. I see social media’s importance as largely overstated.

Q: What do you enjoy most about this role?

JG: I enjoy the challenge of making marketing digestible and actionable for franchisees, who are largely operationally focused and not marketing trained. I need to translate marketing strategy into everyday language. I find the common ground is the customer; the customer’s voice is what store owners and staff teams experience every day. I enjoy sharing customer feedback and insights to drive retail store programs.

Q: How do you measure success in your role?

JG: Profit is of course the ultimate measure. However, a key marketing measure is our conversion rate through each stage of the sales funnel. Brand health measures inform us about consumer

sentiment towards the brand. Finally, customer satisfaction scores measure how our shopping experience stacks up against competitors.

Q: Briefly describe a typical day in the office – is there any pattern?

JG: My typical day is spent at our national office, in Newcastle; leading the marketing team, liaising with franchisees and internal departments (IT, HR, ops, finance) and engaging with our agency partners (creative, digital, media, market research and store design agencies) as required.

I travel frequently around the country to meet supplier partners (like Dulux, Cabot’s, 3M, Selleys, etc.) and visit stores to speak directly with franchisees and team members about marketing and retailing issues.

Q: How often do you interact with franchisees?

JG: Not a day goes by where I don’t speak with franchisees. Whether it’s speaking with a Franchise Advisory Council member or with store owners about competitor, market or marketing issues. These interactions occur across all mediums: Skype, phone, email, text, intranet and face-to-face.

In the past couple of months, I’ve spent a large amount of time instore, working on a new store design prototype. I’ve gained a deeper understanding of the operational pressures franchisees and staff face and great insights into what drives “confidence” and “delight” in customer interactions.

Q: What do you do to stay motivated on a daily basis?

JG: As a long-term employee (15 years), I thrive on seeing the effect of continual improvement programs over time. New projects also ignite my motivation, especially when they align with the Inspirations Paint guiding philosophy of “personal attention to your painting project” and drive store profitability.

I’ve been involved for many years with the Australian Marketing Institute, as a state councillor and as judge of the AMI Annual Excellence Awards and I chair the external advisory board to the University of Newcastle’s marketing school.

Q: What’s the best thing about working at Inspirations Paint?

JG: I love my job. Having the backing of leadership and a wonderful team of marketers makes for a great environment. The largely collegial atmosphere amongst our franchisee group means we can work towards the common goal of helping people enhance and transform their spaces with paint.

I get to live in beautiful Newcastle (with a 12-minute commute) but travel across all states and cities to visit franchisees.

It all boils down to the people, from our agency partners to our supplier partners, our 500+ team members and our national office crew. Inspirations Paint is very much a business built on tight relationships and trust. n

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At SIGNWAVE we are not in the business of franchising, we are in the business of small business ownership success.

There’s a bright future in signage!

We work every day to help our owners realise the promise that being part of a franchise system offers to achieve the vision of both lifestyle and financial returns. And with clients crying out for a professional, knowledgeable and reliable supply partner the potential is unlimited.

The benefits of a SIGNWAVE franchise are many: • • • • • •

The resources of a 700+ location strong international brand FASTSIGN/SIGNWAVE Leverage to grow, with a best practise, IT driven system The returns you want with a highly profitable business model Experienced training, support and sales coaching, making you an expert from Day 1 Lead generation from our sophisticated marketing program In demand services within the $5.8bn print industry in Australia

But what really sets us apart is our vision and philosophy.

We are growing a boutique network of highly successful centre owners in Australia who see themselves running a substantial business to fully realise the potential of business ownership with both financial and lifestyle returns.

If you can lead a team, implement a system and drive sales, you should talk to us now about the opportunities to join our network.

Learn more at www.signwave.com.au/franchise-opportunities

FOCUS

SPECIAL FOCUS:

Working 9 to 5

Love your weekends but want to break out of the employee rat race? Do something for yourself and your family … choose a weekday business that gives you precious time off.

By Sarah Stowe

I

t’s time to change the tune.

When country singer Dolly Parton wrote the lyrics “Workin’ 9 to 5, what a way to make a livin’,” she tapped into the daily frustrations of being in a dead-end job. “You’re just a step on the bossman’s ladder, but you got dreams he’ll never take away,” she sang.

“There’s a better life, and you think

about it, don’t you?” Well, there is, and it doesn’t have to be about working all hours, evenings and weekends.

If you treasure your time with friends and family but want to break out of the employee mould and set up your future for yourself, then a Monday to Friday business could be just the right option.

Get the best of both worlds: a weekday career, and working for yourself. Working 9 to 5 doesn’t have to be a drag … let’s change the emphasis to freedom: “Workin’ 9 to 5, what a way to make a livin’!”

Perhaps you’re in a retail or hospitality job, or work shift work. Why not invest in a franchise business that operates only on weekdays? Sure there will be long hours to get your business established but these franchise systems give you back your weekends.

WEEKDAY WORK

The following franchises are geared to Monday to Friday operations. There’s flexibility in some of the businesses if the work is home-based. Of course, each franchisee works differently and each location and store size, if the business is site-based, affects the daily operations. The franchise responses are just a snapshot of what it is like to run one of these weekday franchises and each experience within a brand will be different. Take a look …

INXPRESS The business InXpress is a global online shipping company, with a fully integrated web-based customer shipping platform. The company combines the freight volumes from all customers and passes on the discounts negotiated with worldwide carriers. Parcel delivery services are taking off with the explosion in online shopping; InXpress carriers do all the pick-ups and deliveries. InXpress operates in 14 countries internationally with more than 360 franchisees globally.

Typical working hours Monday to Friday, 9 am – 5 pm.

Can the franchisee trade outside these hours if they wish to?

Sure. While there is no requirement outside of these hours, franchisees may do some prospecting after hours at home online.

What tasks does the franchisee complete before opening?

Breakfast.

What steps need to be taken daily to close the business?

Jump in your car and head home.

When do franchisees typically do their admin and how long will it take?

Monday and Tuesday are the most admin heavy days, however InXpress is a business model with very low admin for the franchisee.

6AM Ensure vehicle is appropriately stocked with correct equipment and supplies. Prepare to travel to client site to commence services ATS

What preparation has to be done for the next trading day?

A quick plan on where you’re headed for the day to prospect or meetings.

What extra hours might be required – evenings/ weekends/public holidays?

No requirement for weekend or after-hours work.

Because our franchisees operate a non-geographical model, many of their customers may be in a state not observing a public holiday, so some work may be required on some public holidays.

What proportion of your franchisees will allocate up to one day at the weekend to stay on top of their business?

5–10 per cent might allow a one Saturday or Sunday monthly to catch up on proposals or have a planning and strategy session.

What hours is the support team available on the phone?

Monday to Friday, 9 am – 5 pm.

What does head office do to help franchisees with leads, invoicing, payroll, marketing?

InXpress franchise support centre helps franchisees with lead generation and marketing, while doing the entire invoicing, bill and collections to the customers.

What expectation is there that the franchisor will use after hours for networking events?

No expectation.

Franchisee testimonial “The ability to work from anywhere gives me the flexibility in my life to continue living a healthy lifestyle, while achieving an enjoyable work–life harmony.

Prospecting for customers and consulting SME customers, while not hard psychically can still be mentally challenging, but I really enjoy the opportunity to help small and medium business owners find the perfect solution to their freight and logistics challenges.”

John O’Riordan, franchisee, Fortitude Valley

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FOCUS

APPLIANCE TAGGING SERVICES The business Appliance Tagging Services is a national workplace safety specialist. Franchisees test and tag electrical equipment and residual current devices, provide electrical safety assessments, inspect and test services for portable fire protection appliances and emergency lighting, and undertake minor repairs.

Franchisees are mobile operators and do not need to be electricians.

Typical working hours Given we provide a business to business service, the operating hours of an ATS franchisee are generally between 7 am and 5 pm Monday to Friday. This does vary a little according to the type of business they are servicing, and of course client requirements.

After hours or weekend work is minimal and upon client request.

Can the franchisee trade outside these hours if they wish to?

To a certain extent, an ATS franchisee can set the days they are working to fit in with their lifestyle, however attendance times for service provision is normally at the client’s request. There is no reason a franchisee could not work after hours or on weekends if a client requested it.

What tasks does the franchisee complete before opening?

Prior to starting for the day, ATS franchisees complete the following: • Check fuel in vehicle and general vehicle safety check.

• Ensure all required testing equipment and replacement parts are in the vehicle.

• Confirm all work orders and data is downloaded to ATS equipment for the day’s clients.

• Review any client-specific scope of work requirements and query with support office if required.

• Check client contact details, address, map route and parking.

Are there busy spots in the day?

One of the things our franchisees love is that pretty much no day is the same! There are no real busy spots as such, but arriving at a client site at the agreed time in sometimes challenging traffic can require careful planning and good organisation skills.

What steps need to be taken daily to close the business?

At the end of each client, an ATS franchisee ensures all testing data is uploaded electronically to the ATS system. They also ensure all work orders are updated in the ATS field service management system and any relevant notes or tasks added. This takes less than five minutes per client or per day. Some days an ATS franchisee may service more than one client, at other times a client may run across several weeks.

When do franchisees typically do their admin and how long will it take?

End of day admin is normally completed from site using an internet connection as soon as works are completed.

What preparation has to be done for the next trading day?

Before starting work each day, an ATS franchisee needs to prepare. The ATS system provides great insight for existing client requirements, and franchisees can check all requirements via ATS’s online reporting portal, secure intranet and field service management system.

Typically, an ATS franchisee will run through the following before the end of the day to prepare for the next day:

Confirm correct function of all ATS testing equipment.

• Confirm supply of consumables meets client’s requirements.

• Confirm all work orders and data are downloaded to ATS equipment for the day’s clients.

• Confirm whether any replacement items are required and pick up prior to attendance.

• Review any client specific scope of work requirements.

• Check client contact details, address, map route and parking.

What extra hours might be required – evenings/ weekends/public holidays?

Most ATS clients prefer their services to be provided during normal business hours – but we do certainly have clients that specify weekend, evening and “Christmas shutdown” testing.

ATS franchisees are under no obligation to provide these outside normal hours services, however a large proportion of the network are keen to do so as working uninterrupted can create great service efficiencies!

What proportion of your franchisees will allocate up to one day at the weekend to stay on top of their business?

Most ATS franchisees will spend one or two days per month on Reckon hosted accounting and following up outstanding matters.

Most ATS franchisees will spend a few hours a month working on their business on the weekend.

What hours is the support team available on the phone?

The ATS support office provides both phone and online Team Viewer support to our franchisees Monday to Friday, 7 am to 6 pm. After hours and weekend support is also available by prior arrangement. Email support is available on the weekends for any urgent matters.

What does head office do to help franchisees with leads, invoicing, payroll, marketing?

The ATS support office is unique in that ATS completes the following tasks on behalf of the franchise network: • All client invoicing and all debt collection.

• Client compliance reporting and management.

• Scheduling of ATS provided work – approximately 70 per cent of all ATS services are scheduled by ATS. • Website management, SEO, AdWords and social media.

• Local area marketing collateral development.

• Lead generation and allocation from website/ inbound phone calls.

• Addition of all leads to ATS Dynamics field service system.

• Completion of tenders for national contracts and large multi-site organisations.

• Creation of monthly recipient created tax invoice for franchisees.

What expectation is there that the franchisor will use after hours for networking events?

ATS recommends all franchisees engage with their local community in the best way that suits their location, business and personality.

Franchisee testimonial “I think the difference between ATS and a lot of other franchise systems is that ATS handles all of the invoicing and collection of monies. We are actually in a lot of cases, paid each month before ATS receives the money. Knowing that in small business cash flow is so important, this was a big tick for me in deciding to join the ATS network.”

Tim MacKinley, Aspley, FCA Franchisee of the Year 2013 •

9AM Face to face with first appointment and then prospecting that area for potential new customers InXpress 9 AM Opening centre: Snap

AUG/OCT 2019 | 62 | WWW.FRANCHISEBUSINESS.COM.AU

SNAP PRINTING The business This printing firm began in 1903 and has been franchising for 40 years. It delivers print products and services for both business and consumer clients.

Snap is a one-stop shop for small businesses and offers e-publications, videos, websites, QR codes, marketing services, graphic design, digital and offset printing.

Typical working hours Monday to Friday, 8.30 am – 5 pm.

Can the franchisee trade outside these hours if they wish to?

Yes, if they wish.

What tasks does the franchisee complete before opening?

Below is just one example and would be dependent on size (turnover) of business: 1. Open the premises, turn off the alarm, switch on the lights and ensure the centre is clean and tidy.

2. Switch on the digital machinery, ensure the work area is clean and stock is available to begin the production day.

3. Turn on the computer system.

4. Place cash or float in the cash drawer.

5. Review the work in progress (WIP) or live jobs reports from the previous end of day reports in preparation for the daily production meeting.

6. Check email messages received overnight and take necessary action.

What steps need to be taken daily to close the business?

Below is just one example and would be dependent on size (turnover) of business: 1. All new jobs stock orders are placed with the appropriate supplier.

2. Complete PSV end of day reports and procedures. Balance cash against the cash sales summary report and receipt list created from PSV end of day reports, and remove cash from the cash drawer and store safely.

3. Ensure defined centre back-up procedures are followed including an offsite copy of the centre back-up is kept.

4. Ensure all appropriate equipment is shut down or turned off.

5. Secure all doors and windows, switch off the lights ensuring the centre exterior signage is illuminated, and set alarm.

3 PM Complete prospecting for the day and any late appointments, head home and spend the next two hours replying to emails and completing any proposals for the next day InXpress

3 PM School pick-up most days HR Dept

12.30PM Coaching and board meetings The Alternative Board 12.30PM Short lunch break and check in with the client to ensure they are happy ATS

When do franchisees typically do their admin and how long will it take?

The savviest of our franchise partners do it throughout the working day, while some of our franchise partners utilise a bookkeeper, or do it themselves on a Saturday morning – generally two hours on average.

What extra hours might be required – evenings/ weekends/public holidays?

Saturdays, dependent on client’s deadline/amount of work needing to be completed by a certain timeline.

What proportion of your franchisees will allocate up to one day at the weekend to stay on top of their business?

Approximately 20 per cent.

What hours is the support team available on the phone?

All parts of the day, including outside business hours for emergencies.

What does head office do to help franchisees with leads, invoicing, payroll, marketing?

Any leads received through head office are assigned to the nearest Snap centre to the customer.

With regards to invoicing and payroll, these are included in our franchise training program from the qualified training team, qualified CPA finance team and external accounts company.

Our marketing team provides initial LAM support for each franchise partner and ongoing support throughout their 10-year franchise term.

What expectation is there that the franchisor will use after hours for networking events?

No expectations are brought upon the franchise partners; however, the majority of our franchise partners attend due to information being provided at such events. Typically, this would only occur one evening on a quarterly basis.

Franchisee testimonial “I genuinely enjoy being a Snap franchisee running a business that operates predominantly on a business to business platform five days a week.

With the systems, processes and controls we have in place, our clients and ourselves experience a very structured approach to doing business where communication is paramount and the production of document solutions for clients is generally stress-free.

It’s this structure that allows me to experience the freedom of running my own business with a great team and delighted clients.”

Peter Spencer, Snap Norwest

THE ALTERNATIVE BOARD The business A business coaching and consulting franchise that provides a niche advisory board service for small and medium-sized business owners. The Alternative Board brings business owners together with peer advisors from non-competing businesses. The coaching and mentoring sessions focus not just on the business but the business owner.

Can the franchisee trade outside these hours if they wish to?

Yes. Are there busy spots in the day?

We set the times, so we’re responsible for this.

When do franchisees typically do their admin and how long will it take?

During the day at the time of the activity, a little bit on the weekend and evening.

What preparation has to be done for the next trading day?

Minimal; preparation of notes and reviewing last session.

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What extra hours might be required – evenings/ weekends/public holidays?

Two to three hours per week.

What proportion of your franchisees will allocate up to one day at the weekend to stay on top of their business?

None.

What hours is the support team available on the phone?

7.30 am – 8.30 pm.

What does head office do to help franchisees with leads, invoicing, payroll, marketing?

We do most of it for them.

What expectation is there that the franchisor will use after hours for networking events?

Not expected but it is done.

Franchisee testimonial “It is one of the most rewarding things I have done in my career, and I spend more time with my family.”

Chris Tandy, Newcastle/Lake Macquarie

FOCUS 5 PM Closing centre Snap

CLOSED

5 PM Early evening run before coming home to cook dinner InXpress

HR DEPT

FANCY MORE FLEXIBILITY WITHOUT LOSING FAMILY TIME? CHECK THIS OUT …

REIS & IRVY’S

Reis & Irvy’s soft serve frozen yogurt vending robots are housed in areas with a high traffic profile: shopping centres, airports, universities, hospitals. Once the robot is set up and stocked, franchisees monitor sales on the phone. There are no staff required and the robot operates 24/7.

TYPICAL WORKING HOURS

The business The HR Dept has been operating in the UK since 2002, and now has a franchise presence in Australia. HR professionals act as outsourced HR departments for small and medium sized enterprises. Franchisees provide clients with solutions from dealing with payroll, employee benefit management, changing employee legislation to streamlining the HR admin system.

Typical working hours Service profession, so client contact hours are 8 am – 6 pm Monday to Friday, but administrative tasks are often done outside these hours.

Can the franchisee trade outside these hours if they wish to?

Yes. When do franchisees typically do their admin and how long will it take?

A few hours a week of admin/accounting tasks and it’s done either during working hours or evenings. Some franchisees do their admin, accounts and social media first thing in the morning.

What extra hours might be required – evenings/weekends/public holidays?

Some franchisees do one or two weekend hours of admin, others work weekends very rarely.

Some franchisees work at night if there is a major project on, and meet clients at weekends if there is not time during working hours.

What hours is the support team available on the phone?

Generally business hours on the phone, otherwise email.

What does head office do to help franchisees with leads, invoicing, payroll, marketing?

Support with marketing content, newsletter, branding, sales CRM, business support/advice and network resources. A bookkeeper in the first year of trading.

What expectation is there that the franchisor will use after hours for networking events?

Franchises set their own guidelines around “when” they network/what to attend, but frequently networking is breakfast or early evening.

Franchisee testimonial “Being able to work around family and other commitments while still providing a timely and quality service to our clients is wonderful. Our clients are also small/medium business owners and they’re often striving for the same balance of work and life, which instantly provides a connection and mutual understanding of the challenges associated with running a business.”

Tegan Rose, HR Dept Ringwood “I love being around for my family; even if I’m working I’m mostly still at home and the kids love that (even though they are teenagers!). I love that I can dictate when I work, I can go for a walk during the day and then work in the evenings if needed. I feel my balance is better.”

Lee-Ann Hunt, HR Dept Ringwood n

Early morning or late evening … so before centres open or after they close.

CAN THE FRANCHISEE TRADE OUTSIDE THESE HOURS IF THEY WISH TO?

Yes; in some instances centres are very flexible and allow you to set your own times.

WHAT TASKS DOES THE FRANCHISEE COMPLETE BEFORE OPENING?

8 PM Networking HR Dept

Clean and stock machine.

ARE THERE BUSY SPOTS IN THE DAY?

For the robot yes, but for the franchisees no, they are only busy when they clean and restock their robot.

WHAT EXTRA HOURS MIGHT BE REQUIRED?

Extra hours are only required if the robot notifies the owner of a fault or it needs restocking.

8 PM Relaxing in front of the TV with family Snap

WHAT HOURS IS THE SUPPORT TEAM AVAILABLE ON THE PHONE?

All business hours

WHAT DOES HEAD OFFICE DO TO HELP FRANCHISEES WITH LEADS, INVOICING, PAYROLL, MARKETING?

Supply chain is limited to three suppliers.

Reporting is all online.

AUG/OCT 2019 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

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INDUSTRY SPOTLIGHT

WHAT’S BREWING?

Ready to fulfil a lifelong passion to own and operate your own cafe? Find out the buzz in the coffee chain scene and how brands are forging their place in the market.

A

ussies love a daily coffee hit, which is good news for franchise cafe brands. Across Australia there are more than 20,000 cafe outlets; it’s a $9.8 billion sector. We know the big brand names but surprisingly none of them hold a dominant position in the market.

The three leading franchised businesses are all multi-brand food retail operators: Retail Food Group with Gloria Jean’s Coffee and Michel’s Patisserie; Minor DKL holds The Coffee Club in its portfolio; and Hudsons Coffee is managed by the Emirates Group.

Although there is a Starbucks franchise in Australia it is not franchised at individual outlet level.

It’s worth noting, however, that independent, boutique coffee shops are growing faster than chains.

So what are the trends in the coffee sector that are shaping the processes and behaviours of cafe operators?

“At Lava Coffee we see a movement towards specialty coffee, healthy product offerings and environmentally conscious business practices,” says Boaz Keeda.

Guy Thompson, who heads up Bar Bellaccino, echoes the sustainability trend.

He also sees technology as key.

“Technology is now making it simpler to make great espresso-based coffee. With the right technology and equipment, I can now train a 16-year-old to make a great flat white in a few hours!

“Sustainability is a clear long-term trend both in the cafe relating to waste and maintaining a low carbon footprint, and at the farm level having sustainable farms and work environments.”

INDUSTRY OVERVIEW IBISWorld’s coffee and cafe report provides an overview of what’s been happening across the sector.

Quality of ingredients and production is essential to a successful coffee business, the report suggests.

“The Cafes and Coffee Shops industry exhibits a low level of capital intensity.

For every dollar spent on capital costs, an estimated $8.52 is spent on wages. Cafe and coffee shop operators require significant labour input in all areas, including serving coffee and food, cooking and cleaning. Most positions are unskilled, with some training required for roles such as coffee making.

Many cafes and coffee shops lease both their premises and much of their equipment to lower the initial capital outlay and reduce risk. This significantly lowers capital intensity and decreases start-up costs for new entrants. Kitchen requirements for cafes and coffee shops are typically lower than that of restaurants.”

TECHNOLOGY in this sector relates to improving processes and speed of service, and in back office admin for stock control and managing the supply chain, and for business analytics.

LOYALTY CARDS are increasingly digitalbased rather than card.

VOLATILITY in the marketplace is low, with coffee the only real staple. However the additional menu items that make up the business revenue do contribute to volatility.

Add in the healthier eating trend and coffee chains with a heavy emphasis on sugar-laden and calorie-weighted sweet treats may be negatively affected.

In terms of REGULATION, health and safety, and local planning laws are the major compliance requirements. On the

health and safety front these are generally self-regulated.

SITE SELECTION becomes more difficult and as the number of cafes and coffee outlets increases, there are fewer high quality locations available.

The option to convert an existing business to a cafe requires the application of local planning laws.

Report author Bao Vuong writes, “As desirable locations become increasingly scarce, the construction or conversion of buildings is expected to become more prominent.

“Other legislation affecting the industry includes bans on smoking in covered areas, fees for footpath dining, street signage and licensing costs involved in the use of certain background music. These minor regulations can significantly increase costs and the administrative burden on operators.”

PROFITS AND MARGINS A declining profitability has been tempered by increased demand, and the preference for gourmet foods with a higher price tag.

However, it’s a highly competitive market and much of the trade is based around price competition. Operators are tightening up on wastage to improve their margins.

The future will focus on premium, healthier ingredients, ethical production and improved operating processes.

Profitability will continue trending upwards but at a lower rate than in the past. The industry is curtailed by the need for high levels of staffing but some cafe owners will cut costs by operating out of smaller venues. We are likely to see more casual employees but some owners will look to cut wages costs while others will see value in the labour intensity and find financial savings elsewhere, the report predicts.

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Here seven brands talk coffee tactics...

COFFEE BREAK: 2 MINUTES WITH MRS. FIELDS

MRS. FIELDS

The top trend in coffee retail right now is sustainability from bean to cup, with brands big to small all getting involved to do their part. We are currently looking at how we can improve our sustainability both instore and at our roastery.

Offering alternative blends or single origins is increasingly common in the cafe market.

We are one of only a few brands in this space who actually source and roast our own coffee, and have done since 1997. Mrs. Fields is both the manufacturer and supplier of core products, so remains in full control of the quality, consistency and COGS of franchisees.

Price and quality are at the forefront of the products we sell. Our cookies all made locally using Australian butter and couverture chocolate, baked fresh instore daily and selling for a lower price than most cafes sell long shelf life cookies for.

The Mrs. Fields business model is designed to be easy to execute at store level. Core products are baked on site daily, however come ready to bake so there is very little prep time and most products can go straight from the freezer to the oven. This means no early mornings like a traditional bakery.

With ever-increasing competition in the shopping centre environment, we believe that franchisee instore engagement is very important. In saying that, we do have some stores under management and some franchise partners prefer this.

We have two multi-unit operators in the network, with another about to open their second store.

Technology continues to make the management of multiple stores easier and this is something we are increasingly adopting.

BEAN COUNTING REVENUE: $9.8 billion PROFIT: $459.2 million WAGES: $2.4 billion BUSINESSES: 20,375 ANNUAL GROWTH 19–24: 1.9% ANNUAL GROWTH 14–19: 2.2% WAGES/REVENUE: 24.67% EMPLOYEES PER EST: 6.14

HOW ARE YOU MAKING THE BRAND MORE ADAPTABLE TO LOCATION AND DEMOGRAPHICS? We are adjusting our seating areas for every new lease to be larger, utilising a combination of seating options, to create a more inviting atmosphere for our customers. We are also developing a satellite store concept to allow us to open in smaller locations, particularly in transport hubs.

HOW DOES YOUR BRAND HELP FRANCHISEES STAY COMPLIANT? We hold quarterly seminars with our franchisees in each state with workshops ranging from Fair Work, payroll and employee management to continually upskill our franchisees. Mrs. Fields has engaged the National Retailers Association on behalf of each franchisee for the past two years, enabling them to have quick access to professional advice at all times.

DO FRANCHISEES NEED TO DO BARISTA TRAINING? Absolutely. New franchisees undertake a five-day intensive one-on-one barista training course with our trainer in a controlled environment, then spend two weeks in a training store under supervision making coffee for customers.

We will then have our barista trainer instore for the first seven days to assist in training and consistency of staff, with follow up visitation ongoing.

WHAT ARE THE BRAND’S GROWTH PLANS FOR THE NEXT FIVE YEARS? As a long-standing brand in the Australian market, Mrs. Fields is on a sustainable growth path and would like to have 55+ stores in five years, by opening three to five stores per year.

HOW WILL THE BUSINESS ADAPT TO COMPETITION AND REVENUE CHALLENGES? Mrs. Fields will continue to develop proprietary products to keep our uniqueness in the market particularly in the gifting segment which continues to differentiate us and add further value to our franchisees.

Average customer spend varies from store to store, from $7 to $12.

The average ratio of beverages to food is about 50/50 with coffee contributing a substantial portion of the beverage turnover.

In the last 12 months we have launched our new range of Piadine and Turkish Roll lunchtime options, which has seen good growth across the network.

We are currently working on a range of innovations to be launched into the network in the coming months, both in the beverage and food sector, focusing on functionality and our health-conscious customer base.

THE COFFEE HEARTBEAT AVERAGE WAGE: $17,331; that’s a drop from 2010 when it was $23,234.11 and it will continue to decline, to $15,414.82 in 2023–24.

SHARE OF THE ECONOMY: 0.18% Source: IBISWorld Cafes and Coffee Shops in Australia, December 2018

COFFEE IS VITAL TO LIFE

CAFE COFFEE DRINKERS

27% OF AUSSIES 33% OF GEN Y 30% OF GEN X 28% DRINK 3+ CUPS DAILY

61% OF GEN Z 53% OF GEN Y 36% OF GEN X 33% OF BABY BOOMERS 60% OF ESPRESSO LOVERS

COFFEE IS NICE TO HAVE 88% OF AUSSIES 75% DRINK 1+ CUPS DAILY

Source: McCrindle national online survey of 1000 Australians aged 18+ across Australia https://mccrindle.com.au/insights/blogarchive/australian-attitudes-towards-coffee/

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INDUSTRY SPOTLIGHT

JAMAICA BLUE

At the moment, we’re seeing two major drivers of change in coffee right now: environmental concerns and tech.

Australian coffee drinkers are getting more conscious of the environmental impact of their consumer choices. The rise of veganism has spun a whole host of alternative milks. Soy and almond milk have been the go-to plant-based milks but increasingly we’re seeing coconut, hazelnut, rice, oat and more recently macadamia milk in cafes and on supermarket shelves.

It’s not just the coffee that’s changing, but how it is served: reusable cups, biodegradable takeaway cups, biodegradable pods and other innovations that promote sustainability are gaining traction. As our environmental concerns grow, so will this trend.

On the flip side, tech has permeated into the way coffee is made. Nitro coffee is the latest thing to come out of the cold brew camp although time will tell if it sticks around. However, automation in cafes will be something we are going to see a lot more of. The Ubermilk unit is one such example and we think there will be plenty of new tech products in this direction.

COFFEE BREAK: 2 MINUTES WITH JAMAICA BLUE HOW DO YOU DISTINGUISH YOUR BRAND TO POTENTIAL FRANCHISEES? The only way to attract franchisees is to practise what you preach; if a franchisee sees that our instore experience matches our brand promises, they’ll see the value in that. So we focus on the quality and the flavour profile of our coffee, and that’s what attracts our franchisees.

Our high standards, accredited training, seasonal blends and single origins which are ethically sourced: these are just some of the ways we show not just franchisees but everyone that we’re serious about coffee.

What we’re pushing harder on is convenience. Our cafes are mostly located in shopping centres and by introducing an app later this year that will digitise our loyalty program as well as offer online ordering, we’re ramping up the convenience factor.

HOW ARE YOU MAKING THE BRAND MORE ADAPTABLE TO LOCATION AND DEMOGRAPHICS? The brand is currently undergoing a brand refresh: Jamaica Blue is going back to its spiritual roots, the Caribbean, the Blue Mountains of Jamaica. Our fresh look at the design and layout of our instore experience is all about bringing that amazing coffee experience here to Australia.

One way we’re expressing our new look and feel is our Jamaican inspired dishes in both food and drink category.

We’ve had success in attracting a different demographic with our Blue Latte campaign. We created a product that was very Instagrammable and again had a strong link with our brand being blue! By making the Blue Latte relatable to millennial values (self-expressionism, individuality, creativity) we made it something to get involved with and share.

HOW IMPORTANT IS IT TO YOUR BRAND THAT FRANCHISEES WORK IN THE BUSINESS? Very important. Passionate business owners who care about the customer experience are those who are most successful.

Being immersed instore and meeting customers face-to-face is the best way of doing that.

HOW MANY MULTI-UNIT OPERATORS ARE THERE IN THE NETWORK? About 10 per cent of our network are multi-unit operators.

DO FRANCHISEES NEED TO DO BARISTA TRAINING? As part of our three-week training program at our head office, we dedicate one week for the franchisees to learn everything about coffee. They practise the skills in our training facility and are trained to serve customers in our company owned cafe.

WHAT FOOD PREPARATION IS REQUIRED AT THE OUTLETS? We’re a full-service cafe with everything prepared freshly on site. Most of our ingredients are delivered fresh.

HOW DOES YOUR BRAND HELP FRANCHISEES STAY COMPLIANT? We help our franchisees stay compliant with our support teams. These teams include subject matter experts from marketing, training, procurement with a strong ratio of support from field operations. We have online platforms with on-demand training and other resources for franchisees to tap into.

WHAT ARE THE BRAND’S GROWTH PLANS FOR THE NEXT FIVE YEARS? In terms of brand growth, we’re looking at sustainable growth of 30-plus stores.

HOW WILL THE BUSINESS ADAPT TO COMPETITION AND REVENUE CHALLENGES? The implementation of the brand refresh including the future store design will definitely help us keep a step ahead. Additionally, developing new channels of revenue for convenience, including online ordering and catering, is another way for us to test our business model and see where we can be more profitable.

AUG/OCT 2019 | 68 | WWW.FRANCHISEBUSINESS.COM.AU

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Our business development and support teams will assist you in building your successful business.

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If you would like to hear more about franchise opportunities in your area, please contact the Network Development Manager for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493.

clarkrubber.com.au

INDUSTRY SPOTLIGHT

SHINGLE INN

The brand is about more than coffee, although coffee excellence is critical for franchisees’ success. Shingle Inn was established in 1936 and has seen many iterations of what society considers the “perfect” coffee during that time.

The business stays abreast of trends and holds an annual Barista of the Year championship that encourages and rewards grassroots baristas and continues to innovate in product to meet the market.

Shingle Inn recently introduced Nespresso compatible coffee pods instore. Director Andrew Bellchambers says he doesn’t expect it to impact instore coffee sales but is a way to extend the Shingle Inn experience into people’s homes.

“We’re excited about giving customers the opportunity to have a Shingle Inn coffee experience at home. Nespresso compatible machines have replaced instant coffee as the minimum quality of in-home coffee and we’re looking forward to being part of that revolution.”

To take the consumer experience one step further, the business is considering retailing branded coffee machines instore.

The brand is constantly innovating within the area of product development, to improve existing products’ aesthetic appeal and gross profit or to create new products to entice new markets or a higher purchase price. Products that have been developed this year include a burrito bowl, matcha muesli bowl, apple strudel, brioche hot cross bun and ice cream biscuit.

COFFEE BREAK: 2 MINUTES WITH SHINGLE INN WHAT ARE THE TOP TRENDS IN COFFEE RETAIL RIGHT NOW? A strong trend is ready-to-drink coffee that is either cold-brew or blended coffee drinks that offer a different taste profile and experience to that of traditional espresso.

There also seems to be a growing push behind milk variation; while this is still a very small niche market, it is aligned with the trend of customers wanting to personalise their purchase.

HOW ARE YOU MAKING THE BRAND MORE ADAPTABLE TO LOCATION AND DEMOGRAPHICS? We are about to introduce a smaller footprint store. Rents continue to be a significant hurdle that are disproportionate to many hospitality businesses. In our smaller concept, we’ll be able to offer a compact, more adaptable range of products to be able to service a faster moving consumer than those who like to lounge in the chairs of our current stores.

HOW IMPORTANT IS IT TO YOUR BRAND THAT FRANCHISEES WORK IN THE BUSINESS? Our model is based on franchisees working in the business. In our experience, stores are run better where the franchisee is hands-on. They have the fundamental role of managing the important levers of the business that are the key difference between a successful or unsuccessful outcome. Hands-on involvement in areas such as customer experience, wage

management and stock control cannot be done effectively via remote control.

We have around 5 per cent of franchisees run two cafes. As our stores are not typically saturated in the market it is less practical for franchisees to run stores that are large distances apart.

DO FRANCHISEES NEED TO DO BARISTA TRAINING? Absolutely! Franchisees undertake extensive barista training within our six-week training program. This includes training with the coffee supplier, extensive reading and understanding of what it takes to make a coffee, hours of practice within our training facility as well as instore training and assessments at intervals throughout the training schedule.

WHAT FOOD PREPARATION IS REQUIRED AT THE OUTLETS? Bakery items are made exclusively for the cafe chain, are snap frozen and arrive ready to serve. Cafe staff are required to make items on the breakfast menu, as well as burgers, gourmet sandwiches, kids meals and salads.

IN THIS INDUSTRY, WHAT ARE THE BIGGEST OBSTACLES PREVENTING FRANCHISEES’ REGULATORY COMPLIANCE? Constant changes to regulation whether they be local, state or federal make operating a small business very challenging.

Endless changes to red tape make it difficult

for business to properly manage, and add layers of (mostly unnecessary) cost.

HOW DOES YOUR BRAND HELP FRANCHISEES STAY COMPLIANT? Shingle Inn undertakes payroll health checks across the whole network on a rotating basis. All stores will be checked at least twice per year to ensure correct award rates, penalties, superannuation etc. are being paid. We also undertake business audits with stores to check there is a clear understanding and implementation of requirements in areas such as WH&S, food hygiene and correct product purchasing channels.

WHAT ARE THE BRAND’S GROWTH PLANS FOR THE NEXT FIVE YEARS? We are currently searching for master franchisees in South Australia and New Zealand with a view to expanding into both of these territories.

WHAT IS AN AVERAGE CONSUMER SPEND? Our average transaction is about $15.

Together hot beverages and food purchases make up nearly 80 per cent of turnover with around 78 per cent of all food purchases including a hot beverage.

Takeaway coffee represents a very small proportion of the business – less than 9 per cent of sales. It is a very competitive segment that tends to see a lot of price pressure between operators.

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BAR BELLACCINO

Bar Bellaccino invests heavily in the right technology for each cafe. Good technology means consistent high quality coffee with less effort. This means the cafes are easier to operate and the owner/ manager can spend more time building relationships with customers.

Sustainability is a work in progress.

Bar Bellaccino has always purchased our coffee sustainably from reputable supplies, that part is easy, we can identify the farms, altitude, plant variety of each of our single origins. Sustainability at the cafe is still a work in progress, reuseable coffee cups are growing in popularity which is great. There is still no good recycling option for disposable cups for most cafes.

We are investigating the option of having a composting availability for our locations.

COFFEE BREAK: 2 MINUTES WITH BAR BELLACCINO HOW DO YOU DISTINGUISH YOUR BRAND TO POTENTIAL FRANCHISEES? Bar Bellaccino stands apart from the crowd in three main ways: 1. Product quality. Our coffee was voted in the top 1 per cent of coffee at the Golden Bean Awards.

2. Food strategy. Classic items plus our Italian street food options.

3. Integrity. When done correctly franchising is a fantastic partnership with the enthusiasm of the franchisee and knowledge of the franchisor. All successful franchises have integrity and honesty at their core. Bar Bellaccino aims for the highest of standards in the franchising business model, offering high value and low investment franchise options.

business model allows for the “local factor”. Our franchisees are encouraged to incorporate a local specials menu which focuses on the local community tastes.

HOW ARE YOU MAKING THE BRAND MORE ADAPTABLE TO LOCATION AND DEMOGRAPHICS? A good design plan needs to be adapted for the different needs of each location.

Bar Bellaccino in Pitt St, Sydney, has a very small space so the focus is on large coffee sales. This store needs a different layout to a more traditional cafe in a shopping centre. Importantly our Bar Bellaccino

WHAT INNOVATIONS HAVE YOU INTRODUCED IN THE LAST 12 MONTHS? Bar Bellaccino has focused on instore (franchisee) profitability. We have developed delicious and different food options that maximise freshness and profitability while maintaining simplicity.

Instore profitability is now being improved with technology to assist the barista, which

WHAT IS AN AVERAGE CONSUMER SPEND? Cafes have a $10 average spend – each cafe will still have a large amount of takeaway coffee every day.

HOW MUCH DOES TAKEAWAY COFFEE CONTRIBUTE TO BUSINESS REVENUE? 30–80 per cent depending on the location WHAT IS THE AVERAGE RATIO OF COFFEE/BEVERAGES TO FOOD IN TURNOVER? 40–80 per cent depending on the location.

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will lead to consistency and profitability improvement.

HOW MANY INNOVATION PROJECTS IS THE BUSINESS WORKING ON NOW? With our partners Bar Bellaccino is working on two projects to develop innovative point of sale delivery options and customer interaction options.

WHAT ARE THE BRAND’S GROWTH PLANS FOR THE NEXT FIVE YEARS? Bar Bellaccino intends to only expand into quality locations that suit our brand. We believe five to 10 new stores per year is achievable and aligned with our values.

HOW WILL THE BUSINESS ADAPT TO COMPETITION AND REVENUE CHALLENGES? We are constantly looking for ways to improve our sales and reduce franchisee costs. We are in a great position to expand into the current market offering high value, low investment franchises. With our bonus structure Bar Bellaccino is offering several premium locations for $140,000– $180,000. Note these stores will have a fitout and setup of around $300,000 – that is great value.

INDUSTRY SPOTLIGHT

GLORIA JEAN’S COFFEES

Retail Food Group recently met with the Gloria Jean’s franchisee network to discuss the rollout of its next 12 to 18 months across product innovation and marketing initiatives. In the pipeline is an affordable refurbishment that will update the look of stores and offer flexibility depending on the needs of the franchisee.

MENU INNOVATIONS The cold drinks range has really cemented itself as the go-to drink of choice amongst millennials. Around 15 per cent of our shoppers make up the millennial profile but this is increasing year on year. Consumers have also been customising this drink range to add extra coffee shots depending on their needs. New cold drink innovations are being explored to continue to meet the increasing demands of this market.

GJC is always looking at ways to broaden the menu offering to suit the wide range of interests that our customers demonstrate. “Day parting” menu categories have become increasingly popular. This means that customers are looking for a range of choices to suit the time of day. GJC is developing a wide range of breakfast, lunch and evening dinner options that capture the needs of most customers no matter what time of day their tastebuds begin to hunger.

STORE DESIGN The flexibility of GJC store designs means that most formats can be adapted to suit a range of locations and needs. From kiosk options to small, large and drive-thru formats, this flexibility continues to appeal to potential franchisees.

LAVA COFFEE

Franchisees love it that they get to express their own personality with Lava Coffee and have a bigger team that backs them up. They love the openness between the other franchisees and the culture of support and sharing that is fostered.

We are all about elevating our franchise partner and the community we operate.

Everything we do is about taking the drudgery out of small business. You don’t go into owning a cafe so you can do book work – harnessing technology we make it easy for our partners to focus on what is important: having fun with your customers, delivering greater consistency of coffee with lower training and ongoing labour costs.

COFFEE BREAK: 2 MINUTES WITH LAVA COFFEE HOW ARE YOU MAKING THE BRAND MORE ADAPTABLE TO LOCATION AND DEMOGRAPHICS? Our fully systemised cafe in a box! We have recognised that by fitting out an amazing looking shipping container with the latest technological advancement, we can take speciality coffee to non-traditional locations anywhere in Australia. By doing this we have shortcut the time for approvals, reduced the costs of rent, labour, and ongoing maintenance.

The concept makes it easier to get finance or just to buy it outright. At $139,000 + GST this is a perfect starter business and it can pretty much go anywhere. From car parks, industrial sites, unused lots, mines to marinas, office complexes, parks.

WHAT IS AN AVERAGE CONSUMER SPEND? $8–$12. Takeaway coffee contributes 60–70 per cent to business revenue. The average ratio of coffee/beverages to food in turnover is 70/30.

WHAT INNOVATIONS HAVE YOU INTRODUCED IN THE LAST 12 MONTHS? We have introduced the most advanced brewing and dispensing coffee tools in the marketplace. Ubermilk and Puqpress are just some of the additions that help drive labour costs down and increase consistency.

HOW DOES YOUR BRAND HELP FRANCHISEES STAY COMPLIANT? We ensure that we keep our partners informed about all the latest local and federal regulatory changes. We harness our point of sale system and accounting software to ensure our partners are aware of these changes. We use these tools to make it easy for our partners to keep things on the right track.

WHAT ARE THE BRAND’S GROWTH PLANS FOR THE NEXT FIVE YEARS? Lava Coffee is looking to roll out 50 locations in the next five years. n

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INDUSTRY SPOTLIGHT

BAKED TO PERFECTION? Three bakery franchises discuss what it takes to make their daily bread.

T

here’s more to being a top notch baker than kneading dough. Inside Franchise Business asked three franchise chains to share their behind-thescenes secrets.

VICTORIAN FAVOURITE,

FERGUSON PLARRE BAKEHOUSES

The Ferguson Plarre Bakehouses chain has been owned and operated by the Plarre family since 2012. But the family baking history extends more than 110 years … way back to 1901 when Mrs Ferguson advertised herself as a pastry cook, confectioner and caterer in Lygon Street.

As the Ferguson business grew, so too did the Moonee Ponds bakery set up by German-born Otto Plarre. The two families established themselves as household names in Melbourne’s bakery scene and combined forces in 1980 under the Ferguson Plarre Bakehouses banner. Franchising was introduced to the business in 1988 and the fourth generation of Plarres acquired the Ferguson interest in 2012.

The home of the traditional pasty, the Tiddly Oggie, Ferguson Plarre today has 71 bakeries across Victoria.

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Q&A WITH FERGUSON PLARRE BAKEHOUSES ON PRODUCTS: What is your most popular bakery item and how many were sold in 2018?

The great Aussie classic meat pie! We make a variety of flavours and sizes and have been making them for over 100 years. We sold over 2 million of them last year.

How many kilos of flour does a franchisee stock at any one time?

None! We do all the baking for them. Interestingly, though, Ferguson Plarre spends more every year on fresh strawberries than we do on flour.

What happens to the leftover product?

We make use of leftovers in a range of ways: 1. New staff are encouraged to trial all products so if they haven’t tried something that is leftover, we encourage them to take it home and try it so they can discuss the flavours and quality with customers from their first-hand experience.

2. Some stores have a relationship with charity partners and will offer leftover products to them.

3. Our main bakery provides any leftover products to the Salvation Army.

ON STAFFING: How many team members does a franchisee typically require?

Ten to 15 on the roster with two to six staff present at any one time depending on the store size and time of day.

What is the relevant modern award for bakeries?

This depends on a range of things. In Ferguson Plarre’s case, we operate under the Restaurants Award due to a high prevalence of dine-in consumption.

How are bakery staff trained?

A combination of instore and online training modules conducted by our training team. We also have a cultural competence program.

ON PREMISES: What is the process for franchisees to find a site and secure a lease?

As franchisor we take on the head lease status with the landlord so we will control the site finding and negotiation process in conjunction with the franchisee.

What does the ideal site look like?

Our stores will tend to perform better in “fresh food” precincts in shopping centres or high street locations as we look for steady traffic flow of customers into our area throughout the day.

Pending the requirements of the site we can utilise three models including kiosk, in-line or cafe.

What technical requirements are there for a bakery fitout?

As there is no baking or cooking required our stores are relatively easy to build and cost efficient so long as we can install our cool storage, display units and a coffee machine.

How long does it typically take from signing a lease to opening the doors on a greenfield bakery?

As the lease signing is normally at the same time as securing the franchisee’s commitment, it will be design and build that need to be completed from this stage. Typically this can take around six to eight weeks.

ON COSTS: For a greenfield site, what capital investment is required in equipment?

Complete store build will vary pending format and size but starts from $260,000 up to $350,000.

What ratio of turnover would you expect a franchisee to spend on rent? And on wages?

Our network aims for 10 per cent for occupancy cost and between 25 and 35 per cent for wage to sales ratios, depending on the complexity of the store operations and product mix.

What are the monthly franchise fees and marketing levy?

We don’t charge either royalty or marketing fees.

ON GROWTH: How many new bakeries do you plan to open in the next five years?

Between 25 and 35.

How many franchisees are multi-unit owners?

Currently we have seven.

What new business models are in the pipeline?

We are reviewing new locations in business parks/industrial zones as well as drive thru concepts and smaller “express” sites.

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INDUSTRY SPOTLIGHT

AUSSIE IDENTITY, BRUMBY’S BAKERY Another bakery story that began in Victoria … but really took off in Queensland. The Old Style Bread Centre was opened in Melbourne suburb Ashburton in 1975

by Roger Gillespie, who would go on to co-found Bakers Delight. In the next decade it expanded to Queensland, took on a stronger Australian identity, rebranding as Brumby’s, and embraced the franchise model.

It went through several changes of ownership and in 2007 was acquired by multi-brand franchisor, Retail Food Group, which has faced troubles over the last few years. New management at RFG acknowledged that there was work to be done to improve the performance of the company, with a “renewed focus on our franchisees and their own profitability”.

In a statement RFG said its current 12 to 18 month strategic calendar was focusing on major improvements. These include “the development of new and exciting products and innovation, targeted and more relevant marketing initiatives, and reductions on coffee pricing – just to name a few.

“We are already beginning to see the positive outcomes of these initiatives,” the franchisor said.

Q&A WITH BRUMBYS BAKERY ON PRODUCTS: What is your most popular bakery item and how many were sold in 2018?

The staple favourite, the White Round Roll, is the top performing product for Brumby’s Bakery selling more than 3 million units in the last calendar year. The White Sandwich Loaf and Sausage Roll continue to be crowd favourites tipping the tills in excess of 2 million and 1.5 million units respectively.

How many kilos of flour does a franchisee stock at any one time?

Depending on the size of the store’s footprint this can vary greatly. Each year, Brumby’s Bakery buys over 5,500 tonnes of flour to supply to our network. Working closely with our primary flour provider Manildra Group, the company continues its proud promise of producing preservativefree breads for the nation

The baked-fresh daily product that remains after hours is often sent to charity. More than 150 franchisees have established partnerships with local charities to which they donate at the end of trade.

ON STAFFING: How many team members does a franchisee typically require?

Depending on what stage of development the business is at, the number of staff required in stores can vary hugely.

Brumby’s has stores with as few as four staff members and through to rostered sheets of more than 20 employees. When considering a trading day of 6 am to 6 pm, there are a lot of potential shifts to cover and that’s before you calculate the afterhours management and baking time.

What is the relevant modern award for bakeries?

The General Retail Award is the mandate for the industry and in conjunction with our wage compliance training programs and activities, Brumby’s continues to provide all franchisees with the tools and knowledge they need to run a successful and compliant business.

How are staff trained?

Ongoing training and support is a crucial deliverable for the Brumby’s business.

Before a franchisee enters a store to start trading, we provide them with intensive training spanning compliance, product, sales and marketing. Further to that, the business provides the franchisee with ongoing training and support for all of their employees. This can include workshops and events, online and video walkthroughs and includes access to a library of resources via an e-learning platform that is available to anyone connected with a Brumby’s store.

ON PREMISES: What is the process for franchisees to find a site and secure a lease?

Brumby’s has a dedicated team of sales

What happens to the leftover product?

Brumby’s follows a formula to ensure that franchisees remain profitable in their bread sales as a first consideration, and secondly, follows production sheet formulas and undertakes wastage analysis every day so that stores don’t end up with too much unsold product.

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and leasing professionals who work with major landlords around the country. There have been many times, too, when Brumby’s has been approached to open a store in a region that hasn’t had the brand previously.

This is where the team really goes to work, sourcing and negotiating rates with landlords to get the best rental agreements for the franchisee. During a time where the industry has faced challenging retail conditions, the team has continued to work closely with franchisees and negotiate with landlords to secure better occupancy arrangements.

What does the ideal site look like?

Store locations on highly visible shopping strips are very appealing to the brand.

The ability for local communities to see the store is paramount; couple that with the ease of parking and increased floor space, it’s not hard to see why this is a preferred site option. Brumby’s is all about the local community and providing fresh, hot bread to them every day. It’s a staple need for many people, so store locations that can meet that demand in high-density communities are ideal.

What technical requirements are there for a bakery fitout?

A bakery requires reasonably sized backof-house and preparation areas owing to the equipment required to create freshly baked products daily. An appealing point-of-sale area, easy site entry point, and the availability of parking are also key considerations for fitout scoping.

How long does it typically take from signing a lease to opening the doors on a greenfield bakery?

For a new site being fitted out, three to four months is a comfortable period of time to plan towards. The project plan should include franchisee training time, fitout and marketing scoping, build and leeway for minor modifications.

INDUSTRY SPOTLIGHT

NATIONAL TREASURE, BAKERS DELIGHT Elise Gillespie and her husband David Christie head up the family-owned Bakers Delight chain, taking over from founders Roger and Lesley Gillespie, who took up positions on the board in 2017.

Bakers Delight began from a shop in Hawthorn back in 1980 and today counts more than 700 bakeries across Australia, New Zealand, the US and Canada (where it trades as COBS). When in 1988 the Gillespies wanted to grow beyond their 15 bakeries they turned to franchising.

The business has given us such delights as the Cheesymite Scroll, received business and industry awards, and in 1999 initiated the pink bun campaign which has raised more than $18 million for Breast Cancer Network Australia.

Q&A WITH BAKERS DELIGHT ON PRODUCTS: What is your most popular bakery item and how many were sold in 2018?

Our most popular item by far is the Hi-Fibre Lo-GI White Block Loaf. Families love it because it offers plenty of fibre, generates longer lasting energy and tastes great. In 2018 we sold over 10 million loaves so it must be good.

How many kilos of flour does a franchisee stock at any one time?

A typical bakery would go through anywhere between 1.5 and 1.8 tonnes of flour per week. However, this depends largely on the size of the bakery, product range and turnover.

What happens to the leftover product?

All of our franchisees are strongly connected to the community around them and go out of their way to support those groups that need a helping hand, from local sporting clubs and schools through to major charities and welfare organisations.

Wherever possible, our end-of-day waste is donated to an organisation that is working towards building a better community. For example, one of our bakeries in Mount Gambier (SA) regularly donates bread to the needy via the local food bank service, while our franchisees in Ellenbrook (WA) donate leftover bread to a group dedicated to rescuing injured native animals.

ON STAFFING: How many team members does a franchisee typically require?

A typical bakery would employee between 15 and 30 (casual and full-time) staff depending on turnover and volume sold.

This would include bakers, apprentices, retail staff and sometimes a bakery manager.

What is the relevant modern award for bakeries?

General Retailer Industry Award 2010.

How are bakery staff trained?

All of our staff are trained to varying levels dependent upon the engagement of their employment. Bakers Delight has created a dedicated e-learning platform “Breaducate”. This valuable resource allows franchisees to track staff training-module completion in key areas such as OH&S, marketing campaigns and food handling, to name a few.

ON PREMISES: What is the process for franchisees to find a site and secure a lease?

This is all done internally through our property, projects, operations and franchise recruitment team.

What does the ideal site look like?

Located in a strip, shopping centre or mall is ideal. A good site must have a supermarket nearby, a fresh food offering and convenient parking and local transport.

What technical requirements are there for a bakery fitout?

The essential items are 3-phase power, category 1 works (being drainage and sewer points), clean tenancy shell and approximately 80 square metres.

How long does it typically take from signing a lease to opening the doors on a greenfield bakery?

The entire process is surprisingly quick when you consider the amount of work that goes into it: we can be open for business within two weeks from when the tenancy is handed over by the landlord.

ON COSTS: For a greenfield site, what capital investment is required in equipment?

Franchisee fee = $50,000 + GST Bakery fitout, equipment and start-up costs

= $500,000 - $550,000 + GST Training $10,000 + GST What ratio of turnover would you expect a franchisee to spend on rent? And on wages?

Not greater than 10 per cent total occupancy costs, and wages around 40 per cent of turnover.

What are the monthly franchise fees and marketing levy?

Royalty = 6.5 per cent of net sales + GST on the Friday of each week.

Advertising contribution = 2 per cent of net sales + GST on the Friday of each week.

ON GROWTH: How many new bakeries do you plan to open in the next five years?

In the short term, our growth strategy focuses on our Canadian and US expansion, which is going very well.

In Australia, our goal is to ensure we are ready to take advantage of new opportunities as they arise. That means sourcing the right location (ideally in an area we don’t already have a presence in), having the right operator ready to step in and an alignment with the right food and convenience offer.

How many franchisees are multi-unit owners?

It’s 45 per cent of our network.

What new business models are in the pipeline?

In 2020, Bakers Delight will celebrate its 40th anniversary, so we know our model works and works well. Having said that, we are always on the lookout to innovate in both the way we do things and our product offering. n

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INDUSTRY SPOTLIGHT

SNAP

HAPPY

It’s an Instagram world today so why would you invest in a photography business?

T

apSnap’s franchisor Dan Kelland answers crucial questions about the benefits of a professional photo-booth business.

1. IN THE AGE OF THE IPHONE AND INSTAGRAM, WHY IS THERE STILL DEMAND FOR A PHOTOGRAPHIC BUSINESS? With phone cameras it can be challenge to find good lighting or to get a great group shot with a selfie stick or whilst fumbling with your phone. That can detract from the face to face fun you can have with your friends! Here are some reasons why there is still a demand for a photo booth business: Better picture quality: parties and events often have low lighting resulting in blurry, pixelated photos that are tricky to edit. TapSnap photo booths are equipped with high quality cameras and proper lighting to suit the scene.

Share photos in seconds: unlike with selfies that can take a number of steps to share, TapSnap allows instant sharing direct to social media and email via a tap of the screen....or printing a high quality photo in seconds.

Customisation of backgrounds and props: we can add more fun to your party by adding different backgrounds, digital props or personalised messages to the photos. We can also bring photos to life through moving backgrounds or animated GIFs. Print out your pics: often with group selfies, it is only the owner that has a copy of the photo, unless they tag

or email the photo to all participants.

Traditional photo booths have the same problem with only one photo often available. With TapSnap, guests have access to unlimited high quality prints so that everyone in the shot can take home a photo as a special keepsake.

2. WHAT MARKS YOUR BUSINESS OUT AS DIFFERENT? TapSnap is really two businesses in one: a social media connected photo booth for weddings, parties and the like, and a photo marketing system for business and corporate events.

In addition to our ever-evolving suite of products and features, our franchisees receive two different types of photo booth so that they are able to tailor their services according to the clients needs. This includes the market leading TS42 booth; featuring a fully interactive 42-inch touchscreen.

We have a full-time support team consisting of graphic designers, marketers, product development and IT support.

We also have a large and vibrant online franchise community with which to share ideas and experiences.

intuitive, proprietary software takes care of any lack of photography knowledge.

4. WHAT IS BEST PRACTICE FOR FRANCHISEES TO BRING IN NEW BUSINESS? The best way to grow a TapSnap business is to engage your local community and deliver outstanding events...having a fun and outgoing personality and a passion for attending events certainly helps.

5. HOW BIG CAN THIS BUSINESS GROW? The business model is very scalable.

Franchisees set their own hours and so determine how much they want to work.

Our areas are large and exclusive and some members have grown their businesses to include 5 or 6 photo booths with a team of attendants to allow for multiple events to be run at any given time. n

3. WHAT PHOTOGRAPHIC AND TECHNICAL SKILLS ARE REQUIRED TO OPERATE THIS FRANCHISE? Whilst many of our franchisees have a passion for photography, no prior skills are required. We provide full training and our AUG/OCT 2019 | 80 | WWW.FRANCHISEBUSINESS.COM.AU

Are you passionate about leading others?

Do you want control of your future?

Join a winning team!

Our coaches worldwide recommend this opportunity as a personally-fulfilling and financially-rewarding business, offering a balanced lifestyle.

Earn more, Work less www.focalpointfranchise.biz Contact Andrew Phillips on 0418 500 721

KEEN TO BE YOUR OWN BOSS?

Own a slice of your local community

We will help you rise to the challenge

We support you to be well prepared to run and manage your own successful business.

Managing Business Operations We’re committed to guiding you on how to manage the day to day operations of your business from production to sales.

Financial Planning and Driving Profitability We’ll help you manage your costs, grow your sales, drive profit and assist you in reaching your financial goals.

Baking and Sales Training We’ll work with you in a live bakery environment to make sure you know how to make dough.

Growth and Development We will teach you on how to build and develop local marketing plans, a strong bakery team, and a sound business based on our successful business model.

SPEAK TO US ABOUT FRANCHISE OPPORTUNITIES Web: bakersdelight.com.au/franchise Phone: 1300 309 759

INDUSTRY SPOTLIGHT

HIGH-TECH

HOUSEHOLDS It’s not just fast food and fitness taking up the tech race. Inside Franchise Business shines the spotlight on the brands innovating around the home.

By Nick Hall

T

here was once a time when AI and home automation was seen as a science-fiction future. Now, advancements in technology and smart engineering are seeing the Joneses keep up with the Jetsons.

From Jim’s Mowing to V.I.P., the house and garden sector is packed full of iconic, heritage Aussie franchise brands. Leveraging a model that caters to the time-poor or industrial impaired home-owner, home and garden service franchises have proven to be some of the most profitable and sustainable systems on the market.

In fact, the industry has grown in popularity over the last 10 to 15 years, buoyed primarily by generational change.

Where DIY was formerly seen as a symbol of social significance, the rising influence of millennial and Gen Z consumer markets brings about a complete shift in ideals.

Now, more than ever before, customers are moving away from Do-It-Yourself in favour of Do-It-For-Me. The emergence of the gig economy demonstrates just how willing this new breed of consumer is to up their average price in order for a full-service experience.

But within the opportunity lies the challenge.

DISRUPTORS The impact of food delivery platforms such as Uber Eats and Deliveroo on the hospitality industry has been

widely documented. However, it’s the handyman and home service sector that is experiencing deep disruption.

In Australia, home-based outsourcing platforms like Airtasker have emerged as powerful competition to the traditional industry options.

Customers can post any job they want online, from cleaning to installing doors to lawn mowing, with members bidding to perform the task.

The innovative model has achieved steady success over the past three years, particularly among millennials.

Airtasker’s largest audience is aged 25 to 34 and is generally representative of a more affluent market segment.

Like Uber Eats and Deliveroo, however, outsourcing platforms are at the mercy of gig-economy legal and employment regulatory bodies. The lack of clearly defined employment has been the subject of much contention, with Foodora infamously citing strict regulation concerns as a major motivator behind its departure from Australia.

While outsourcing platforms have only recently begun to take market share, the home and garden sector is already entering a second technological evolution.

The rising demand for smart houses is changing the way consumers interact with their domestic space. From small, household innovations such as robot vacuum cleaners to large scale planned investments like the Tesla home battery, the house and garden sector is evolving.

The challenge for franchise brands within the industry is knowing when to invest and why. Thankfully, some

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For the love of business Passion is the backbone to any successful business. At SNAP, our passions are print and building businesses. As part of our network, you’ll be supported by a team with the expertise and passion to see your business reach its full potential.

Boasting a 120 year history in the print and design industry and with 40 years in franchising, SNAP is 100% Australian owned and operated. We have over 140 Snap Centres locally and we are internationally franchised in Ireland and New Zealand.

Nothing beats the satisfaction of owning your own business and becoming your own boss, with the security and freedom to dictate your working day and lifestyle.

Some reasons why SNAP is the right choice for you: Become part of a Multi Award Winning Australian Franchise network Join a growing market space in digital print Open doors with a powerful and recognised brand Have sales leads generated for your business Be supported in your local area marketing programs

Enjoy the flexibility to work 9-5 Monday to Friday, with your weekends free

Access the best-in-class suppliers through SNAP’s Premier Partner Program Tap into the latest technology and training systems

Create a saleable asset to benefit your future

Franchise Opportunities Available Now! If you want to learn more about becoming part of the SNAP team, we’d love to hear from you!

P. 1300 810 233 E. franchiseenquiries@snap.com.au www.snap.com.au

INDUSTRY SPOTLIGHT

Hire A Hubby

Brendan Green, CEO of Hire A Hubby

of Australia’s most well-loved franchises are capitalising on the change, rather than resisting it.

HIRE A HUBBY “Our business has been growing in numbers on an annual basis, we’re on track to have about 45 to 50 new franchise recruits this year, with that growth fuelled by people in the marketplace looking to outsource,” Hire A Hubby founder and CEO, Brendan Green says.

The handyman business has seen it all come and go in its 25 years of operation.

Starting out as a basic home-service operation, Hire A Hubby has become one of the country’s most successful franchise models, launching globally in 2008.

Green acknowledges that while network growth was admirable, it wasn’t until 2011 that the brand really hit its technological straps.

“We chose to invest in technology in 2011 in a big way because we could see gaps in franchisee performance,” he says.

“As a franchisor in the past, I could send through 20 leads to a franchisee and I would have no way to measure the outcome of how those leads were serviced. So, what we did was build a job management system, where we could then look at what jobs the franchisee was completing, timeframe and return on investment.”

The investment paid off from a head office perspective, increasing market share and profitability, however Green reveals that the biggest boost was to the franchisees themselves.

“All of a sudden, we had a metric of

what you are doing with customers and how best to serve them. It meant that our franchisees could work collaboratively with us to set goals, and the result has been that franchisees are performing stronger and staying with us longer.”

Seeing the network response to the tech push prompted the Hire A Hubby head to rethink the brand’s approach, forefronting innovation as a key brand pillar.

The move has opened the opportunity for franchisees to better manage their own business and increase work–life balance.

“What we saw before we introduced the technology was a lot of guys burning out,” Green says.

“The moment we introduced that technology, we were able to develop a better plan and look at what the franchisee really wanted to get out of the business.

Did they want to spend more time with family? Did they want to build their own network? With all those desires in check, we could determine how much their business needed to generate to make that a reality.”

Green says the increase in franchisee satisfaction has led to a more scalable operation.

“In fact, we have franchisees who have decided to cut their territories in half, we’ve helped sell those with all proceeds going back to the franchisee, which in many cases is much as they paid for the original franchise.”

More recently, Hire A Hubby has partnered with professional financial services firm PwC, to introduce a simplified invoicing system.

“What PwC has done is essentially build a platform for the franchise sector to, using

AI and robotics, provide more accurate and timely cash flow predictions,” Green says.

“Partnering with PwC provides our franchisees with the tools to manage cash flow, but it’s also given us a live benchmarking index. Instead of static data that allows you to slice and dice information, it’s more representative of a business’s day-to-day operation.”

Feeding into the PwC addition is Hire A Hubby’s immersive management system, which provides franchisees with a personal wealth management tool.

“Essentially, it can be used as a personal balance sheet, where information can be fed to banks, lawyers, accountants, financial planners. Franchisees can see what is happening with their super, how their property portfolio is travelling. With all this information at their fingertips, we’re taking a very cottage industry and transforming it into something very professional.”

V.I.P. HOME SERVICES From the technology innovations helping franchisees to boost their bottom lines, to the ethical initiatives improving sustainable practice.

Heritage franchise brand V.I.P. Home Services was born out of a need for effective and affordable garden maintenance, in an era almost predating the franchise movement in Australia.

Founded by door-to-door vacuum cleaner salesman turned entrepreneur Bill Vis in 1979, V.I.P. was just the third franchise company in the country. Now, more than 40 years on, the brand has expanded its offering, amassing a network

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INDUSTRY SPOTLIGHT

V.I.P. Lawns and Garden Solar powered trailers

of over 1000 franchisees across Australia and New Zealand.

With all that history behind him, it would be easy for Vis and the V.I.P. team to rest on their laurels, but earlier this year, the visionary franchisor committed to tackling a new battle: sustainability.

In March, V.I.P. unveiled a network-first solar-powered trailer, allowing franchisees to monitor their electricity and energy usage.

Specially adapted and fitted with solar panels and a power pack, the sustainable trailer has an inbuilt tool recharging station, which in turn reduces franchisee downturn and pollution.

The latest initiative was spurred by an initial discussion with tool supplier Makita about its range of battery-powered tools, Tim Banning, V.I.P. Lawns and Garden regional franchise manager explains.

“The off-the-grid and camping crowd have been using solar-powered trailers for a while now but we believe we’re the first franchising company in Australia to utilise this technology. At V.I.P. we’re pretty excited about this – it’s a real win–win,” Banning says.

While the new solar-powered trailers address a growing environmental concern, Banning believes the initiative also has the power to greatly impact franchisee profitability.

“The new solar-powered trailers will mean reduced running costs and less downtime for our franchisees. The Makita power tools are easier to start and lighter than traditional lawn and gardening equipment so there’s less chance of muscle strains or fatigue. And of course, less

pollution means a cleaner environment.”

Adelaide partner Allison Bunting was the first franchisee to receive a solarpowered trailer, an initiative that she reveals has completely revolutionised her business.

“Gardening is something I’ve enjoyed my whole life. For the past four years, I’ve been working for a V.I.P. franchisee and I was ready to get my own business,” she says. “I only wanted a smaller trailer – this new solar-powered one has made it even more attractive so I’m rapt.”

SUPERGREEN SOLUTIONS V.I.P. isn’t the only brand committing to clean, green innovation, however. In June, energy efficient retailer, supplier and installer SuperGreen Solutions unveiled a network-first.

The brand rolled out an all-new mobile

showroom, SuperGreen Direct, taking its unique and industry-leading catalogue of products and displaying them directly to clients, in their own home.

Sean Cochrane, SuperGreen Solutions founder and managing director, says the new franchise opportunity was designed to reflect the evolving nature of retailing and e-commerce.

“Let’s face it, the way business has been done in the past will not be how business will be conducted in the future,” he says.

“Bricks and mortar is changing, some people don’t want a five-year lease, that’s why we’re introducing this.”

The SuperGreen Direct vans are fully equipped with a plethora of energy efficient products and serve a dual purpose as both a showroom and a mobile workspace.

The solar-powered, fully wifi enabled vans have integrated lighting displays, electric vehicle chargers and

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SuperGreen Direct sales van

air-purification devices all controllable through the onboard Google Home system.

“The van displays all of our products, everything that is in that showroom is now in the van,” Cochrane says.

The addition of the mobile sales model is sure to be a boost for bricks and mortar retailers as well, with Cochrane revealing existing franchisees will serve as supplier hubs.

“If I’ve got the store and you are the sales guy, you don’t have the stock on hand, so essentially it feeds back into the bricks and mortar retailer. The bricks and mortar operator can then split the profit as he is effectively working as a supplier.”

It’s a proactive changing of the guard for SuperGreen Solutions, which has achieved enormous success in Australia and abroad. An innovative approach to energy efficiency put the brand on the map, and now a dedicated focus on improving customer experience is the next step.

“This is the disruptor. Shopping now is on your mobile phone. Five to ten years ago, people were walking down the strip mall, then they moved to a shopping centre, now they are shopping on their phone,” Cochrane says.

The SuperGreen Direct showroom is just one of the three new mobile models the brand is currently rolling out to combat the evolving sector.

The global franchise is also launching an installer and electrician/plumber model for those looking to specialise their offering.

“The next step is finding the electrician and solar installer that wants his own

van. He doesn’t want a showroom, he wants that identification with the tools. When the bricks and mortar retailer sells a Tesla battery, he needs someone to install it, that’s where this model works.”

It’s a system that allows for free-flowing movement across all platforms, whereby the SuperGreen Direct sales van can quote and sell products, pass a supply order on to the bricks and mortar retailer before having the mobile installer visit the homeowner.

The full-service model is what sets the brand apart, Cochrane says, and with so many entities all operating as a team, everyone wins.

“Remember, with all these additional vans driven around, there is more noise, more brand awareness, and all that static is bringing more value to the bricks and mortar model.”

FORWARD THINKING Franchise brands in the home services sector invest hundreds of millions of dollars in marketing, often putting pressure

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on revenue growth.

Whether it be addressing the issue of franchisee tenure, as in the case of Hire A Hubby, or the growing need for door-todoor assistance, as seen with SuperGreen Solutions, forward-thinking home service providers are beginning to change their tune.

An evolving retail landscape has already claimed several bricks and mortar businesses, for the home and garden sector, innovation and adaption could prove to be the key to survival. n

INDUSTRY SPOTLIGHT

OUT OF

THE CAGE From deep fried to flame grilled, chicken has for long been the tasty nugget providing franchise chains with a tender future.

By Nick Hall

E

ven in today’s competitive fast food landscape, where customers are spoilt for choice, chicken chains are continuing to gain market share, and it’s off the back of consumer demand.

Where once a fillet from the flightless bird was seen merely as an additional menu item, Australian consumers are increasingly making the move towards chicken options.

The versatility of the product offering allows fitness fanatics and fried food fiends to sit elbow to elbow at the same table, offering the opportunity for maximum market penetration.

As customer expectations develop, franchise chicken chains are revamping their offering, promising to make chicken sexy again.

CURRENT MARKET The franchise chicken sector has come a long way since the Colonel opened the doors to his inaugural Salt Lake City restaurant in the early 1950s.

KFC’s categoric rise to franchise fame in the US paved the way for what has now become one of the most lucrative dining markets worldwide. In 2019, brands are scratching to get their claws on a piece of the chicken sector, each adding their own twist on the poultry product, and for good reason.

According to IBISWorld’s Fast Food and Takeaway Food Services in Australia Industry Report, chicken-based product offerings account for 18.4 per cent of the $20.1 billion fast food sector, making it the second largest product market nationwide.

Customers are increasingly shying away from the big-name beef burger market in

search of something more bespoke.

For franchisees, a chicken-based offering presents a mature market, with a significantly lower cost of goods than other premium red-meat markets.

“Chicken is Australia’s favourite protein,” Mimma Battista, CEO of Chicken Treat says.

“Australians per capita consume around 49 kilograms of chicken annually, compared with 27 kilograms of pig meat, 26 kilograms of beef and eight kilograms of sheep meat.”

“We only need to look at what is happening in the US Market. For the fourth year in a row Americans have chosen a chicken chain over burgers – this year Chickfil-a is still ranked America’s favourite fast food over the major burger chains.”

CHALLENGES Operating a chicken franchise is not without its challenges, however. The quality of a poultry product, particularly when grilled or roasted, is highly dependent on supply chain conditions. Where other fast food and meat product offerings can be frozen and shipped with no loss of inventory quality, chicken chains are bound by stringent supply demands.

It’s something New South Wales-based franchise Ogalo has come to know well.

The Portuguese chicken providers have amassed an enviable network of stores across Sydney, operating a centralised kitchen that produces and delivers fresh product. However, when it came time for the brand to launch its inaugural interstate location in Darwin earlier this year, the model had to be adjusted.

“We have always had control of product production as we believe that in doing so, we can keep our quality at the highest level

possible,” Ogalo operations manager, Nelson Lima says.

“Darwin in particular was always going to logistically be a difficult place to open a new site. We had to work on a system that would allow our product quality and consistency to be the same whether you had a meal in one of our Sydney locations, or interstate.”

What that meant was building relationships with local suppliers and food distributors, in addition to bolstering network support.

“We had staff from Darwin attend our company store for an intensive training course covering every facet of running an Ogalo store. Our store start-up crew were also in Darwin to assist and since opening, the store has proven to be a hit with the local community.”

CUSTOMER EVOLUTION While investing in training is not a new premise, it does helps to elevate brand appeal, which in a market as competitive as the chicken sector is invaluable.

“Consumers want personality; they don’t want to be served by a robot,” Oporto customer experience manager, Michelle Draper says.

For the past few months, the iconic Australian franchise has been revamping its instore experience to better suit the evolving demands of the contemporary customer.

“In the minds of consumers, Oporto is considered a premium product. We discovered we could easily match or exceed the rankings of the premium QSRs simply by redesigning the physical layout of our stores and investing more in our people,” Draper says.

The franchise found that by educating

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APPLYING KNOWLEDGE FROM PREVIOUS FRANCHISES: HOW THIS PAIR LEVERAGED THEIR EXPERIENCE TO SUCCESSFULLY RUN 2 SNOOZE STORES

Steve and Irene own two Snooze stores: Marion (SA) since 2015, and Chadstone (VIC) since 2016. Steve was initially approached by Snooze to run training workshops for its franchisees as a business consultant, having also previously been a successful franchisee in a different industry. Steve and Irene decided to become Snooze franchisees once they became familiar with the business model through his consulting work.

Using previous success to embrace a new challenge An important part of franchise ownership is to set yourself targets and work towards them.

The Marion and Chadstone stores were not strong in their performance when Steve and Irene took them over, but they saw this as a challenge and sought to make the stores more profitable using their previous franchise and business expertise. They used their intrinsic focus and drive to give the stores the love and attention they deserved, which ultimately converted to better sales.

Steve says, “the highlight of the franchise experience has been the ability to prove to ourselves that we can take a business and make it work by putting the right systems in place”.

Applying prior franchise experience in a new environment Steve and Irene acknowledge that it was a challenge to initially come into Snooze as new franchise owners, particularly when it came to evaluating the performance of these existing Snooze stores and staff members.

This meant shuffling around some of the team members in order to maximise their potential within the business, matching the right people with the right role.

“We took a couple of (team members) that had been working behind the counter and put them into the warehouse because they were more suitable to an admin role instead of a selling role,” says Irene.

In all, it took some adjustments to result in an overall big change for both the Marion and Chadstone stores.

Finding the right support staff Melbourne-based Steve and Irene first joined the Snooze franchise team by taking on Marion, a store in Adelaide.

They admit that the first couple of months were taxing, as they juggled frequent visits to Adelaide.

Now, however, they believe they have employed the right store managers and team to help them with all of the dayto-day management tasks, reducing the need to visit quite as often. This was particularly helpful when the couple took on their second store.

As Irene says, “(Our) store in Adelaide is now self-running.

We have 2 fantastic managers over there… we go over about every 5-6 weeks now and it’s just brilliant.”

Recognising the value that a franchisor brings Steve and Irene acknowledge that – for all of their experience – there are some areas of business ownership that they are not as knowledgeable in, and that is why they choose to be involved in franchises.

“The benefit of being a franchise partner with Snooze is that the franchisor does tick a lot of the boxes for areas that we don’t have expertise in. They pick the site, they do the store layout really well, they provide the product ranging, and they do the marketing,” says Steve.

They recognise the pivotal role that the Snooze support centre plays in a successful franchise, embracing the assistance that is provided. Without that, they might not have been able to achieve the same levels of success that they have.

“We’ve taken on 2 stores and both have become very successful.

So that’s been a challenge but also a big tick and a big highlight for us to be able to say that we’ve made it work,” says Irene.

For the full interview go to snooze.com.au/franchising, or for more information about becoming a Snooze Franchise Partner, contact Bettina Davis Bettina.davis@snooze.com.au | 0423 077 844

IT’S AMAZING WHAT A LITTLE SNOOZE CAN DO www.snooze.com.au/franchising

INDUSTRY SPOTLIGHT additional markets and break new ground in the booming sector.

“Home deliveries are a growing part of the business model with sales reflecting an increasing proportion of sales,” he says. “The home delivery sector continues to grow as customers seek out convenience and a range of food options.”

A FOWL FUTURE Chicken Treat Franchise partners and team members

and empowering staff members at all levels, consumers felt more personally connected to the brand.

Hollie Dent-Noble, Oporto senior brand manager, says increasing investment in retraining and retooling employees is the best method for growth.

The result has seen Oporto redirect funds from other areas, focusing instead on bolstering the human aspect of the business.

“So we redirected our advertising spend towards the development of our employees and the presentation of our physical stores, believing the customer experience needed to live up to people’s perception of our brand,” Dent-Noble says.

It’s a sentiment that Ogalo’s Nelson Lima echoes. While he admits an evolving consumer demand is also affecting the franchise chicken market, he views the move more as an opportunity than a challenge.

OPPORTUNITIES “The chicken sector, as with all other QSR restaurants has been evolving for many years now,” he says.

“Customers now expect more flavour and a fuller experience in their instore visit and have acquired more discerning tastes.”

While this may mean franchise chicken chains will have to update and review their current menu offering, the demand is simply too strong to ignore.

A growing vegan market presents an opportunity to further expand healthy options, which Lima believes translates more seamlessly for chicken chains than their red-meat counterparts.

“The consumer has become much more discerning in their tastes. They will look at all fresh and healthy options. Vegetarian and vegan options are regularly requested and are a much bigger part of the range of products available,” he says. “Nevertheless, it’s still important to remain loyal to the core product whilst having other options.”

Battista agrees, suggesting that product loyalty is more significant to chicken franchises due to the breadth of potential options.

“This is a highly competitive category with most burger QSRs expanding into chicken and new players entering the market,” she says.

“The key is to differentiate your brand, offer great quality, value for money, while being authentic to your brand promise.”

It’s something that Chicken Treat has worked tirelessly on over the last few years, with Battista revealing the hard work is paying off.

The brand recently registered its highest sales in five years, achieving positive growth for 18 consecutive months.

“Ten new stores will open across Western Australia in the next 12 months with four already under construction, and there are plans to launch the brand nationally in the next three to five years,” Battista says.

Evolving consumer tastes aren’t the only updates influencing the industry. Like all QSR and fast food categories, chicken chains are undergoing a massive period of industrial change, with the roll-out of delivery platforms such as Uber Eats and Deliveroo disrupting the market.

“You’ve really got to have a reason to sit in a restaurant these days because of the likes of Uber Eats and Deliveroo, so the look and feel of the restaurant is very important,” Oporto’s Dent-Noble says.

“A burger joint with no atmosphere, bright luminous light and a dirty glass door no longer cuts it.”

However, where casual dining and restaurant sales have softened, the chicken sector has been an early adopter, and the move is paying off.

“Demand for ordering platforms has grown exponentially over the past five years and to be able to tap into that, however small, is a boon to the industry,” IBISWorld senior industry analyst Bao Vuong says.

“This trend is expected to provide an edge for traditional fast food operators with extensive store networks and significant capital resources.”

Fried chicken favourite KFC signed an exclusive partnership with Menulog, with Red Rooster bolstering its in-house delivery service. Lima says partnering with delivery platforms has allowed Ogalo to reach

The QSR chicken sector has experienced enormous growth over the last decade and consumer demand suggests the trend will continue.

Australia’s growing health consciousness is spurring greater interest in grilled chicken offerings. The popularity of low-carb and ketogenic diets has also gripped the nation, allowing brands to flex their fitness credentials. Vuong suggest that the trend will not only continue, but develop as technological advancements make their presence felt.

“Rising consumer demand for nutritious fast food is projected to drive the Fast Food and Takeaway Food Services industry’s revenue growth over the next five years,” Vuong says.

“Online ordering may provide a competitive edge by increasing convenience for established players that are struggling to change their image to meet increased demand for healthy and premium products.”

Chicken Treat CEO Mimma Battista agrees, revealing that the brand is leaving the future in the customer’s hands.

“Consumers have developed more adventurous palates over time, and as a result demand new and interesting innovation and flavour profiles,” she says.

“We believe that brands who can capture the hearts and palates of consumers, will win in this QSR space.” n

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EXPO

WINTER WARMERS Buying a franchise could be a hot ticket to your future. So why not take off the winter chill with a visit to the franchising expo and check out the best way to warm up your ambition?

I

t’s time to put yourself first and make the move towards business ownership. The Melbourne Franchising & Business Opportunities Expo delivers a host of business concepts to consider.

Do you know much about franchising? Whether you are a total novice looking to find out just what’s involved with buying a franchise, or you are familiar with the pros and cons of being a franchisee and are seeking inspiration, the expo will be a source of useful information and contacts.

It’s a clever combination of showcased brands with franchise opportunities up for grabs, and a free daily seminar program packed full of vital tips and advice.

The key to working through the expo is having a plan … visit the website franchisingexpo.com.au to see which brands you want to find out more about, and check the seminar program to ensure you don’t miss any crucial sessions.

In addition to the businesses promoting their franchise models, the exhibitor line-up will include supporting and advisory businesses. Inside Franchise Business will be there, so make sure you come and say hello.

The Franchise Council of Australia is a good source of general information about franchising and a great place to start your expo journey.

The Australian Competition and Consumer Commission is another place to stop and glean some useful tips about franchising – what to look for and some of the warning signs of a dud business opportunity.

There will be lawyers and advisors among the exhibitors able to share

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When and where to go The Franchising & Business Opportunities Expo takes place at the Melbourne Convention & Exhibition Centre, South Wharf. important facts and answer any specific questions you might have.

It’s a brilliant opportunity to tap into expert knowledge – for free.

You will also have the chance to chat with franchisors and franchisees on some of the brand stands. Talking directly to franchisees in a business will give you invaluable insights into the daily life of a business owner, and can help shed light on what’s really involved in running the business.

EXHIBITING BRANDS So who will be at the expo this year? The line-up is a feast of diversity.

From the big brands that are household names in Australia (Anytime Fitness, Aussie, Clark Rubber, Poolwerx, Snap Printing, Subway, Swimart and Yellow Brick Road) to the quiet achievers (Battery World, BK’s Takeaway, HolidayXP, Noodle Box, NumberWorks’nWords, Ogalo).

Are you looking for a mobile business?

Consider these brands: Fastway Couriers, Flatpack Assembly Services, Gutter-Vac, Hydrokleen, Jim’s Antennas and Jim’s Security, The Graffiti Eaters.

Want to bring your business skills to your new venture? Look at Bookit Bookkeeping, Mail Boxes Etc. (MBE), Minuteman Press, Signarama, The Alternative Board.

How about brands from overseas that have recently begun making a mark in

Australia? Pay a visit to exercise brands Orangetheory Fitness and Xtend Barre, Japanese retail chain Miniso, and food franchises Jon Smith Subs and Pepper Lunch.

And for something really new, check out the Taiwan pavilion with a selection of franchised brands looking for Australian expansion.

WHAT TO LOOK FOR IN A FRANCHISE In the Brisbane expo in June, Poolwerx founder and CEO John O’Brien shared his thoughts on what’s important when searching for a winning franchise.

He shared his views in a podcast – visit www.franchisebusiness.com.au/news/ spot-winning-franchise/ to hear the full interview. Or turn to page 109 to glean some of his top tips.

Remember that franchisee profitability is crucial so don’t forget to talk to franchisees about this.

An ideal way to learn more about operations and the reality of the business is to join a discovery day. At the expo, find out if brands you are interested in offer this option.

DON’T BE RUSHED Whatever franchisors say at the expo, there’s no need to be hurried into a purchasing decision. If you are confident

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The expo is on Saturday 24 and Sunday 25 August 2019. Doors open at 10 am and the expo closes at 5 pm daily.

What does it cost? If you turn up without a ticket, expect to pay $20 at the door. You can pre-purchase a ticket online for $10 or take advantage of the Inside Franchise Business special offer and get a FREE ticket. Go online at franchisingexpo.com. au and use the promotional code FMG. of the business and have done plenty of homework, then the expo is a great opportunity to take advantage of any special offers.

However, potential franchisees just starting out on the voyage of discovery would be advised to take it slowly, and spend time after the expo reviewing the information garnered and doing further independent research before committing to a franchise.

The expo is the perfect experience that can heat up your interest in franchising … perhaps you’ll find a hot business opportunity to fire up your future. n

PROPERTY

VICTORIA’S

SECRET

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Looking to break into Australia’s cultural hub? Here, Inside Franchise Business takes a deep dive into Victoria’s booming city centres and regional areas on the grow.

By Nick Hall

W

hile New South Wales still dominates population numbers and Queensland has climate on its side, Victoria has for long been heralded as the nation’s food, culture and creative centre.

From Melbourne’s vibrant inner-city centres, where tourists can get lost in an endless maze of laneways and cafes, through to the picturesque mountain ranges that line the state’s outer regions, Victoria truly has something to offer every visitor.

However, for the first time in a long time, it isn’t just tourists getting in on the action. An evolving real estate market has seen declining property prices slowly stabilise, handing prospective Victorian homeowners and business operators a new lease on life.

While the market evolution opens the door for new entrants to stake their entrepreneurial claim, the May election results also helped to strengthen the small business sector.

Parties on both sides of the political fence were eager to flex their frontline credentials, citing small business as the engine room of the economy.

The result has seen a massive boost in jobs and support for prospective franchisees and small-business owners, as well as a renewed focus on development within the state.

“Victoria remains the engine room of the nation when it comes to jobs growth, with 478,000 jobs created since the Andrews Labor Government was first elected,” Victorian treasurer Tim Pallas says.

“These figures are much more than statistics – they represent women and men across the state who are building a life for themselves and their loved ones.”

Pallas’ commitment to statewide growth was evident in his May budget address, which outlined affordable property as the key to sustainable expansion.

The treasurer revealed a bold investment strategy that promised to deliver new infrastructure and support to both regional and metropolitan Victoria.

So, with construction on the horizon and wave of new entrants likely to hit our cultural hub, where can eagle-eyed franchisees look for a bargain business opportunity?

MELBOURNE

CBD SPACE

With a combination of world-class dining, entertainment and cultural offerings all within walking distance of the bustling downtown business district, there’s little wonder tourists regularly fall in love with Melbourne.

Widely regarded as one of the world’s most liveable cities, the Victorian capital is home to some of Australia’s biggest events. From the glitzy glamour of the Spring Racing Carnival to the passion and pandemonium of the AFL Grand Final, the city is a naturally bubbling hive of interest.

Despite the city’s global appeal, Australians have found it traditionally difficult to break into the competitive market. However, Nick Peden, director of Victorian CBD and metropolitan sales at real estate service provider Savills, says that may be all about to change.

“With the share market at 12-year highs on the first day after the Coalition’s election victory, the threat of a cap on premium increases as promised by Labor was removed,” he says.

The Victorian property expert revealed that while the market had suffered slightly over the last 12 months, it made for an encouraging opportunity for the savvy investor.

“There is no doubt that the Melbourne property market has softened since mid-2018, predominantly due to the tightening of bank lending, easing consumer confidence levels, and the softening of the housing market.

“But with strong fundamentals underpinning the market, we can expect a stabilisation of prices in the short term, and with greater confidence, improvement will soon follow.”

Compounding the predicted market growth is a projected continuation of the state’s population swell.

The nation-leading population growth, strong employment conditions and recently announced interest-rate cuts have contributed heavily to the state capital’s appeal.

“We anticipate that as 2019 progresses, consumer confidence will build and, coupled with a relaxation of lending criteria from banks, we will see housing prices rebound, which will in turn positively impact the commercial market,” Peden says.

Leading the charge in terms of value-formoney CBD options is the work-office market. According to Savills’ May Global Impacts Report, Melbourne’s CBD recorded the greatest yield compression over the past three years in CBD office markets globally, solidifying the city as a high-interest market.

“This is even more so the case given the Melbourne CBD’s status as a regional gateway city and the Sydney CBD’s status as a global gateway city,” Savills Australia CEO Paul Craig says.

The trend opens the door for franchisees within the business services, marketing and real estate sectors to achieve a high-return office-space lease.

They best move quick, however, with Savills Australia director for capital transactions in Victoria, James Girvan, suggesting the market shift is making the region more attractive to international investors.

“Investors are drawn to the Victorian capital, not only because of strong demand drivers and nation-leading economic indicators,” he says. “The risk-adjusted return for Melbourne CBD remains among the highest recorded across all office markets globally.”

On the retail side, however, prospective franchisees have been wary to make a move on the CBD space. Competitive leasing costs for high-street locations have presented a distinct barrier for new business owners, but a crop of new developments may be sparking a retail revival.

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MELBOURNE CONNECT The former Royal Women’s Hospital site on the corner of Melbourne’s iconic Grattan and Swanston streets is set to host the state’s newest multi-use development: Melbourne Connect.

The landmark precinct will bring together industry, researchers, students, government and retailers in an innovative new showcase venture.

Melbourne Connect will be home to the Melbourne School of Engineering as well as the Science Gallery Melbourne, featuring rotating exhibitions from artists, scientists and researchers.

However, the real value for prospective

PROPERTY franchisees lies in the adjoining retail and dining precinct.

CBRE’s Zelman Ainsworth says the development presents a new opportunity for residents in the Carlton and wider Melbourne region to access the growing list of shops, cafes and public spaces.

“The ultimate drawcard is the large amount of university students, however Melbourne Connect is not restricted by university schedule – we see this as a 52-week precinct,” Ainsworth says.

But Melbourne Connect isn’t the only new development paving the way for franchisees to enter the market.

OPALIA ESTATE West of the city, a new 19,000-squaremetre retail precinct is shaping up to be the next growth centre. The newly proposed Opalia Shopping Centre is a retail destination housed within the Opalia Estate in Melton South.

Commercial real estate company Colliers was appointed to lease the significant development, with Mike Crittenden, Colliers director retail leasing, revealing interest was already piquing for the new project.

“Opalia Shopping Centre will provide

the growing local catchment with a significant and diverse range of convenient and daily need offerings, with the majors such as Woolworths and Chemist Warehouse supported by some 25 specialty retailers,” Crittenden says.

In addition to the anchor tenants, Opalia Shopping Centre will also house a range of specialty stores across 3000 square metres. The project also includes eight “mini majors” and multiple pad site offerings.

Food retailing and boutique dining also headline the Opalia development.

Crittenden reveals a number of franchise outlets had already committed to the newest Victorian precinct.

“Further drivers of traffic to the centre will include popular family ‘drive-through’ restaurants, McDonald’s and KFC, a car wash, daycare centre, tavern, medical services and a fitness offering. The centre will be serviced by more than 600 on-grade car spaces.”

For locals, the announcement of the Opalia Shopping Centre, which is due to open in September 2020, continues a strong development push in recent years.

Stephanie Siadis, Colliers senior executive retail leasing, says Melton South’s population growth coupled

with affordable housing opportunities perfectly placed the region for sustainable development.

“Opalia Shopping Centre is situated within a rapidly growing residential catchment, where there is a continued demand from consumers for quality daily need services and complementary food and beverage offerings,” she says.

THE MARKETPLACE That demand is being felt statewide, spurring movement on the hotly anticipated food and dining precinct, The Marketplace at Watergardens.

Construction at the $50-million Taylors Lakes development began in May, with the project already gaining traction.

The Marketplace is due to launch in mid-2020, encompassing over 5000 square metres of transformed retail space in the new-to-trade area.

“Melbourne is home to some of Australia’s most iconic food markets and key to their continued success has been the incorporation of an engaging mix of onsite dining options,” CEO of government-owned real estate investment company, QIC GRE, David Asplin, says.

“We’re creating a new community hub

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that allows residents of the north-west to experience that same vibrant marketplace energy and call it their own.”

The Marketplace at Watergardens builds on a number of other initiatives currently in progress, such as a largescale serviced apartment offering and an Officeworks outlet.

The Taylors Lakes development has the backing of Brimbank City Council, with Asplin suggesting the project opens doors to a growing region in Melbourne’s north-west.

“While the area is experiencing unprecedented growth, residents in the north-west have limited access to big city amenities,” he says.

“As a long-term community partner who considers the next 30 years, not just the next five years, we have the opportunity to create a truly exceptional destination that speaks to the way locals want to live.”

The Marketplace at Watergardens will serve as a key development project in the extension on Melbourne’s outer regions, buoyed by an emerging middle class.

“We’ve been inspired by the ambitious spirit of Melbourne’s north-west,” Asplin says.

“This milestone development signals our vision for Watergardens as an everevolving future city that recognises and supports the local community’s unique values and aspirations.”

REGIONAL For all Melbourne’s hype and heritage, however, a new trend is sparking interest outside of the metropolitan areas.

As the state’s housing affordability slowly reaches comparison with its northern neighbour, more and more young families and retirees are making their way to sub-regional and regional spaces.

It’s a market shift that has sparked the attention of the state government, which has invested heavily in building robust, regional town centres.

While regional expansion in other states has been largely driven by mining and other geographic factors, in Victoria, the motivations behind the sudden rise in outskirt living are wide-ranging.

The emerging “tree-change” movement is seeing more retirees move outside of metropolitan areas, not to mention the focus on agriculture and education that is quickly gaining traction.

BENDIGO In June, the Victorian government unveiled plans for revitalisation of Bendigo’s TAFE campus, revealing new state-of-the-art facilities.

Designed by award-winning Victorian architects Architectus and Six Degrees, the $60 million redevelopment has been introduced to accommodate a growing youth population.

The education precinct will support a new learning hub and industry innovation centre as the Bendigo town centre continues to expand.

“The Bendigo City Campus Revitalisation Project is another great example of the work we’re doing to develop cutting-edge training solutions to meet the needs of students and industry as they adapt in a changing economy,” Minister for Training and Skills Gayle Tierney says.

While the new TAFE development is a massive boost to the local economy, it also highlights the region’s capacity for industry.

According to demographic experts .id, the population of Bendigo is predicted to double to around 200,000 by 2050, a growth rate that is in line with

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Melbourne’s outer suburbs.

Demographer and futurist Bernard Salt believes the rapid changing of markets within sub-regional areas like Bendigo has contributed heavily to a structural change.

In 2017, Salt revealed that old manufacturing businesses could no longer keep pace with more efficient modes of operation offshore. The downturn could have had dire consequences population-wise for Bendigo, but instead an entrepreneurial trend spurred by youth is helping to boost the economy.

In the three years from 2014–17, total jobs in Bendigo were down, however the number of microbusinesses and cultural offerings continued to rise.

“Victorians’ love affair with all things artisanal has seen gin joints, whiskey dens and vodka purveyors popping up all over the state,” Real Estate Institute of Victoria president, Robyn Waters says.

“Tourists and locals are flocking to these distilleries to sample their wares, which has created jobs, vibrancy and new economies for these regional towns.”

As more young people reject the idea of working for a small to medium enterprise in favour of entrepreneurship, the Victorian government will continue to invest heavily in the region, as seen with development projects such as the Suburban Rail Loop.

The $49.6 million project is the next stage of the Bendigo Metro, a key election commitment from the Andrews Labor Government.

The project means Bendigo residents will no longer have to travel to Melbourne to access education and health services, with Melburnians also set to have easier access to the Bendigo and Macedon Ranges.

Speaking at the time, Member for Macedon Mary-Anne Thomas called the new additions a welcome upgrade for the developing region.

“As Bendigo grows, more people are travelling there for work, healthcare or education. Upgrading the Bendigo line will make it quicker and easier to get there,” she said.

The investment in transport has opened accessibility for sub-regional and regional residents, making the option for a move away from Melbourne all the more enticing. While Bendigo is fast becoming a growth region, another famous Victorian town is hot on its heels.

Opalia Shopping Centre

Melbourne Connect

BALLARAT Victoria’s largest inland city, Ballarat is a hive of history, heritage and natural beauty. It’s also a region set for some of the state’s most expansive infrastructure projects.

The Victorian government pledged to deliver vital upgrades to the region, bolstering the area’s propensity for population growth and investment opportunities.

In its Making Ballarat Central: The CBD Strategy 2017–21 Action Plan, the city of Ballarat outlined a number of new projects set to revolutionise the region, turning it from a regional space to a thriving second-tier city.

The jewel in the crown is the redevelopment of the Ballarat Station Precinct into a vibrant community, transport and commercial hub.

Upon completion, the project will introduce more than 900 square metres of retail and dining options, housed within a refurbished Goods Shed, and in addition to a 77-room Quest Apartment Hotel.

It’s been a long process getting the development off the ground, however. Years of planning and community consultation have gone into the project, with a $32 million investment injection from the state government finally signalling a light at the end of the tunnel.

While it will take some time to elevate Ballarat to a secondtier city, it may come just in time to fill a much-needed void.

GEELONG The state’s largest second-tier city, Geelong is teetering on the edge of an unheralded growth period.

Where once Geelong was viewed as a sleepy seaside town, the region has exploded in popularity over the last eight years, driven primarily by lifestyle and economic factors.

More affordable housing opportunities and a developing industrial movement have seen population rates achieve a consistent 1.44 per cent year on year growth but that figure looks certain to rise.

The City of Greater Geelong rolled out its Northern and Western Geelong Growth Areas Framework Plan in March, revealing ambitions to add 110,000 new residents.

At present, Geelong is the largest of Victoria’s ten regional cities, providing the most substantial contribution to non-metropolitan growth in the state.

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PROPERTY developments gives way to the new notion of a “20-minute neighbourhood”.

“Geelong’s new neighbourhoods will allow residents to live locally and meet most of their everyday needs within a 20-minute walk, cycle or local public transport trip of their home,” the Framework Plan says.

The result is a wide-ranging breadth of potential investment opportunities for prospective franchisees, with retail leases regularly available in developments across the region.

NEW PRECINCTS One such development is the Heales Road West precinct, an integrated new neighbourhood that promises to deliver three new primary schools and a multipurpose cultural hub.

The region has a total growth area of 467 hectares, with residential area totalling 406 hectares servicing an anticipated population of 14,488.

Upgrades to public transport, housing and local infrastructure highlight the structure plan, with the region expected to grow in line with Geelong’s other regional neighbourhood districts, such as Elcho Road East.

The new Northern Geelong precinct is similar in size to the Heales Road West development, with a total growth area of

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485 hectares and a total residential area of 346 hectares.

While these new precincts represent a strong growth potential, development is still in its very early stages. Prospective franchisees looking to enter the market soon would be wise to cast an eye over ventures expected to open in the near future.

ARMSTRONG CREEK Aside from the growth and development of new neighbourhoods, Geelong is also home to one of Victoria’s fastest growing regions, Armstrong Creek.

With over 2500 hectares of developable land on offer, interest is starting to generate in the southeastern suburb, particularly with the announcement of the new Armstrong Creek Town Centre.

The 40-hectare retail centre will provide residents in the growing community with a wide range of retail, leisure, entertainment and residential amenities.

The mixed-used precinct is the first major commercial development in the area from developer Welsh Group.

“The Welsh Group has a strong investment within the Geelong region through its residential homes division, Welsh Homes,” Andrew Welsh, Welsh Group managing director says.

“The Armstrong Creek Town Centre will be the first major commercial project in this region delivered by Welsh Group, and will include a range of retail, leisure and entertainment, residential and community facilities; bringing an array of services and employment opportunities to the growing community.”

Stage 1 of the Armstrong Creek Town Centre has received planning approval, and is anchored by a Coles supermarket, to be complemented with a series of boutique retail offerings.

“Stage 1 will initially service approximately 58,000 people, and provide in excess of 1100 ongoing jobs, with the suburb set to rapidly increase to over 110,000 residents by 2036,” Welsh says.

Welsh Group has appointed Colliers International as leasing agents for the project, with Colliers’ Mike Crittenden revealing interest was already swelling.

“The initial off market campaign in securing the anchors has already generated significant local and national retail interest for the soon to be launched specialty tenancies,” Crittenden says.

Construction of the site is due to commence this year, with stage 1 of the Armstrong Creek Town Centre scheduled to open in 2020.

FINAL THOUGHTS For years, Victoria has been viewed as the cultural centre of the Australian landscape, with Melbourne its crowning jewel.

A focus on food, wine and entertainment has attracted visitors from all walks of life, but as new developments emerge, prospective business owners should be looking outside the CBD for opportunities.

The growth ridge across regional centres is gaining traction, alongside a series of new neighbourhoods.

As more and more Victorians make the great migration out of Melbourne, housing prices steady and regional tourism swells, the big picture possibility is looking more and more suburban. n

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FRANCHISE BASICS

THE KIOSK CRAZE Kiosks have been the retail buzz word of the last 20 years. What now?

PETER BUCKINGHAM Managing director, Spectrum Analysis

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hopping centres used to be spacious areas for making your retail purchases, where architects designed wide “boulevards” you could wander down easily, looking at what was on offer on both sides.

This spaciousness was deemed no longer necessary by the “powers to be” who own the shopping centres, and the kiosk was introduced, firstly as a temporary lease (often before Christmas or similar sales times), which then morphed into a typical 25 square metre permanent retail shop in the middle of the aisles.

Certain clients like Boost Juice, Wendy’s and Donut King found them perfect as a way to be inserted right in the middle of the high traffic flow, and argue for a low rent due to the smaller size than the conventional stores.

Kiosks became a great way for landlords to add new tenants at the expense of the spaciousness of the centre – but the rentals were good. Now we have a situation with kiosk space demanding very high rents, and being inserted in any large spaces, and especially in high traffic flows.

BEST FOOT TRAFFIC AREA There are two words you are looking for in a kiosk: foot traffic. If you are going to be squeezed into 25 square metres, with all the inconvenience of remote storage spaces and other issues, you must be in the best foot traffic area. It is no good being on a mediocre branch of a shopping centre when you can see (and count) the foot traffic moving along a more major traffic lane.

Most kiosks are supplying impulse items, and it is also about thinking of how the product you sell can be quickly AUG/OCT 2019 | 104 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISING, LICENSING AND DISTRIBUTION SPECIALISTS 2019 will be a dynamic year in franchising with the Franchise Inquiry Report released, and the Banking Royal Report impacting on funding.

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SUMMARY

ECONOMICS Can you afford the kiosk you are considering? Most lessors now see these as high income earners, and you have to think of the ratio of rent to sales. Your franchisor should have some idea of what they expect to be the maximum percentage of sales their brand can comfortably pay as rent, and you need to think in terms of what you expect to sell – sales prediction, and what the rent will be. If this is too high, expect a disaster.

The other part of the economics is, what are the rental escalation clauses?

Most shopping centres want to lease the space to you for five years and expect a rent increase every year, irrespective of the sales. Common requests from shopping centres are annual rental increases of around CPI + 2.5 per cent, so after five years you are probably paying CPI plus 13 per cent from where you started. Do you expect sales to support this?

•

Kiosks can generate good sales and they can be expensive in terms of rent.

• Make sure the economics add up.

• Is the shopping centre suitable for the products you are trying to sell – demographics?

• Is it in the highest traffic flow if you are selling an impulse product?

• What are the rental escalation clauses and can you afford them?

Overall, kiosks can be great, but they have issues on size, storage and the rental expectations of the lessors. n Peter Buckingham is the managing director of Spectrum Analysis Australia Pty Ltd, a demographic, mapping, site selection, franchise territory planning and statistical analysis consultancy.

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AUG/OCT 2019 | 107 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE BASICS

dispatched. There is one group of kiosks that seem to not look so hard for the top impulse areas, and that is the likes of Mister Minit (keys, locks and tags) and possibly some mobile phone operators, who may see themselves as more of a destination.

Most kiosks are food related and are in competition with other food operators. If they are in this space, often there are good locations they can secure on the entrance/ exit to food courts. One of the most successful in this area is Muffin Break.

Another question you must ask yourself is: do the demographics of the area suit what you are trying to sell? If you are selling a lower cost impulse item, then you probably have a general market. Ask yourself if your product is limited, and if so, how the people of the area match with what you want to sell. For example, if you’re selling Asian teas (such as Chatime or similar), you probably need a higher than average Asian population.

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FRANCHISE BASICS

HOW TO FIND A

WINNING FRANCHISE Poolwerx founder John O’Brien shares his thoughts on finding that top-performing franchise…

E

very franchise buyer will have their own list of must-haves, specific to their personal goals and lifestyle choices. There really isn’t one business that suits everyone … however, there are some essentials that can be found across diverse franchise models and it’s worth considering these when searching for the perfect business.

John O’Brien has been in the franchising industry for many years and has expanded the Poolwerx business into the US. Over the years he has been able to spot what franchise buyers look for, and how to identify a great business opportunity.

Here’s a snapshot of his advice …

THE BASICS The basics you have to find out: • How long has the franchise been in business?

• What’s the size of the network, how many locations and how many franchisees are there, and what is the geographic spread of the chain?

• Has the brand got third-party recognition? Has it received external awards?

Is the business accredited? Does it have industry certification, in franchising and in its particular industry? Does the franchise have executives who have been accredited with the Certificate of Franchise Executives? Every industry will have state or national accreditation, so check that the executives who will be training, leading and mentoring you have relevant industry qualifications.

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WHAT FACTORS SHOULD YOU CONSIDER? THE IMPORTANCE OF THE BUSINESS PLAN Ask the franchisor, what are the key drivers in the business? And how do you go about increasing your franchisees’ profitability every year?

Set yourself a business plan because this will shape how you will earn money, how much you will earn and what your costs will be. “It is the most fundamental thing to your success,” says O’Brien. Get a plan off the internet, turn to the franchisor’s template – some brands will give you financial disclosure which, O’Brien says, “is golden” to populate into your business plan.

Get help compiling this business plan from an expert accountant or business consultant if you’ve not done one before.

FRANCHISE BASICS Make it a five-year plan, build in some milestones – this will probably mean you need to make investments.

“At the start make sure you know where your break-even point is for profit and know you have the working capital set aside to take you from zero to breakeven, that’s an area where a lot of people make a mistake,” advises O’Brien.

Talk to franchisees to determine what is a reasonable expectation to achieve in revenue at the five-year mark.

Use a benchmark to assess the profit viability. For example, O’Brien says, “As a benchmark if you’ve got a 10 per cent return of revenue on $1 million that’s $100,00 as owners’ earnings, and 15 per cent as profit, another $150,000 combined EBITDAO is $250,000, 25 per cent out of $1 million, that’s a pretty good benchmark across retail franchises.”

FRANCHISE SUPPORT If you like what you hear, find out more about what the franchisor will deliver for you as a new franchisee.

You’ll need to ask about five key areas of business: 1. Training 2. Marketing 3. Technology 4. Vision 5. Culture Sign up to a franchise and one of the first benefits you’ll receive is training.

Review what’s on offer, and what it will allow you to do, before you buy. “When you come out of that induction training you need to be fully equipped to turn the lights on in your business and start running your business,” says O’Brien.

While training is the first step, you also need to know what the follow-up training will be, he says.

After great training, which will set you up to operate the business, it’s first-class marketing that will bring customers to your business. O’Brien sums out how it helps: it is there to make the phone ring, bring people into your store, get people on to your website.

You will want to know how the franchise marketing program shapes up across the national, regional and local campaigns. How much do they spend?

What are the results for digital marketing? What traffic will be generated for your business?

Next comes technology, which is crucial. The pooled resources of a franchise can give you access to the latest tools, such as the software that will run your business, a comprehensive backof-house system to generate profit and loss statements, balance sheets and key data. Technology will run the service side and the point of sale, and data will support marketing initiatives.

Another key area is vision. It’s

vital that the franchisor has a vision of where the business will be in the future, where it is going and how it will expand. Are there resources being dedicated to this?

Add in a strong culture across the network of franchisees to ensure you can all get there in the best possible way. Check in on the values and mission statement, find out what lies behind the brand. Make sure you can share those brand values.

THE DISCOVERY DAY PROCESS Take your research to the next level by meeting with your local or regional manager, who will be an ongoing support person. Many franchise brands now offer a discovery day, which is a formal format allowing franchise buyers to find out more about the facilities and the people in support roles. If the brand you’re interested in does not do this, you can still get to head office and meet all the key executives in the above areas because, says O’Brien, “in a way they are going to be your part-time employees who will support you in your business”.

Get to know them, see the head office and training facilities, and get a feel for the culture. n

THE FRANCHISE RATING SCALE

A brand new ratings system will help franchise buyers determine a franchise’s performance.

The graduated five star rating scale is being introduced by FRANdata which has built a set of standards to effectively evaluate Australian franchise systems.

The ratings are allocated after an independent and fact based assessment across seven key categories designed to measure both transparency and performance.

There are seven factors on which any franchise will be judged: 1. System performance 2. Franchisee financial performance 3. Franchisee engagement and satisfaction 4. Franchisor training and support 5. Franchisor financial performance 6. Lender relations 7. Compliance and assurance Watch this space!

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FRANCHISE BASICS

HOW TO SPOT

FAKE FACTS

Warning signs to look for before signing a franchise agreement.

ESTHER GUTNICK MST Lawyers

B

efore you sign a franchise agreement, chances are you will be involved in a whirlwind of paperwork, meetings, preparations and the general excitement of starting a new business. It is important to pause amidst the chaos and reflect on what you are about to commit to.

So, what are some of the “warning signs” to be wary of and relevant matters to consider before entering a franchise?

COMPLIANT DOCUMENTS AND PROCEDURES Here are six things to consider about processes and compliance: • Does the franchisor comply with the Australian Franchising Code of Conduct and other applicable laws?

• Check whether the disclosure document provided to you is in the same format as set out in the code and has

been updated after the last financial year.

• Did the franchisor provide you with the correct form of information statement at the earliest relevant opportunity as required by the code?

• Has the franchisor given you all the necessary documents at least 14 days before asking you to sign the franchise agreement or make any non-refundable payment?

• Has the franchisor acted in accordance with the code’s good faith obligations?

• Are there any terms in the franchise agreement which may be considered unlawful under Unfair Contract Terms laws?

If you don’t want to do this yourself, a franchise lawyer can review the documents provided and advise you as to whether the franchisor appears to be compliant with the code and other relevant legal requirements.

If the franchisor’s conduct, and/or the documents you have been asked to sign, are not code compliant, that is a red flag

and you should immediately stop and reconsider signing up to a franchise.

STRUCTURED PROCESS You will want to be part of a professional and well-organised franchise system.

A good sign of this is a comprehensive, formal and structured process from your initial expression of interest in the franchise and throughout your application submission, the completion of all assessments and training and all other steps right up to signing documents.

If the franchisor seems disorganised and does not have a thorough, systematic procedure for appointing new franchisees, this is another sign that the franchise may not be all that has been promised.

REPRESENTATIONS OR INDUCEMENTS Frequently, when a franchisee becomes disgruntled, the cause of their

AUG/OCT 2019 | 112 | WWW.FRANCHISEBUSINESS.COM.AU

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FRANCHISE BASICS

discontentment is the franchisor’s failure, real or perceived, to fulfil certain promises or assurances which the franchisee believes were made to them during the course of the application and sale process.

Such assurances by the franchisor, or a representative of the franchisor, are termed representations or inducements.

These are often made (or claimed to have been made) in relation to matters such as: • the projected costs to establish the franchised business and/or ongoing operating expenses • a specified number of leads or sales to be provided to the franchisee • income guarantees or estimated profits that the franchised business can expect to generate • exclusive rights or territories to be granted • technology or products that the franchisor will develop and/or provide to franchisees • the training, support and assistance to be provided by the franchisor • discounted or special fees to be offered for the benefit of the particular franchisee.

However, representations can be made regarding any matter relevant to the franchise.

Take detailed and accurate notes of any discussions you have with the franchisor and its representatives, and, where the content of such discussions is important to you, confirm them in writing. If you believe the franchisor has made any specific promises or offered you any particular incentives to enter into the franchise, be sure to document these fully and advise the franchisor, in writing, of the relevant details.

Franchisors often request that franchisees complete and sign a document commonly known as a “prior representations” statement or certificate. This allows the franchisee to set out the terms of any promises or incentives made to them. If you sign such a document, ensure that you complete details of all relevant promises.

If you don’t, it may be hard to claim at a later date that you relied on these promises when deciding to buy the franchise.

of franchisees who have left within the past three financial years.

If you cannot contact other franchisees or if they do not provide valuable insights, you may be able to glean some information from statistics alone. At item 6.4 of the disclosure document, the franchisor must provide details of franchised businesses which, in the last three financial years, have been sold, terminated, not renewed/ extended on expiry, bought back by the franchisor or otherwise ceased to operate.

Movement of franchisees within the franchise network can be a telling sign.

If a significant proportion of the franchisees have recently left the network, this may indicate a lack of contentment among the franchisees or a franchisor engaging in “churning and burning” behaviour. At the very least it might indicate a level of disharmony between the franchisor and its franchisees.

KEY ELEMENTS OF FRANCHISE DOCUMENTS It is one thing for the key terms of the deal to be negotiated and agreed upon, but quite another to ensure that the paperwork accurately reflects your agreed terms. Carefully review the franchise agreement and associated documents to ensure that all the critical aspects, such as fees, territory and the duration of the agreement (including any renewal options) are correct and as promised to you by the franchisor.

Some franchise agreements contain the franchisor’s “standard” terms, with any agreed modifications recorded by way of special conditions, either within the franchise agreement itself or in a separate letter or deed. It is therefore crucial to review all relevant documents contemporaneously to form an understanding of the contractual arrangement in its entirety.

If any terms or conditions in the franchise documents depart from your understanding of what was agreed between you and the franchisor, do not sign until you have sought professional advice, clarified any areas of uncertainty in writing with the franchisor and/or you have received an amended agreement.

All too often I am approached by franchisees who are shocked to discover certain terms and conditions in their agreement of which they were not previously aware; franchisees who are desperately looking to exit an agreement or vary their contractual obligations after they have signed and it is too late.

In summary, there is a plethora of matters to consider before buying a franchise. Whether you are experienced in franchising or it is your first business venture, you should always engage a lawyer and accountant with franchising expertise to review the relevant documents and advise you before you sign on the dotted line and bind yourself to the terms of the agreement. n Esther Gutnick is senior associate, corporate advisory and franchising team at MST Lawyers.

CONTENTMENT AMONG EXISTING NETWORK Despite what the franchisor may tell, show or promise you, its franchisees are the best resource to help you ascertain how successful and functional the franchise system really is. You should speak with as many current and former franchisees of the network as possible. The franchisor’s disclosure document should, if it is compliant with the code, provide contact details AUG/OCT 2019 | 114 | WWW.FRANCHISEBUSINESS.COM.AU

FRANCHISE Outsourced Staffing

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Globally Proven Business Model Valenta franchises are successfully operating in UK, USA, Canada and Australia. Leverage the experience from servicing client’s across the globe.

Develop Part Time Until Profitable A Diversified Business Offering Minimise risk with a Valenta Franchise by delivering various services and diversifying your business offering.

Our unique model provides unmatched flexibility in developing your franchise at your pace.

We Handle All Operations Multiple Revenue Streams As a franchise owner you can earn both one time and reoccurring revenue.

You will focus solely on building your business through staffing, managing overheads and acquiring new clients’. All outsourcing operations are delivered by us, so you can grow your business faster.

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FRANCHISE BASICS

$100K

– I CAN EARN THAT! The law of averages.

By Kate Groom, SmartFranchise

A

ustralian legendary cricketer, Don Bradman, famously achieved a career test average of 99.94 runs. However, as cricket fans know, Bradman’s actual scores varied widely. His highest score in a test match was 334 but there were plenty of times when he notched up a score below 25.

Bradman’s low scores don’t get much of a mention. He’s famous for that extraordinarily high average, sustained over a long test career.

But sometimes the lows matter and we should pay attention to them. One of those times is when you’re looking at a business opportunity. That’s when you want to know about the lows as

well as the highs. Merely considering the average is not helpful.

what would each weigh?” The answer is 270 kg.

WHAT IS THE AVERAGE?

FRANCHISE AVERAGES

When we hear people talk about the average, they are usually referring to the mean. This is a value that can replace every existing item, and have the same result. If you threw away all Bradman’s individual scores and replaced them with one “average” value, it would be 99.94.

Alternatively, if you weigh 70 kg and are in an elevator with a child of 40 kg and a walrus of 700 kg, what’s the average weight? What we are really asking is, “If we replaced this group with three identical people and want the same load,

If you’re buying a franchise, you might hear people talk about averages. For instance, average income. Let’s suppose the average income is $100,000.

You might be thinking, “That’s good, I can earn that. I’m going to be better than average.” Unfortunately, that thinking could lead you to overlook some important information about the actual performance of franchisees.

Look back to the example of the walrus in a lift. The average is 270 kg, but the lightest and heaviest beings in the lift are a

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250,000 200,000 150,000

100,000 50,000 0 Highest franchisee

6th highest franchisee

Second highest franchisee

7th highest franchisee

3rd highest franchisee

8th highest franchisee

4th highest franchisee

9th highest franchisee

5th highest franchisee

10th highest franchisee

long way from the average. The same can be true in a franchise. In fact, it’s very likely to be true.

The chart above shows the income of 10 franchises. The average is $100,000.

But note that the highest is a little over $200,000 and the lowest is below $50,000. Six franchisees make $75,000 or less. The average of $100,000 occurs because of the three franchisees who make over $150,000.

HOW MIGHT KNOWING THIS CHANGE YOUR THINKING? You may still aim to make $100,000, but you’ll want to gather some more

information to help you assess whether this is achievable in your situation. For instance, why are the low performers where they are and what are the top performers doing that gives them such strong results?

WHAT TO ASK FOR Some franchise systems will provide this level of detail and some will provide the average, lowest and highest results. If you want more information, you could ask, “How many franchisees make more than the average?” This will give you a feel for the range of performance. If you can’t get this information, you could

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average

ask to meet franchisees with a range of performance.

However, we believe that a franchise prospect should reasonably expect to be provided with enough detail to make an informed assessment of the business, and that means more than a simple average.

So when you’re considering a franchise, don’t assume the average tells the full story. Dig a little deeper to understand the range of results and what that means for you. n Kate Groom has a background in economics, accounting and franchise management and helps franchisees make better use of planning, communication and technology to improve business management.

FRANCHISE BASICS

PUTTING YOUR

WORKING CAPITAL

TO WORK MARIA ROBINSON Sequel CFO

W

orking capital is the lifeblood of your business.

It is the money available to fund a business’s day-to-day operations. Technically, working capital is the current assets (cash in the bank and assets that can quickly be converted to cash such as debtors) minus the current liabilities (creditors, loan repayments etc.). Before you start a business you need to work out how much working capital you’ll need and you’ll then also need to monitor your working capital during the operations of your business.

AUG/OCT 2019 | 118 | WWW.FRANCHISEBUSINESS.COM.AU

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FRANCHISE BASICS

While you work towards your current assets building up and getting to a ratio of greater than one, you’ll need to inject working capital into your business.

You can use the working capital ratio to determine your position. The working capital ratio is current assets divided by current liabilities. If the resulting number is greater than one, your current assets exceed your current liabilities. The higher the number, the better. If the number is less than one, your current assets are less than your current liabilities and this is not a good situation to be in. A good working capital position is often deemed to be a ratio of two or more.

Prior to commencing a business you’ll need to prepare a cash flow forecast to determine how much money you’ll need to cover your set-up costs and working capital. New businesses generally operate with a working capital ratio of less than one until they become more established; that is, the current assets are less than the current liabilities in the early stages of a business. While you work

towards your current assets building up and getting to a ratio of greater than one, you’ll need to inject working capital into your business. This can be done through a number of sources including: • borrowings • investors • directors or shareholders loaning money to the business • sale of capital assets.

You will need to monitor working capital in your business throughout its operation. Working capital challenges are not only evident during the start-up phase of a business. One of the main reasons businesses collapse is related to poor management of working capital. For example: • not managing debtors well can result in non-payment by debtors or too many debtor days (it takes too long to be paid by those who owe you money)

If you are looking for a change, are passionate about water safety and enjoy working with children, this could be the opportunity you have been looking for!

Swimming is a life skill that nearly every parent recognises they need to teach their children from a very early age.

In fact, many parents begin swimming lessons when their children are still babies.

We offer a boutique custom-made swim school with state of the art turnkey fit outs, including full training and support for every Franchise.

If you are keen to find out more and see if you qualify to own your very own Splash Swim School please contact us today for a confidential chat.

For Franchising opportunities contact: P: 1800 SPLASH (775274) I E: admin@splashswim.com.au splashswim.com.au

AUG/OCT 2019 | 120 | WWW.FRANCHISEBUSINESS.COM.AU

PROFILE: Splash Swim Scho the art turnkey fit o follow Royal Life’s Full training and su Operation system

Splash have their o contractor that are

•

business owners taking cash out of the business, often for personal use, and then not having sufficient funds to pay creditors • insufficient cash reserves • having excessive stock on hand • mismanagement of creditors.

Businesses can also experience working capital challenges if they take advantage of an investment opportunity. There may be an expansion or investment opportunity that is too good to pass up; however, it may be premature from a working capital perspective. This can be something as simple as discounted stock that you decide to bulk buy but won’t be able to move for several months. A decision like this can help improve your margins but it could be at the expense of your working capital position.

Your working capital position should be monitored on a monthly basis. To

There may be an expansion or investment opportunity that is too good to pass up; however, it may be premature from a working capital perspective.

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achieve this, your bookkeeping will ideally be completed in real time (using cloud accounting software) and you will have a month-end financial reporting process. A balance sheet reconciliation is required at the end of each month which can then generate your working capital ratio. Generally a small business will have an accountant. But small businesses may also decide to utilise the services of a bookkeeper or virtual CFO. If you have concerns about your working capital it is best to contact your accountant, a bookkeeper or a virtual CFO as soon as possible to ensure you have all the information you need in order to then make decisions accordingly. n Maria Robinson is CEO of Sequel CFO, a franchise network which offers experienced CFO expertise and insights to SMEs on a retainer or contract basis.

FRANCHISE BASICS

FIVE

FINANCE ESSENTIALS Get into the best position to finance your future with a franchise.

R

esearch and due diligence are at the heart of good preparation for a franchise purchase, and it’s no different when prepping for the financial aspects.

Here are five things you need to consider and action …

1 CHECK YOUR FINANCES Overcome the first hurdle to getting finance for your franchise by really understanding your financial position. This requires a more rigorous approach than a quick equation written out on the back of an envelope over a coffee with your partner.

Taking the time to honestly assess your assets (your house) and your debts (your mortgage) will give you a better chance of success. This probably means doing a bit of research yourself on the

value of any property you own, or part-own; perhaps get a fresh valuation so you are confident in your debt and asset ratio.

Also take into account your current standard of living, and what it costs to maintain it. We’re all guilty of underestimating our expenses and that can cause havoc with plans. So be brave, work out the true state of your

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STATEWIDE MASTER FRANCHISE NSW - QLD - VIC

“Polished Diamonds - Jewellery Design” is an award winning, global jewellery business looking for clever people to operate an exclusive Statewide territory in Queensland, New South Wales and Victoria. This is a big business opportunity to establish a leading brand across entire States with a low cost entry franchise model. Ideal candidates will have excellent sales and marketing skills, perfect written and spoken English, be highly organised and be able to fund the initial Franchise costs.

No jewellery specific knowledge is required as full training is provided. Our

supply chain includes the world’s largest diamond cutting facility, 1.56m loose diamonds worth $7.4b, CAD jewellery modelling, 3d printing and MRI laser scanning.

We’ll help you select a Design Studio location, then assist with fitout and a marketing campaign so you are ready to open. We also will be right there with you for ongoing training and support.

This Franchise Opportunity has a low setup cost and fair royalty structure that reward and encourage growth and profitability.

Contact Daniel Joines to discuss this opportunity and for our indepth brochure.

1800-233-299

dan@polisheddiamonds.com

FRANCHISE BASICS

bank balance, and then be prepared to be honest with any financial institution.

2 STICK TO YOUR BUDGET If you have been brutally honest about your current finances, you’ll have a good idea of how much money you can truthfully afford to invest in a business.

If you have substantial savings because you’ve been planning for this move for some time, congratulations.

Just remember to add in the costs of paying back any further loan you might need to supplement your savings, and the incremental fees and costs that are part of any purchase.

For franchise buyers with limited savings, some form of financing loan (through a bank or an alternative lender) is likely to be essential. Again, it isn’t just the obvious upfront costs you will need to source funds for. There will be upfront legals and business costs. Working capital is crucial for a business to tide you

over in the early days, so that needs to be accounted for too.

It’s important to evaluate any franchise opportunity with these extra costs in mind.

There are great franchise businesses at all income levels so avoid the temptation of a brilliant business opportunity that is just out of your price range. The dangers of over-stretching the budget from the beginning are considerable.

Lack of cash flow is a common cause of small-business failure. A franchise can be a brilliant model, in a great location, but without the funds to pay franchise fees, a lease, bank loan, staff and suppliers, there isn’t a business.

3 BE GREEDY …

About the numbers! No, we’re not advocating a cash-crazed approach to finding a franchise that will give you more profit at any cost. Rather we’re suggesting you become greedy about getting as many financial figures and

statistics as you can from the franchisor.

There is an obligation for franchisors to divulge some information in the mandatory disclosure document but any further level of financial transparency is entirely at the behest of the franchisor.

Take the same approach with the franchisee you are purchasing the business from, or a similar location and sized franchise if the site you are investing in is brand new. Good financial information is gold and will play an important part in your business plan.

4 SEEK ADVICE Some of this hard work around the financials you will have to do yourself, but it is possible to share the load and gain some invaluable insights by turning to a franchise-experienced accountant.

This is particularly relevant if you’re a first-time business owner. Why not tap into expert advice from someone who can point out anomalies in the figures you have collected, who can make an

Those who say business and pleasure don’t mix have never been to Hello Harry. The burger joint is sweeping through the country like wildfire, leaving nothing but a trail of seriously satisfied customers in its wake.

Hello Harry’s first burger bar opened its doors in April 2014 in Maroochydore’s renowned Ocean Street Entertainment precinct and very quickly became a smash hit amongst locals who couldn’t get enough of the quality burgers and cold Craft Beer.

Are You: • Looking for a Lifestyle Change?

• Looking for a Business that is heavily involved in the local community • Get a serious buzz by exceeding customers expectations?

Yes? Then speak with us today about opening your own Burger Joint in your chosen area.

Hello Harry prides itself on making all our delicious food fresh in store - from our 14 hour slow cooked pulled meats, burger patties, sauces and dressings - our crew do it all.

As a Franchisee you will receive full on going support across all areas of your business from a dedicated hard working support team, low set up costs and experience the satisfaction of seeing people love the Hello Harry experience.

HELLO HARRY THE BURGER JOINT PRESENTS OPPORTUNITIES AUSTRALIA WIDE, DON'T HESITATE CALL US TODAY. CONTACT US NOW AT WWW.HELLOHARRY.COM.AU OR EMAIL ENQUIRES TO HH@HELLOHARRY.COM.AU

AUG/OCT 2019 | 124 | WWW.FRANCHISEBUSINESS.COM.AU

assessment about financial viability, and who is acting on your behalf. It is worth spending the money on an accountant or business adviser who is a specialist in franchising because it may save you money in the long term.

5 FIND THE FUNDS When you are confident that you are clued-up about the numbers, you know what your costs will be, and you have a good sense of how you will make money in the business, then it’s time to approach the bank or other financier with your business plan.

This is when it’s really important to be as transparent and honest with your banker as you would expect your franchisor to be with you. Give your bank the confidence that you can make this business work: the finances stack up; you have a good business plan with clear goals; you have a contingency for how to correct any slow periods in business.

It may be that your chosen franchise

We’re all guilty of underestimating our expenses and that can cause havoc with plans. So be brave, work out the true state of your bank balance, and then be prepared to be honest with any financial institution. is accredited with a bank, which can make the financing process much easier.

However, the number of accredited franchises is quite a low percentage of the overall brands in Australia. If the franchise you are considering is registered with The Franchise Registry, which encourages transparency and

compliance, the lender may have easy access to information about the brand which will simplify their job of determining the outcome of a funding application.

Good luck! n

PARTNER WITH A LEGAL PROFESSIONAL WITH COMMERCIAL ACUMEN Franchising is an important decision for both franchisors and franchisees.

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Our principal has valuable in-house experience, has advised businesses for more than 25 years and understands first hand the many challenges faced by business owners.

Contact Christine Lau on (03) 9653 9203 or via email at Christine@laulegal.consulting for a confidential discussion to start or grow your business

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BUT WHEN? When is the best time to start marketing your new franchise?

KELLI PONTING The Marketing Lab

B

uying a franchise is a really exciting time. If you’ve got the tenacity to venture out and be your own boss, you are no doubt super keen to get started marketing your business. The best thing about buying a franchise is a lot of the hard work of setting up the business has already been done for you. You have a proven business model, your systems and processes are tried and tested, and you’ll have guidance and support around finding the right location and hiring the best staff.

The best time to start marketing your new franchise is as soon as you are ready. So that begs the question – how do you know when you are ready?

START WITH A PLAN Your franchise brand will be your most powerful marketing asset. Customers may already be familiar with it, they trust it, and that goes a long way. Your head office will have a suite of creative assets you can use, leveraging that powerful brand. But that doesn’t mean your work is done. You need to build a marketing plan for your local territory.

There are two distinct types of marketing planning: strategic and tactical.

STRATEGIC MARKETING PLANNING is about understanding your market, understanding your offering and your differentiators, and researching the marketing opportunities available to you in your local area. Armed with this knowledge you are better placed to make good decisions about what specific activities are best for your business at any given time. This type of planning is exactly where you should start. Work with your franchisor to start researching the marketing options in your territory. Find out how many homes or businesses are in your local territory. Are there any community or sporting groups that you could support to build your brand? What are the rules around digital marketing? These types of questions will help you identify the local marketing opportunities available to you, so you are armed with all the information you need to start to build out your plan.

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FRANCHISE BASICS

TO MARKET, TO MARKET...

“

Joining Home Instead Senior Care has empowered me to build and grow my own successful business

“

We now employ a team of over 150 CAREGivers and, are making a difference to the

Home Instead Senior Care Gold Coast Management Team

lives of seniors in our community everyday

Home Instead Senior Care is Australia’s leading in-home provider of high-quality care, companionship and support for seniors to stay at home.

To review Home Instead Senior Care franchise opportunities contact us; HomeInstead.com.au/franchise-opportunities

Be In Business For Yourself, Not By Yourself

Award Winning Global Network

Community Values

Close Franchise Partnership

Growth Industry

FRANCHISE BASICS

TACTICAL FRANCHISE MARKETING PLANNING is deciding what actual marketing activities you are going to run and building a plan on how and when those activities are done. Normally taking the shape of a quarterly or 90-day plan, these are the marketing activities that will see your business promoted in your local area. Aligned to your marketing budget, this type of planning really does allow for easy activation of marketing, as you know what you need to do and when you need to do it. Will you do a letterbox drop? If so, when should you see that hit the market, when do you need the artwork to the printer? All of this info should go into your tactical plan.

CHOOSE YOUR MESSAGE It’s all well and good to know what you want to do and when, but you really need to spend some time crafting or selecting the message you want to share.

There are two main types of marketing message: branding and call to action.

Branding is focused on creating awareness of your business and showcasing it in a positive and favourable light. Sponsoring the local netball club and having your business logo on their jerseys is an example of branding. Each time people see your logo, they recognise that your business is a supporter of the local community, and positive

sentiment is established. If you are considering branding as part of your launch campaign, don’t forget that as a franchisee you have a head start in this area because your franchisor was building your brand long before you started your business.

Call to action is designed to incite a change in behaviour and give your prospective customer a reason to engage with you. As a small business owner, you should always be looking to include a call to action of some kind in your marketing, even if it is part of branding campaign.

If we take the sponsorship of the local netball club, your logo on their shirts may be the branding component, but having a special offer just for members of that club adds a call to action. Often call to actions give prospective customers a clear path to connecting with you, so it helps them and helps your business.

A LAYERED APPROACH A solid local area marketing strategy is about a layered approach. Customers may see your logo on those netball jerseys, but they might decide to do some online research visiting your website or checking your Google reviews before they take up that special. They might have decided to purchase from you, and were reminded by seeing your business on a local bus

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stop or on their Facebook wall as a sponsored post.

Be across what head office is doing and take advantage of their investment to drive customers to you. If they are running Google ads, you may want to consider an offline activity with a similar message to balance that. If they have a radio campaign running, then look to extend that with a paid social media campaign.

BE CONSISTENT With this strong marketing foundation, you are perfectly placed to hit the ground running and start marketing, but the final piece of the marketing puzzle is making sure that once you start your marketing you remain consistent! Plan your marketing around a sustainable marketing budget and keep an active presence in your local area. Being as active and consistent as you can with your marketing will absolutely pay dividends in the long run. n Kelli Ponting is the owner of The Marketing Lab, a full-service agency that specialises in the franchise industry. Her team works with both franchisors and franchisees to drive effective marketing from planning through to activation. Kelli is an approved advisor with the Advisory Board Centre.

FRANCHISE BASICS

GAME ON FOR

A SUCCESSFUL BUSINESS You want to buy a franchise? Well, put on your running shoes, because your training starts right here.

By Corina Vucic, FC Business Solutions

I

f you have a favourite franchise that you regularly visit or use, you may think it looks like the perfect way to make money, be your own boss or change your career. After all, how hard is it to make a cup of coffee, groom a dog, mow a lawn or clean a carpet?

But the product or service you see is like the equipment and apparel an athlete needs to compete. It’s not the crucial element that will determine success. The crucial element is training, and for training you need a great coach.

Fortunately, you don’t need to be an exceptional athlete to be a franchisee; a franchisor should be able to train you to excel in a field where you have little or no experience.

But how can you tell if a franchisor is providing the highly structured and well organised training courses required to ensure compliance, consistency and business success?

GET THE BALL ROLLING One of the best ways to find out about a franchise’s training program is to speak to current franchisees. They can tell you the strengths and weaknesses of the program and whether they thought the initial training prepared them properly for their first months of operation. Importantly, quiz them about the quality and accessibility of initial and ongoing training and other learning resources.

Before you buy a franchise, find out: • what the initial training program includes • what learning materials are provided • if there is self-directed online training • how to access the operations manual • the regularity of field representative visits • the availability of management training • what development programs are provided • if there are any refresher courses.

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FRANCHISE BASICS

BE PREPARED TO COMPETE

STICK TO YOUR PROGRAM

The first few months of owning a franchise can seem amazing. You have lots of energy and enthusiasm and the customers come rolling through the door.

Your focus will be on mastering skills related to your product and managing staff, if you have any, and it will be easy to forget about the big picture until something goes wrong. Maybe you can blame the rain or an employee who keeps turning up late to work for the lack of customers. Or maybe it’s the new competitor down the road, who you initially didn’t see as a threat but suddenly your clientele has dropped off.

Increasing competition is something all franchises face, especially in New South Wales and Victoria. Australian Bureau of Statistics data shows that in the year ending June 2018, Victoria saw a net increase of 27,762 businesses, representing a growth rate of 4.8 per cent for new businesses, the highest of any state or territory.

But if you have purchased a franchise, you have an advantage. The franchise system has a business model that works.

It’s like a sports academy that knows how to train its athletes whatever the sport.

You and all your employees need to know your products, keep up to date with the latest promotions and have a clear understanding of the pricing structure.

This information is typically in the operations manual, but you may feel you don’t have time to wade through the 600-page document looking for the relevant section.

Hopefully the operations manual is housed in a searchable online portal.

Your area manager may be able to assist you in seeing where you can gain a competitive advantage by observing your staff and identifying inefficiencies in the way they are going about things and suggesting tweaks to improve efficiency.

Perhaps your staff simply don’t know what they’re selling. The area manager can guide you on the best way to educate your staff about the product offers. You are paying for these support services, so make sure you utilise them.

CALL YOUR COACH Some franchise systems differ as to the chain of command but there is always a constant point of contact, the area manager. This person is akin to your personal trainer, supporting you to maximise your potential and reach your goals. You should be able to contact them at any time for help.

The area manager will have access to data and financial information to help you gain insight into the profitability and performance of your business. The point of sale system should be able to generate detailed performance figures that will assist the area manager to identify your weakness, whether it’s a lack of sales in morning trade, not upselling or staff not being aware of other products or services.

Area managers are a bit like a brand ambassador, business consultant, operations expert, marketer, facilitator and inspector rolled into one. They can provide practical advice to help you improve the efficiency of your operations.

DEVELOP A FAN BASE On a national level, a franchisor’s website must have a strong, consistent brand but it must also point to your business on a local level. You will learn about local area marketing (LAM) in your initial training, but it’s easy to forget about it when you’re focusing on the quality of your product or staff issues. The area manager and head office marketing department should be able to help you get back on track.

Perhaps you’re not up to date with the latest marketing campaign. You know there is one but haven’t had time to promote the special offers. The marketing department can supply you with the posters and other material and the area manager can check these are displayed in a way to attract customers. The marketing department may also be able to also help you develop a couple of media-savvy Facebook and Instagram posts to get you back on track.

You will be able to measure the success of the campaign when the customers come back to your store or ring to book your services.

By using the marketing material that the franchisor has already created, you give yourself the greatest chance of success.

There’s a reason why these particular campaigns are created – it’s because they tend to work. You can also help your business by being aware of the events and celebrations that bring the community

If you think you’ve found a franchise that is aligned with your goals, end your research with a visit to the franchisor’s headquarters to meet the support staff and get your final questions answered.

together and integrate those events into the business. It is vital that the community knows you are open and ready for business and about your unique offers and services.

TRAIN HARD If you’re not yet part of a franchise system and it’s something you are considering, think about the difference between starting up a business by yourself or doing it with the support of a system that operates like a sports academy designed to help you win.

A franchise system offers much more than a couple of logos and brand recognition. It’s an entire system that works seamlessly for every franchisee.

If you think you’ve found a franchise that is aligned with your goals, end your research with a visit to the franchisor’s headquarters to meet the support staff and get your final questions answered. You need to trust that they have the expertise, style and communication skills that will help you achieve your PB (personal best).

Once you’ve hit the ground running, remember to use your coach (area manager) and the franchise’s infrastructure to maintain that winning feeling. n Corina Vucic heads up FC Business Solutions and has been involved in franchising for more than 16 years. She is also a Certified Franchise Executive.

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FRANCHISE BASICS

HOW TO WORK WITH YOUR FIELD MANAGER

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Just like any good boss or mentor, a field manager’s (or area manager’s) job is, put simply, to help their franchisees achieve success. It’s literally that simple.

MARTY MASON Baker’s Delight

I

magine starting your own business and having someone on hand that you can turn to at every step of the way for support, advice and encouragement. That is exactly what a field manager is there for. But surprisingly, very few franchisees actually take full advantage of the wealth of knowledge available to them.

Having worked in Operations for a couple of years and as an area manager for four years, I have come to the conclusion that an effective working relationship comes down to both the franchisee and field manager working equally hard, as well as something I call “constant and deep communication”. This type of communication can involve a few difficult conversations, however when it’s done well and in the right spirit, it can ensure franchisees receive quality support and an opportunity to make the most informed decisions.

The ideal field manager and franchisee relationship should be built on the idea of working together toward a common goal – usually the success of the franchisee’s business – with every decision a field manager makes being based on this. Field managers are strongly motivated by the courage, determination and work ethic of their franchisees and nothing makes them happier than seeing their franchisees achieve success.

To begin building a successful working relationship, one of the best things a franchisee can do is establish open communication with their field manager. Be open and honest and notify them of everything you are doing, particularly anything you feel you are not doing well. Knowing the strengths and weaknesses of a franchisee allows the field manager to identify opportunities for improvement, develop practical solutions and effectively work with the franchisee and their team to execute them.

As a franchisee, it is important to accept

that whatever happens in your business is your responsibility. While it is important for both franchisees and field managers to take responsibility for their actions, field managers should not be blamed whenever the business is performing negatively. It is human nature to want to place blame on others when times are tough, but lashing out and pointing the finger in anger achieves very little … other than damaging the relationship, of course! In fact, I would argue that it is during the difficult times that franchisees need their field managers more than ever. If the relationship is strong, it is during these times that a good field manager can assess the situation and use their expertise to create a strategic solution.

It can be very frustrating to field managers when franchisees don’t come to them when they need support. If there is one thing field managers hate more than anything, it is silence. With access to a range of communication methods now readily available on our computers and mobiles, there has never been a better time to easily communicate. Despite this, communication between franchisee and field manager can still be a large issue. Far too many times I have seen situations escalate out of control when they could have been resolved quickly and easily just by speaking up early. Whether it is a lack of communication or misinterpretation, poor communication can be detrimental to all parties.

Arguably, the most important thing a franchisee and field manager should do early on in the relationship is establish a strong framework around communication, ensuring each party understands the other’s preferred communication style and method. Developing open lines of communication is crucial to ensuring success for not only the relationship between field manager and franchisee, but also the wider business.

When done well, communication presents the largest opportunities for franchise businesses to succeed and cannot be encouraged

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FRANCHISE BASICS enough. I also like to encourage franchisees to ask their field managers as many questions as possible. Throughout my career, I have noticed this to be the most underutilised support method.

The role of a field manager is designed specifically to support and guide franchisees, so it is vital that franchisees utilise them.

Hired for their expertise and knowledge of the franchise system, field managers carry a wealth of knowledge that they are eager to share. In the case of Bakers Delight, for example, many of our field managers come to the business with extensive baking experience, which gives them the scope to provide both practical business and product-focused advice. A few years ago I completed a formal bakery apprenticeship in order to understand our business better and I have to say, the knowledge I gained has really taken my franchisee relationships to a new level.

For a franchisee, I would encourage curiosity and advise against being afraid to ask too many questions. As the old saying goes, no question is a stupid question. Besides experience, asking questions is the best way to learn and advance your career as a franchisee.

Speaking of experience, when it comes to utilising a field manager well,

While it is important for both franchisees and field managers to take responsibility for their actions, field managers should not be blamed whenever the business is performing negatively.

I highly recommend spending less time in meetings and more time working together. There can be so much time wasted pondering and attempting to construct the perfect plan instead of tackling issues head on. Although I encourage planning, over-thinking instead of quality action can also hinder progress.

Overall, the single most important priority of any field manager is to increase the sales and profitability of their franchisee’s business. That being said, the most important note I hope readers take away is that franchisees have an incredible resource in a field manager and the more this resource is utilised, the higher the chance of success. At the end of the day, a field manager’s success is determined by the success of their franchisees.

PRACTICAL TIPS • Understand each other – establish open lines of communication early on in the relationship and understand what works for both parties.

• Maintain constant and deep communication – ensure you are making the most informed decisions by talking honestly and frequently.

• Ask questions – don’t be afraid to speak up early … especially when things aren’t going well!

• Team work – work on a plan with your field manager and then work together to achieve the common goal. n Marty Mason is a regional manager for Bakers Delight and ranked as one of the Top 30 Franchise Executives 2019.

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MATCHMAKING Regions respond enthusiastically to franchise opportunities.

MARY ALDRED CEO, Franchise Council of Australia

F

ostering a strong and diverse small business sector is a significant component of a sustainable local economic development strategy.

For many regional centres, slowing commercial investment has resulted in a shortfall in the range of retail and small business services and entrepreneurial opportunities.

To help address this, the Franchise Council of Australia began a campaign in 2019 to support regional revitalisation by highlighting franchises as an efficient, innovative tool to address service and small business ownership gaps.

The FCA sent letters of invitation to nearly 80 regional economic development officers across Australia and is now in discussion with a number of councils interested in attracting new franchised businesses.

At the same time, the FCA sent an email to members to ask if they were interested in setting up in specific regions and looking to identify potential franchisees and business operators.

As a result, introductions between franchise members and local government in several regions are underway, on the path to become Australia’s foremost small business and franchise system matchmaker.

The regional councils have approached the FCA, mindful that selective franchises which address identified service and small business gaps in their area will help create a more diverse business mix, new employment opportunities and core activity in the community.

Franchises offer the brand recognition, efficiency and economies of scale advantages of a chain store, while retaining the local economy and entrepreneurial benefits that are hallmarks of independent small businesses and which help local economies strengthen and expand their base.

The franchise business model provides an organisational system and corporate support that lowers barriers to

entry. Reducing these traditional obstacles may greatly enhance opportunities for many first-time entrepreneurs, who traditionally lack adequate resources, access to capital and extensive industry experience.

As CEO, I’m leading a small but focused FCA delegation in July, meeting with regional economic development officers, councillors, local chambers of commerce and key regional landlords between the West Australian coast and northern New South Wales. We’ll discuss and introduce franchises which could breathe life back into their economies and communities through matching local businesspeople with some of the nation’s most successful franchise systems.

In doing so, we clearly acknowledge the model for the program developed with Greater Hamilton Council in south-western Victoria.

The council team and a few franchise systems have been in discussions aligning potential franchisees with franchisors.

Other franchisors are redesigning their geographical territories or examining their business models to adjust to a smaller catchment.

Franchisors noted that when you see a local council investing in infrastructure for its CBD, this is a sure sign of growth throughout the region.

Through my own regional background, I know how much franchised businesses contribute to rural and regional Australia.

The FCA has been delighted to assist Greater Hamilton as well as discuss the opportunity with several more councils across Australia.

The benefit of introducing franchised businesses is not just economic, but also has positive social and community impact. Often you will find franchisees passing on the knowledge they have gained through their training and support to other local businesses. Healthy businesses create healthy communities.

By helping to meet the needs and maximise the opportunities for interested franchisors and franchisees, as well as providing a crucial link between local government and business, the FCA can further enhance the success of the local economy, maintain population growth and diversify the service offering for the community. n

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FRANCHISE BASICS

REGIONAL

FRANCHISE BASICS

DAMAGE

CONTROL How you can resolve your franchising dispute.

MICK KEOGH Deputy chair, Australian Competition and Consumer Commission

I

t is not uncommon for a franchisor and a franchisee to sometimes disagree, and if the issue is serious enough, this can result in a dispute. In franchising, as in life more generally, it is often better to reach a mutually agreeable compromise than pursue a dispute to the bitter end. Dispute resolution processes under the Franchising Code of Conduct are framed with this in mind.

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FRANCHISE BASICS

Some common issues franchisees may face include a lack of training or support, disputes about rights within franchised territories and a lack of disclosure regarding sourcing of products or required future expenditure.

Some examples of issues that may cause disputes in relation to territories include: • misunderstandings or lack of clarity about the boundaries of a franchisee’s territory • misunderstandings about limitations on exclusivity within a franchisee’s territory.

A drawn out dispute may not only disrupt the running and profitability of the business but can sometimes cause significant damage to working relationships. Good business relations between franchisors and franchisees are vital for the sustainability of a franchised business and a franchise network, so it is important for both parties to resolve disputes efficiently and in good faith.

Under the Franchising Code of Conduct, franchise agreements must contain a dispute resolution procedure that complies with the code. Parties may commence the dispute resolution process as per the terms of the franchise agreement or under the code.

Good business relations between franchisors and franchisees are vital for the sustainability of a franchised business and a franchise network, so it is important for both parties to resolve disputes efficiently and in good faith.

STEPS TO RESOLVE A DISPUTE Where a franchisee is seeking a resolution to a dispute and in the interest of maintaining good relations, it may be helpful for the franchisee to approach the franchisor informally to discuss their concerns before commencing a dispute

resolution process. If such discussions don’t resolve the issue, it may be necessary to initiate a formal dispute resolution process.

To initiate a formal dispute resolution process, either the franchisor or the franchisee must inform the other party in writing, detailing the nature of the dispute, the outcome being sought and a suggested course of action to settle the dispute. The code then allows the parties a minimum of three weeks to reach an agreement.

The code requires the parties to negotiate in good faith. This means both parties should be honest and genuinely try to achieve a resolution.

With the right attitude and genuine intentions to resolve the dispute, parties will generally find dispute resolution processes can be a meaningful way to resolve disputes. Parties who communicate in good faith are more likely to reach a solution suitable for both parties.

MEDIATION If the parties cannot agree on how to resolve the dispute within three weeks, either the franchisee or the franchisor may arrange mediation. The Australian

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Small Business and Family Enterprise Ombudsman (ASBFEO) can provide access to mediation services.

If the franchisee and franchisor cannot agree on the mediator, they can ask the ASBFEO to arrange for the Franchising Mediation Adviser to appoint a mediator within 14 days of a request to do so. It is mandatory for the parties to attend mediation and to attempt to resolve the matter in good faith.

An early mediation date is likely to prevent the dispute from escalating.

The mediation must be conducted in Australia. Any requirement in a franchise agreement for mediation to be conducted outside the state or territory in which the franchisee is located is not allowed.

The parties must approach the resolution of the dispute in a reconciliatory manner. It is important to remember that both parties must pay for their own costs in attending mediation and unless they agree otherwise, they are equally liable for other costs of mediation. These can include the cost of the mediator, cost of room hire and the costs of any additional input (e.g. expert reports) which may be necessary.

Once the mediation has commenced, if

a dispute remains unresolved for 30 days the mediator may terminate the process, unless satisfied that a resolution of the dispute is imminent. Alternatively, either party may request that the mediator terminate the mediation.

THE ROLE OF THE ACCC

action is warranted, the ACCC focuses on those circumstances that will, or have the potential to, harm the competitive process or result in widespread consumer or small business detriment. The ACCC’s 2019 compliance and enforcement priorities outlines the principles we adopt to achieve compliance with the Competition and Consumer Act 2010, our compliance and enforcement functions, strategies and tools, including business and consumer education, and working closely with stakeholders and other agencies.

You can find more information about resolving franchising disputes, the Franchising Code and what we can and can’t do for small businesses on the ACCC website.

Also sign up to our Franchising Information Network to receive updates on the latest news and events relevant to the franchising sector.

The ACCC does not generally get involved in individual disputes. If you believe a potential breach of the code has occurred, you may contact the ACCC to seek further information or make a report.

In deciding whether enforcement

The information in this article is for guidance purposes only and does not constitute or substitute for legal advice.

When considering a franchise opportunity, seek advice from a lawyer, accountant and business advisor with franchising expertise. n

IF MEDIATION FAILS Where mediation fails and the dispute remains unresolved, parties can nonetheless continue negotiations. Alternatively, either party has the right to initiate legal proceedings, even if a mediation is still in progress. However, escalating a dispute to the courts needs to be carefully considered and legal advice should be sought, as litigation can often be a costly and lengthy process.

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SUPPLY CHAIN WORK? Many franchisees depend on a consistent and reliable supply of products to ensure customer satisfaction, brand reputation and franchisee profitability.

T

he purpose of a supply chain is to provide franchisees with a competitive advantage. The franchisor will negotiate a deal with approved suppliers, and may or may not receive a rebate from the suppliers.

When a franchisee buys their business, they may be required to buy, use and sell specific products that either meet the franchisor’s standards or can be purchased only through the franchisor’s approved suppliers.

Sometimes, the franchisor will supply franchisees with the key products or services.

The larger the system, the more likely it is there will be a countrywide agreement in place.

WHAT IS THE BENEFIT OF AN APPROVED SUPPLIER?

Firstly a national deal sees all franchisees in every state using the same products, which delivers consistency of quality across all outlets.

A large scale national supply chain will also ensure reliable delivery of the products.

A well-structured supply agreement should be a costeffective solution for franchisees. Franchisors negotiate deals and franchisees benefit from the discounts available through the volume purchase of supplies.

A franchisor-organised supply chain also removes from franchisees the stress of having to find providers and then negotiate an arrangement for each product.

FOUR SUPPLY CHAIN ADVANTAGES • • • •

Certainty over delivery, costs and payment terms.

Group discounts or competitive arrangements.

Consistent quality of products and services.

Extra business time as the franchisee doesn’t need to source and negotiate their own supply arrangements.

HOW DO YOU FIND OUT ABOUT THE SUPPLY CHAIN?

Two key documents, the franchise agreement and disclosure document, should specify whether or not the franchisee has the freedom to source their own suppliers. If there is flexibility over the supply, these documents should outline any rules around the supply choice.

A cafe owner, for instance, may be required to purchase bread and milk from an approved supplier and coffee beans from the franchisor itself. But the franchisee might be able to locally source additional ingredients such as salad and fruit.

WHAT RULES GOVERN THE SUPPLY CHAIN?

A franchise supply arrangement is subject to the Competition and Consumer Act. Under this law, the compulsory purchase of goods or services from an approved supplier is known as thirdline forcing and s generally prohibited. However, franchisors can and often do operate this system if the AustralianCompetition and Consumer Commission (ACCC) approves the exclusive supply arrangements. The ACCC is able to withdraw its approval if it believes the exclusive dealing is anti-competitive. An alternative supply chain arrangement is called full-line forcing.

This is when a franchisor itself supplies the goods The ACCC is able to withdraw its approval if it believes the exclusive dealing is anti-competitive.

An alternative supply chain arrangement is called full-line forcing. This is when a franchisor itself supplies the goods and services and draws an income from the mark-up.

DOES IT ALWAYS BENEFIT THE FRANCHISEE?

There are occasions when using the franchisor’s preferred suppliers can be detrimental to a franchisee.

For instance, if the franchisor is driven by the lure of greater rebates for using its products, rather than focusing on premium products or service arrangements. Or if the approved suppliers provide a more expensive, less competitive or less reliable product or service than the franchisee may be able to source themselves.

Rural, regional and interstate franchisees may find themselves disadvantaged by a supply chain if there are extra delivery costs or freight charges imposed to get the products to their businesses.

However, if the franchisee chooses to select their own products rather than use the approved supply chain, they risk breaching their franchise agreement. This could lead to legal action, or even the termination of the franchise agreement.

WHAT NEXT?

The 2018 parliamentary inquiry into the Franchising Code of Conduct put the spotlight on rebates, and the fair and appropriate use of approved suppliers. Expect to see some tighter regulations come into force.

ADVICE

Franchise buyers need to understand any mandatory supply deals and any benefits to the business before they sign up to a franchise. n

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FRANCHISE BASICS

HOW DOES A FRANCHISE

FRANCHISE BASICS

LEARNING THE

BUZZWORDS

Like any area of endeavour, the franchise sector has its own particular terminology that new franchisees need to understand.

ACCREDITATION

a banking loan scheme that provides franchisees with some of the finance they may need when buying the franchise. It is based on a bank’s understanding of the brand and its business methods. While this funding option is popular, it is not common across the sector.

ASSIGNMENT

when a franchisee sells their business to a new franchisee, it is referred to as assignment. It is common for the franchisor to retain the right to interview and accept or reject any proposed buyer. The franchisor may also have the right to buy back the franchise. The vendor franchisee can set the value of the franchise.

BUSINESS-FORMAT FRANCHISE

alignment, and sales and profit. This role might also be called business development manager or area manager.

FIXED SERVICE FEE

franchisees may pay their franchisor a weekly or monthly fixed-amount payment, or a service fee calculated as a percentage of turnover (above a minimum payment).

FRANCHISE AGREEMENT

this is the legally binding business between the franchisor and the franchisee.

FRANCHISEE

an individual who runs a franchised business using the intellectual property of the franchisor.

a business model with four criteria – a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.

FRANCHISEE ADVISORY COUNCIL

COMPANY-OWNED UNITS

an up-front cost paid to the franchisor. It covers the use of the brand name and business system.

locations run by the franchisor rather than a franchisee.

CONVERSION

an existing independent business that joins a franchise network.

DISCLOSURE DOCUMENT

this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee in accordance with the Franchising Code of Conduct.

DUE DILIGENCE

the process of conducting in-depth research on a business before purchase.

FIELD MANAGER

an individual tasked with managing a group of franchisees, with a focus on relationships, brand

a structure for franchisors to seek and receive feedback from their franchisees.

Participating franchisees may be elected or chosen by the franchisor.

FRANCHISE FEE

FRANCHISING CODE OF CONDUCT

a mandatory code that governs franchising in Australia. It is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC).

FRANCHISE TERM

this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Franchisors often refer to a term with two options to renew as 5 + 5 + 5, for instance.

FRANCHISOR

the franchisor grants permission to the franchisee to conduct business using its intellectual property, brand name, working methods and marketing.

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GREENFIELD SITE a brand new site.

areas of the business, and should regularly update the information.

GOODWILL

REGIONAL FRANCHISEE

INFORMATION STATEMENT

RENEWAL

this is a calculation of the value of trade in an existing business that is likely to continue and benefit the incoming business owner.

this is a two-page standard document that outlines what franchise buyers need to know about franchising.

INTELLECTUAL PROPERTY

this term refers to the trademarks, copyright, know-how, trade secrets, designs, patents, branding, operational manuals, methodologies and/or recipes franchisors license to franchisees.

LICENSE

the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.

LOCAL AREA MARKETING

often abbreviated to LAM, this is marketing the franchisee is responsible in their territory or designated marketing area.

MARKETING & ADVERTISING LEVY a regular flat or percentagebased-fee paid into a centralised advertising or marketing fund.

MASTER FRANCHISEE

a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.

MULTI-UNIT FRANCHISEE

a franchisee who has been granted the rights to run more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.

OPERATIONS MANUAL

the franchisee’s guide to operating the franchise business. The franchisor may produce several manuals for different

similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct. There is no automatic right of renewal.

ROYALTY

fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit.

TERMINATION

the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.

TERRITORY

is the area assigned to franchisees for their business. Territories can be exclusive or nonexclusive.

TOTAL INVESTMENT

the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.

TURNKEY FRANCHISE

a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

WORKING CAPITAL

the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

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FRANCHISE BASICS

BUYING A FRANCHISE:

THE PROCESS

It can take three months or 18 months to find and open up a franchise.

This is the typical path that will take you to franchise ownership.

1. MAKE AN INQUIRY

Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.

4. CONFIDENTIALITY

The franchisor will ask you to sign a confidentiality agreement before sharing sensitive information with you.

Expect a copy of the disclosure document, draft franchise agreement and the Franchising Code of Conduct, plus an information statement.

Your franchisor might also send more commercially sensitive information to help you consider the viability of the franchise opportunity and build your business plan.

7. PROVE YOURSELF

You will need to create a business plan and show to the franchisor you have the capacity to take ownership of and drive this particular franchise unit.

A follow-up meeting will enable you to ask further questions following on from your due diligence, and for the franchisor to further quiz you.

2. FRANCHISOR RESPONDS

3. FIND OUT MORE

5. FIRST MEETING

6. CONDUCT DUE DILIGENCE

If you have emailed an inquiry, typically a franchisor will send out an information pack to you, and follow this up with a phone call.

This is the time you will get a much clearer idea of the business, and the franchise team you will be working with.

8. OTHER STEPS

Some brands can include a number of interviews, try-before-you-buy work experience or a panel review.

The franchisor might ask you to complete a profiling assessment.

Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.

This is a crucial stage, so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice, or that you have decided not to do so.

Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.

9. DON’T RUSH IT

The process to get from inquiry to sign-up could be a matter of weeks, or it could be months.

Buying a franchise is a significant, long-term commitment. It is important not to rush the process.

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THE

INFLUENCERS

Who will be driving the business that you invest your hard-earned dollars into?

W

hat influence will the franchise team have over your future? Here we look at key roles in a larger franchise business that will be shaping the direction and operation of the network. Not every business will include each role and in a small franchise set-up the franchisor will be wearing several, or all, of these hats.

tial in the company’s long term success.

Any funding for marketing or development initiatives will be approved by the CFO. The CFO manages the finance and accounting divisions and takes responsibility for the accuracy and timeliness of the company’s financial reports.

CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR

A CIO has responsibility for the implementation, management and efficacy of information and computer technologies, vital in today’s digital world.

It’s the CIO who will investigate the benefits of any proposed technological change, and then implement the system - a website or inventory software, for instance.

The role is increasingly strategic and directed to gaining and maintaining the competitive advantage of a business.

The top ranking executive in a company, the CEO is focused on directing high level company strategy and growth.

In a smaller company, the CEO’s role includes operational business decisions and they may be much more hands-on on a daily basis.

In a larger business the CEO may have a position on the company’s board, and act as the link between corporate operations and the board of directors.

The founder of a franchise typically takes a CEO role.

CHIEF MARKETING OFFICER

CHIEF OPERATING OFFICER/ OPERATIONS MANAGER

A COO/operations manager essentially works with the CEO to implement the strategy, making the decisions on how to achieve the goals set out. The role is typically responsible for daily operations, production, research and development, creating operational policies, and HR. The operations manager can influence the franchise business performance through resource allocation, cost reduction, improved efficiencies, the introduction of high quality products and services.

In a franchise where the founder is the CEO, the COO may be the more experienced executive.

CHIEF FINANCIAL OFFICER

CHIEF INFORMATION OFFICER

This senior executive reports to the CEO but plays a strategic role in the way the company manages its finances, investments, and capital structure and is influen-

The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations.

Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.

GENERAL MANAGER

A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations.

The responsibilities of the role may be incorporated into a CEO role.

FRANCHISE RECRUITMENT MANAGER

The franchise recruitment manager is responsible for attracting franchise buyer enquiries and for the recruitment selection process, increasingly working with managers from other divisions and

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the CEO or MD in the final selection.

The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.

BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:

Variously called a BDM, regional manager, field or area manager, this role is the interface between the franchisee and franchisor. Responsibilities include helping franchisees achieve their business goals, ensuring brand compliance across the network, communicating brand direction and strategy to franchisees.

TRAINER

The person or team who will set up a franchisee to run the business.

Responsibility for training may fall under operations or general management.

Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.

PR AND COMMUNICATIONS

How the brand is presented in the media, how the brand engages with social media, how brand damage is mitigated...all these are influenced by the team that handles PR and corporate communications. This may be an internal team or an external agency.

SUPPORT TEAM

The individual employees at head office who manage, monitor and deal with queries, requests and complaints from franchisees.

FRANCHISE ADVISORY COUNCILLOR A franchisee member of the Franchise Advisory Council which is typically involved in providing frontline feedback from franchisees to the franchisor, and in assessing and trialling new initiatives.

FRANCHISE BASICS

30

THINGS TO CHECK R BEFORE YOU INVEST

Get set prior to your purchase with our easy checklist.

Just tick off the must-do items.

Are you confident in the franchisor?

Have you worked out your operating costs?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

Do you know the term of the agreement?

What training is available and who pays for it?

Is the franchisor compliant with the Franchising Code of Conduct?

Do you need a permit or license to operate the business?

Who owns the intellectual property and what is licensed to the franchisee?

Have you run a credit check on the franchisor?

Is the business operating from fixed or mobile premises?

What marketing will the franchisor implement?

Does the franchisor have a history of litigation? Are there any cases coming up?

Have you checked the lease? Is there a right to renew?

What marketing is your responsibility?

If you are buying an existing business, have you seen current financial statements (balance sheets, profit and loss, tax returns)?

Does the length of the lease match the franchise term?

What is the dispute resolution process?

Have you evaluated the financial returns?

What are the store fit-out costs?

Do you know what it is like to be a franchisee?

If you are buying a greenfield (brand new) site, do you have sales and profit examples and know the method behind the calculations?

Are you working within a territory? If so is the area exclusive?

Do you have an exit plan?

Do you know all the expenses franchisees are required to pay?

Are you restricted in your product purchase?

Have you spoken to former and current franchisees about the business?

What royalties are there and how are they calculated?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)

The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code.

The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.

Visit: WWW.ACCC.GOV.AU

BUSINESS.GOV.AU

This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training Visit: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA

The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia.

Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees.

Visit: WWW.FRANCHISE.ORG.AU

FRANCHISEBUSINESS.COM.AU

This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports.

FranchiseBusiness.com.au is your essential guide to buying a franchise in Australia and it lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand.

Users also have access to franchise consultants and advisors who

can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.

Visit: WWW.FRANCHISEBUSINESS.COM.AU

FRANDATA

FRANdata is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct.

FRANdata also provides reports on the franchising sector.

Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.

Visit: WWW.FRANDATA.COM.AU

FRANCHISE.ED

Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice.

FranchiseED is a Not for Profit which provides education to encourage best practice; provides consultancy services; and provides access and dissemination of quality franchise research. The revenue generated by these programs will help support the social enterprise programs of FranchiseED. It extends upon the work undertaken previously by the Franchise Centre at Griffith University with the transformation into FranchiseED. Visit: WWW.FRANCHISE-ED.ORG.AU

THE FAIR WORK COMMISSION

Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australia’s workplace relations system but have different roles.

The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation.

The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions.

Visit: WWW.FAIRWORK.COM.AU

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Phone: Shayne Boogaard (NSW): 0418 136 156 Brett Reading (QLD): 0407 877 674 Peter O’Hara (VIC/WA): 0408 175 534 Contact: Shayne Boogaard (NSW): szh@7eleven.com.au Brett Reading (QLD): bzr@7eleven.com.au Peter O’Hara (VIC/WA): pwo@7eleven.com.au www.franchise.7eleven.com.au

Phone: 1300 20 20 73 Contact: Damien Bain damien.bain@20perfit.com.au www.20perfit.com.au

A-Z LISTINGS

Start up costs: Mobile Under $50,000

Start up costs: $400,000 to $1,000,000 PROFILE: 20PerFit utilises the latest electromuscular stimulation (EMS) technology exported from Germany. The system imitates the natural action of the central nervous system, sending electrical impulses to contract deep muscle fibres. During a single 20-minute session, up to 90% of muscles are activated, making workouts more intense and effective.

Unlike other EMS offerings, 20PerFit allows complete freedom of movement. The system is totally wireless, allowing clients to perform exercises without restriction. Wireless capabilities also mean that 20PerFit can be a completely mobile service, making the system even more convenient and accessible.

PROFILE: 7-Eleven is the largest convenience and independent petrol retailer in Australia with more than 670 stores across VIC, ACT, NSW, QLD and WA. We opened our first store in 1977 and have almost 40 years’ experience in franchising.

When you buy a 7-Eleven franchise, you buy two things. Firstly a globally recognised brand name, and secondly a business system that works, one that provides more support than most other franchises. As our stores are open 24/7, support is just a call away 24 hours a day, 7 days a week.

We are looking for Franchisees who have the potential to lead their team to deliver an outstanding experience to customers. Learn more about what it takes to be part of a partnership in success with 7-Eleven, at www.franchise.7eleven.com.au

Contact: Chrissie Blackadder chrissie.blackadder@collectivewellness.com.au www.anytimefitness.com.au/own-a-gym/

Phone: 02 9037 2849 Contact: Doug Downer doug@thealternativeboard.com.au www.thealternativeboard.com.au Start up costs: from $40,000 up to $95,000

PROFILE: The Alternative Board is a membership organisation of Business Owners and CEOs who meet monthly in confidential board meetings to assist each other in transforming their businesses.

The Alternative Board (TAB) exists to help business owners align their business vision with their personal vision. It exists to provide owners/CEO’s with the power to ensure that their businesses will deliver what they want out of life.

In addition to the monthly board meetings, the facilitator/coach meets with the business owner/CEO each month and works with them in a one on one coaching session focussed exclusively on their business.

Start up costs: $350,000- $450,000 PROFILE: Anytime Fitness is Australia’s biggest gym community, with over 550,000 members and 500+ clubs nationwide. With a 24/7 concept, alongside PT’s and the Anytime Workouts app, we’re getting Australians moving for a fitter and healthier future.

When you join the Anytime Fitness family, you’re investing in much more than a gym, you’re joining a fitness movement full of like-minded entrepreneurs. In October 2018, we won the FAC – Franchise Council of Australia – International Franchisor of the Year award - based on our financial strength and stability, growth rate and size of our system. We have over 4,000 clubs in over 30 countries. That means an unrivalled support network to draw on, from dedicated franchise coaches and national marketing teams, to a wealth of online tools and training.

As an Anytime Fitness franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group (CWG), to guide and support you every step of the way.

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au Start up costs from: $52,000 + GST PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide 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 56 franchisees grow profitable and successful businesses.

No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

Phone: 1300 309 759 Contact: Franchise Recruitment Team franchise.recruitment@bakersdelight.com.au www.bakersdelight.com.au/franchise/ PROFILE: Bakers Delight are an Australian iconic brand. We’ve been baking bread since 1980 and currently have over 600 bakeries across Australia, Canada and New Zealand.

We are the largest Bakery Franchise and a household brand name.

At Bakers Delight we offer a large variety of back end business support, including: • Business Operations • Marketing

• Human Resources • Property

Start up costs: $250,000+ Be part of a successful franchise operation • Access to Banjo’s specialised systems • Buying power with key suppliers • Marketing, HR and IT support • Hands on business support and advice • Continual product and systems development • Ongoing training and development • No qualifications are required however it would be beneficial to have a certificate in retail, management, baking or sales.

Banjo’s are seeking interest for Queensland, Tasmania, Victoria and New South Wales.

Contact us for more information.

• Full Training

Phone: 0419494480 Contact: Rod Parker rparker@bedshed.com.au www.bedshedfranchise.com.au Start up costs: $500,000 - $750,000

PROFILE: •

• Information Support

If you have the passion and drive to be the local face of a bigger brand. Take the first step and contact our team to learn about any local business opportunities available within your area.

Phone: 03 6210 5000 Contact: Shaun Goodwin sgoodwin@banjosrc.com.au banjos.com.au

Banjo’s is an Australian company providing great wholesome food and excellent customer service in a welcoming, contemporary environment.

The bakery café leader in Australia, our success is in the baking – we consistently make the best quality products and our customers come back again and again.

Our customers are our focus and it is through our connection with the people in our communities we build a strong local following.

We have developed a strong sustainable business model and are continuing strong balanced growth whilst not losing touch with the small things that got us here in the first place.

• Independence of owning your own business.

• Projects • Purchasing

PROFILE: Bedshed is an accredited franchise business model led by a professional management team. Backed by over 35 years of successful operation, Bedshed provides support, specialised advice, training and a proven structure which takes a lot of the risk out of running your own business.

With 36 stores in a growing network Bedshed is committed to partnering with franchisees to help them achieve business success, while offering flexible hours and a fulfilling lifestyle.

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Phone: +61 (3) 8593 45 46 Contact: Ali Kurtdereli boostinfo@retailzoo.com.au www.boostjuice.com.au/franchising Start up costs: $280,000 - $450,000 PROFILE: Boost Juice is one of the world’s most famous and loved smoothie and juice brands.

With its winning combination of fresh fruit and love life ethos, Boost Juice offers a healthy alternative to fast food and strives to have customers leave feeling just that little bit better. For further information regarding franchising with Boost, get in touch with Boost franchising today!

Phone: (02) 4587 6370 Fax: (02) 4587 8733 Contact: Lachlan Mitchell lachlan@chemdry.com.au www.chemdry.com.au Start up costs from $19,950 PROFILE: Chem-Dry is Australia’s largest and most successful carpet and upholstery cleaning franchise. Established in 1986 as a healthy and green carpet cleaning alternative, today Chem-Dry cleans more carpet and surfaces than any other company.

Using the company’s patented cleaning solutions and over 35 years of experience, our franchise partners are able to build successful businesses by making their customers’ homes and workplaces cleaner and healthier.

Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes.

A Chem-Dry franchise is not just about residential and commercial carpet cleaning.

Our franchise partners also clean upholstery, leather, tiles and grout, and are specialists in water damage restoration.

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos nicka@cheesecake.com.au www.cheesecake.com.au Start up costs: New store - $389,000 + GST PROFILE: The Cheesecake Shop is one of Australia’s favourite retailers and shares in the celebrations and happy occasions of millions of people each year with their signature dessert products. With over 200 stores across Australia and New Zealand and a two time winner of the Franchise Council of Australia’s Franchisor of the Year award, The Cheesecake Shop is one of Australia’s premier franchise systems.

Phone: 03 8727 9999 or 13 80 90 Fax: 03 9729 3266 Contact: Network Development Manger www.clarkrubber.com.au Start up costs: Clark Rubber Large Format Retail Stores: High Investment Clark Rubber Pool & Spa Shops: Moderate Investment Clark Pools & Spas Onsite Care Territory Vans: Low Investment

PROFILE: Clark Rubber is Australia’s leading foam, rubber and pool retailer and is one of the most recognised brands in the Australian retail market today.

Clark Rubber offers three unique business options at different investment levels, all supported by business development, site selection and fit out assistance, a 4 week training program and ongoing marketing, IT and operational support.

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au

Phone: 1300 28 28 78 Contact: Michael Dowling mdowling@ctaustralia.com.au www.computertroubleshooters.com.au

Start up costs: $500,000 - $700,000

Start up costs: $20,000 to $25,000 PROFILE: Computer Troubleshooters Franchise opportunity enables you to take charge and build a business that meets your lifestyle needs. Leverage the systems, processes, marketing and support of a National Franchise Network that commenced in 1997. Key benefits include: a low initial investment fee, initial 5 days training, reduced startup period, national marketing support including a local website, access to national accounts program, group discounts with suppliers, and access to technical forum. Today’s connected world means businesses and residential clients need a local reliable professional Premium IT Support and Services provider. Build a lifestyle and business not a job. Learn more call 1300 28 28 78

Phone: 0437 632 738 Contact: Shanya Butler franchising@degani.com.au Degani.com.au

PROFILE: Cowch Dessert Cocktail Bar is Australia’s most innovative dessert and cocktail offering. Whether you’re looking to entertain the kids, spend a night with the girls, or just put a smile on your face, Cowch is the place to do it.

With an exciting and fresh feel, the Cowch brand is all about innovation and fun. Whether it be our kids dessert making classes, or cocktail making for a hens night, Cowch delivers on a single promise of creating memories for any group. If you need convincing, stop by and let us show you why we’re the brand to beat.

Phone: 1300 378 472 Contact: Susana Hands/Michael White apply@drugsafe.com.au www.drugsafe.com.au

Start up costs: $200,000 + PROFILE: You’ve got the café dream. You want your own successful business, where your friends, family and your community come each day. Degani has been helping people just like you, achieve their café dream for over 20 years. Born in Melbourne, Degani has grown to over 65 cafes across Australia, providing award winning coffee and delicious café quality food in a fully supported business model, that allows you the flexibility to add your personality and ideas to the way your café looks and what’s on the menu, so that it really is your cafe. Degani is the affordable business opportunity that stands beside you right through your journey.

Start up costs: $75 - $90.000 PROFILE: Drug-Safe Australia Pty Ltd have led the alcohol and other drug screening industry abuse across Australia and the South Pacific.

The business has concentrated upon the needs of National and Multi National clients with a need to ensure their workforce was protected from the growing abuse of substances such as alcohol, marijuana, cocaine, heroin, amphetamines and more recently methamphetamine.

Whilst we have been very successful in developing our systems and clients, we have identified a pressing need to have a broad coverage of field officers across Australia who are enthusiastically supportive of the Company’s objectives.

To address this, we decided to harness the enthusiastic nature of regional individuals who wish to make a difference within their own community in addition to the more traditional client base for drug testing.

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A-Z LISTINGS

A-Z LISTINGS

Phone: 0412 511 630 Contact: Kevin Bugeja kevin@franchise4u.com.au earlcanteen.com.au

Phone: (02) 9432 5016 Contact: Felicity Baker FranchiseAdmin@ellabache.com.au Ellabachefranchise.com.au

Start up costs: $300,000 - $400,000

Start up costs: $150,000 - $350,000

PROFILE:

PROFILE:

EARL is an industry leader of fast, healthy food and specialty coffee operating in 7 Melbourne CBD locations. With a grab and go menu made fresh each morning, to made to order breakfast, sandwiches and bowls, there is an EARL for every part of your day. We are passionate about offering an innovative, quality focused and healthful experience, delivered with a smile every time.

Ella Baché is Australia’s largest skincare franchise network and leaders in Skin Solutions.

EARL Canteen - Sandwiches, Salads, Sweets, Coffee and Service!

The brand has been established in Australia for over 65 years and currently boasts over 150 locations nationwide.

As a Franchise Owner, you’ll be given all the support you need to grow your business and develop your skincare knowledge. Committed to educating and empowering our network, you can expect ongoing innovation, training, guidance and non-stop motivation to create a successful business from day one.

Phone: +61 8 8267 2144 Contact: Andrew Phillips aphillips@focalpointintl.com www.focalpointfranchise.biz

Phone: 1300 869 196 Fax: 1300 659 675 Contact: Approval Centre Team info@franchisefinanceaustralia.com.au www.franchisefinanceaustralia.com.au

Start up costs: $59,950 PROFILE: The name Brian Tracy is synonymous with personal and professional success. Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community.

FocalPoint partners experienced individuals who are self-motivated and looking for a business opportunity that offers a lifestyle plus adds value to your community. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find out more about the FocalPoint franchise.

PROFILE: Franchise Finance Australia is a specialist funder to the franchise sector.

We have unrivalled knowledge of franchisees funding requirements as well as direct relationships with the franchise networks operating in Australia.

Founded in 2014 by directors with a background in franchising, we have remained committed to offering flexible funding solutions that allow franchisees to start a new business or improve their existing business.

Franchise Finance Australia can finance new & used equipment, fitouts and refurbishments, offering competitive rates, flexible terms and an easy online application process.

Contact: Oscar Kizilkaya 0402 39 4645 Oscar@gozlemeking.com.au Franchise enquires: Bob Ozdemir 0404 888 068 bob@gozlemeking.com.au www.gozlemeking.com.au Start up costs: $200,000 - $300,000 PROFILE: Gözleme King is renowned for its delicious traditional Turkish Gozleme with a modern twist.

Each Gozleme is made using hand-rolled dough and filled with premium ingredients achieving a fresh and high-quality customer experience.

Our menu range offers customers fresh and made to order meal options targeted at the growing demand for fast, nutritious and healthy meal options.

Phone: 04 8833 8668 Contact: Franchise Recruitment hh@helloharry.com.au www.helloharry.com.au

PROFILE: Hello Harry The Burger Joint is a funky eatery serving up generous size burgers!

Burgers, Craft beers and fun is what we are about.

Great value with a fun, funky, cool brand that is reflected in store.

This QSR brand offers a great lifestyle to Franchisees. High quality product, easy in store operations and a very solid business model. With low set -up costs, open the best burger joint in town. Hello Harry is seeking Franchisees Australia wide.

Sick of working for the man? Be the man and open your Hello Harry

Phone: 1300 658 311 Contact: Bill Lockett info@homecaringfranchise.com.au www.homecaringfranchise.com.au

Phone: 07 3703 3100 Fax: 07 3703 3197 Contact: Jerry Dvorak Jerry.dvorak@homeinstead.com.au Homeinstead.com.au/franchise-opportunities

Start up costs: $80,000 - $120,000

Start up costs: $87,000 + WC

PROFILE: Home Caring provides an opportunity to be part of one of the fastest growing sectors in the Australian economy – disability, aged and dementia care. As the population ages, it is anticipated that the number of people over 65 will double in the next 30 years and the number of people accessing the NDIS will grow from 250,000 to over 475,000.

Proudly Australian owned, Home Caring provides professional and compassionate personalised care services in the home and is seeking community minded franchisees who can build a solid financial future combining their local networks and the national marketing of the Home Caring and Dementia Caring brands.

PROFILE: Home Instead Senior Care is Australia’s leading in-home provider of high-quality care, companionship and support for seniors to stay at home. Everything we do at Home Instead Senior Care is driven by our universal mission to enhance the lives of ageing adults and their families. We are immersed in our local communities and drive positive change for individuals, families and communities through leadership, care, innovation, education, advocacy and support.

Home Caring is offering health care professionals a limited number of locations in a partnership arrangement, enabling more people to become involved in the industry at a lower entry cost. Full training and support is provided to ensure a successful, profitable partnership.

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Phone: 0438 944 026 Contact: Gary Glen gary.g@emirateslr.com.au www.hudsonscoffee.com.au

Phone: 1300 097 857 Contact: David Wilkinson sales.au@inxpress.com inxpress.com.au inxpress.com.au/franchising

Start up costs: $200 - $500k

Start up costs: $64,950 + GST PROFILE: Our passion for coffee is at the heart and soul of everything we do, and we pride ourselves on maintaining consistently high standards across our entire network. Having great people who pride themselves on operational excellence is the key to delivering a strong brand, network growth and most importantly a loyal customer base.

We offer contemporary and modern store environments that have been embraced by our customers in a range of strategically selected locations, including central business districts, regional areas, airports and hospitals.

PROFILE: InXpress provides a revolutionary concept delivering customers with express freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll, Startrack and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money.

Operating in 14 countries with over 350 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Low Overheads • No inventory/warehousing

• Work from home • High income potential • Ongoing training and support

For more information about becoming an InXpress franchisee contact us now. *conditions apply

Phone: (02) 8962 8556 Contact: Maria Chemali franchise@kwikkopy.com.au www.kwikkopy.com.au/franchise

Phone: +61 402 171 399 Contact: Liz Seeto franchising@laserclinics.com.au www.laserclinics.com.au Start up costs: $290-$350K +GST approximately

Start-up costs: $280,000 (for a Greenfield)

PROFILE: Start your franchising journey with Kwik Kopy, the leading provider of design, print and online solutions throughout Australia.

Kwik Kopy offers a flexible franchise model, where each Centre is fully equipped to create high quality services on-site. Owning your B2B franchise means operating business hours Monday to Friday so you’ll also enjoy work-life balance.

As a Kwik Kopy franchisee you get to become your own boss and be part of a supportive community committed to your success. You’ll also receive all the training you require, so no prior print or design experience necessary.

A Kwik Kopy franchisee is young at heart with business experience, entrepreneurial flair and most of all – an absolute passion for customer service.

We have both existing and new locations for sale throughout Australia.

PROFILE: At Laser Clinics Australia & New Zealand, our vision is to provide affordable, effective and safe non-invasive cosmetic treatments. Since 2008, Laser Clinics Australia has grown to be the largest provider globally of laser hair removal, cosmetic injections and skin treatments.

Laser Clinics Australia & New Zealand is an award-winning business with over 100 clinics in Australia and launching in New Zealand.

Laser Clinics Australia & New Zealand offers every franchisee partner a unique franchise business opportunity. Each location we open is a 50/50 partnership between the franchisee partner and Laser Clinics Australia & New Zealand. Our unique business partnership model reduces start up and ongoing operational costs.

We seek out the most motivated individuals who will be empowered to take on the day-to-day responsibilities of running a successful clinic. Franchise partners receive a $100,000 salary from day one.

Phone: 02 8115 9550 Contact: Phillip Blanco franchising@madmex.com.au www.madmex.com.au

Phone: 1800 625 677 Contact: Sales Enquiries info@majorsgroup.com.au www.majorsgroup.com.au

Start up costs: $375,000 to $550,000 PROFILE: As a thriving fast casual food brand with a strong growth strategy, we are actively seeking new franchise partners. Our menu is influenced by fresh, Baja-style Mexican food made with authentic ingredients true to our roots.

We’re focused on leading the way in tasty, fresh and healthy with the freshest produce available, food made fresh every day and allowing our customers to tailor their meals to personal tastes and dietary requirements or health trends.

If you have the drive to lead the way with fresh authentic Mexican flavour, a passion to utilise your past business knowledge & skills to deliver an outstanding customer experience, all with a cheeky grin, then this journey is for you! Become your own Head Honcho at Mad Mex, enquire today!

PROFILE: Majors Group have been specialising in the distribution of ice cream, gelato, frozen yoghurt, granita equipment, commercial refrigeration and all related products throughout Australia, New Zealand, South East Asia and the Pacific region for over 25 years.

Majors group offers the best value, quality products, and excellent service to all of our customers. Majors Group is known for our innovation, efficiency and sustainability. Majors Group is committed to ongoing training and promotions for all our staff and customers to deliver the finest service and support for all.

Majors Group is the one stop shop for everything delicious.

We offer consultation, training, equipment, ingredients, finance and service solutions to suit your business

Phone: 03 9604 9400 Fax: 03 9419 7735 robert@mmrb.com.au www.marshmaher.com.au

PROFILE: Morgan Mac Lawyers is an experienced commercial law and commercial litigation firm with a specific focus in franchising law.

PROFILE: Well recognised and published franchise specialist with over 30 years industry knowledge and experience.

Providing advice to: 1. International Franchisors and Franchising.

2. Master Franchising.

3. Dispute Resolution – Solutions and Strategies

Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au

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Franchisee Advice and fixed fee reports.

Sale/ Purchase of franchise systems.

IP/ Trademark advice.

Company structures and tax advice.

CCC and Consumer Law advice.

We provide clients fixed fees based on the scope of work.

Contact Robert Toth on (03) 9604 9400 or by email at robert@mmrb.com.au

Bill Morgan, has over 20 years’ experience in complex commercial litigation involving disputes between franchisors and franchisees. Since 2016, Morgan Mac Lawyers has acted in over 40 franchise dispute mediations.

The franchise related legal services Morgan Mac Lawyers provides include: • Commercial litigation • Alternative dispute resolution and franchise mediation • Franchise Dispute solutions • Corporate and business structuring • Purchase or sale of franchise businesses

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Advising on franchise documents Franchise employment law advice Preparing franchise documents Risk and compliance advice Commercial and retail leasing Privacy and privacy policy advice

A-Z LISTINGS

Phone: 02 9472 8555 Contact: Peter Elligett info@mrsfields.com.au www.mrsfields.com.au

A-Z LISTINGS

Phone: 1300 730 921 Contact: franchise@myob.com www.myob.com/au/comms/business/franchise-solutions

Start up costs: From $199,000 + GST PROFILE: PROFILE: Mrs. Fields Bakery Café is more than a Café… Mrs. Fields is all about making people feel good through simple, special moments. Whether it be nibbling on a softbaked cookie, enjoying an award-winning coffee, roasted exclusively by Mrs. Fields or sitting down to grab a bite for lunch – whether it be a toastie, a pie or any of our other savoury offerings… we want to serve up moments made better, every time.

Together with an advanced eco-system of technology partners, MYOB can address the pain points in your franchise business, giving you back the time to make more sales, increase profits and grow your franchise.

We have a number of delicious franchise opportunities available around Australia, so if you’re ready to call the shots and run your own Mrs. Fields Bakery Café, contact us today.

Phone: 07 3088 1232 Fax: 07 3088 1212 Contact: Joel Douglas 0475 980 219 franchises@nightowl.com.au

Phone: 0413 564 565 Contact: Marc Akil franchise@nirvanabeauty.com.au www.nirvanabeauty.com.au

Start up costs: $300,000 - $650,000

Start up costs: $250,000 - $550,000

PROFILE: NightOwl is a national convenience franchise system established in 1975 as Australia’s first 24 hour trading Convenience retail business.

First franchised in 1987, we have never stopped growing and with an exceptionally strong brand presence, we now operate over 70 stores throughout Queensland and New South Wales.

Retail experience is not necessary in running a NightOwl, but motivation and entrepreneurial skills are a must. You must be determined to succeed and the Franchisee Support Office will help you with the rest.

We are seeking motivated and hardworking franchisees with a determination to succeed!

PROFILE: Having conquered some of the latest beauty treatments and technologies, Nirvana Beauty Laser Clinics presents a huge investment opportunity for people wishing to enter an industry with enormous potential.

As a franchise owner with Nirvana Beauty Laser Clinics, you will experience the satisfaction of working in an exciting and on-trend industry. Every day you will reap the fruits of your own input by delivering results-driven treatments to many satisfied clients. Enjoy working with state-of-the art equipment, a great work-life balance, a personalised support network, and ongoing training through our Head Office What are you waiting for? Contact us today and join in our success.

Phone: (02) 9438 1711 Fax: (02) 9438 1733 Contact: Nelson Lima info@ogalo.com.au www.ogalo.com.au

Contact: May Chang, National Franchise Sales mchang@orangetheoryfitness.com.au marketing.orangetheoryfitness.com/franchisees-int/ Start up costs: Please enquire

Start up costs: $250,000 – $330,000 PROFILE: Ogalo represents a vision in providing Australians with healthy, time convenient and great food.

The Ogalo story started in 1989 when Carlos founded one of Sydney’s most famous Portuguese Chicken shops, offering succulent chicken that was prepared in the traditional Portuguese way!

Carlos perfected his signature chicken burger recipe that has made Ogalo the success it is today, with a cult following customer base like no other!

A-Z Ogalo has expanded its menu to include an extensive range of meal options which includes grilled breast fillet burgers, wraps, fresh salads, marinated BBQ whole chickens, vegie and vegan options and much more!

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

CONTACT SENIOR ACCOUNT MANAGER CHARLOTTE REDFERN ON 02 8224 8373 CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU

PROFILE: Orangetheory Fitness is one of the world’s fastest growing franchises with 1200 studios open across 22 countries and zero studio closures globally. We’re growing rapidly across Australia but there are still some prime territories available.

Orangetheory is a one-of-a-kind, group training experience that uses heart-rate based interval training to promote maximum calorie burn. Every single workout is scientifically developed and approved by a Medical Advisory Board to ensure it remains 100% results oriented.

As an Orangetheory Fitness franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group, to guide and support you every step of the way.

Phone: 1800-233-299 Contact: Daniel Joines dan@polisheddiamonds.com www.polisheddiamonds.com.au Start up costs: $100,000 PROFILE: Polished Diamonds is an award-winning fine jewellery design house specialising in engagement, wedding and anniversary. We design using Computer Aided Design (CAD) and 3d print prototypes so our clients can preview the actual proportions of their unique jewellery. Our supply chain ensures competitive pricing at this high quality level.

We are now looking to establish physical design showrooms in each Australian State with focus on NSW, QLD, VIC. We supply you with our branding, supply chain and help with store location and fit-out ready to open. Ongoing training and support will help to ensure your success. This opportunity would suit sales & marketing focused people.

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Phone: +61 2 8212 4578 Contact: Vivian Rounsley franchising@powerfulpoints.com.au www.powerfulpoints.com.au Start up costs: Franchise fee: $65,000, Equipment, etc: $7,000, Working capital: $25,000

Phone: 1800 245 447 Email: joinourteam@poolwerx.com.au Web: www.poolwerx.com.au

PROFILE: Australia’s Franchise System of the Year - Twice!!

Build your successful business future with us. We have a career path in business that we can tailor to suit you. As a Poolwerx Franchise Partner, you can start small or jump right in. Join us as a man in a van, progress to multi-vans, a retail store and vans and then in multi store. Or purchase an existing fast start mobile territory or retail mobile business. Whatever your journey, we will help you realise your vision.

Our one focus is to create a profitable partnership. We do that by matching over 25 years experience and outstanding support, marketing and business development systems to your energy and enthusiasm.

For more information, visit poolwerx.com.au/franchising.

PROFILE: PowerfulPoints is one of Australia’s leading visual communications companies providing services to mainly medium and large companies.

Working with a team of world class designers, copy writers and trainers we help clients create highly effective presentations, videos, motion graphics and other digital and traditional media. We help them communicate effectively in today’s multimedia rich world.

As a franchisee, your job is to do the sales and account service. You will have extensive training and ongoing support to help build a lifestyle and valuable asset in this rapidly growing market.

This is a limited opportunity, only around 25 franchises will be offered in Australia.

Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au www.questfranchise.com.au

Phone: 02 9708 6959 Contact: Ammar Quettawala info@qtecx.com.au www.qtecx.com.au PROFILE: FRANQ is a franchise management solution. The solution helps franchisors to thrive by automating business processes, solving franchise data challenges, and offering business insights FRANQ functionality includes recruitment, store opener, contracts generator, lease tracker, document storage, compliance tracking, territory management, alerts, dashboards and many more. With FRANQ, you can be confident of amazing results in less time.

QTECX Solutions provides high-class consulting, implementation and integration services. With over 30 years’ global experience in designing flexible and efficient solutions, we go above and beyond to help you provide superior customer experience.

Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of over 170 franchised properties across Australia, New Zealand and Fiji.

For 30 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay business travellers.

Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia.

To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially.

Phone: 07 3399 3000 Fax: 07 3399 3077 Contact: Patrick Mulcahy franchisedevelopment@shingleinn.com www.shingleinn.com

Contact: Damien Sheehan franchise.AU@iwgplc.com regus.com.au/franchise PROFILE: A MAJOR NEW INVESTMENT OPPORTUNITY TO FRANCHISE WITH IWG plc, THE GLOBAL WORKSPACE AND CO-WORKING MARKET LEADER 3 in 10 office buildings in every town around the world could offer a new franchise opportunity in the coming years through flexible workspace and co-working.

Imagine being given the chance to work with hugely successful established franchise industries such as restaurants or gyms at the beginning of their growth explosions.

This is an opportunity to diversify away from traditional franchise markets, and benefit from strong cash returns and attractive returns on investment.

Now is your chance to start a new franchise with IWG plc, the global operator of leading workspace providers, with brands to match every requirements and style, like Regus and Spaces.

IWG has been running successful workspaces for 30 years, ever since it founded the industry in 1989, and is present today in 3,300 locations, 120 countries and 1,100 towns and cities, with over 2,5 million customers. The flex-office market has reached a tipping point and we are seeking franchise partners to help drive the pace of our growth across the World.

Phone: 02 9114 9955 Contact: Linda Sultmann enquiries@signwave.com.au www.signwave.com.au Start up costs: $300,000 for a new centre PROFILE: There’s a bright future in signage with our group growing 40% in the past 5 years!

SIGNWAVE is a recognised brand in the Australian B2B market for print and signage. With a product range that is so much more than signs, including vehicle graphics, interior décor, point of purchase, exhibits and displays. Get both lifestyle and financial returns with our B2B model and the support to have you be an expert day one. SIGNWAVE is part of FASTSIGNS the multi award winning North America Sign and Graphics franchise with over 700 centre worldwide. We have both new and resale opportunities available in key metro areas.

Start up costs: $290,000-$360,000 PROFILE: Shingle Inn is a leader in the boutique café market. Established in 1936, against the backdrop of the Great Depression, Shingle Inn has been the perfect destination to share special times with family and friends for generations.

Luxurious high-backed chairs, warm rich colours and intimate booths create an atmosphere that attracts customers and Shingle Inn’s focus on superior quality food and coffee keeps them returning. With decadent cakes and delicious treats, made from traditional recipes in Shingle Inn’s central bakery, Shingle Inn prides itself on an exclusive product range that will not be found in any competing café.

Together with Shingle Inn’s constant focus on coffee excellence and freshlyprepared meals on our extensive menu, Shingle Inn is unsurpassed in today’s café culture. Contact us to find out why Shingle Inn could be the right coffee and food business for you. Patrick Mulcahy 0431 649 450.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

CONTACT GENERAL MANAGER DAVID STRONG ON 02 8224 8370 DAVID.STRONG@OCTOMEDIA.COM.AU

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A-Z LISTINGS

Phone: 1300 810 233 Contact: Kevin Lacey franchiseenquiries@snap.com.au Snap.com.au

A-Z LISTINGS

Phone: 03 9830 4166 Fax: 03 9888 6327 Contact: Bettina Davis bettina.davis@snooze.com.au www.snooze.com.au/franchising

Start up costs: Starting from $65,000 PROFILE: Passion is the backbone to any successful business. At SNAP, our passions are print and building businesses. As part of our network, you’ll be supported by a team with the expertise and passion to see your business reach its full potential

PROFILE: Snooze has been giving Australians a better night’s sleep for more than 40 years.

SNAP is one of the most recognised brands in Australia with a reputation for fast, personalised service and high quality print & design solutions. SNAP caters to all business print needs, from marketing materials and business stationary through to signage.

These eight points form the basis of our franchise support system: Marketing and promotional support Benchmarking & KPI measurement Sales and merchandising support and comparison Product training Site selection and property Business management support negotiation IT services Store design & layout What’s needed to be a Snooze Franchise Partner?

If you want to learn more about becoming part of our Multi Award Winning Australian Franchise network, we’d love to hear from you!

Enjoy working with people, have good interpersonal skills, enjoy being retailers and have a strong customer service orientation. Have an ability to organise, supervise and motivate staff. Have a hands-on approach to their business and have a strong work ethic.

Phone: 0478 652 884 Contact: Stacey Mercaldi staceym@sohq.com.au www.soulorigin.com.au

Phone: 1800SPLASH (775274) Contact: Kylee Clasper admin@splashswim.com.au www.splashswim.com.au

Start up costs: $280,000 to $340,000 + GST

Start up costs: From $150,000

PROFILE: From humble beginnings in 2011, Soul Origin have grown their 3 stores to 108 stores now trading nationally. With being awarded as one of Australia’s fastest growing franchises in 2017, Soul Origin have exploded onto the scene serving food that is good for the soul.

Soul Origin places a strong focus on fresh, quick and nutritious salads and sandwiches that are easy to grab and go, with equally impressive coffee that is made by in house trained baristas. Coupled with providing a customer experience that is fun, engaging and personal, the brand has found their unique stride in the market.

PROFILE: Splash Swim School is a boutique custom-made swim school. We have a state of the art turnkey fit out. Our pools are custom made to suit any size warehouse. We follow Royal Life’s Swim and Survive program that is accredited Australia wide.

Full training and support. An easy 1800SPLASH telephone number to remember.

Operation system and full support Splash have their own in house architectural service, project manage and building contractor that are registered in all states of Australia

Soul Origin franchise partners are provided with on-going support from an experienced and dedicated team, who are passionate about your success.

Take the steps to join the Soul Origin franchise partner community today!

Phone: 1300 991 104 Contact: Alex Johnson alex.johnson@swimart.com.au www.swimart.com.au

Phone: 03 9645 4798 Contact: David Sinclair franchise@sportingglobe.com.au www.sportingglobe.com.au/franchise

Start up costs: Approximately $45,000 (for a mobile franchise), to $180,000 - $250,000 plus stock (for a retail store)

Start up costs: $1,000,000 +

PROFILE: The Sporting Globe Bar & Grill is Australia’s most loved sports bar and grill franchise.

Offering high quality casual dining in a social and welcoming atmosphere with a state-of-the-art sports fitout, The Sporting Globe is great place to eat, drink and catch a game.

PROFILE: Swimart is one of the most successful and well-established pool and spa businesses in Australia and New Zealand. Over 35 years, Swimart has cemented itself as the trusted name in pool care amongst pool and spa owners, with 76 retail & mobile outlets and more than 250 dedicated mobile service vans across Australia & New Zealand. It’s an exciting time for this industry, with Australia boasting the highest rate of pool ownership in the world. Swimart is well placed to take advantage of this growth. It has developed strong consumer brand awareness in Australia and New Zealand, and is renowned for its expertise, experience and great customer service.

The Sporting Globe business model has been designed to allow our Franchise Partners to focus on what is most important – customers!

A-Z With venues opening across Australia, now is the time to get involved with Australia’s fastest growing sports bar and grill brand – do something you love, enquire today!

L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

CONTACT SENIOR ACCOUNT MANAGER CHARLOTTE REDFERN ON 02 8224 8373 CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU

Phone: 02 8874 5000 Phone: 1300TOWNCR (1300 869 627) Contact: Glenn Hames Glenn.hames@towncarsaust.com.au info@towncarsaust.com.au www.towncarsaust.com.au Start up costs: $50,000 - $120,000 PROFILE: Established in 2009, Towncars Networks Australia provides executive chauffeur services for both corporate & private clients.

With a fleet of luxurious vehicles and accredited drivers, we offer our clients competitive prices and outstanding service.

Towncars low entry cost, allows new franchisees the opportunity to invest in exclusive areas in both Sydney and Melbourne. Work is not limited to your area, as most corporate jobs are to and from the airports.

Franchisees are supported by head office marketing and management. Tools of the trade include our in-house software along with our 7 Day Call Centre.

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Phone: 0413 011 899 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com

Phone: 04 3909 4068 Contact: Sarah Oram franchising@unique-laser.com.au www.unique-laser.com.au Start up costs: $100,000 to $450,000

Start up costs: $60,000 PROFILE: Tutor Doctor is a leader in providing one-on-one supplementary education to students and adults through in-home tutoring. Tutor Doctor franchisees, who manage a team of professional tutors and work on the business rather than in it, follow an award-winning home-based business model that requires no educational background to operate.

Private tutoring is a multi-billion-dollar industry, and Tutor Doctor is experiencing one of the fastest growing international expansions of any educational company in the history of franchising. With over 640 locations around the world, Tutor Doctor has changed the lives of 300,000+ people by helping them achieve their academic goals.

PROFILE: Unique Laser is revolutionising the aesthetics industry…

Have you noticed that laser clinics and skin franchises all look the same? Unique Laser is the newest laser clinic and is different. Very different. We have developed a Unique, multi-award winning business model that: • Stands out from the rest in terms of initial investment, return on investment (ROI) and branding • Has exclusive rights to the fastest, newest lasers in the world • Provides complete training, ongoing support and medical supervision We have a range of partnership opportunities available that will allow you to take control of your life within a booming sector. Do not invest in another laser franchise before speaking to us. Contact to us today to see how we can change your life, and the lives of others, for the better.

Phone: 1300 193 178 Contact: Jayesh Kasim jayesh.kasim@valentabpo.com www.valentabpo.com.au/franchise

Phone: 1300 549 200 Contact: Kevin Bugeja kevin@franchise4u.com.au walkersdoughnuts.com.au

Start up costs: $50,000 + GST

Start up costs: $100,000 - $250,000

PROFILE: Valenta is a multi-faceted company that provides outsourced staffing solutions to hundreds of businesses across the globe, with a focus on reducing costs and improving efficiencies. We are currently offering entrepreneurs and industry specialists an exciting outsourced staffing franchise opportunity. Due to the varied nature of our services, our franchise is perfect for anyone who enjoys sales. The Valenta franchise model has our franchise owners focusing exclusively on growing their franchise while Valenta delivers operations. This is a globally proven model, with various income streams, designed to minimise risk and maximise returns.

PROFILE: We make food that adds a smile to your day. Just one bite and you’ll know you are eating something special; something reminiscent of your childhood.

A simple model with absolutely minimal baking* in store; just filling, decorating and displaying. Our famous varieties include Boston Custard Cream, our signature Vanilla Glazed, Pretzel Choc Caramel, Cherry Bomb, Cookies & Cream and many others. Our *Hot Jam doughnuts are freshly proofed and cooked on site throughout the day. The aroma is impossible to resist!

Together with our specialty-coffee created especially for Walker’s, our Classic hot dog flavours, our soda-fountain diner Milkshakes, and our speciality Heritage Sodas imported exclusively by Walker’s Doughnuts directly from the USA, you’ll find us an unbeatable and irresistible offering.

Phone: 1300 345 020 Contact: Malcolm Rees malcolm.rees@worldoptions.com au.worldoptions.com

Phone: 0414 669 101 Contact: Stephen Spitz stephen.spitz@xpressodelight.com.au www.xpressodelight.com.au

Start up costs: $35,000

Start up costs from: $49,900 + GST

PROFILE: World Options is a company that resells transportation services. The business model is simple. We buy transportation services at large volume discounts and resell to SMEs. We have a world class online shipping platform that connects our customers with major transportation companies to select and compare the best and most competitive transportation solutions. The Australian transportation industry has a market value of over $65 billion which we successfully compete and operate in. It is a home-based business that only requires a telephone and computer, successful franchisees in the UK earn in excess of $65,000 per month.

PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded!

This pent up demand for gourmet coffee in the workplace is very poorly met.

Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

Contact: Helen Souvlis helen@xtendbarre.com.au www.xtendbarre.com.au Start up costs: From $150,000

PROFILE: Barre is one of the most popular programs in boutique fitness and Xtend Barre leads the way as the largest barre franchise in Australia due to its unique workout, dynamic programs and personalised approach founded on Pilates and dance.

When you invest in Xtend Barre, you’re investing in much more than just a barre studio. You’re joining an ambitious and supportive community with over 70 locations globally.

As an Xtend Barre franchisee, you’ll have the support of Australia’s largest health and wellness franchise group, Collective Wellness Group (CWG), to guide and support you every step of the way.

A-Z L I S T I N GS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8224 8370 DAVID.STRONG@OCTOMEDIA.COM.AU

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A-Z LISTINGS

FINAL WORD

I DON’T NEED TO WORK IN MY FRANCHISE BEC BULL JAX Tyres Warrawong franchisee

T

o put it simply, being hands-on in your own business is an absolute must for franchisees.

So much time and money is invested in getting the business started from the ground up and when it comes to the first day of operation, the hard work doesn’t stop there. If anything, it’s just the beginning.

You need to see the day to day running of the business first-hand in order to understand what works and what doesn’t. Sure, being across every minor detail can lead to some sleepless nights, but to own a business you must have your finger on the pulse. If you have taken a step back from your business and are managing it via a second party, you won’t be able to see the true needs of your business.

Without this full visibility, you’re not going to be in a position to make crucial decisions that will ultimately enhance the business functionality. You want to ensure the business is performing at its best, and being flexible in your operations is important for this to happen.

This came to light for me when working in my JAX Tyres franchise and discovering that a particular staffing model that was effective in other stores was not working in mine. So I needed to make a serious adjustment in order for my team to operate more efficiently. As I was in the mix, I was able to identify the problem, make the necessary changes to improve it and move on.

Cost control is another critical reason why you should be working in your business. In fact, you simply can’t run a business without knowing all of your numbers. First-hand exposure to the finances, budgets, expenditure and profit turnover is the only way to ensure your business is running smoothly. If you do not know the numbers and you do not

prepare for potential setbacks, you run the risk of destroying your business and everything you have worked hard for.

When you are on the front line, you can establish great relationships with your staff, suppliers and customers. When customers see a consistent and familiar presence of a boss working hard within their own business, it builds a solid and reliable reputation between you, your store and the community. Also, your staff want to see a constant presence they can rely on and such a presence from the business owner builds loyalty and morale. It makes for a stronger team and a unified approach across all aspects of the business, from ordering stock to customer service. You can certainly tell the difference between a franchisee who pours everything into their business and one who steps back from it.

The amount of responsibility and investment required from a franchisee can almost be unfathomable and franchising is not for everyone. If something is not working, you need to be able to analyse and tweak things along the way, and with agility. You can only do this by staying close to the business and knowing it inside and out.

Of course there are moments when you’ll need to step away for a

day or two, and you can step back from time to time. However, if you are planning to do so, you need to ensure you have smart measures in place so everything runs like a well-oiled machine. When I cannot be at the shop, I ring at least twice a day to check in with everything and I also ensure I am available at all times of the day to answer questions from staff.

At the end of the day, you only get what you put in and it is not feasible to operate a business without knowing it first-hand. n

Bec Bull is the franchisee of JAX Tyres Warrawong in New South Wales.

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Join the

fAmilia!

Mad Mex is the leading fresh & healthy brand in the fast casual category, we serve Baja-style Mexican food made with authentic and fresh ingredients, in a chilled, fun, fiesta-inspired atmosphere.

For over 10 years, Mad Mex has been an award winning franchise

concept recognised for its fast growing potential, ROI and successful business model.

BECOME YOUr OWN HEAD HONCHO madmex.com.au/franchise

OWN YOUR FUTURE

With a network of over 360 restaurants across the country, Red Rooster are spreading their wings and looking for owner/operators to open new restaurants in regional and metro NSW, QLD, VIC and TAS. ENQUIRE TODAY www.redrooster.com.au/franchising