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

NOV/DEC 2018 ISSUE 31 VOL6

Loving the lifestyle Five franchisees share their good news stories

Bubbling up Why tea is more than a tasty brew

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CONTENTS

REGULARS

LEADERSHIP

5 6 10 124 126 127 128 129

14

EDITORIAL GLOBAL EYE

7 START-UPS AND UPSTARTS

Disruptors and newbies franchise systems forging their own paths to success.

INSIGHTS GLOSSARY

CHECKLIST RESOURCES

18 COVER STORY

Celebrating the winners at the MYOB FCA Excellence in Franchising awards.

22 SAFE AND SOUND

32 A BRIGHT SPARK

A mobile teeth-whitening enterprise turns to franchising.

FRANCHISE BASICS REBUILDING FRANCHISE CONFIDENCE

The FCA submission to the parliamentary inquiry.

97 MARKETING ESSENTIALS Three franchise brands putting bubble tea on the Australian culinary map.

76 A HEALTHY DOSE OF CHANGE Innovation is on the prescription for go-ahead pharmacy chains.

80 FUTURE MOVES

Invest in a health-focused franchise and get technical and business expertise.

86 SHAPING UP FOR BUSINESS

Key statistics and trends in the gym and fitness arena.

89 HEAD OF THE CLASS

43 HARD CORE

Crust Gourmet Pizza reveals its upmarket rebrand.

94

72 BUBBLING TO THE TOP

The bathroom business that’s so confident in its method it has a great deal on offer for franchisees.

What beauty chain Ella Bache has done to put profits at its franchisees’ fingertips. How a corporate executive turned franchisee has made his mark at BaskinRobbins.

What’s happening in fast food? Franchisors chew over the issues.

41 THE SYSTEM WERX

Former naval officer moves on from his military life with a mission to help people get fit and healthy.

30 SCOOPING UP YOUR BUSINESS

58 THE LUNCH BUNCH

36 RECRUITING THE FRANCHISE RECRUITER

The first cyber-security franchise launches in Australia.

26 MORE THAN SKIN DEEP

INDUSTRIES

Popular Hogs’ Australia unveils latest in its business models

What happens when you work as a franchise recruiter and discover a business that’s got everything you need?

BUYING PROCESS INFLUENCERS

34 EXPRESS TO GO

What is the marketing support you can expect when you invest in a franchise?

101 IS IT TOO SOON FOR A LOYALTY PROGRAM?

Size matters when choosing a territory for your service franchise.

102

GET WITH THE PROGRAM

15 reasons why a retail franchise should acquire, store, manage and track customer loyalty data.

108 HOW TO GET CUSTOMERS IN THE DOOR

When you get the keys to your franchise business, sourcing customers will be top of mind.

Innovations in tutoring are revolutionising the way children learn. NOV/DEC 2018 | 3 | WWW.FRANCHISEBUSINESS.COM.AU

46 PIZZA CHAIN PUMPS UP IMAGE

48 LOVING THE LIFESTYLE

Five franchisees reveal how investing in their future changed their lives for the better.

111 MARKETING THAT BOOSTS FROM THE BOTTOMLINE How to ensure your marketing program is a valuable asset to your franchise business.

115 PROFIT: GETTING YOUR SHARE

Profit is much more than cheap thrills, it’s the pulse of your business venture.

118 NAVIGATING FRANCHISING DISPUTES: A QUICK GUIDE

A step-by-step guide to resolving disagreements between a franchisee and franchisor.

122 5 REASONS TO MARKET LIKE MAD

The best business ideas still need to be marketed to the customer

138 FINAL WORD

How to be a sales superstar.


EDITORIAL

Fabulous franchising Awards winners showcase franchise brilliance At Inside Franchise Business we love the chance to celebrate success and the annual MYOB FCA Excellence in Franchising Awards night is the perfect opportunity to focus on fine performances in the franchising sector. This year the undoubted brand of the year was Hire A Hubby which triumphed with not just two franchisee awards but the sought-after Australian Established Franchisor of the Year award as well - and made it onto this edition’s front cover. Check out our full awards coverage on page 18. While the glamour and glitz of a gala awards night is the pinnacle of the year, there are hours, days and weeks of far more mundane hard work and commitment which lead to business success - at franchisor, and franchisee level. In this edition our spotlight on franchisees turns to those who have chosen a particular business option because of the lifestyle it offers. That’s not to say that all these franchisees are to be found on the golf course or the beach during work hours; choosing a lifestyle today is more about the options and freedoms it provides - whether that’s immersing yourself into a sector you love so much that work and play becomes seamless, or finding a business opportunity that allows you to work flexible hours, or simply to walk away from a desk job and spend your day out and about building a business. Read the franchisees’ stories on page 48. One of the keys to establishing or building on a thriving franchise is marketing. For many franchisees new to business, the challenge of creating and implementing a marketing campaign is daunting. And that’s the beauty of a franchise - marketing plans and material on tap, and advice on how to reach customers. The Franchise Basics section in this issue (page 97) takes a look at marketing fundamentals and loyalty programs. If you’re not yet sure which sector is the best investment for you, also in this edition there’s a peek into why the Asian tea trend is bubbling over into a broader market; what’s on offer in the lunch arena; the trends in gyms, pharmacies and alternative therapies.

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

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

Ian Sudjatmiko P: 02 8224 8375 ian.s@octomedia.com.au

GRAPHIC DESIGN

Sar a h Sarah Stowe Editor

OCTOMedia

L10, 51-57 Pitt St. Sydney NSW 2000 PO Box R217, Royal Exchange, NSW 1225 Ph: +61 2 9901 1800 Fax: +61 2 9251 5957 www.octomedia.com.au FOR SUBSCRIPTION ENQUIRIES CALL customer service: 02 8224 8383 ISSN: 1321-408X

Rozelle Carlos rozelle.c@octomedia.com.au

GENERAL MANAGER

David Strong P: 02 8224 8370 david.strong@octomedia.com.au

Inside Franchise Business is the FCA media partner and official online directory Confirmed distribution of Sept/Oct 2018 issue 6,940 - Print Post 100008121

NOV/DEC 2018 | 5 | 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

OPEN FOR BUSINESS New brands, new sites, new appointments... the lowdown on new opportunities the world of franchising.

FRESH TASTES IN FRANCHISING

A new Southern-inspired franchise restaurant is headed to Australia, with an Australian master franchise opportunity on offer. The Boiling Crab is a traditional Louisianan and Southern Texan seafood restaurant showcasing the very best in American style home-cooking, made to order and served fresh in bags to preserve flavour. Following success in the US the franchise has announced international expansion, eager to take on the developing Australian foodie culture with its brand of health-conscious and quality focused fare. The Boiling Crab has identified the Australian market as a key growth target for its casual, full dining concept, modelled

after traditional American seafood boils. Following the successful launch of the brand’s inaugural franchise location, The Boiling Crab will be looking to establish representation across Australia, with a firm focus on metropolitan areas. The brand currently has a network of over 20 locations across the US comprising of a combination of both franchise partnerships and company-operated stores. A fresh new player to the Mexican casual dining market is set to shake up the sector, placing a renewed emphasis on authenticity. Hecho en Mexico is the latest franchise venture from seasoned hospitality veterans Menak Grover and Perveen Bajar

and focuses on bringing the true taste of Mexico to Australian consumers. The pair bring with them a wealth of franchising and food-retailing knowledge, having previously served as executives at a number of large franchise brands, such as Nando’s. All locations feature an extensive cocktail selection, set against Hecho en Mexico’s unique and colourful atmosphere, providing a culturally immersive dining experience. Hecho en Mexico has experienced rapid growth from the outset, currently boasting a network of four company-owned locations already, with three more slated for the next 12 months.

OFFERS AND EXPANSION

The Boiling Crab

MAD MEX INVESTMENT Singaporean casual dining brand, 4FINGERS has acquired a 50 per cent stake in Mad Mex Fresh Mexican Grill, a deal that will see new expansion rollout in the coming months. A number of potential locations in both Singapore and Malaysia have been shortlisted by 4FINGERS as primary targets for Mad Mex’s international rollout. Clovis Young, Mad Mex founder and former majority stakeholder will remain as CEO, retaining a 50 per cent stake in the business, as the brand continues growth in the domestic market. Young said the brand was excited to be partnering with a renowned global brand that aligned with Mad Mex’s firm focus on the customer service and quality. “I wanted my customers to get a fast meal, but with homemade quality, made entirely of real ingredients, with the fewest NOV/DEC 2018 | 6 | WWW.FRANCHISEBUSINESS.COM.AU


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GLOBAL EYE

preservatives, oils, and sugars possible. You should never have to choose between a quick meal and quality healthy food”. The brand acquisition will enable the group to continue to aggressively scale up its management bandwidth, leveraging a combined network of supply chain processes, shared services and other scale economies. NEW SITES FOR KX PILATES Award winning Australian fitness franchise, KX Pilates has celebrated two significant milestones with the opening of the network’s 50th studio location in Hobart, Tasmania and the brand’s first international studio in Jakarta, Indonesia. The brand was launched in 2010 and offers high-intensity, body-toning workouts in 50 minutes, combining elements of traditional pilates with the booming functional fitness movement, and last year achieved an annual revenue of $20 million. Aaron Smith, KX Pilates founder and CEO said the milestone demonstrated the need for a viable and affordable alternative in the fitness franchise industry. “We have identified the potential for between 120 and 150 KX locations across Australia and we have set ourselves a new goal to achieve that within the next five years,” Smith said. “While we are keen to see the brand grow, we are also careful about oversaturation and expanding sustainably. As a company we are mindful that there is no value in opening double the number of studios required

and for them to only half-fill, as it doesn't benefit our franchisees and it damages the brand.” INTEREST FREE LOANS The Bathroom Werx Group is celebrating 33 years in business and is offering interest free loans to potential franchisees looking to join the group. Franchisees with basic handyman skills who enjoy sprucing up tired and worn out bathroom units can benefit from an interest free loan and finance of up to 50 per cent of the franchise fee of $45,000 subject to lender approval. Bathroom Werx has researched, developed, and manufactured its own ceramic resurfacing enamel together with the equipment necessary to carry out the process. The Australian-made Werx Enamel is specifically formulated for bathroom sanitary ware and has passed internationall standards testing by the CSIRO.

LOCATION SCOUT

A new $50m dining and entertainment precinct at Westfield Tea Tree Plaza is set to feature nine new restaurants and South Australia’s first HOYTS LUX cinema. The latest development from joint owners Scentre Group and AMP Capital marks significant progression for the South Australian casual dining sector, with two first-to-market retailers added to the mix. Franchise brand, Schnitz will open its inaugural South Australian location, following successful east-coast growth, whilst Rockpool-owned The Bavarian will

also launch its first outlet for the state. Meanwhile the nation’s capital is set for a shake up with Scentre Group and joint venture partner Perron Group announcing a $21 million redevelopment at Westfield Woden. The redevelopment is expected to open in in early 2019, anchored by a new dining precinct that features six premium restaurants, to compliment the existing network of franchised offerings, such as Grill’d, Rashays and San Churro.

IN BRIEF

Melbourne burger favourites, Huxtaburger has secured an exclusive 10 site development franchise partnership in New South Wales with plans to expand its offering across Asia. A new CEO has been appointed at Clark Rubber Franchising. The retailer has promoted its general manager merchandise, Anthony Grice into the chief role. The appointment of Rick Graham as executive officer at Swimart marks a significant step forward in the firm’s dedicated approach to improving retail operations, focusing on innovation and strategic growth to increase franchisee performance. Mobile pool service franchise, Jim’s Pool Care is celebrating a significant network milestone, announcing the brand has now secured 100 franchisees. A Sydney store opening marks the 100th location nationwide for the Soul Origin network, which has experienced enormous growth since establishing in 2011. n

Westfield Woden

NOV/DEC2018 | 8 | WWW.FRANCHISEBUSINESS.COM.AU


INSIGHTS

SPOTLIGHT

ON FRANCHISING As the parliamentary inquiry into the franchising code concludes, will new laws invoke greater clarity and compliance across Australia’s franchise sector?

W

hat will improve the state of franchising? The parliamentary inquiry into the effectiveness of the Franchising Code of Conduct has set out to discover if regulatory amendments will result in a more cohesive sector, following high profile revelations about franchisee failure and poor franchisor support. The Senate committee investigating the code received more than 200 submissions and has held a series of interstate public hearings. Now the senators must draw some conclusions and are due to present their findings in December 2018. So what can we expect to emerge from this?

The spate of hearings in September continued the theme of transparency and calls for greater due diligence requirements, and echoed previous calls for a register of franchises, and for a franchising ombudsman.

THE ACCC The Australian Competition and Consumer Commission (ACCC) has called for greater transparency and education in franchising operations. Speaking at the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into the Franchising Code of Conduct, ACCC deputy chair, Mick Keogh told the committee that the Commonwealth authority was concerned over the prevalence of current conduct issues.

“We are aware of systematic conduct within the franchising industry involving underpayment of employees,” Keogh said. “While we have deep sympathy for the individuals affected by this situation, we need to be clear that we do not have the power to intervene in response to breaches of workplace laws. This power sits with the Fair Work Ombudsman.” In its submission to the inquiry earlier this year, the ACCC championed strong reform, calling for harsher penalties for franchisors who breach the code of conduct, increasing the $63,000 limit to a much steeper $10 million. Keogh reaffirmed his stance, however he advocated caution in regard to a recent proposal that would require all franchise documentation to be registered with the ACCC. “We note proposals to address some

NOV/DEC 2018 | 10 | WWW.FRANCHISEBUSINESS.COM.AU


of the problems heard by this inquiry by requiring franchise documentation to be registered with the ACCC. We don’t think this will solve the problem,” Keogh said. “Our concern with this proposal is that it creates the very real risk of a perception that a particular franchise has been ‘accredited’ by the ACCC, and that prospective franchisees therefore do not need to seek advice or conduct a detailed business assessment before agreeing to sign up.” The subject of due diligence has been widely critiqued throughout the inquiry, with several franchise networks accused of misleading prospective franchisees. Keogh suggested a greater emphasis on education and transparency would help new entrants to the system better understand the feasibility of a franchise opportunity. “We want to see more effort invested in

encouraging prospective franchisees to take meaningful steps to understand what they are investing in,” Keogh said. “The party that takes the most risk in entering these relationships is clearly the franchisee, who needs to be able to better understand the risk they are taking, their ability to incur any losses, and what will happen if their significant investment in money, time and hard work does not pay off.” The final public hearing of the parliamentary inquiry heard from McDonald’s chief executive Andrew Gregory, who revealed he was “shocked” by some of the evidence the inquiry has unveiled. Gregory suggested that reported issues plaguing the sector were not a result of an irrelevant franchising code but, rather, a reflection of systematic non-compliance. The McDonald’s boss called for a wider

NOV/DEC 2018 | 11 | WWW.FRANCHISEBUSINESS.COM.AU

breadth of resources for the ACCC and the Fair Work Ombudsman (FWO), in addition to harsher penalties for non-compliance. ACCC executive general manager, consumer, small business and product safety division, Timothy Grimwade agreed with Gregory’s comments, suggesting that while improving document transparency would be a positive step, it may not solve compliance issues. “Increased transparency is a good thing. What we might object to, however, would be any requirement to apply to the ACCC for these documents as a condition,” Grimwade said. “What we’ve established is that the problem is not necessarily whether the document is registered, available or transparent but in the behaviour that follows them.” The ACCC stressed its concerns were


INSIGHTS

not about the breadth of the code’s reach but the size of the penalties. The watchdog also backed calls for a single body to manage a simpler mediation process.

MCDONALD’S Despite growing concerns over the stability of the sector, Gregory said McDonald’s franchising success was as strong as ever, with only eight franchisees leaving the system over the past few years. “McDonald’s believes in franchising. Our way of doing franchising is best summed up by what we call the three-legged stool. McDonald’s is one leg, the suppliers and franchisees are the other legs. If one leg of the stool is not strong or not growing at the same pace or breaking, then of course the stool falls over and it fails,” Gregory said. McDonald’s Australia operates 970 stores across the country, with 150 of those company-owned, providing the brand with a firm understanding of the issues faced by the brand’s 260 franchisees. In most cases, McDonald’s owns the land, builds the store and then rents the storefront to franchisees, ensuring financial and legal security for both parties. Under a McDonald’s franchise agreement, franchisees are required to pay a $60,000 licence fee for a term of 20 years, along with equipment and fitout costs, all laid out in the brand’s 450-page disclosure document. Senator Deborah O’Neill later praised the franchise network on its commitment to supplying franchisees with detailed information and transparency regarding operations. “I don’t see why that can be done more often,” O’Neill said. The importance of providing detailed information has proven to be critical to a franchisee’s success, however, one major issue identified throughout the hearing has been the complexity of lengthy disclosure documents similar to McDonald’s. When questioned by Senator O’Neill, Hank Spier, committee member, small business and medium enterprises committee, business law section of the Law Council of Australia suggested that all franchisees must have disclosure documents examined by a franchise lawyer. “These documents aren’t necessarily complex, but they could be worded in a way that makes them easier. It is a complex system and the document needs to encompass everything,” Spier said.

FRANCHISORS IN THE SPOTLIGHT A number of retail franchisors appeared before the committee and were questioned over specific submissions. Foodco managing director Serge Infanti was forced to defend the actions of his company at the Canberra hearing. An earlier submission from a franchisee caused Infanti and executive director Robert Fitzgerald to be quizzed on whether a site’s profitability struggles were exposed to an incoming franchisee before the sale. Both confirmed that it was not a requirement for the selling franchisee to include profit and loss information in the sales contract, with Infanti suggesting it was up to the franchisee to “ask for the details”. Infanti’s response follows a consistent pattern of thought identified throughout the public hearings, with franchisees urged by franchisors to perform greater due diligence and research prior to committing to a franchise purchase. With most franchisees, particularly in the food-retailing industry, serving as owner/operators, the decision to exclude their wages is a particularly poignant one. In previous hearings, industry giants Retail Food Group, Domino’s and Caltex have been accused of operating models that promote underpayment and lead to bankruptcy. Petrol giant Caltex has paid out $5.7 million to workers for underpayments after a series of compliance breaches and exploitation were uncovered in its franchise network last year.

Appearing before the committee, convenience store chain 7-Eleven bosses vigorously rejected allegations that franchisees due to appear as witnesses in previous hearing sessions had withdrawn because of undue influence from the franchisor. 7-Eleven used the Senate hearing to reiterate its proposed reforms to improve regulations including providing franchisors with a right to immediately terminate a franchise agreement in the case of serious non-compliance with Commonwealth Workplace Laws or Fair Work Instruments, as defined in the Fair Work Act and, echoing many other submissions, greater disclosure requirements.

THE FCA The Franchise Council of Australia CEO Mary Aldred presented a final submission to the Senate on its concluding public hearing. The statement said the FCA is not prepared to excuse incidences of poor behaviour or standards. "Allegations of wrongdoing should be properly investigated in a timely manner, and if proven, dealt with accordingly," Aldred said. "A number of the stories that have emerged through this inquiry are sad and disappointing. Some of them highlight simply inexcusable behaviour," said Aldred. The unacceptable level of behaviour in the sector has sparked "probably the biggest crisis in confidence in franchising the sector has ever seen," she added. The FCA outlined nine recommendations. For full submission see page 94 n

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Be the

F O R E D A E L YOUR OWN 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. ƒ We set up shop for you and give you

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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.

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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.

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FRANCHISING


7 THE LIST

START-UPS AND UPSTARTS

Choose a niche business with a twist when you want to invest in something original. Check out these disruptors and business newbies who are forging their own paths to success.

W

hen it’s time to purchase a franchise and an established brand just isn’t on the cards, there are a host of fresh opportunities to consider. Some are brand new, others tested elsewhere, while some have been quietly building their reputations as challengers to the status quo.

Better Homes and Gardens Real Estate Fresh from the US, the Better Homes and Gardens license is being introduced to Australia through a master franchise agreement. The real estate business will benefit from the high profile multimedia branding of one of Australia’s best known lifestyle TV shows and publications. The media brand has a total reach of 7.4 million people across its print, broadcast, digital and social channels. While the business will list properties through a wide base of online channels, the link with the Pacific Magazines’ popular brand gives the real estate franchise access to 2.5 million readers of Better Homes and Gardens (BHG) monthly publication. Simon Cashman, project manager for Better Homes and Gardens Real Estate Australia, says “Pacific Magazines has a really broad sweeping readership. That’s something quite unattainable any other way.” The shopfronts themselves will be branded experiences with the emphasis on engagement rather than a property hard sell. “We want them to be warm and welcoming offices, with a kiosk where consumers can download recipes, watch the shows, come in and engage with the brand, not just be chased up by an agent,” says Cashman. “We have a big opportunity to focus on women in real estate, and make this a feminine brand.” The concept is to continue the relationship with clients through the average seven years between buying and selling a home. This will take the shape of aligning with brands in the wider BHG community for tasks and jobs that will maintain and improve the home’s value, for instance landscaping, repairs or refurbishment.

HomeVisitWills

New research from the NSW government shows that at least 45 per cent of Australians don’t have a valid will, with only 35 per cent of the country having a current will. Identifying a need for a cost-effective, time-efficient and easily accessible will solutions, in 1995 Colin Chapman, HomeVisitWills CEO and founder, set up operations in the UK before bringing his mobile estate planning business model to Western Australia in 2009. Now there is a three-year plan to become established nationally. “Our focus right now is building our presence in Queensland and establishing a team of franchisees there. We believe in building foundations that are solid before adding more numbers to our team, hence the eight-year establishment in WA,” says Chapman. “From inception to now we have proved that this service is of great value to people who are time poor yet have a real need to get their wills and estate planning in place. In eight years we have over 4000 clients and strategic partnerships with over 200 financial professionals.”

My Botique

This clinic specialises in providing bespoke anti-ageing treatments using minimally invasive and non-surgical cosmetic techniques. My Botique aims to align the values of old-fashioned service, professionalism, discernment and respect with the latest tools to deliver in-demand beauty treatments. Medical professionals are crucial to this aesthetics business and the team includes a plastic surgeon and doctor who supply scripts, conduct FaceTime consultations for all new clients, and support for any adverse reactions or client management. My Botique managing director Benjamin Cordony says, “I’ve made the decision to keep the business medical only, which I think is a key difference to the majority of chains out there.” Four nurses work across a seven-day roster and this allows for a collaborative approach, he says. “Our work is primarily injectables with only a very small percentage of our work being laser. That, I believe, would be in stark contrast to most other clinics. Being medically focused we’re able to safely and cohesively introduce more advanced treatments into our service offering.” For example, vitamin infusions, biostimulators such as Sculptra®, and platelet-rich plasma injections (PRP). Although it’s a franchise newbie the business has been operating for nine years. Now it is opening up the concept with three locations in Sydney. In addition to ongoing support, a booking app, online booking and in-house mentoring there will be regular training with dermatological, pharmaceutical and aesthetic suppliers.

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THE LIST

My Home Watch

In a classic case of needing a service but unable to find someone to deliver it, Natasha Morgan discovered a gap in the market for professional housesitters and responded with a business idea. My Home Watch provides on-demand professional, affordable, licenced and insured home and pet watching services. Morgan says the property specialist franchisees are achieving sale conversion rates of 85 per cent and more than 90 per cent repeat business.

The business provides home checks, real estate property services, in-home pet visits, boat watch services, mail collection, garden watering, grocery services, and the coordination of gardeners, cleaners, pool maintenance and other household services. Typical customers are holidaymakers, frequent travellers, pet owners, real estate agencies and property managers.

Reis and Irvy’s An innovative US franchise brand is set to disrupt the Australian dessert market. Reis and Irvy’s is the world’s first soft-serve vending robot, providing customers with a 24/7, staff-less self-service experience that promises to redefine the food retailing landscape. The patented robotic vendor can serve six flavours with six toppings in a 60 second window, condensing the traditional 60–100 sqm frozen yoghurt or ice cream storefront into a 1.5 sqm selfsufficient robot. The brand has more than 250 franchisees across the US with more than 1100 pending robot installations, aggregating over $47 million, with additional contract commitments for over 2750 robots currently underway. Reis and Irvy’s Australian licensor Troy Bingham says he was looking to invest in a market disruptor business that could keep evolving. “Having owned a retail food franchise before,

the Reis and Irvy’s model immediately caught my eye. The high cost of staff, rent and utilities in Australia made it a ‘no brainer’ as a solution to serve high quality products to customers in an engaging and fun way, without the high barriers to entry and operation that retail-based franchises are experiencing.” Bingham is integrating a supply chain management system, providing franchisees with a full-service model. “We do the location negotiations, install the machines, refill the robots with products, clean the kiosks, and distribute the funds collected. To make things even easier, our franchisees get access to online real-time reporting capabilities, which show them product trends, live sales data and more. Our franchisees are essentially responsible for assisting in the marketing and promotion of their kiosks.” The initial plan is for 10 machines with an additional 100–200 launching over the next year.

Lord of the Fries What has brought a fan base that includes Ben Folds Five, The Veronicas, Hughsey, Prince, Abbie Cornish, Little Sea and NAS to their foodie business? This vegan burgers and chips business has achieved its growth organically. When husband and wife, Mark and Mandy, and Mark’s brother, Sam, started the business as a Melbourne food truck in 2004 the food was vegetarian. However the number of people going vegan has risen by almost 2 million during the Lord’s 14-year reign, which equates to almost 10 per cent of the Australian population choosing vegan lifestyles. Lord of the Fries moved to a total vegan model in 2017 and is now the largest vegan fast

food business in the southern hemisphere. The business serves about 12 tonnes of hot chips to Aussies each week, helping to take last year’s local sales turnover to $25 million. There are 18 bricks and mortar stores across Australia and New Zealand, with a franchise agreement freshly inked in India to open up to 100 stores within the next decade. The franchise chain sources local produce where possible and the menu includes low gluten, halal and kosher options. Sauces, burgers and hot dogs are inspired by international cuisines. Not only is the food vegan, the business repurposes its cooking oil to fuel its oil delivery trucks.

We Rock the Spectrum Imagine a gym purpose-built to cater for children with special needs. Well, it’s here, and it’s the first Australian franchise of We Rock The Spectrum. The US business model provides specialised equipment including slides, swings and ziplines, with all of the equipment designed by occupational therapists. The aim is to assist the sensory development of children with processing disorders while providing additional motor skills development. Founder Dina Kimmel developed the specialised concept in 2010 after her two-year-old son, Gabriel, was diagnosed with autism. Local mum Sally Johnson has launched the brand in Australia with

the first gym in Victoria. Johnson, too, knows how difficult it is to find play centres where her autistic son feels included. Now in its fourth year of franchising, We Rock The Spectrum has more than 70 locations across the globe. Specialist gym franchises are a buzzword right now in Australia but this latest model caters to a traditionally under-represented market. According to a recent study from AMAZE, Victoria’s peak body for Autism Spectrum Disorder, only 4 per cent of autistic Australians feel their community knows how to properly support them.

NOV/DEC 2018 | 16 | WWW.FRANCHISEBUSINESS.COM.AU


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COVER STORY

BLAZING A TRAIL Stellar performances from franchisees and franchisors have been celebrated in style at the franchise industry’s national awards.

Winners and finalists NOV/DEC2018 | 18 | WWW.FRANCHISEBUSINESS.COM.AU


Glen Cammiade, EFM Health Clubs

H

ire A Hubby has scored a hat trick at the MYOB FCA Excellence in Franchising Awards 2018 celebrating franchising excellence. The handyman franchise was named Australian Established Franchisor of the Year, and two of the franchisee awards were scooped up by the brand's franchisees. Mary Aldred, FCA; Kate Thomson, ANZ Mobile Lending; and Bruce Billson, FCA

Hire A Hubby fought off competition from Battery World, The Coffee Club, Mister Minit, MBCM Strata Specialists and The Leather Doctor to take the coveted brand award. Twenty one years after the business was established, there are 375 franchisees across Australia and the UK. Regional franchisee winners in NSW/ACT, Jim Kelly and Crystal Petzer, took home the prized title of Multi-Unit Franchisee of the Year. The couple operate the Mona Vale and Narrabreen territories in Sydney’s northern beaches. Kelly said success was due to the "passion we have to go out every day to do what we do. We've got a great franchisor and a great brand we love." Petzer added "Part of our success has been the processes we use at Hire A Hubby." Fellow franchisee Cairns-based Russell Hampton was named the Single Unit Franchisee of the Year, two or more staff. Hampton is the group’s best performing franchisee, a feat achieved after 24 years in management at Woolworths. "The Hire A Hubby family has been sensational," he said. The national winner for Single Unit Franchisee of the Year, less than two staff, was EFM Health Clubs' Glen Cammiade, and he echoed the importance of passion in running a business. "It's not a challenge, it's a passion," he said.

Poolwerx

Justin McDonlel, Anytime Fitness

Crystal Petzer and Jim Kelly, Hire A Hubby

Brendan Green, Hire A Hubby

Steven Halls, Poolwerx

NOV/DEC 2018 | 19 | WWW.FRANCHISEBUSINESS.COM.AU


COVER STORY

EMERGING AND INTERNATIONAL The award for Australian Emerging Franchisor of the Year went to the Laser Clinics Australia franchise, which has been franchising its unique 50/50 partnership model since 2013. For Anytime Fitness, being named the International Franchisor of the Year [for a brand developed overseas but operating in Australia] was particularly sweet, coming 10 years to the day after the chain opened its first Australian club. Anytime Fitness Australia is in fact the most successful country model within the global network boasting almost 500 clubs, more than 500,000 members and 280 franchisees.

MARKETING SUCCESS Inspirations Paints was named the national winner for Excellence in Marketing. Head of marketing at Inspirations Paint, Joel Goodsir said, “Inspirations Paint stores give customers personal attention to their painting projects. As the franchisor, we support our stores to achieve this everyday through our marketing initiatives and customer programs”. Inspirations Paint started out as a buying group of five stores in Newcastle in 1979 and now boasts over 100 stores across the country.

DOUBLE WINNERS A perennial award winner, Boost Juice again took home a couple of awards, this year for Excellence in International Franchising, and for Excellence in Franchise Innovation. Poolwerx has won the Franchisor Social Responsibility Award, following the success of its annual Learn2Swim Week and April Pools Day water safety initiatives. Poolwerx chief operating officer Andrew Kidd, said the company had HR Central

Anytime Fitness

a strong focus on helping to kerb the incidence of child drownings through the free swimming lessons and CPR courses offered as part of the programs. “Our franchise partners throughout Australia are highly committed to these campaigns and to bringing awareness about the importance of water safety. These initiatives are all about education and ultimately helping to save lives.” Along with the Franchisor Social Responsibility award, this year Poolwerx National Franchise Operations Manager, Steve Halls, took out the FCA national Field Manager of the Year award after assisting over 20 business owners across Queensland to achieve the highest increase in sales nationally. This is the second time Halls has won the award in the past three years.

GREAT CONTRIBUTIONS Kate Thomson of ANZ Mobile Lending outshone the competition to win the Franchise Woman of the Year title. A former McDonald’s executive, in her role at ANZ Thomson is responsible for leading the franchise to boost business performance and to evolve the franchise model. The Franchisee Community Responsibility and Contribution award went to Bendigo Bank in North Perth. With its motto that business should “feed into prosperity, not off it”, the franchise shares a significant percentage of branch profits with the local community through donations, sponsorship, grants and volunteering. HR Central was named Supplier of the Year. The business provides cloud-based

Russell Hampton, Hire A Hubby

HR admin tools and expert advice to the franchise sector. Michael Paul, the founder of Pack & Send, and an active contributor to the franchising sector and a former chair of the FCA, was rewarded with a place on the Hall of Fame. In a message to the franchising community, the FCA executive chair, Bruce Billson, praised the performance and commitment of the national winners. “The talent, creativity and success that we recognise through the 2018 MYOB FCA Excellence in Franchising Awards showcases why we have good reason to be optimistic about the future of franchising,” he said. “We are energised by the drive, initiative, innovation and passion that we celebrate.” n

NOV/DEC 2018 | 20 | WWW.FRANCHISEBUSINESS.COM.AU


LEADERSHIP

SAFE AND SOUND The growing threat of cyber-crime has hit Aussie SMEs hard, but now a new market player is helping small businesses take up the fight. Inside Franchise Business takes a look at Cybercillin, the Aussie-first cyber-security franchise. By Nick Hall

“S

ixty per cent of all small to mediumsized businesses affected by ransomware during 2016–17 went out of business within six months of the attack.”

That’s the damning statistic that inspired Cybercillin founder and CEO John Burgess to launch an innovative franchise enterprise to aid small business. Based in Melbourne, Cybercillin is Australia’s first dedicated cyber-security franchise network, offering end-to-end managed services to small and medium-sized enterprises. “Around 70 per cent of all cyber-attacks in Australia target small and medium-sized organisations … because these organisations are less likely to have the resources or in-house expertise to ensure sufficient systems are in place to protect themselves online,” Burgess says. The digital age has well and truly taken hold of the Australian SME landscape, indicating online presence is no longer just an added bonus for contemporary businesses; it’s a necessity. Thanks to a recent increase in media coverage, many organisations are prioritising cyber-security more than ever before. However, the often confusing tech-industry has left many small businesses struggling to keep up. Malicious cyber-activity against Australian organisations is increasing in frequency, scale, sophistication and severity, resulting in a constantly evolving security industry, both operational and financially, Burgess suggests. “In Australia, cyber-security services have predominantly been managed in-house or by providers who target large enterprises, meaning small to medium-sized organisations have been

poorly serviced,” Burgess says. Unlike a traditional pay-up-front operation, Cybercillin works on a subscription model, presenting an affordable and accessible security solution for smaller organisations. “Cybercillin is a brand-new concept – by developing a franchise network of cyber-security specialists, we are helping to make cyber-security accessible to Australian businesses, no matter the size,” Burgess says.

THE MODEL As the first Australian franchise of its kind, Cybercillin presents franchisees with a ground-floor opportunity to enter a rewarding industry with a huge propensity for growth. Spending within the sector is forecasted to increase by 15 per cent compounded every year until 2022, with Burgess suggesting Cybercillin’s dedicated approach to training and education serves as a key market differential. “Cybercillin is addressing a national skills shortage that has been identified in terms of the provision of cyber-security services,” Burgess says. “Through its Academy, Cybercillin provides potential franchisees, and other interested individuals, with the training to become certified cyber-security specialists, as well as ongoing mentoring from industry experts.” The training program encompasses all elements of the growing cyber-safety sector, providing franchisees with a strong knowledge base from which to launch their own business. “Because franchisees have access to full

NOV/DEC2018 | 22 | WWW.FRANCHISEBUSINESS.COM.AU


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training and comprehensive IT support, high level IT experience and specialist cyber-security skills are not prerequisites,” Burgess says. “Ideally, franchisees will be keen to pull up their sleeves and learn the ropes from the experienced team at Cybercillin HQ and be dedicated to working with our organisation to grow their own business.”

MOVING FORWARD The emergence of brands like Cybercillin in the Australian franchising vernacular demonstrates a strong shift in priorities for small business, boosting sector reports. Earlier this year, Franchise Council of Australia CEO, Mary Aldred suggested that issues such as cyber-security presented a

challenge to franchisees and small business owners alike. Speaking with Inside Franchise Business in July, Aldred said, “Most franchisees are flat out running their small businesses, so getting across complex issues such as cyber-security can be a real challenge”. To coincide with the increase in projected spending within the sector, Cybercillin is currently bolstering its operational and support systems, strengthening franchisee relationships. In addition to the full training program through the Cybercillin Academy, the brand offers franchise partners ongoing mentoring from knowledgeable cyber-security experts, access to exclusive marketing content and sales leads in the franchisee’s chosen region and collective buying power and single-point ordering from multiple vendors. Burgess says that while the Cybercillin brand is a brand-new concept on the market, all franchisees are supported by the backing of an industry expert group. “Although we are new as a franchise model, Cybercillin’s parent company, Gamut Group, has been providing IT services to customers in Australia since 1984.” As the brand continues to grow its footprint across the country, Burgess has his eyes set firmly on further expansion, citing international growth as critical to the brand’s strategy. “Cybercillin aims to take its franchise model global and has already discussed opportunities with potential partners in North America and Europe.” “In the shorter-term, Cybercillin is excited to build its reputation as a leading provider of managed cyber-security services in Australia, while securing a solid network of dedicated franchise partners,” Burgess says. n

NOV/DEC2018 | 24 | WWW.FRANCHISEBUSINESS.COM.AU


LEADERSHIP

MORE THAN What has beauty chain Ella Baché done to put profits at its franchisees’ fingertips?

A

new model innovation program at skincare franchise Ella Baché is reaping dividends for franchisees with an average 21 per cent growth in service sales for those embracing the change. Ella Baché CEO Pippa Hallas says a new services menu was the first change implemented as part of a larger four-year strategic development plan for the model. “Over 30 per cent of franchisees have made the change to the new services menu and the results are very positive,” Hallas reveals. “The business recorded an 8 per cent increase in total and service revenue, along with a 6 per cent jump in retail turnover across the franchise.” The new services and treatments are more high value and more profitable, says Hallas, which is good news for franchisees focused on improving their bottom line. For a heritage brand such as Ella

skin deep Baché, the authenticity of both product and service is crucial. “We’ve always been really focused on enhancing individual skin on a cellular level, and what that means is not erasing your differences to look like everyone else. This is what social media has been pushing to, uniformity. “We know a big portion of women don’t want invasive treatments, botox and fillers. And if you do, that’s fine but you still need healthy skin.” Hallas says this need to create the right balance between new techniques while retaining the core values of customer service and skincare expertise was one of the big drivers for change. “We have less time in our lives and time is really precious. I know I won’t use a service, whether restaurant, airline, bank, hairdresser, unless I can book it at 10 pm and online. You have to solve customers’ problems when they need to be solved.” Ultimately customers want things that work, she says.

“You have to continue to excite and delight customers – whether that’s how you communicate, how you treat skin, or how you wrap up their solution. “There is so much change in how we live our lives, in the digital world influenced by social media, and there are a lot of what I call fast food beauty pop-ups. In every shopping centre you can get a new pair of lips – that’s the reality of the unregulated marketplace,” says Hallas. But it isn’t the way for Ella Baché, and that started the chain of innovation that’s now rolling out through the network. While the focus is on profitability for the franchisees, for the consumer, the new approach at Ella Baché is to move away from a transactional relationship. “Therapists are caring and beautiful people, and can be really frightened by asking people for money. The focus needs to be on education, simply recommending a service and solution, not closing a deal,” reveals Hallas. n

NOV/DEC 2018 | 26 | WWW.FRANCHISEBUSINESS.COM.AU


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We listened to what our franchisees wanted, starting with a focus on getting more clients through the door.

“We spend a lot of money training therapists – they need to feel they are the skin experts,” she says. “We listened to what our franchisees wanted, starting with a focus on getting more clients through the door. This led us to customer research, which revealed there was a disconnect in what clients understood we did versus the expertise actually available to them in our salons. We saw the opportunity immediately and conducted a full review of our service menu.” The resulting streamlined 15 skin solutions are more clearly packaged and marketed with a simple message, such as Help me Hydrate, all of which are very easy for the consumer to understand and the therapist to recommend. Customisation is going to become more important to the business as it searches for ways to deliver personalised services and treatments, and communicate with clients. Hallas says constant digital communication is essential, and dependent on strong data. So the business is rolling out a new CRM system so Ella Baché can collate the data in a more sophisticated way that leads to greater

personalisation in customer offers. “We’ve invested heavily in tech and we’ve relaunched our infrastructure – right back to the manufacturing – with a focus on digital communications platforms.” It’s a necessary move as 93 per cent of Australians are influenced in their purchasing by social media, Hallas says. “It’s also making sure we have a team of experts internally who can do education innovation; dermal experts using new research to feed through to our undergraduates in our college, right through to the franchise network in postgrad training.” All this innovation comes at a cost, but Hallas is rejecting a dictatorial approach to implementation in favour of an adaptable, in fact personalised, process for franchisees. “We’re very mindful we have different sized businesses, from Bondi to Alice Springs, and consumers have different demands and needs. It’s very much around customising the journey so it’s right for the franchisee and the market and financially right for them,” she says. “Change takes time, but we are pleased with the results so far and

the positive feedback from our franchisees.” Mandy Kaur, who operates the Doncaster franchise, was one of the first franchisees to convert to the program and has experienced 32 per cent growth since implementing the new menu. “We saw an immediate change when we introduced the new service menu. It seemed to make everything more appealing for clients. We have a higher customer return rate now, especially in the younger under-25 demographic, and better product sales,” she says. Kaur says her business has experienced a 45 per cent increase in service sales, and a 10 per cent increase in product sales because of the menu changes. She also believes it has enhanced the company’s point of difference in the marketplace. “What they have done is so fresh. I’ve never seen anything like it in the industry before. There is no one really owning the benefits of safe, long-term, effective skincare like Ella Baché does and the new menu really brings that to life for the company.” n

NOV/DEC 2018 | 28 | WWW.FRANCHISEBUSINESS.COM.AU


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SCOOPING UP BUSINESS

Career corporate snaps up ice cream business and lifts sales by 25 per cent. How did he do it?

J

ustin Budhdeo is a newbie to the franchise sector but a highly experienced sales and marketing executive whose corporate career was forged in his home base of India and over 15 years in New Zealand. So what made him take the leap into business ownership? “I was promoted as brand manager across Australia and New Zealand and moved to Sydney, but I didn’t enjoy it. I’m 50+ so it was a chance to look at options. I’ve worked for a lot of big companies, and it was something I always wanted to do, see if I could make money for myself.” Justin spent 15 months thoroughly researching his next step. He investigated different industries, met business owners and franchisors, and after his deliberations decided on the well-known Baskin-Robbins franchise as the best option. “I experienced the product, so I knew that I would be happy with what I was selling, that it is a superior product. I went and experienced a couple of stores in other places, spoke to old and existing franchisees and got their feedback. Then I had to make my own decisions – you have to understand what is relevant and what is not relevant.” It was fundamental to Justin that the franchisor displayed honesty in the due diligence process, and he says he was well informed about the financial figures of the corporate store he decided to buy. “It was a well managed store and had good systems in place. I’m not from a business background so transparency of figures I was looking at was most important. I took them to an accountant to have them vetted. “I got legal advice too. Buying a franchise is a big step and when you are putting a lot of money into something, you need to do all the homework that you can. “I think it’s important that the franchisor is transparent – they do what they say they will do, and what’s right for the franchisee.” All the months dedicated to researching the business opportunity and the seven-day working week operating the store have paid off; not yet 12 months into his business, Justin can report that he has raised turnover

by 25 per cent compared to the same time last year. “The corporate store had all the systems in place but from my point of view, I’ve looked at it from what do I need to do. I need to have stock all the time, maintain my fast moving flavours, and new flavours – these are the basics.” Justin has been fastidious about the roster, ensuring the store is managed by the right number of team members at the right time. “Once you’ve got the basics in, it was then where do I see the incremental gains? I saw them in cakes.” His strategy to bring in two full time cake decorators and promote the line on Instagram, showcasing every one of the 120 designs, has taken the ice-cream cakes turnover from 3.5 per cent to close to 10 per cent. He has boosted income in other ways too, such as upselling. “It’s pretty straightforward, customers come in to buy an ice cream for $5 or $6 so I think, what can I add? A topping for $1 doesn’t cost me $1.” He has just launched a home delivery service using Uber Eats and is pleased with the initial results: a 10 per cent increase in turnover and no loss of instore custom. Looking ahead to his second year in business the goal is to open up a second site, and a third outlet in year three. And there’s plenty of support when he needs it. “Franchisees have a direct line to the GM, can call at any time. He’s very approachable, and the business is transparent, the systems are really good.” Justin has praised the level of detail in the operations manual and follows it accurately. “Sometimes it can be tough but I see why it has to be followed,” he says. Consistency is a byword for a franchise, but it’s not always sustained. Justin has made it a cornerstone of his business. “I expect everyone to be thoroughly professional, and customers welcomed in the same way,” he says. “When people walk into an ice cream store they are already happy and our job is to make them walk out happier.” n NOV/DEC 2018 | 30 | WWW.FRANCHISEBUSINESS.COM.AU


you deserve to join a growing industry Established in 1996, Australian Skin Clinics has now expanded to nearly 50 clinics nationally, due to client demand. We are leaders in highly effective laser and skin treatments, cosmetic injectables, acne programs and skin care products. Australian Skin Clinics has developed The Advanced Skills Academy (TASA) to provide full training and development for all franchisees. If you are new to the industry, you can be assured that by the time you open your clinic, you will be equipped in all areas of management including recruitment, marketing, medical requirements, legal, systems, procedures, protocols; all supported by a Medical Director and in-field teams.

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A BRIGHT SPARK

When former nurse Alison Egan launched her side business four years ago, it was simply that: a side business. Now the 24-year-old is turning her mobile teeth-whitening enterprise into an empire. By Nick Hall

“W

e literally started with nothing, I had no money to invest, I had absolutely nothing. Now we’re the largest teeth whitening company in Australia.”

From humble beginnings to national success, Sparkling White Smile founder and director Alison Egan has seen a lot in her four years of business operation. The bubbly Sydney native launched her mobile teeth-whitening venture as a side business to complement her work schedule, before consumer demand took over. “I was doing nursing during the day and teeth whitening in afternoon and into the night. Following that, I was so busy that I had to quit my full time job. It was a big step, but I quit and within two months I had my first employee,” Egan says. Fortuitous timing and a model reliant on consumer convenience had placed the young businesswoman at the forefront of the booming $3 billion global teeth whitening industry. As the brand grew, Egan found herself struggling to take on the immense demand alone, prompting her to recruit additional staff members, resulting in 10 hires in just five months. Business was booming and growth was rapid, however Egan admits it was the helpful, albeit forceful advice of an accountant that inspired her to head down the franchise path. “I was going to go into teeth-whitening training as my next step because I had so many people asking me ‘Can you teach me how to do it?’ I went to a lawyer to write up a training program, but when I met with my accountant, the accountant said to me

Alison Egan

‘You have such a good business, I don’t know what you’re doing, it is stupid going into training – you need to franchise this company’.” Following the encounter, Egan gave herself 12 months to research, develop and implement an effective strategy for franchise growth, focusing on providing an affordable platform for young women to enter business ownership, before returning to the accountant. “We sat down and did the franchise agreement together, and due to my industry (the beauty industry) we focused on the management of younger girls coming through and buying franchises,” Egan says. “We aren’t going to have millionaires buying the franchises, so we had to understand that there is a cut-off point for who was buying these franchises.”

FAST START With the backing of a strong franchise agreement, Egan set to work on launching the model, starting first with internal recruitment. “I have about 29 staff working for me across Australia. I offered every single one of them their own franchise because I believe if they are good enough to work for me, they are good enough to run a franchise. I only took on people who had that entrepreneurial mindset.” Since launching the model, four of Alison’s staff members have made the move to franchisee, with another agreement signed in Adelaide, marking the first external recruit for Sparkling White Smile.

Egan admits, however, an immersive and in-depth employee to franchisee model would be favoured moving forward. “With the Adelaide franchise, I’ve learned my lesson in that perhaps I should have them work for me for three months prior to engaging in franchise negotiations. The reality is that someone can come across as a perfect fit for the brand, but as soon as they get into the business it can become a negative experience. “The ones who have worked for me, the franchise agreement was so much easier to sell because they already know the know the brand, they already know the systems and they already know me as a person.” Prospective franchisees are offered a non-exclusive mobile agreement, whereby they purchase the Sparkling White Smile brand collateral and a postcode in which to operate with first preference, allowing the franchise network to work cohesively to cover all bookings. Egan is determined to continue the brand’s strong growth trajectory, earmarking a number of franchise locations as critical to Sparkling White Smile’s expansion strategy. “Obviously, we have the desire to go international, but we’re focusing on Australia first. As we continue to grow, I’ll take on an advisory board to help direct our future expansion plans,” she says. “We’re very early days, we get around 50 franchising inquiries a day. I went from five clients a week to averaging nearly 3000 clients a week. “We’re in Melbourne, Sydney, Perth, Adelaide, Brisbane, Gold Coast with the aim of selling 500 franchise locations in Australia.” n

NOV/DEC 2018 | 32 | WWW.FRANCHISEBUSINESS.COM.AU


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EXPRESS ON THE GO Hog’s Australia’s Steakhouse has opened its first drive-through Hog’s Express store. It costs about $450,000 to invest in a Hog’s Express restaurant, depending on size and location. The footprint can be adjusted to suit any location which makes it a desirable and flexible proposition for potential franchisees. CEO Ross Worth says “This is such a fresh and exciting addition to the Hog’s brand as we move into our 30th year and has established that our customers love having the option to grab Hog’s on the go. “Being part of a 30-year-old business with a tremendous track record also gives potential franchisees a great sense of confidence both in us and in their own ability to succeed," adds Worth. “We’re actively looking to open more drive-through restaurants around Australia and have fielded many enquiries from potential franchisees, so watch this space.”n

T

he youngest member of the Hog’s family has taken the speedy food service concept one step further.

The newest addition to the Hog’s portfolio ticks all the boxes as customers can choose from dine-in, takeaway, drive through and home delivery. The Brisbane outlet has already proved more popular than expected, particularly with the local police station. National operations manager Paul Piert explains “People are time poor, the demographic is widespread from school children to mums and kids coming in for a coffee, workies, local police force, it’s very diverse.” Some customers are already embracing the home delivery option up to four times a week, and Piert says this is new business - these are customers who would not usually visit the store. Taxis are accessing the

drive-through option, while dine-in customers can make use of a fully interactive customer ordering system via iPad - and charge their devices while in-store. “What’s crucial to the experience however, is building a rapport with customers so they are excited to visit the store. We work a lot on the service side, and you should get a high level of service even at a quick service restaurant,” says Piert. The Express menu offers a selection of burgers, ribs and wings, Hog's favourites curly fries and onion rings, as well as salads and a special menu for kids. “It’s a versatile offer, and the menu must have something for everyone. Burgers are always going to sell well, and are very much on trend.” The Hog’s Express concept was introduced in 2017 as a versatile business model that can be located in a shopping centre or petrol station, an airport or a cinema.

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What’s crucial to the experience however, is building a rapport with customers so they are excited to visit the store.


l We’re franchising l • • •

Low entry costs & on-going fees Store build entry costs of c. $220,000 - $280,000 ex GST 3 week training programme

Interested? now is the time to apply! For more information on becoming a Gelatissimo franchise owner contact (02) 8845 0100, email franchise@gelatissimo.com.au or visit www. gelatissimo.com.au/franchising

Congratulations to our newest Franchisees Michelle & Terry from Gelatissimo Wollongong


LEADERSHIP

RECRUITING THE

FRANCHISE RECRUITER

What happens when you work as a franchise recruiter and discover a business that’s got everything you need? You invest in the franchise, of course. And that’s just what franchisee Shane Cole did.

P

reviously a field support manager for Snap Printing, Cole took a few years out of franchising but was eager to get back in to the franchising sector and found himself taking on a recruitment role. And that led to a whole new career. Here he shares why the logistics business Pack & Send was too tempting to resist …

selecting suitable candidates for various franchisors, and Pack & Send was one of them,” says Cole. “Having worked closely with Pack & Send during this time, I gained a good understanding of the business, particularly from the franchisor’s perspective, and I liked what I saw. They are a very supportive group, enthusiastic, and have a strong belief in the direction in which the business is heading.”

“Before purchasing a Pack & Send franchise I worked for a company that developed franchise systems for existing and emerging companies wanting to franchise their businesses. My role was

PASSION FOR SUCCESS Shane explains that the drive to succeed comes from the top. “The CEO, Michael Paul, has a real passion for his business

and a genuine interest in seeing franchisees succeed. You could sense he wanted to see the organisation grow rapidly and has a really enthusiastic team around him. “Pack & Send is a unique business model that taps into a growing industry. The model is well established and shows strong growth consistently,” he says. “They have strong established systems in place, incorporating comprehensive training, online operations and marketing manuals. At the time the operations manual was one of the best in the industry.” Other aspects of the business model appealed to Shane. “From early on there

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LEADERSHIP

was a move to introduce improvements into the business with strong tech support and technology having a major impact on the growth of the business along with improved productivity,” he says. “Having spent many years in franchising and having a thorough understanding of systems manuals and franchise agreements, I was able to assess most parts of the business myself. We naturally received advice from our accountant and had our lawyer sign off on the legal aspects and everything was as I suspected. It was a strong business model. Happy with what he saw, and coupled with his knowledge of franchising, Shane decided to make his move. “The business was moving through a strong growth period, which was a good time to get

on board. Since opening our doors 13 years ago, we continue to have strong growth. This has come about through the introduction of additional products and services, numerous tech advances and a strong marketing focus on a national and local level.”

NEW AND INTERESTING Even after 13 years, Shane still finds new challenges that keep things interesting. “I guess this business was a whole new business for me, freight and logistics, that throws up surprises on a daily basis. And that’s one of the things that appealed to him: always something new and interesting. “There is something different about every day. You don’t know what will

I couldn’t be on the other side now – you’re in control, you make the decisions. Once you’ve done it you can’t go back.

walk through the door next. It’s not just boxes, pallets and satchels, we see a variety of things come through our service centre, including expensive artwork, scientific equipment and treasured personal effects,” he explains. “Here, customer service is paramount. We will do everything we can to see the customer satisfied. Sometimes things go wrong, and you need to fix it and if it costs you money, you have to do that. “We sent significant art to an auction in New Zealand and it was delayed in transit. The receiver was under the pump to get it unpacked and ready to catalogue for the auction, so two of us flew to Auckland to assist unpack and prepare. “We did a job for this client a couple of years ago and he came back to us, and he’ll come back to us next time. “You’ve got to follow the franchise system and over the years those that do are the more successful franchise owners. There are proven systems in place for a reason, particularly for established franchises like Snap and Pack & Send. But you will put your own individuality into the business. So would Shane ever consider a return to recruiting? “I couldn’t be on the other side now – you’re in control, you make the decisions. Once you’ve done it you can’t go back.” n Sally and Shane Cole

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THE SYSTEM WERX Make money while your franchisor runs the office. That’s the offer from Bathroom Werx, which wants franchisees to get on with the day to day work of the business – making old bathrooms look as good as new. that people often experience is that if you do book in a job or a quote, you are told that someone will be there between 8 am and 12 pm or sometime in the afternoon so you end up having to take a day off work.” The business goal is to deliver a good service that promotes a high referral rate.

MAKEOVER POTENTIAL

E

very year, Australians are spending billions of dollars on home improvements which also includes bathroom renovations. Since 1986, Bathroom Werx has been tapping into this market. One of the things that attracted Wollongong franchisee Matt Humphrey to the brand was the fact he did not have to set up an expensive infrastructure to run his business. “There’s no need for an office set-up with phones, desks, computers, fax machines, etc. Everything is run from the Melbourne call centre and they inform me of any jobs or quotes I have to do each day,” says Humphrey. “They also send out invoices for any commercial jobs I do and chase up debtors for me. This means when I get home after work, I can relax with my family without the worry of any admin work.” The Bathroom Werx franchise system has been designed to maximise the

productive capacity of each franchisee each week, so they can make more money. George Yammouni, Bathroom Werx CEO, points out the restraints that prevent this from happening are marketing and operational issues like confirming jobs, answering phones, sending out marketing materials, and following up on quotes done. In this franchise, centralised calls from across the country are managed by Melbourne head office, and a unique booking system means customers are given an exact time and date when they can expect their franchisee to arrive. Yammouni says, “Franchisees have given us access to their daily calendars so we can respond immediately to a customer’s request for a job or a quote appointment with a definite time and date. “This level of service impresses customers who are not used to this sort of service when dealing with the trades. “Most times you have to leave a message and then wait for someone to call you back. And the other frustrating thing

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It’s more than three decades since the business was established and Yammouni is still excited about the growth potential. “We have seen the number of bathrooms out there continually increase each year since we first started in 1986. The explosion in apartment buildings all over Australia has been massive, as well as the enormous growth of hotel rooms and holiday resorts.” He says the Australian renovation boom fuelled by TV shows and property prices has helped business. “A makeover is a great alternative to expensive bathroom renovations and saves people thousands of dollars. The work is done quickly, in days, not weeks, and the results are as good as new especially as we back it with a seven year written guarantee.” Bathroom Werx has researched, developed and manufactured its own ceramic resurfacing enamel together with the equipment necessary to carry out the process. The Australian-made Werx Enamel is specifically formulated for bathroom sanitary ware and has passed international standards testing by the CSIRO, he adds. Franchisees with basic handyman skills who enjoy sprucing up tired and worn out bathroom units can tap into this market, right now benefiting from an interest-free loan and finance of up to 50 per cent of the franchise fee of $45,000 on a five year loan – subject to lender approval. The low cost franchise fee includes plant, equipment, stock, uniforms, stationery and a four-week training course. n


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LEADERSHIP

Craig Arnold, left, and Jason Dolan.

HARD CORE

Former naval officer Jason Dolan moved on from his military life with a mission, to help people get fit and healthy. By Sarah Stowe

C

ore9 is a fitness franchise with a difference, and it all started when Jason Dolan got together with a mate to develop a business. “We sat down with a whiteboard, and wrote down every excuse for not to go the gym, and how to counteract it.” Partnering him in this project is Craig Arnold, a professional athlete whose two brothers had served alongside Dolan in the defence force. As highly motivated individuals themselves, the pair are addressing what prevents the great majority of Australians from going to a gym. “The most famous, most popular, class is a spin class because they don’t have to think. They walk out feeling sweaty and

that they’ve achieved something,” says Dolan. “People need to be taken through their paces. Everyone needs a coach.” Arnold, who has worked as a consultant to elite sporting teams and training consultant and fitness advisor for the defence force, says, “We wanted to create something that was going to motivate people to exercise and stay healthy. Currently, 60–70 per cent of gym memberships are not being used. “This can often be attributed to time restraints and lack of knowledge. At Core9 we have taken that out of the equation. It is short and effective and we make every minute count. If it doesn’t challenge you, it doesn’t change you.” The concept that moved off the whiteboard and on to a gym floor was

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based around a personal trainer not just on hand throughout the day keeping gym-goers accountable but driving the fitness sessions – without the accompanying high price. Another major point of difference was the idea of a rolling class with a set workout, that takes just 31 minutes. Gym members start on one of four lanes in which sit a series of nine fitness stations. “We can run 36 people at any one time, it starts every 3 minutes,” says Dolan. Perfect for the time-poor, the classes incorporate gymnastics, kickboxing and military fitness techniques tailored to all fitness levels. The clean and clear structure of the class is a by-product of military training. “If you look at a class and it looks all over


LEADERSHIP

the place, it is. I can’t train all over the shop. People don’t know where they’re going. “As the client, you see the next exercise in front of you. It’s a metaphor for life. There are lots of little steps and an end goal in sight.” Membership of the Core9 program is based on $49 a week for unlimited sessions and the gyms can typically accommodate up to 400 individuals.

DUTY OF CARE Core9 serves a secondary purpose: to provide a career option for ex-military, former athletes and ex-emergency services personnel. There is a 30.2 per cent veteran unemployment rate despite their specialist training. Dolan explains. “When I was in the military I was involved in the Special Forces, which we received a significant

amount of specialty training for. However, once we leave, there are limited job opportunities for us as there is a lack of understanding about veteran skills. “Each ADF member has about $2.5 million of training invested in them over seven years, but it often fails to translate into skills for jobs back in civilian society.” Helping ex-defence personnel was a key inspiration for the pair to create Core9 and so when they appointed their first franchisee, it made sense to bring in a former navy recruit. “I know Jason through work, I worked alongside him,” says Dan Swingler. Six years in the Australian Navy gave him a sense of urgency, a willingness to learn and a strong work ethic. “The reason I joined the navy was that everything was based around fitness. I’m so passionate about health and fitness so this is natural to me.” Swingler says the lifestyle is far from glamorous, working early mornings and

late nights, but there’s flexibility during the day to work on admin, and working Monday through to a half day on Saturday. He was ready to take on something fresh after working as a personal trainer for a while, and set up in business with a partner who he knew from the gym. “The business itself was lucrative, it was a new concept in the fitness market that is constantly developing and I could see has some longevity in it.” It is the convenience and brevity of sessions that appeal to typical members, he believes. “They are everyday Joes, not athletes or weightlifters. They feel like they have to move for health.” But it helps to have superfit figures such as emergency services workers taking on the mantle of local hero to inspire and encourage gym members, says Dolan. “They have to train at their peak and know what it’s like to be fit; if we can instil this in the suburbs as fitness leaders …” Franchisors often cite ex-military and emergency services personnel as ideal franchisees because they can relate to the rules and regulations but still show initiative. “What you find is you can adapt and overcome, and make things happen, work out how to fix things,” says Dolan. He’s had to do that plenty of times in the past five years of business, he says. “I’ve learned everything not to do. I opened up without a single member, didn’t know about pre-sales.” Today Core9 has a new GM on board, a growth mode to take it from its seven operating gyms, and interest from overseas. “The last club broke even within three months. We’re a start-up franchise and the brand is getting stronger,” Dolan says. n

We sat down with a whiteboard, and wrote down every excuse for not to go the gym, and how to counteract it.

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Low cost entry Full training provided National and local marketing Ongoing business support Finance options available Great incentives on offer


LEADERSHIP

OPENING THE DOOR

TO FREEDOM Lock & Roll franchisee David Anderson stumbled across his new business opportunity while job hunting. And just look at him now.

I

t was more than two years ago when David Anderson found the key to his future. He originally trained in metal fabrication before spending time as a professional rugby league player for Wests Tigers and in the UK, and then spent 20 years as a bus and truck salesman.

In 2016 David was ready to make a change; he just didn’t know it would be as a business owner. “Being a part of a franchise group never crossed my mind until I stumbled across the Lock & Roll opportunity while job hunting,” says Anderson. What appealed was the simple proposition on offer: Lock & Roll specialises in fixing the hardware and functionality of windows and doors that have become stiff over time and almost impossible to slide. “The scope of work and benefits were certainly appealing: a strong rewarding income, flexibility and an opportunity

to build a business based on quality workmanship,” he says. The flexibility is really what sold the idea of owning a franchise business to Anderson. “I start my first job around 9 am after I drop the kids to school. I’ll typically finish my day around 4 pm and my partner helps me on a part time basis with admin and invoicing in the evening. I still work hard but if I need to take time off, I can easily book it in.” During the day he will perform three to four jobs within a local area and the jobs can vary from a simple change of rollers on a sliding door to replacing parts and resetting a large commercial set of bi-fold doors. While getting paid on the day minimises financial homework, he still makes calls and organises parts and jobs when the technician part of his day is finished. Now managing the Leichhardt NSW territory, Anderson turned to strata management companies as well as local homeowners to build a strong customer base. “The main challenge I faced when

starting the business was to learn about the hardware and technical side of things – but with Lock & Roll’s training programs and support, it made for a smooth transition.” Franchisees in the network have the support of a pro-active operational team including a training manager, franchisee manager, marketing team, business director and general manager. The focus for the operational team is to understand what their franchisees are looking to achieve and how they can improve the system by implementing support structures. Anderson’s advice for those considering buying a franchised business is to “do your research, pick a good area and build your relationships in that area, be prepared to work hard and increase your skills – there’s a lot to learn.” Anderson wants to build a good income and business so that he can provide financial security for his family. His 20-year-old son already helps out part time in the business. n

Do your research, pick a good area and build your relationships in that area, be prepared to work hard and increase your skills – there’s a lot to learn.

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LEADERSHIP

Sarah Broad, centre

LOVING THE

Lifestyle

Five franchisees reveal how investing in their future changed their lives for the better. By Sarah Stowe

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SARAH BROAD,

VISION PERSONAL TRAINING

W

eight was always a touchy subject for Sarah Broad. But a leaflet in her letterbox changed all that and altered her life forever. Sarah Broad was overweight, suffered very high blood pressure, was super stressed and sleeping badly. She hoped a visit to the doctor would set her up with some tablets to, in her words, “make it all better”. She counts herself lucky that the doctor refused and told her to lose weight. Given a week to set some changes in place, the reality of her lifestyle hit home. “I’d always been touchy about my weight but used to say, ‘I don’t have time, I’m a working mum with two kids, I’m too busy’. Friends told me I’d get diabetes or have a stroke, or get really high blood pressure and all of a sudden one of those things came true.” Shaken by this experience, when Sarah saw a Vision Personal Training flyer on top of her mail she didn’t need any more convincing – through her daughter she already knew of someone who’d lost 30 kg through the program. “It was meant to be. I emailed them straight away and said, you have to help me.” Sarah’s daughter signed up too. “She’s a perfect size 8, tall and slender, and she signed up to help me walk through the doors. That was almost six years ago.” Sarah’s weight loss and subsequent career change has been quite a family affair. While she was transforming herself from an overweight middle-aged mum to an energetic, passionate gym owner, her son decided to become a personal trainer because he wanted to help other people like her. Today he works in the studio she and her husband own at Wahroonga in Sydney’s northern suburbs. “My family is massively important to me, and to have their support every step of the way has been brilliant. I started doing runs and swims, and I always have a member of the family with me.” It’s all a long way from believing she didn’t belong in a gym environment. Stepping into Vision was quite different from her expectations, however: it’s a small and less intimidating space, a safe environment. “My trainer worked out what I was like.

Vision teaches you to learn how clients want to be trained, and to coach them to get the best results. “It became a strong bond of utter trust. If he asked me to do something it was because he knew I could. It never got any easier, I just got pushed harder. It was his influence that made me change careers.”

I’ve always been a bit of a workaholic but this is my passion. I have a ridiculous lack of work–life balance, but this doesn’t feel like work. FROM CAR RENTALS TO GYM JUNKIE Sarah and her husband ran a car rental business in NSW and ACT that provided replacement cars for drivers. It was a high pressure job dealing with cross and angry people all day, she says. “I’d go to my sessions and say ‘I need to box to get rid of my frustration’. Then my trainer said, ‘Why don’t you try and do something different? Go and do Cert 3 and 4 and see if you like it.’” Not only did Sarah enjoy it she immediately spoke to the owner of the studio she was training at about buying a gym herself. Her timing was perfect – the owner was selling the Wahroonga studio. “We literally uprooted everything. We sold the car rental business and bought this.” Her husband did the due diligence, investigating a couple of studios to ensure the business had the potential required for an investment. Today he’s making things

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happen behind the scenes. The move was the second stage of a major transformation for Sarah. “I’m almost 50, I needed to do something that is about more than money. This fitted exactly. It’s about people. If you’re not passionate about people, it can’t be driven by the bottom line. “This changed and saved my life. If I hadn’t done this six years ago, I would undoubtedly have been in all sorts of trouble.” LIFESTYLE IS MORE THAN FEWER HOURS The plan was to take life a little more easily after selling the car rental firm and not put in the 60 hours or more a week to run a business. Sarah admits it didn’t get further than being a discussion with her husband. “I’ve always been a bit of a workaholic but this is my passion. I have a ridiculous lack of work–life balance, but this doesn’t feel like work. It does sometimes, but most of the time I love being around the trainers, I get so much energy from them. “You just let some people come into your business and be part of this amazing thing. I go out walking with clients, I go out for coffee with clients. You get to know people unbelievably well. “During the week I’m here. I don’t actually need to be here but I choose to be because I love it, talking to people about their challenges.” And she’s continued her passion, doing at least one cardio session daily to keep fit and keep her mood healthy. “So many people battle with anxiety and depression and there’s a simple solution. Start moving.” While the business is successful it hasn’t reached the same financial heights the car rental operation achieved. And that’s fine, says Sarah. “It wasn’t about making the most money that we could. It was about fulfilling the emotional side of life a bit more, and giving back. It’s fulfilling my needs, and my husband’s needs and helping other people. “That feeling when someone jumps on the scales and has lost the last bit to reach their goal weight, or got to under 100 kg, the look on their faces is magical, they give you a huge hug.”n


LEADERSHIP

GLEN WEYCHARDT, GUTTER-VAC

W

hen a medical emergency required Glen Weychardt to rush to hospital and spend days at his fiancée’s bedside, he really appreciated the freedom he has as a franchisee. “I was able to change my work at the flick of a switch – I scheduled work at 9 am and would juggle my day.” As a franchisee with gutter cleaning firm Gutter-Vac, Glen was lucky – he could easily manage the daily appointments in the quieter autumn period. “March is not a busy part of the year. As a new business owner I would have been marketing but I put that on hold. With an emergency unfolding I needed to be there.” Glen kept the new business going at a bare minimum but his focus was his family; he and his fiancée welcomed their new baby, born early at 29 weeks. But even with the safe arrival of his daughter there were still daily hospital visits for the next two months. That focus on family has stayed with Glen, and he’s worked his routine around time with his daughter. “I spend a lot of time at home with her. I try to finish about 2 pm and because I’ve done the work for so long I’m pretty efficient.” Glen has been a franchisee for just 18 months, but had already notched up two years with the Gutter-Vac business as an employee when he bought the business. When he discovered the job, he had no idea a successful small business could be built on gutter cleaning. For two years he was the franchisee’s sole employee and worked up to six days a week, putting it plenty of overtime. “I used to be always working, always

on the tools, sometimes coming home in the dark. I worked lots of Saturdays. I was flogging it. “After a few years I realised I needed to break away from a lower pay bracket and build for the family.” Now as a business owner Glen can choose to clock up significant hours over a week, something he regularly does when servicing schools during the holidays. What’s different about doing the hard yards now is that he’s working for himself, and he can balance the intense periods with three-day weeks. “I can jam a lot of work into a few days. My fiancée works on Friday so I don’t work and I’m home with my daughter. I’m working three days a week in winter – and still making money.” It is early days yet for the business, the territory is still growing, and Glen is committed to building up a strong client base. While head office provides some customer leads, Glen, like all Gutter-Vac franchisees, is responsible for generating business. He does this in a way that’s natural to him, walking around the community, engaging with other business owners, chatting about the service. He scored a Bunnings account by being in the right place at the right time: the manager had gutter cleaning on his to-do list. The benefits of business ownership have been balanced by inevitable challenges. “Initially there was the coin drop moment – you realise you have to do this forever. It’s a continuous chore, having to call people and get out amongst it. That was a bit daunting but I learned to not worry too much about it; business does come and go.”

Working for the man, Glen had also been a gardener and worked in hospitality so he understands about the importance of customer service to his business. There are other elements to being his own boss that were new to him, however. And that’s where it’s been a bonus to be part of a franchise network. “It’s a little bit different from what I thought it would be like – little challenges, like learning about the accounting side, I had no idea how to do it. I’ve learned a few things, like bookkeeping. I have an accountant but you have to know what’s going on.” Glen was surprised to find he was engrossed in a five-hour session at the most recent annual Gutter-Vac conference. The topic was knowing the key indicators of your business, delivered by a former pilot who drew parallels with the need for a pilot to know the weight of a plane before it takes off. “It made a lot of sense. I’ve applied a few ideas,” says Glen. Looking ahead he’s aiming for weekly bookings to fill out the diary Monday to Friday but right now there’s a steady rhythm to Glen’s routine, with occasional bursts of long hours. And he’s managed to fit in a trip overseas too, attending a wedding last summer in Samoa. It’s a schedule that’s working for the family, which is his priority. n

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ANDREW KIMBER, XPRESSO DELIGHT

“I

was working in sales, for a crane company and other companies for 17 years. We saw this advertised through the TV and thought it looked interesting.”

Gippsland-based Andrew Kimber and his partner were looking for a lifestyle change when they came across Xpresso Delight. “We wanted something where you could pick your own days, and work when you want to work.” Andrew needed the freedom and flexibility to run around after his teenage family, including his 18-year-old son and 14-year-old daughter. “I had been working five days a week in sales doing door to door visits, on the phone, cold calling, just the standard sales routine.” But then within a 12-month period his job role was made redundant – twice. The

need for security and flexibility was put sharply in focus and the couple ramped up their search for new opportunities. “We looked at a few franchises and came back to this for a couple of reasons. Everybody loves coffee and the way it’s structured and set up appealed to me. We met with Brian, the master agent, found out what’s involved, then went away, thinking this potentially could work for us and give us the lifestyle we wanted. “My partner still works full time. I also work for another company, helping out a mate, doing a little bit of sales and a lot of general stuff. It keeps my hand in.” Andrew manages his second work role around the demands of Xpresso Delight. “My mate knows if I can’t work today, that’s how it is.” Xpresso Delight’s unique offer is providing barista-style coffee machines to offices and other organisations. “From

a cost perspective, everyone loves going to a barista but you’re paying on average $5. Ours is $1 a cup, and as good or better. There’s always a variant with a barista, but these machines pour the same coffee every time.” Andrew also sells the time-saving aspect of an in-house coffee machine to potential business owners concerned about the time staff spend getting coffee in their breaks. Every Thursday and Friday he will service the machines in operation. He spends one day a week marketing, and has the flexibility to work extra or spend time with his family in the downtime. In business for four years, adding machines will be key to the franchise growth, says Andrew. And that’s where his sales experience has been invaluable. “The experience has been interesting. We’ve never run a business before and we’ve learned a lot about what you can and can’t do. When we first started it was financially difficult, as with any business. You have to build it so it’s self-sufficient and we’re at that point now. “You’ve got to work hard at growing. It’s your business, you can’t wait for stuff to come to you. I can run the business three or four days a week, but if I want to do something else I can. That’s the joy of it.” For Andrew weekends are all about kids’ sporting activities … and tractor pulling. For four years he and his partner have been immersed in the motorsport competition in which a modified tractor with a V8 engine pulls a sled down a 100-metre track. “It’s dirty, it’s fun. We get to travel all over the state and interstate – we were in Queensland for the weekend. It’s building a group of friends, it’s social,” says Andrew. The weekend winds down with an hour spent on Sunday doing admin and bookwork with his partner, getting ready for the week. Andrew’s ultimate goal is to grow the business to the point it can generate enough work to be a full time role for both of them – full time, of course, being three to four days a week. “It’s the ideal scenario in another three years,” he says. “From an opportunity perspective this is not for everybody; it’s a lot of money to outlay to buy a business. But we’d do it again in a heartbeat. It’s opened our eyes to the flexibility to do what you want to do.” n

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LEADERSHIP

TIM RICKMAN

SPORT STAR ACADEMY

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lifelong football fan, it took Tim Rickman years of heavy slog in multinational corporations and a redundancy before he had the opportunity to indulge his passion in business.

Three years a franchisee with Sport Star Academy, British-born Tim spent 10 years in the UK in the business information section of financial services, and then moved to Australia taking on pure marketing roles in the fast moving consumer goods industry. “I had a year off to travel, and I wasn’t really coming here to live but it transpired.” For the accidental Aussie resident, by the time his role was made redundant it couldn’t have come soon enough – he was ready to make the next move. “I wasn’t particularly enjoying it, it gets to you a bit after a while. It was a good time to take stock,” says Tim. Through that process and through connections, he was introduced to the kids sport business Sport Star Academy and it piqued his interest. For a pretty keen sportsperson who has always been playing and coaching, it is probably his ideal job. Despite the appeal of the concept, Tim was rigorous about doing due diligence to find out more about the business and its background, identifying its achievements and successes, and evaluating how much of a long term proposition it was. Convinced it had potential and happy to farewell the long hours of travel, repetition and lack of freedom, Tim signed up as one of the earliest franchisees in the system, and has gone on to prove the value of the business model. “I’m probably the biggest franchisee in the network based on revenue and the number of children. We run in school terms for registrations and every term I’ve grown. “I did some figures on what the numbers would project to, but once you’re involved and under the boot you can see how it works on a daily basis and get a more defined view of how it works and where you can get success.” Football is now the number one participation sport at junior level in Australia, and Tim’s business is tapping into that. “I’m very passionate about the development of children, not just football.

It’s more than skills, more than activity; it’s life skills they develop being part of the program. “We get feedback from the parents that the kids can communicate better, work together better, take instruction, deal with disappointments, and have improved their confidence and sense of worth. “It’s more meaningful. We’re giving them a lot of capabilities, getting them interested in a sport they can take into adulthood. I made a lot of my friends through team sport. “I try really hard to develop relationships with parents. They’re trusting you to look after their children and inspire them. You become part of their lives.” The value Tim gains from running his business is a far cry from the controlled roles he endured in the corporate world. “You can feel just like a number, and question what impact you are having. If you can see the end result, that boosts morale. Sometimes I was flogging my guts out and couldn’t see it making a difference.” On top of a high level of satisfaction, the franchise delivers some lifestyle benefits in the shape of freedom of choice, he says. “I can choose to do what I want to do NOV/DEC 2018 | 55 | WWW.FRANCHISEBUSINESS.COM.AU

and when. I’m busier now than I was but it’s in my control. When you’re passionate it doesn’t feel like work. I work seven days a week, which is always the case building up a business, you put the hard yards in. But now I have full time employees and we coach nearly 400 children a week. “It’s a long way from me and a bag of balls but you have to put the effort in.” n


LEADERSHIP

BEN FIDDEN, MY HOME WATCH

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love of pets, gardening and real estate has proved to be the perfect foundation for Ben Fidden’s new business The former training manager had spent 10 years in the field of learning development and was ready to move away from hours locked in front of his computer. Ben was keen to get out of the office and into his own business. The solution turned out to be buying a franchise in the My Home Watch network. “I always wanted to jump into my own business, but I didn’t know what to do, and with the capital required and the marketing, it wasn’t feasible,” he explains. Ben came across My Home Watch after a holiday absence that left his cat highly stressed. He immediately looked for an alternative to leaving his pet at a friend’s house, and came across My Home Watch through a Google search. At that point though, the penny hadn’t dropped that this could be a business opportunity. Then he saw an ad for the brand on the franchisebusiness.com.au website. “I’d gone there looking for opportunities, and when I saw it I was starting to get familiar with the brand. It is unique. I could see it being of value and it also allowed me to do what I love doing. The domestic side of property management was the kind of business I really wanted to get into and with a franchise, the branding and legal work was already done.” Getting into business wasn’t a fast process, he says. It took a lot of consideration and due diligence to assess the risk, over about 10 weeks. “For the first couple of months I set up servicing customer leads, I was a bit nervous, because with anything in business there’s a risk. Now I’m eight months into it, it’s worked really well and I’m really happy

with how it’s going.” Standard business hours had been Ben’s routine in his previous office-based roles. Now he might be working at 6 am and completing a job at 7 pm before doing admin with his partner. But he can be flexible about his hours and has more opportunity to fit in personal events. “Now it’s more flexible, I can work around appointments,” says Ben. “I’m not sitting in front of a computer all day long. You’re doing it for yourself.” In addition to the welcome break from an office environment the daily workload can be very varied, from feeding a cat or dog to a 90-minute preparation for a property inspection. “It’s not boring. I’m on my feet and I get to see some amazing properties.” Ben has a non-exclusive territory that spans the salubrious harbourside eastern suburbs in Sydney, from Darling Point to Bondi Beach. Online marketing is a strong source of leads but other business owners,

charity events and animal shelters can all deliver new clients. Customers also approach Ben directly. His three-year plan is to expand the team and take on extra clients’ work through local businesses. “It’s lived up to expectations. A lot of my friends and family were expecting me to jump into thousands of clients but we knew how much reputation you really need to get into the local area and brand yourself there. It’s all going well. “I think the great thing is, although it sounds contradictory, it’s niche because we offer a wide range of services. We can pop in on a client on the same contract and do a range of different things while we’re there. “What stands out is it is a challenge, and that’s why I wanted to have my own business. It’s very different to most careers. You can choose how to do it, and it’s very rewarding.” n

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INDUSTRY SPOTLIGHT

The lunch BUNCH

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Sumo Salad

The challenges facing franchised eateries are well known: rental costs, increasing competition, changing consumer preferences, the introduction of delivery services. Here five franchisors chew over the issues… By Sarah Stowe

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s Aussies continue to seek healthy options for their midday munchies there is no shortage of independent cafes and chains to offer menu options that feed their demands. For the lunchtime trade in particular, the sandwich has been a mainstay for years with Subway a runaway leader in terms of market share for this space. But salads and sushi have made their mark in the sector and helped shift the focus to a healthier menu. IBISWorld analyst Bao Vuong wrote in the December 2017 report, ‘Fast Food and Takeaway Food Services’, that healthy eating has transformed the industry over the past five years. “Australians have become increasingly health conscious due to public campaigns discouraging unhealthy lifestyles. This trend has affected the industry by driving consumers away from unhealthy options and towards healthy alternatives. This has led to an increase in the number of fast food options available to consumers. “Healthier eating options have increasingly entered the industry, including salad and juice bars, and sushi stores. These new fast food options were initially viewed as passing fads. However, over time these new retailers have cemented their places in the fast food market. This has increased competition in an already saturated and competitive market.” According to Vuong, increased health consciousness among consumers has been matched

by other businesses in the food arena broadening their offer to cater for hungry customers – cafes and restaurants, convenience stores and supermarkets have all freshened up their meal options. “Ongoing strong demand for quick and healthy food options is anticipated to continue bolstering the industry over the next five years,” Vuong writes in the August 2018 report, ‘Sandwich Shops in Australia’. “The industry’s external competition is projected to continue rising over the period, as other quick-service food establishments provide premium healthy options, such as gourmet sandwiches. Cafes, supermarket chains and convenience stores are also forecast to increasingly provide readymade healthy meals, which is likely to constrain industry growth.” Overall, he says, revenue from the sandwich shop sector is expected to grow at an annualised 0.6 per cent over the five years through 2023–24, to $934.2 million. That’s a real slow down from the 4 per cent growth shown over the five years to 2018–19. There are conflicting pulls on the industry from macro-economics, as real household income is expected to increase over the current year while a decrease in weekly working hours is likely to pose a threat to consumers eating out. While franchised chains offer franchisees the advantage of brand recognition, buying power and functioning systems and processes, they may also trade for longer hours than an independent operator, which means higher penalty rates and wage costs. However, there is evidence that profit margins have been boosted with the consumer preference for healthier items.

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INDUSTRY SPOTLIGHT

Soul Origin

It’s a fine balance for food in shopping centres. You have to sell more to the customers you have and get your existing customers to come to you more often.

SOUL ORIGIN One franchise brand has in four years achieved incredible growth. Soul Origin launched its first franchise in June 2014, just a year after opening its second corporate outlet. In mid September it celebrated its 100th store, an outlet at a suburban shopping centre, Royal Randwick, in Sydney’s eastern suburbs. Chris Mavris is the CEO for the healthy eating food chain and he’s confident that Australians are looking for food they know and understand – the staples. “From research we’ve done, consumers talk about lunchtime regret. Some of the food [in stores] looks really good but it doesn’t live up to expectation,” he says. And in a lunch hour, there’s really no time to go back and fix it with a different meal, he points out. Soul Origin provides customers with everyday classics with a twist, fresh wholesome food with global flavours, says Mavris.

The menu range is currently undergoing a tweak with the focus on innovation, adding more modern items, a few new salads and a refresh of other salad dishes. “Aussies are making better choices. The menus of all the big franchise brands are putting on salads, they are looking at healthier products, more nutritious dishes. “The palate is amazing, and with the mixing bowl of cultures we have in Australia we can appreciate flavours.” Mavris believes there’s another strong factor that distinguishes the brand from competitors in the lunchtime trade – the long low counters allow consumers to see the food they are ordering, rather than relying on a stylised menu board. And the deli-style counters also mean a customer’s first contact at an outlet is with a person, not a point of sale machine. “Our business is two day parts. Coffee firms up the morning and drives into lunch time. The ability to have two

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Soul Origin


INDUSTRY SPOTLIGHT

strong day parts with a broad selection of items is important,” says Mavris, who agrees that occupancy costs are a challenge for every food retailer. Managing landlords and shareholder expectations is another. “There’s a share of stomach and everyone is fighting for the same share,” he says. “The percentage of food outlets is significantly higher than it was 10 years ago and people haven’t had wage increases; the cost of living has gone up but disposable income has not. “It’s a fine balance for food in shopping centres. You have to sell more to the customers you have and get your existing customers to come to you more often. “Australians are very entrepreneurial – fair go and have a crack are in our DNA. It’s in our DNA to want to run business. “So what can we expect from this food sector? Will it change? Yes. Competition won’t drop. What that looks like we can’t tell.”

SUMOSALAD Luke Baylis made headlines last year with his move to ditch food courts in favour of new locations to dish up healthy meals. In his battle with landlords over rents, the head of SumoSalad took drastic action, putting the business into voluntary administration in July this year. Now Baylis is back in charge at the healthy fast food chain. “We’ve had a full bill of health. The team have been incredibly supportive, they are very passionate. It’s been a tough time but it’s been incredibly positive and a fresh start for us,” Baylis tells Inside Franchise Business. “We’ve had legacy issues, this gives our business the ability to remove those legacy issues and create a really strong platform that doesn’t divert us from moving the business forward.” Undertaking the 35-day Deed of Company Arrangement process was an intensive way to tweak and restructure

the business, he says. Significant improvements in profit and cashflow had been made ahead of the voluntary administration but free working cashflow was tied up dealing with legacy issues, he explains. The ability to disclaim any non-viable contracts, including leases, and to clear areas of business not generating sufficient return was invaluable. “This gave us the ability to redeploy the profitability into future business. This is where we’ll see huge growth and rejuvenation.” A vocal naysayer of the food court model, Baylis has been working on taking the business into other arenas. “As one business model gets disrupted, you have to shoot a few test shots out. One of the things that’s worked incredibly well is the wellness cafe. It’s providing people seeking healthier food opportunities with breakfast, lunch and dinner options in an upmarket manner. It’s very strong,” says Baylis. Sumo has been trialling wellness cafes

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NOV/DEC 2018 | 62 | WWW.FRANCHISEBUSINESS.COM.AU

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to good effect – Baylis reports a 261 per cent growth on the food court model. It offers higher transaction value, day parts, a strong customer experience and association of the brand. “Such a huge improved turnover line makes this a very viable model, which we’ve refined over the last 24 months.” The changes to a broader menu offering prompted a refinement of the branding: the word Salad will be dropped from future stores. Baylis reports the name Sumo scored very highly in customer awareness. “It’s leveraging that, rather than the affiliation with salad. We are promoting healthy and fresh as two pillars in a more diverse offering. There’s huge growth opportunity within this, this is a very elevated offering.” When it comes to site locations airports, hospitals and universities are in the mix, but so too are shopping centres. “We’re not walking away from shopping centres, we’re walking away from food courts,” Baylis explains.

Such a huge improved turnover line makes this a very viable model, which we’ve refined over the last 24 months.

Current stores will be converted to the wellness cafe model over time as franchise agreements expire. “We want to reposition stores in the new format, build up franchisee skill sets and keep the best operators.” Baylis is full of praise for the “incredible bunch of franchisees” that have

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held true to the Sumo philosophy and kept the dream alive by focusing on their businesses and delivering good customer service. “Despite what we see, when you’re doing a restructure there is always a degree of fear and uncertainty. Franchisees have been focused on how do we


INDUSTRY SPOTLIGHT

make it better, how to make it an amazing brand. “Our sales are 14 per cent up, which is unprecedented in the industry, all off the back of our franchisees focusing on customers.” Baylis is taking another route to market based on the trust consumers have in the Sumo brand. The ready-meal market is the next new arena for the brand to dip into, with meals to be distributed through Sumo outlets and at grocery and convenience store level. “We have customer permission and credibility in the meal space,” he says.

SUKI SUSHI BURRITO

Sumo Salad

Kim Toovey sees a challenging economic period ahead aligned with a national doom and gloom, and lack of financial growth. “People are seeing less money in their pockets and are being thrifty,” he says. As a result, some people are choosing the home-cooked lunch option, diminishing the takeaway market’s potential, says the Suki Sushi Burrito franchisor. Meanwhile the health conscious consumer might be a signed-up supporter of the meal prep revolution, attracted by the ease of a controlled healthy meal ready to hand, and driven by fitness regimes. “More and more people are eating healthily so for us it’s been about staying relevant. You have to listen to customers, have your ear to the ground but stay true to the brand.” Suki Sushi Burrito, as the name suggests, puts the healthy appeal of sushi with the temptation of hearty burritos. It is also trialling acai bowls as an add-on. “It’s about having amazing tasting food at a good price.” As a food retailer the challenge is to continue to achieve that and retain margins when everything is going up,

Suki Sushi Burrito

We’re not pigeonholing ourselves over lunch.

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INDUSTRY SPOTLIGHT

and this is crucial for a franchisor. Toovey believes the secret is a great relationship with suppliers so any pain points that arise from ingredient shortages or increased costs can be dealt with early. “We have the attitude of remaining fair – we’re a growing brand, we want to have a fair and open relationship with franchisees. At the moment it’s all about getting the best price because we want them to buy a second or third location, and not just a money grab.” While Toovey says everyone will find a way back to great tasting food, whether franchised or great independent, there’s no doubt that social media, instore fitout and design, product and presentation are all crucial in the mix. But while other brands are focused on a lunchtime trade, Suki Sushi Burrito trades across two or three service periods. “We’re not pigeonholing ourselves over lunch,” he says. And key to the offer is the freedom of choice for customers to build their own flavours, with more than 30 salad and vegetable options.” Misschu “The price point gives freedom of choice,” he says. Not content with expansion across Australia, Toovey says overseas growth is under consideration – when the time is right and the brand is strong.

Top and middle photos: Sandwich Chefs

SANDWICH CHEFS Sandwich Chefs is a little different. It’s a carvery in a sandwich deli. The chain is growing steadily, not least because the focus is achieving a return on investment (ROI) for the incoming franchisees, explains Gary Powell, national network development manager. “We’ve just knocked back a high profile site in Melbourne because it doesn’t meet our selection criteria,” he says. “We calculate an ROI; we had confidence it would provide revenue but not ROI for the franchisee and that’s our primary focus. “It’s about franchise viability. The site would be fantastic for our brand but that’s not the game we’re in; we’re in the game of long-term.” Powell says outsourcing the majority of

the leasing means the process is handled by experts who understand the market and the demands of the franchisor. Sandwich Chefs has refreshed its look, and the New York deli style is putting the brand in a premium position, reports Ollie Mann, who heads up marketing for the chain. “Sandwiches as a quick service restaurant option is a pretty forgotten segment. There’s an opportunity for us. We don’t have anyone operating in this carvery, specialty space.” Yes, the customer profile is skewed 60/40 male tradies to female shoppers. But he believes there’s a universal appeal. Who can’t resist a slow roast that’s at the core of the offer? While the 14-hour slow cooked pork with amazing crackling might be a meat-lovers’ favourite, the chain

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isn’t catering purely for carnivores. The Mediterranean roast veggie roll is reportedly one of its most popular sandwiches. Also on the menu are gourmet salads, an expanding category, and freshly squeezed juices. There is something for everyone, but pitched as quality, Mann says. The brand is promising plenty of innovation: look out for a signature range and a deconstructed sandwich – roast on a plate, without the carbohydrates. The carvery food offering of meat, vegetables, gravy and salads distinguishes the brand from competitors. Long term, the goal is to be a network of more than 250 stores, says Powell. Primarily a lunchtime offer, with some outlets serving breakfast, most of the stores in NSW do extend their trading into the early evening.


INDUSTRY SPOTLIGHT

“Shopping centre supermarkets are open till 9 pm but the food court closes at 5 pm, so these outlets are food destinations in their own right. Quite a few stores are trading through to 8 pm.” Right now the 61 outlets (75 by September 2019) are all food court locations but the future could look a little different, with freestanding restaurants and one-off food trucks pedalling the carvery eats at festivals. Expect to see kiosk and casual dining outlets too. There is plenty of opportunity in sandwiches.

SUBWAY Subway claims to be the largest quick service restaurant (QSR) in Australia, with more than 1300 restaurants around the country. For a brand with such a strong market share (85 per cent in sandwiches), there’s always the temptation to keep doing what works and ignore opportunities to innovate. But the team at Subway has embraced change, this year rolling out a revitalised menu and restaurant design. Kate Brody, Subway director of marketing, Australia and New Zealand, says, “Our new menu and restaurant decor is a part of our 360 degree brand refresh.

Subway

Subway

We are introducing bolder flavours and new ingredients that respond to what Subway guests have told us they want from us – fresh, healthy, delicious and locally sourced food that is affordable and convenient.” This is the brand’s “Fresh Forward” approach designed to transform every element of the customer’s instore experience. “Our first Australian restaurant featuring the new decor opened its doors and drive-through in Toowoomba on Wednesday 13 June this year, and we plan to expand this new decor across all Australian and New Zealand restaurants.” Brody reveals more than 100 restaurants across Australia and New Zealand are piloting a rejuvenated menu featuring 25 new ingredients, including new and improved breads, meats, cheeses, salads, sauces and seasoning options. “We’re seeking as much feedback as possible to ensure that if we add or remove any ingredients, we know exactly how our loyal guests feel about it, and any future menu developments are guided by what our guests are telling us,” she says. Subway is the fourth largest buyer of fresh veggies in Australia and is ramping up its focus on locally sourced ingredients. Brody says Subway continues its commitment to menu improvements to cater for changing diets and tastes. “A recent example is our new vegan options including smashed falafel, catering for the first time to those who follow a plant-based diet,” says Brody. n

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WHY CHOOSE A SOCCAJOEYS FRANCHISE? • Join an established and recognised brand • Ongoing training & operational support • Australia wide marketing initiatives to drive business within your area • Low entry cost & expected ROI within a year • Flexible lifestyle running your own business • Be in business for yourself, not by yourself • Exciting career in the childhood development industry

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INDUSTRY SPOTLIGHT

BUBBLING TO THE TOP Gaining traction in the Aussie beverage market is tough, however in bubble-tea, it seems consumers and businesses have found their perfect mach-a. By Nick Hall

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decade ago, the term Bubble-tea would have left many Australians scratching their heads, but as the contemporary food vernacular evolves, Aussie consumers are embracing the Eastern appeal of milk tea and tapioca pearls. The rising influence of Asian markets on Australian consumer trends has never been more evident than in the form of the booming bubble-tea industry. Where traditionally, the tasty Taiwanese treat was targeted towards an Asian dominated audience, multicultural consumer demand has seen more Caucasian customers choosing bubble-tea over other carbonated beverages. A growing emphasis on the food and beverage market’s build-your-own model has also resulted in a shift towards customisation and consumer control, an innovative approach to market differentiation that several bubble-tea brands have adopted to great effect. With the industry set to grow exponentially over the next few years, Inside Franchise Business takes a look at three franchise brands putting bubble-tea on the Australian culinary map.

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CHATIME

After over 10 years in the Australian market, franchise Chatime has carved out an impressive reputation as the nation’s largest Bubble-tea brand. With an emphasis on metropolitan areas, the Taiwanese franchise has translated a strong local history of iced-tea success into a booming global network. The brand is in the midst of opening its 100th Australian location, with a goal of having 110 Chatime sites up and trading by Christmas. Chatime entered the Australian market at a time when bubble-tea was unheard of to the Caucasian demographic, with Chatime general manager Carlos Antonius suggesting the brand’s positioning and culturally diverse focus has been critical to Chatime’s prolonged success. “Over the last couple of years, we’ve really worked on repositioning our offering, really giving the brand a much wider mainstream appeal, rather than just targeting the Asian demographic,” Antonius said. “We really tried to give a western appeal without westernising the brand. That’s been a real culture piece, and there’s been a lot of initiatives implemented both

GONG CHA TEA

Where Chatime’s journey to success has been paved with innovation and adaption, fellow Taiwanese bubble-tea franchise Gong Cha Tea has followed the traditional path. The brand arrived in Australia in 2012, establishing operations on George St in Sydney’s CBD, employing a development strategy that focused on primarily Asian demographics. “When we first entered Australia in 2012, there was two main brands that dominated the market, Easy Way and Chatime, however, we were able to break in and by 2017, we had 48 stores nationwide,” said Gong Cha Tea executive assistant Eddy Xu. Expansion has continued steadily for the brand, which announced nation-wide representation following the opening of Darwin location earlier this year, with the brand set to hit 60 stores by the end of 2018. Growth has been interesting and often unexpected however, with Xu remarking some locations that were not previously

internally and externally to help drive that repositioning, which has been successful to date.” While getting on at the ground floor is often an opportunity to develop brand loyalty early, it also presents the challenge of consistent new market competition. The last five years have seen a range of local and international bubble-tea franchises expand into Australia, and while Antonius admits there are sector challenges, a growing industry is always a good thing. “We welcome new players, by having more competitors in the sector, it grows the general awareness of bubble-tea as a concept. The challenge for us is that whilst we are the size that we are, and we are still nimble an agile as a company, a lot of other entrants that are setting up in the region have a lower cost of entry. There are challenges in that, but what we’re really focused on is how we continue to innovate our business.” Innovation and adaption have been critical to Chatime’s operations, with new initiatives proving to be key drivers for success. The brand has achieved double digit like-for-like growth for three years

in a row, and has its sights set firmly on continued growth. “Our target that we set to achieve is 200 stores by 2021, and we’re on track to achieve that, and we still have a significant number of metro locations in major cities. What is critical is for us to continue to reduce our cost of entry, so that we can get quicker return on investment for our investors and continue to grow the brand.” Chatime has put emphasis into digital innovation as well, with the launch of the brand’s intuitive loyalty app, which presents consumers with the ability to place an order and be rewarded without the need for human interaction. Antonius suggests digital initiatives like this are critical to channelling the brand’s target demographic of young, technological savvy conumers. “We implemented a series of significant digital initiatives, our loyalty app is now live, and we really value innovation, so how can we remain relevant? It’s about constantly evolving the brand and changing the perception of what bubbletea really is.”

thought of as key performance zones had far exceeded network expectation. “It’s surprising, we opened a remote location in Hobart and its going crazy, absolutely blowing up in sales, which was a major surprise for me. I couldn’t imagine why Hobart would represent a strong growth market, but it’s proven to be one.” As consumer tastes change and Australian audiences become more aware of new market trends, businesses find themselves at a crossroads; should they refocus operations on a broader audience, or continue to segment the Australian market? Xu believes it’s the double-edged sword of food retailing. “It’s a two-way street. We were actually the first bubbletea brand in Australia to introduce soy milk because our research showed that one third of Australians are either lactose intolerant or have a preference for soy. Rather than change our product offering, we believe that initiatives like introducing soy would be a friendly approach to diversifying our audience.”

While bubble-tea has quickly become a favourite of the Caucasian market, Xu believes Gong Cha Tea’s traditional approach is the secret to the brand’s success. “The culture is so different, as we are very traditional. That’s our differentiation in the market, we set our premises around heavily Asian culture.” The business is a firm believer is providing franchisees with the tools for sustained success, with an extensive, in-depth training program and location selection advice. “When we receive a franchising inquiry, we actively source the location for the candidate, based on their preferences. Following that, we review applications, go through interviews, give the franchisee a hands-on franchise business experience and help them select their site. we only approve the site if we believe the location will make money. At the end of the day, we want our franchisees to be successful.”

NOV/DEC 2018 | 73 | WWW.FRANCHISEBUSINESS.COM.AU


INDUSTRY SPOTLIGHT

LITTLE CHA

Little Cha is the latest bubble tea brand to hit the franchise market, focusing on bringing a western twist to the traditional iced tea industry. The brand was established in 2017 and quickly grew its network to nine stores in 18 months, before launching its franchise model in September. The team behind Little Cha was inspired to bring bubble tea out of metropolitan regions and into the focus of local Aussie communities. “Australians love anything fresh, fruity and trendy. Not to mention the popularity of Asian brands and concepts in Australia – as a nation we are very open to trying new things,” says the Little Cha founder. The brand’s focus on western demographics has provided Little Cha with a key advantage in the highly competitive Australian market, with a diverse offering specialised for Australian tastes. “Around 70 per cent of the Little Cha customer base originates from westernised culture. This is a very good indication that we are reaching our goals and target market,” he says. “We have tailored our flavours and bubble tea varieties to suit everyone but have especially focused on providing popular and recognisable options to cater for people from a westernised background.” Food retailing in Australia is a competitive market, meaning brands have to focus on differentials and innovations to survive, however the categoric success of bubble tea has shown that growth is achievable with a niche offering. For this reason, Little Cha has developed a strategy that focuses on regional Australian locations with little bubble tea competition, maximising market share and growth potential for franchisees. “The bubble tea industry has extreme high growth potential. If you look back to five years ago, bubble tea was a concept very fresh and unknown to Australians, compared to now where the product is a known and loved staple in Australians diets. While there is still a focus on the Asian demographic, we know and believe that there is room for growth for the western demographic also.” The Little Cha chain now has 10 locations across New South Wales and Western Australia with the brand targeting six new stores in the next 12 months, comprised of both the sale of existing stores and the opening of new greenfield sites. Plans are already in place to bring the Little Cha to Taiwan and other neighbouring countries over the next two to three years. n NOV/DEC 2018 | 74 | WWW.FRANCHISEBUSINESS.COM.AU


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INDUSTRY SPOTLIGHT

A HEALTHY

DOSE OF CHANGE Innovation is on the prescription for go-ahead pharmacy chains that aim to deliver first class customer service in the changing health sector.

P

harmacy growth is limited by regulations that mandate the approved number of pharmacies allowed in any given area. Douglas Kuskopf-Dallas, Discount Drug Stores general manager, points out, “We cannot open a store wherever we want and therefore we seek pharmacist owners to partner with who share our vision for the brand and the planned evolution of the brand.”

Ongoing challenging conditions and further regulatory changes are projected for the pharmacy industry over the next five years. In its May 2018 response to the 2017 final report of the independent Review of Pharmacy Remuneration and Regulation, the federal government recognised the pivotal role of the community pharmacy segment in delivering medicines to local communities. The government also acknowledged the gradual transition process the segment is currently undergoing, as it moves away from its traditional product-supply focus towards a more patient-centred and outcomebased system. New pricing arrangements for high-cost medicines outlined in the 2018–19 Budget are anticipated to benefit pharmacies over the next five years. Despite this, there’s no stellar financial growth. Industry revenue is forecast to grow at an annualised 0.7 per cent over the five years through 2023–24, to $16.3 billion. New customer service-based business models and Australia’s ageing population are projected to drive revenue growth over the period. Profit margins have been curtailed by the reduction in medication costs as a result of changes to disclosures – most pharmacies

make their money in the dispensary. It’s a different story at Priceline, however, which has carved out a niche for itself in the beauty landscape.

PRICELINE Heading up the 35-year-old Priceline business, CEO Richard Vincent agrees the pharmacy market is increasingly competitive. “There are international and local retailers who are doing a fantastic job in the beauty space. There is a competitive tension.” So what gives the highly identifiable pink branded Priceline chain a point of difference? Tamalin Morton, Priceline’s general manager, points to four elements the business has focused on for its newest campaign: the breadth of products (17,000 items), value, rewards and service. As beauty trends move into the so-called masstige and prestige space, Priceline is right at the forefront of new and exclusive products, catering for the choosy Millennial who wants to investigate packaging and ingredients before purchasing, as well as the brand loyal customer who continues to use his or her favourite product over many years. It’s this broad appeal that helps position the business. There are 650 beauty advisors across the country who offer customers brand-agnostic advice [general advice loyal to no particular brand] and this is a highly popular service, Morton confirms. The health space is crucial too. At Priceline there is an advisory committee that ensures the pharmacy treatments and services remain effective and efficient. Priceline offers quick and effective

vaccination programs, conducted in a consulting room, which allows customers to avoid the doctor’s queue, says Vincent. The pharmacy chain has introduced a dementia-friendly quiet hour and is taking steps such as removing black mats that can appear as a black hole for someone suffering dementia. It has also launched an app for prescription and pharmacy needs that is designed to benefit elderly customers. JOINING THE FRANCHISE Each year the chain has a net increase of about 20 pharmacies, existing businesses who are keen to take on the Priceline mantle. “The model is very different from a typical pharmacy,” points out Vincent. “The number of SKUs [stock keeping units], the investment in stock, the standardised systems and discipline,” he says. Following an initial conversation there’s an immersion session in Melbourne, which takes the pharmacists one step closer to signing with Priceline – and that’s a crunch point. If they’re committed after that, the process continues. As for any existing business owner looking to convert into a franchise, there are the challenges of knowing how to run the business one way along with the need to adopt the franchise method. For an independent pharmacy operating under its own engine power there can be constraints. Vincent believes in facing these challenges early on in the process of conversion. “We have an upfront conversation: ‘Do you really understand what you’re getting into?’” he says. “There are nuances. So we invest effort and time upfront. We don’t want

NOV/DEC 2018 | 76 | WWW.FRANCHISEBUSINESS.COM.AU


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INDUSTRY SPOTLIGHT

Pharmacies in 2018–19

Annual growth

Products and services segmentation

Major market segmentation

Revenue: $15.8bn Profit: $1.2bn Wages: $2.4bn Businesses: 3892

Prescription medicines: 63% General retail: 21% Scheduled non-prescription medicines: 16%

2014–19: -0.7% 2019–24: 0.7%

Consumers aged 45–65: 35.5% Consumers aged 65+: 30.5% All other consumers: 34%

Source: IBISWorld report Pharmacies in Australia, September 2018

there to be misunderstandings.” The Franchise Relationships Institute helps the business compile an annual franchisee survey, which most recently showed that the brand rating scores well above average. “We use that process to think about how to engage franchisees. We have all sorts of forums, inventory management, conferences, advisory boards. “Engagement is critical.” Earlier this year the parent business API acquired 42 Clearskincare Clinics across Australia and two in New Zealand, and this could be opened up to the franchising model.

DISCOUNT DRUG STORES The general manager of Discount Drug Stores believes the chain has a strong reputation for everyday low pricing alongside its suite of health services. But, says Douglas Kuskopf-Dallas, it’s also important to continue evolving the brand in line with consumer expectations in a rapidly changing retail environment. In June, Discount Drug Stores announced a new health foods concept – a “store within a store” – as well as a pharmacy and health foods “big box” model. “By offering all of the traditional pharmacy products and services, along with one of Australia’s widest ranges of health foods and organics, our goal is to become a total holistic healthcare destination supporting overall customer wellness,” he says. “Health benefits are a major driver

for increased spending by organic purchases. We’ve identified a clear gap in the market and this concept is our response to meet a growing consumer demand, and widen our ability to provide holistic healthcare beyond dispensing drugs and health clinics.” Kuskopf-Dallas indicates the rollout of the health foods concept will be a focus for the next 18 months across the network. Not that that’s slowing the implementation of other projects. “We’re also rolling out a number of other initiatives including our new point of sale system, Next Generation Retail Platform powered by FRED NXT, which allows our stores to go paperless with a range of processes and gives staff the ability to better manage front-of-shop operations.” With a clear focus on the future, the business is preparing for e-health services and digital pharmaceutical prescriptions with a number of programs that deliver extra support to customers, such as the MedAdvisor Health Services Hub and Doctors on Demand. “Meanwhile, our new Discount Drug Stores Retail Academy will also launch this year, with a focus on upskilling and training key retail staff to enhance the customer retail experience.” The overall goal for the Discount Drug Stores chain is to deliver strong customer service and operational efficiencies for pharmacists, and to develop a support infrastructure to manage the growth of e-health channels, which Kuskopf-Dallas expects to rapidly change the pharmacy industry. n

NOV/DEC 2018 | 79 | WWW.FRANCHISEBUSINESS.COM.AU

MAJOR PHARMACY FIRMS Australian Pharmaceutical Industries Ltd (API): 11.6% Terry White Group Ltd: 11.8% Sigma Healthcare Ltd: 20.1% My Chemist Retail Group: 29.7% Other: 26.8% WHO OWNS WHAT? My Chemist Retail Group brands • Chemist Warehouse, • My Chemist Retail Group A pharmacy-owned company, it consists of partnerships and alliances among individual pharmacists. Sigma Healthcare brands • Amcal • Guardian • Discount Drug Stores • PharmaSave • Chemist King A mix of banner group and independent pharmacies. Terry White Group brands • Terry White Chemmart • Chemplus • Chemmart The business comprises franchised and banner pharmacies. API Brands • Priceline Pharmacy • Soul Pattinson • Pharmacist Advice Predominantly franchised pharmacies. Source: IBISWorld report Pharmacies in Australia, September 2018


INDUSTRY SPOTLIGHT

FUTURE MOVES

Invest in a health-focused franchise and you’ll be buying into technical and business expertise. Here, two franchised firms reveal what the future holds.

L

et’s start with the Australian landscape, in health terms. We’re an ageing population and allied health (the disciplines that complement general practice such as physiotherapy, chiropractic and osteopathy) is increasingly important both as a treatment and as preventive action.

PHYSIOTHERAPY: BACK IN MOTION According to IBISWorld, which produces industry-specific reports, there are some key observations of the physiotherapy sector which is outperforming the economy, notably the specialisation of customer segments in a competitive market. IBISWorld has pinpointed ageing, women, sport, orthopaedic and paediatric treatments as strong areas for specialised practice. Allied services help boost already Back in Motion

good profit margins, the latest report Physiotherapy Services in Australia, July 2018, suggests. The nature of the service-focused business means economies of scale are irrelevant to physiotherapy firms, the report concludes. What is relevant is greater work flexibility and the cost deterrent – there’s currently no Medicare rebate available. And while the sector is competitive, there’s been little practice consolidation. Four major players in this sector each have just 1–2 per cent each of the market share – one of these businesses in Back In Motion. Founder and director Jason Smith suggests that the IBISWorld report doesn’t pick up the pulse of the industry. There’s no doubt that ageing is the landscape of allied health but in reality the biggest driver is technology, he says. “Technology is one of the big drivers in the next five to 10 years. We are putting a disproportionate investment

Jason T Smith

into technology; tech is the dry creek bed soaking up every cent, finding new and better ways to deliver services with agility.” Smith is so committed to tech investment that the business acquired a small IT company along with a staff of five full time coders. “This allows us to build the programs we need and get big data to better inform clinical services. These are the changing contours of our business.” Smith has deliberated on how best the business can shape itself to the future, and found the solution in a hub and spoke model that allows for flagship stores and versatile delivery of services. Another is a shift or trend to patient-centred care. Not yet implemented but coming fast is home care – a clearly disruptive model because it will NOV/DEC 2018 | 80 | WWW.FRANCHISEBUSINESS.COM.AU


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INDUSTRY SPOTLIGHT

displace some of the heavy fixed costs of running locations. But physiotherapy is heavily dependent on health funds for payment of client treatments and they are yet to adapt to the changing market; likewise, insurers and government payers have not created the policy to deal with this, he adds. At-home care may be the future but it’s a costly process right now, says Smith. “It’s very hard to get the price point right. It’s much more expensive to deliver at home than in a practice, you lose efficiency. Whoever really innovates home care will have to have big wallets. The price point is tough. Unless a third party pays the premium, we’re going to be stuck for a while.” Smith is sanguine about how the Back In Motion business will expand. He is considering a diversification into allied health to provide a more holistic offering for clients, including podiatry, osteopathy and chiropractic services. Right now he sees the brand as a leader in the physiotherapy market. “We are bigger in terms of revenue and footprint than the other three combined,” he says. For the financial year 2018 Back In Motion recorded 12 per cent organic

growth and a comparable rise is predicted for this year’s results. Smith expects to see a further eight practices operating in Australia and four more in New Zealand within the next 12 months. Accompanying market leadership is

We are putting a disproportionate investment into technology; tech is the dry creek bed soaking up every cent, finding new and better ways to deliver services with agility.

interest from investors, who see potential for aggregating some of the practices. But Smith is wary of corporatisation. Franchising works as a way to attract more capital to scale and have liquidity and exit options, he says. “We are raising capital and building scale through the group,” he says. There are nearly 50 practices in the network, who benefit from the back-end systems available in a full-service franchise, including an in-house accounting team that manages invoices, bills and payroll; marketing campaigns; HR support; business coaching; and access to networking and professional development events. It’s a business that grew from the ground up, founded by Jason and Paulina Smith in a small home-based practice in 1999 and growing significantly from 2006 when it had just seven outlets. Back In Motion has a focus on holistic solutions and after-care and it’s a prerequisite that any physio in the business is a member of the Australian Physiotherapy Association. Typically a physio business is all about the treatment, and Smith says the clinical aspect has always been well delivered by the partners. However, there is an area of health he believes is being handled badly: customer experience. And so he is focused on a partner mindshift to client centredness – upskilling on how to communicate with clients, to show empathy, and to deliver on customer experience.

CONDITIONING: OSTEOSTRONG Today we have a greater risk of dying from chronic conditions such as type 2 diabetes, osteoporosis, obesity and back pain than heart disease, cigarettes or cancer. In fact 42 per cent of women and 27 per cent of men over 50 years old will suffer an osteoporotic fracture. The brittle bones of Australians over 50 cost $3.1 billion in 2017 and the total cost over 10 years will climb to nearly $34 billion by 2022. Musculoskeletal conditioning can provide solutions, says Perry Eckert, managing director, OsteoStrong Australia and New Zealand. “At OsteoStrong we also work in cooperation with medical professionals. We fill in the blanks relating to exercise dosage for people with low bone density, poor balance and muscle tone, which we know indicates a high fall and fracture risk.” Eckert says OsteoStrong can deliver results across a broad demographic, even

NOV/DEC 2018 | 83 | WWW.FRANCHISEBUSINESS.COM.AU


INDUSTRY SPOTLIGHT

for children, who up to age 20 are still building bone density. “For serious athletes, OsteoStrong helps strengthen tendons, ligaments, joints and bones so they can recruit more muscles safely. They can build a stronger foundation based on super bone density for high performance explosive action, fuelling their performance on the track or field and helping to make them fractureand injury-proof,� says Eckert. OsteoStrong is a US business that started a decade ago. Recently the equipment and marketing has been updated with the involvement of celebrity figure Tony Robbins. He bought into the business after his wife experienced the services to improve a back complaint and his public backing of the brand has had a significant impact on its growth. There are about 60 OsteoStrong centres open in the US with more than 100 additional businesses to be opening soon. The first international independent centre opened in Sweden earlier this year and already has nearly 400 members. The plan is to open a second outlet in a few

We fill in the blanks relating to exercise dosage for people with low bone density, poor balance and muscle tone, which we know indicates a high fall and fracture risk.

Comprehensive training program

Work life balance

Marketing support

Make your sweetest dreams come true Visit us: thecupcakedesire.com.au/franchsing-now/ Talk to us: Contact Kevin Bugeja on 0412 511 630 / kevin@franchise4u.com.au NOV/DEC 2018 | 84 | WWW.FRANCHISEBUSINESS.COM.AU

No experience required

Now franchis ing


months with the goal of having a total of 1000 members by Christmas. Membership numbers are growing rapidly in Spain, and centres are soon due to open in Denmark, UK, Norway, Iceland, Greece and Malta, and Japan, with a number of other countries in the negotiation stages. In Australia the response has been very positive, says Eckert. “People get the concept very quickly and can see the business potential and understand that this is an opportunity to help thousands of people. OsteoStrong is a blue ocean business with no known competitors and patent-protected robotic osteogenic loading equipment. “No other business in Australia is offering musculoskeletal strength conditioning, which can absolutely change people’s lives in such a time efficient manner.” Hawthorn in Melbourne will be the site of the first centre and the growth plan is focused on 30 franchises in the next 12 months to ensure that the training and operation of each centre is world class and consistent with the

OsteoStrong brand and culture. OsteoStrong centres will have a strong community identity and become education and learning hubs in cooperation with health and wellbeing professionals and allied service providers. Franchisees will be required to adopt this caring culture in all areas of the business operation including staff, associates, community and customers. An ideal franchisee will have an affinity with health and wellbeing, be hard-working and entrepreneurial. They will need good network and communication skills and have some experience in sales and marketing. In return franchisees receive a full turn-key service from site selection, finance, insurance, design, fitout, training, equipment package, opening, accounting, operational and marketing support as well as ongoing support and service . “We are planning to open in all capital cities in 2019–20 including New Zealand. In addition to fixed centres we are also looking for operators of mobile centres, which will operate from

modified Jayco RV vans. These mobile facilities will service retirement villages and communities, corporate business centres and inaccessible country areas where fixed centres may not be feasible.” The partnership with Tony Robbins has exposed OsteoStrong to more than 20,000 motivated people annually through his three events in Australia. “Tony also brings a huge amount of credibility to the brand, because he only partners with businesses that have clear demonstrable benefits for a maximum number of people,” says Eckert. “Partnering with Tony Robbins in early 2017 changed the business strategy and focus entirely. Prior to his involvement the business was primarily catering for the needs-based market, comprising post-menopause women with low bone density. With Tony’s business strategy the OsteoStrong market has now expanded to elite athletes and biohackers and the everyday 30-plus time-poor convenience market who are highly health and wellness motivated.” n

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INDUSTRY SPOTLIGHT

SHAPING UP

Market share

FOR BUSINESS

27.5%

It’s a competitive marketplace but as these figures show, there’s plenty of room to add weight to the franchises in the gym space. The fitness market is increasingly crowded, with new brands emerging almost monthly. Yet as these statistics show, there’s plenty of opportunity for established brands to increase their market share, and for fresh-faced fitness firms to muscle in on the action. High energy fitness junkies are

Fitness First, Goodlife Health Clubs, Jetts Fitness [Fitness and Lifestyle Group TopCo Pty Ltd]

still getting their fix at the gym, but today there are more average Aussies looking to find a way to get and stay healthy. And the depth and breadth of the sector is ensuring there’s something for everyone - and every investor. So if you’re considering running a fitness franchise yourself, check out these vital statistics...

Annual growth

In 2017-18

5.3% 2.3%

Revenue $2.2bn Profit $229.2m Wages $681.9m Businesses 4,418

2013–18

What external factors drive the market?

Health consciousness Average weekly hours worked Real household discretionary income Consumer sentiment index Levels of obesity

2018–23

Other

4%

Genesis Fitness [Belgravia Health & Leisure Group]

3.9% 2.1%

Mature stage lifestyle Medium level of revenue volatility Medium capital intensity Low industry assistance Medium concentration level Light regulation Low technology change level Medium barriers to entry Low industry globalisation Highly competitive

Curves [CJC Operations Australia Pty Ltd]

<1%

Virgin Active Australia

Who is using the gym? 50.1%

Memberships

13.6%

5.1%

Fernwood Women’s Health Clubs

Snap Fitness [Lift Brands]

55.9%

Personal training

Anytime Australia

Industry profile

What services do fitness clients want? 15.4%

14.9%

People aged 15 to 34

Total $2.2bn

31.0%

Total $2.2bn

People aged 35 to 54

18.9%

People aged 55 and over

7.8% Classes

7.3%

Casual entry Source: Gyms and Fitness Clubs in Australia, May 2018, IBISWorld NOV/DEC 2018 | 86 | WWW.FRANCHISEBUSINESS.COM.AU


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INDUSTRY SPOTLIGHT

HEAD OF THE

CLASS

Innovations in tutoring are revolutionising the way children learn while creating fresh opportunities for passionate educators to help young Australians fulfil their potential. Here are three brands fresh to the market. By Sarah Stowe

T

here are big numbers at play in the world of education, with tutoring stepping up to fill in the gaps left by formal schooling. The demand for out-of-hours assistance with learning shows signs of continued growth as parents focus on boosting their childâ&#x20AC;&#x2122;s learning capacity and academic results. According to the Australian Bureau of Statistics, in 2017 there were 339,243 children aged four or five enrolled in a preschool program. The Australian Tutoring Association drew on ABS figures

to reveal 35,000 tutors were working full time in 2017, with the figure predicted to rise to 39,400 in 2022 [ABS Labour Force Survey, Department of Jobs and Small Business trend data to May 2017 and Department of Jobs and Small Business projections to 2022]. While tutoring businesses are well established in Australia with some wellknown brands operating in the franchise space, there are new players on the scene offering a different approach. Here, Inside Franchise Business discovers three distinct business and teaching models.


INDUSTRY SPOTLIGHT

MINDCHAMPS

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s education about curricula and measurement, or is it developing a way of thinking? David Chiem, the founder of the MindChamps learning model, believes there needs to be a shift in mindset from the way children have been taught to think. Popular perceptions about learning techniques were developed about 20 years ago, he points out, and today’s digital world needs a fresh approach. And it’s one that harnesses creativity. “If art is a mirror for society, it’s not enough to be a mirror alone. Education should be a toolbox to building the future,” he says. MindChamps’ teaching philosophy is based around research on how the brain learns. And for teachers to not understand the learning process is like a director not understanding how to work with actors, he says. This is something he’s familiar with. The Vietnamese refugee came to Australia with his family aged nine, and as a 14-year-old was the first Asian to

appear in a lead role in a popular TV series [Butterfly Island]. Despite his father’s preference he take up medicine, the academic high achiever went on to study acting, securing roles in iconic TV shows A Country Practice and Sons and Daughters. It was when he was exposed to the idea of learning the craft of film-making that he had a mindshift himself. Chiem realised learning is a craft that could be taught, and there was a gap in teaching that limited the ability of many students to fulfil their potential. He began researching neuroscience and educational psychology, and how theatre skills could have a role in creating a learning mindset. And so the idea of MindChamps was born. At the heart of the teaching philosophy are three distinct elements: The Champion Mind celebrates an individual’s uniqueness, going beyond conventional wisdom and overcoming adversity to achieve success. The Learning Mind provides strategies on learning how to learn that actively assist any learner to understand, store, recall and

synthesise information and concepts. The Creative Mind connects multiple perspectives and integrates them to solve problems and generate new, creative ideas. A lot of the work behind the tutoring business is based on empirical evidence, he says, and he has published six books on the topic. “It’s nurturing every individual to be the best. There’s no point in comparing kids. It’s about celebrating what is uniquely them. The measure is that they are not afraid to be themselves,” he says. “The value system at MindChamps is 100 per cent respect of ideas but zero fear.” It’s important to keep teachers inspired to learn, and there’s a global buddy system for teachers. Although Chiem set up the MindChamps concept 20 years ago in Sydney, he took the business to Singapore to test it in the highly competitive education market. Now there are 40 centres there and Chiem claims more than a third (38.5 per cent) of the preschool tutoring market; the business is about to roll out a year K–12 program, and then add tertiary education.

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The value system at MindChamps is 100 per cent respect of ideas but zero fear. It’s important to keep teachers inspired to learn, and there’s a global buddy system for teachers.

MindChamps is a global business today, with a presence in China, Vietnam, UAE, the Philippines and now Australia. So why franchise? “It allows people who are deeply passionate access to the science. About 80 per cent of franchisees are parents who approach us.” “If you want to put on The Phantom of the Opera in 1000 cities simultaneously, how would theatre do it?” he asks. The consistency is crucial. Guarding intellectual property is also important to make sure people’s investment is protected. There’s a global approach to maintaining the MindChamp way, and that means ensuring the training is compulsory and stringent to keep the integrity of the programs, he says. Ten businesses across three groups in Sydney have been acquired for conversion to MindChamps and these will showcase the brand in Australia. The second phase is to ramp up franchising and generate parallel growth across corporate and franchised outlets. Find out more at https://au.mindchamps.org/.

DYMOCKS LAUNCHES POTENTIA

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he tutoring sector is highly fragmented. That’s the view of Steve Cox, managing director of the Dymocks Group, which has just stepped into the market with a brand new business, Potentia. “We offer a point of difference,” he says. “No other tutoring business is part of an Australian business focused on supporting readers. If you look at the results from schools, and the ranking of Australian students, there is certainly the opportunity to support learning outcomes. There’s a natural tendency for families to want more,” Cox suggests. And he believes that Potentia is the brand that can offer an approach to really make a difference. “It’s about inspiring confidence in children. We want children to enjoy the learning experience and this is giving them life skills to support their future learning. “This is learning on a holistic level, it’s about the whole student experience. We work with educational psychologists to ensure it’s backed by rigour.” Mohan Dhall, the former head of the

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INDUSTRY SPOTLIGHT

Tutoring Association of Australia, brings psychology and counselling experience to the business. Cox stresses that the learning program is not just focused on achieving the best marks, but stress and time management and personal development techniques. It’s a fresh approach focused on agile methodology, new learning materials and enhancing the systems and student experience. “We’re different. We have electronic systems and individual performance tracking,” Cox points out. The technology allows the tutors to tailor learning to the individual and provide ongoing feedback on progress and achievements to the student and parents. He believes parents are looking for a trusted brand and name, something that a Dymocks-backed business can offer – next year the bookstore chain will have notched up 140 years of trading. The Dymocks experience also brings a focus on making decisions based on viewing the business through a customer lens, suggests Cox. Of course there’s a nice tie-in between

the book retailer and an educational establishment. Yes, students will be referred to their local Dymocks store, says Cox. “We’ll be leveraging our experience in the book space to make sure students have what they need, and there will be cross-pollination.” It’s a field Cox is familiar with. Under the Dymocks Group umbrella sits the former Telegram brand, now renamed Milligram. It’s an award winning stationery store and has the rights to distribute the Moleskin notebook range. The parents on the search for tutors will have a similar mindset to the Dymocks’ customer, he points out: three demographic groups described by Roy Morgan as socially aware, visible achievers, young optimists – these are the people purchasing 70 per cent of the books in Australia. There is a good synergy as a group, he says. “There are business opportunities for growth. Education has been chosen as a substantial market and there is the opportunity to enter the market as a small player in the global market, and offer a real point of difference, be customer

focused, agile and nimble to deliver what we think customers want. And build a lot more in the educational space; tutoring will be the start.” As the Potentia business develops, the structure will take on a clear framework of larger hub locations with satellite sites in smaller locations regionally. The first two centres are company owned and Cox plans a further five next year. Potentia will be franchising from July 2019, offering K–6 literacy and numeracy, high school, holiday and online learning programs. “We did a lot of customer and market research about tutoring services. A lot is cash in hand, local kids tutoring neighbourhood kids. But they don’t have systems, learning methods, privacy rules, Working with Children checks.” The hubs will house up to seven classrooms, breakout areas and space for one-on-one sessions for a tutor and student. “The sites will be built from the ground up and will have the latest technology and informal study areas. If you’re a student you can drop in and do your homework there.

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It’s a safe place to share ideas,” Cox reveals. “A lot of curricula is changing nationally, and we’re writing so it complies. We think educators are key to this. Trained teachers are tired of bureaucracy or admin, they just want to teach. For many people this is the ideal opportunity to work for themselves, to run their own business with confidence and the structure we can provide.” Find out more at potentia.edu.au.

TUTOR DOCTOR

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n 2003 a new concept in tutoring was emerging in Canada, proving to be such a success the business turned to the franchise model to increase its impact on the world of education. Fast forward to 2018 and there are 500 offices operating in 16 countries. Boosting the academic performance and skill sets of school age students has proved to be good business. The business works because key educational concerns cross national borders, says Tutor Doctor’s president, Frank Milner – for instance, the problems of students getting lost in growing class sizes, and a

one-size-fits-all approach to learning. What’s different about this brand of tutoring is the focus on taking the learning to the student’s home. A one-on-one approach ensures students are getting the attention they need, and it fills in the missing pieces, says Milner. Tutors work with the student to find their optimum learning style. “Education is a big issue but this is not curriculum based so we work with the student’s curriculum, and textbooks and assignments. It’s a very transferable business. Franchisees have joined us to change the trajectory of a student’s life,” he says. “The results are huge. It’s the match of student and teacher and a personal learning style. That’s when the magic happens,” says Milner. Parents can be reassured by the process behind the business: there’s flexible scheduling to suit the client with transferable hours to any household member; regular feedback and progress reports; tutors who have been personally interviewed and reference checked, and have a mandatory Working with Children check. The Canadian-born business has been

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spreading its message of personalised tutoring across the globe: in the UK nearly 60 franchises have opened in eight years. Of the 11 Tutor Doctor businesses in Australia, four are in Sydney, and a Victorian franchisee is poised to join the network. It’s early days still for this brand, which has successfully used the franchise dedicated expos around the country to drive interest and engagement from potential franchisees. “The challenges of a head quarters in Canada is the distance and time difference, from an operations and support perspective. I’ve put in a country manager but not yet ramped up the presence.” Now Milner sees it is time to shift the gears and get more franchisees involved with this low-cost tutoring model. Franchisees don’t need to be tutors and the opportunity to work from home means the benefits are immediate: low overheads with no leasing, equipment or site fitout required. There’s no inventory, and the model ensures prompt payments bring in cash flow from the start. Find out more at tutordoctor.com.au. n


FRANCHISE BASICS

REBUILDING FRANCHISE

CONFIDENCE

This is the FCAâ&#x20AC;&#x2122;s final submission to the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into the operation and effectiveness of the Franchising Code of Conduct, September 2018. MARY ALDRED CEO, Franchise Council of Australia

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he Franchise Council of Australia has been following the submissions and testimony with interest, and acknowledges the constructive efforts invested throughout this process to improve the sector.

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It is essential that the Australian community have confidence in the franchising sector. That confidence has been damaged in recent times and needs to be rebuilt through meaningful and transparent steps. The FCA is not prepared to excuse incidences of poor behaviour or standards. Allegations of wrongdoing should be properly investigated in a timely manner, and if proven, dealt with accordingly. The Franchise Council of Australia is not

a regulatory body or watchdog. We have a set of member standards that our members agree to abide by but we cannot apply legal penalties for wrongdoing. That role rightly sits with the regulator. We do seek to work with our members and the broader sector to drive compliance, best practice standards and education. We provide our members with information about their compliance obligations, emerging regulatory issues, and access to education resources, as well as our broader

policy and advocacy work. Some of the franchise businesses that have appeared to before this inquiry to answer questions are members of the FCA. A number of others are not members. Nonetheless, they are all franchise businesses and any incidence of wrongdoing, proven or indeed disproven, tarnishes the entire sector. A number of the stories that have emerged through this inquiry are sad and disappointing. Some of them highlight simply inexcusable behaviour. This inquiry is different to other franchising inquiries for a number of reasons: • It has occurred quite close to a previous inquiry from 2013, and in the context of a regulatory framework that has been comprehensively reviewed. • The regulatory framework is consistent with others around the world, and seen by many as structurally world’s best practice. • Despite these facts, it remains that there is clearly an unacceptable level of behaviour in the sector. This is probably the biggest crisis in confidence in franchising the sector has ever seen. The two most significant questions that should be asked are what has gone wrong, and where do we go from here to repair these problems? Today, we wish to give you our thoughts on those key questions, along with our perspective on how to best do that. We have listened carefully to the stories and testimony that have been provided to this inquiry. We have read the submissions and followed closely the questions asked and the answers given. There have been constructive and thoughtful ideas put forward, and through tabling a supplementary submission the FCA would like to provide our response to these issues, provided as late as last week’s hearing, for your consideration. We have identified a number of key themes distilled from various submissions to the inquiry, and commented upon them in our Supplementary Submission. In this opening statement we would like to pick just a few, which we see as being the most critical: • The submissions feature an unacceptable number of allegations of conduct that are a breach of the current law. That is intolerable, and those franchisors need to be held to account. • The current compliance and enforcement regime is breaking down – franchisees and the public are entitled to expect that existing laws will be effectively policed and consequences will flow from any breaches. The ACCC needs to be more proactive and not solely reliant on a complaint-activated process. There seem to be gaps between the expectations of the public and franchisees, and the actions of

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regulators and agencies such as the ACCC, SBFEO, OFMA, state Small Business Commissioners. • Far too many franchisees are not obtaining legal and business advice, undermining the duality of obligation that underpins the Franchising Code – responsible franchisor behaviour, and franchisee due diligence. The FCA believes it is time to make obtaining legal and business advice mandatory, subject to very limited exceptions (low value deals, existing franchisees, sophisticated investor etc.). • Although most complaints have been framed as franchising complaints the real underlying issues are often industry issues – motor vehicle industry, retail food businesses in major shopping centres, convenience stores etc. Of those the biggest concern to the FCA is the conduct of major shopping centre proprietors – anti-competitive conduct in their controlled markets, and end of term lease negotiations being the most critical. We have some specific recommendations: • Mandatory legal and business advice. • The introduction of a mandatory registration requirement, administered and funded largely by the franchise sector but augmented by relatively simple enabling amendments to the Franchising Code and dovetailed into existing ACCC enforcement activities. • Refinement of the ACCC’s compliance checking processes and enforcement actions to be more proactive and effective. • Consideration of reinstating a simplified form of franchisee to franchisee disclosure. • Support of some (but not all) of the amendments requested by the ACCC. • Improving the effectiveness of the Code’s dispute resolution mechanisms. • Translation of the Information Statement into multiple languages. • Review and enhancement of pre-entry educational content, with a focus on broader business skills and the needs of new entrants to Australia. • Compilation of an Australia-wide list of franchising lawyers and advisors to better facilitate legal and business advice, together with support materials to improve the quality of advice. There have been serious issues raised in this inquiry, and they deserve a serious response. The FCA is committed to improving standards and behaviour in the sector and driving a focus on education and compliance. Franchising is a major employer and contributor to economic activity in Australia. The sector employs over half a million people. There has to be a future for franchising in Australia, and that future must provide a secure and confident sector to invest in, and be identified as an employer of choice. n


The DeckSeal Franchise gives you the opportunity to secure your financial future and create a better work life balance for you and your family.

BE PART OF A REWARDING FRANCHISE WITHIN THE SERVICE INDUSTRY We are a unique business, delivering in an extremely underserviced market space. DeckSeal offers everyday people the perfect opportunity to capitalise on their existing skills or quickly build a new set without the burden of learning a new trade. Full training and ongoing support are provided along with operational manuals. Specialists in all aspects of timber restoration, preservation and outdoor maintenance, we undertake a wide range of projects including: decking, timber cladding, fences, screens and garage doors to name a few. A timber deck is an iconic part of the Australian outdoor lifestyle and a key feature in countless homes across the country. Come and “Restore the Old & Preserve the New” with DeckSeal!

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ESSENTIALS

What is the marketing support you can expect when you invest in a franchise?

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o start with, you’ll be looking for a business that already optimises its branding. You’ll want to find a company that has a good recall among consumers, which understands how to use a mix of marketing channels to achieve success with its message, that invests in market research to ensure the channels and goals match the audience, and is committed to investing in communicating core messages to customers.

Digital marketing can include direct marketing to an email address, social media videos, content marketing to be distributed on websites, and advertising through search engine marketing and pay-per-click marketing. Unless you are a marketing guru yourself, you’ll be looking for a franchise marketing team that has a clear understanding of how to use these tools to achieve results, and can keep campaigns fresh and relevant.

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FRANCHISE BASICS

MARKETING


FRANCHISE BASICS

Franchisees can benefit significantly from a high level of marketing support that helps deliver strong national campaigns to increase brand awareness, and provides tools and guidelines for local area marketing.

Franchisees can benefit significantly from a high level of marketing support that helps deliver strong national campaigns to increase brand awareness, and provides tools and guidelines for local area marketing. It is common for franchisees to spend on promoting their own business in the neighbourhood, whether through traditional channels such as letterbox and print advertising, through social media channels, and through sponsorship and community support. Franchisors may provide templates and approved material for franchisees to utilise in certain channels, or may instead insist on an approval process for marketing collateral generated by the franchisee. Marketing should be directed at ways to both attract and retain customers, and the tools and strategies on offer should be based on solid market research. Of course marketing can take the form of one-off events that engage

new and existing customers. Soul Origin’s barista finals competition for instance, that took centre stage in Sydney’s Martin Place earlier this year, attracted big crowds and enhanced the brand’s coffee profile by emphasising the creativity and professionalism shown by its baristas.

OMNICHANNEL MARKETING It’s important for any franchisee to understand how the franchisor will handle omnichannel marketing that takes place in store, online, through an app. It’s important to understand whether or not the franchisor will be selling its services or products directly online. If customers are buying the same products available in a franchised outlet, what happens to the profits from these sales? It’s increasingly common for franchisors to ensure the franchisee who would otherwise have

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scooped the scale gets some financial benefit from an online purchase - this is usually decided on a geographical basis. Technology is crucial to operating a business today, and any franchisee needs to be aware of all the opportunities that exist in the brand to market and sell. Will the franchisee be allowed to sell online? If a franchise operates a mobile app in the fast food arena, it’s likely the franchisee will be paying towards the cost of the technology that is delivering extra orders to their business.

RULES AND REGULATIONS It’s important that franchise buyers consider what the disclosure document and franchise agreement reveal about marketing and alternative selling techniques, the costs entailed, and any restrictions on trading. Franchisors will of course be charging for the marketing they

generate nationally: typically a marketing fund fee will be between one and five percent, so it pays for the franchisee to have confidence in the marketing decisions made at head office.

If customers are buying the same products available in a franchised outlet, what happens to the profits from these sales?

There are specific rules about the marketing fund enshrined in the Franchising Code of Conduct; the recent

parliamentary inquiry into the code’s effectiveness has raised concerns about how the funds are being used by some franchisors and may result in stronger rules being applied in the future. For now, look for a franchisor who is transparent with its marketing fund and marketing information so you can trust the process is best targeted to franchisee success.

BRAND BRILLIANCE It’s good to remember franchisees have their own roles to play in boosting brand prominence and ensuring consistency and compliance across the network. Staying on message is important for the brand, and the advantage of a franchise is that the message can be delivered to you. The marketing team can come up with the concepts, decide the best channels, and provide you with the best ways to enhance your business and boost customer loyalty. n

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SNOOZE MAKES BUYING A BED AS EASY AS 1-2-3 Everyone is different We all crave comfortable in our own unique way. When it comes to mattresses, why would one mattress feel the same for a 130kg person as it would for a 55kg featherweight? The simple answer is, it wouldn’t. Each of us have different sleeping positions, varied weights and builds, potentially different sleeping habits and health issues, the idea that one mattress can be designed to fit everyone doesn’t make sense. How could 25 cm of foam feel the same with different weights and pressures applied? This challenge alone fuels demand in the mattress & bedding industry.

Uniquely owned system How does a mattress & bedding company stand out from the rest within the industry? An ownable system that is unique to the business, and adds value to the customer experience, can help create that differentiation. At Snooze, our new Snooze Profiler® can help customers choose a bed that’s right for them. The process starts with the customers answering a few simple questions about how they live and how they sleep. Then they try the test bed, a fun way to figure out their preferred mattress-feel. It only takes a few minutes and the customer will not have to spend time testing every mattress in the store.

Customised products to individual’s need Customers desire personalised items that fit their needs. The days of one size fits all are long over. A business that offers customised product helps feed this growing demand for choice. A customised product helps with a more personalised customer experience, and may lead to stronger customer loyalty. Snooze offers a range of products that cater to this demand. One example is the

SleepTailor® mattress and base range. It’s designed with the individual in mind, especially if a couple have different ideas about how they like to sleep. Each SleepTailor® mattress offers dual feel options and independent support systems for each side.

Innovation - Convenience of technological tool An investment in innovation and a drive to adapt to the market is essential for continued business growth. Snooze has an online tool known as bedBUILDER®, that makes it easy to customise a bed and see it come to life. A customer simply chooses a headboard and base in the finish or fabric of their choice, saves it for later, or sends the design to a store to have it ordered. They can also head into a Snooze store to view product samples. With countless combinations, the choice is entirely theirs. Visit a store to experience Snooze Profiler® for yourself, or for more information about becoming a Snooze Franchise Partner, contact Bettina Davis bettina.davis@snooze.com.au | 0423 077 844

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A LOYALTY PROGRAM? Why a cash-strapped newbie franchisee should look to a customer loyalty program. AMANDA STEVENS Consumer trends and customer experience expert

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hen you think loyalty program, you probably think big, flashy brands with big bucks to spend. Maybe you think of the local gym franchise, with gold plated loyalty cards and rewards worth thousands of dollars. Or, maybe you think of big department stores who offer large discounts which your business just can’t afford. But loyalty programs are an excellent technique for any business, of any shape or size.

WHY LOYALTY PROGRAMS WORK Loyalty programs have been around since retail was invented (almost!). They work because they tap into how our brains function. We are all wired to respond to rewards & recognition. Our work, our relationships and our habits are all dictated by reward. Loyalty programs use this behaviour to encourage customer loyalty. People love to feel appreciated. They also love the feeling of a getting a good deal! Loyalty programs achieve both of these things.

WHY YOU SHOULD HAVE ONE Loyalty programs are not just for big businesses who have tonnes of cash to splash around. They are for everyone. Why? Because they pay great dividends! Loyalty programs produce results.

Here are four reasons, you need a loyalty program: 1. Guarantee return customers. 2. Create sales. 3. Increase brand familiarity. 4. Get referrals. Loyalty systems are a great technique for growing businesses to acquire loyal customers and capture the attention of new customers. Loyalty programs don’t have to be expensive or complicated. If your franchisor does not have a loyalty program installed you can invest in relationships instead. The aim of a loyalty program is to make your customers feel appreciated. BE GENEROUS I know, your budget is tight. But, loyalty programs are worth investing in. Why? Because you get your money back! There is no point in offering customers rewards that are petty - they won’t appreciate or use them. A stingy loyalty program is worse than no loyalty program at all. Think of creative ways that you can afford to be generous. Whether you choose to give discounts, freebies or some other form of reward - be generous. My top tip for cash-strapped businesses is to partner with another business and offer their services or products through your loyalty program. They may be happy to arrange a budget friendly or pro-bono system in return for the exposure. WHEN IS THE RIGHT TIME? So, is it too early to start a loyalty program?

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No. If you have an newly established business with some clients, you’re ready. Here are the next steps: • Think through what you can afford. Talk to the franchisor’s marketing team to find out what is affordable and effective. The franchisor may already have a loyalty program tailor made for your client base. • Ensure personal contact at every stage possible. This is especially important for small businesses. • Make them feel the love! The more rewarded your customers feel, the more likely they are to be loyal. Loyalty programs are popular for a reason - they work. If you want to drive sales and increase customer loyalty, you can’t miss this chance. Don’t be intimidated by other businesses’ programs. It’s not about how much money you have or how many clients you have. It’s about expressing genuine gratitude, generously. n Amanda Stevens is an author, speaker and consultant on buying trends and customer experience.

FRANCHISE BASICS

IS IT TOO EARLY TO START


FRANCHISE BASICS

GET WITH

THE PROGRAM

Here are 15 reasons why a retail franchisee should acquire, store, manage and track customer loyalty data. SAMEER BABBAR CEO, SVB Group

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loyalty program is a popular marketing tool for retailers. So if you’re investing in a retail franchise it’s important to understand the value of loyalty card data. Here’s why.

REASON #1: CUSTOMER RETENTION

According to Bain and Co., a 5 per cent increase in customer retention can increase a company’s profitability by 75 per cent. A loyalty program quite simply helps customers continue to purchase from your store and the reward points accumulated can help the customer benefit from higher levels of service. In exchange, the information received about customers helps retailers to meet their needs efficiently, effectively and engagingly. The symbiotic process helps customers stay customers. The energy starts building once the customers start redeeming points. The data generated by loyalty programs helps to segment customers for sales, marketing and customer service. Customer needs and desires vary based on time, location, occasion, destination and intention. All this can be understood easily through loyalty data.

REASON #2: CUSTOMER ACQUISITION

Once customers start redeeming rewards, word of mouth creates a flow-on effect that brings more interested prospects through the door. You need to make sure you have the mechanisms and reasons for existing, happy customers to broadcast. Do you need to extend your reach? In addition to nurturing existing customers, look at upselling, discounting or cross selling opportunities. An easy way is to identify the demographic and psychographic look-alike segments of existing best customers that fit the criteria. These existing best customers should be progressively targeted as new prospects.

REASON #3: LADDERING UP

Think video game rewards – as customers move up the loyalty tiers they unlock a new set of rewards. Their ability to access greater benefits in turn helps create a more defined profile for the business. This is often linked to increased spending or spending on particular goods or services within a timeframe. This could also be location specific while you are building traffic to a new location that has just opened up.

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FRANCHISE BASICS

REASON #8: MANAGING PRICING

REASON #4: RETIRE UNWANTED CUSTOMERS

These are the customers you don’t want or need. These customers are unprofitable, waste your time, complain without reason and create a bad brand image. You need to retire them immediately (do it now). Losing them will create room within your business to go out and acquire new customers. Some call it cherry picking; we call it well segmented. You may very well send them to your competition. Your loyalty program should reward good customers and not bad ones. You can use a scoring criterion to measure the degree of bad experiences with the customers in conjunction with potential lifetime value. Your loyalty data should easily indicate if the lifetime value and satisfaction levels are rising for that particular customer. Should both be going down for reasons beyond your business, then consider retiring them (this is very simplistic; however, real analysis may need to dig deeper). Philip Kotler’s adaptation of the Pareto Principle suggests that the top 20 per cent of customers generate 80 per cent of the profits, while the bottom 30 per cent of customers eat up 50 per cent of the profits that the others produce. This is a good reason why you should aim to eliminate, sack or fire dud customers.

REASON #6: CREATING SNEEZERS

As Seth Godin1 would put it. These are champions who promote your offerings, exhibiting the highest form of loyalty. They infect others with their passion for your products or services. A measure net promoter score2 is something you should look for if you want to measure the willingness of your existing customers in recommending products and services to new prospects. These sneezers would infect others; in other words they are so passionate about the products or services they received from you, they will tell others about your product. A classic example is Amway, which uses multilevel marketing and this mechanism to garner new business.

If a reasonable number of your best customers are willing to buy a product at a price then reducing the price further simply suggests you are attracting occasional cherry pickers. These may not be entrenched enough to give you an ongoing revenue stream. With loyalty card data it is easy to find established customers and their willingness to pay3 based on past purchases or discounts. This information can be drilled down to customer segments, and the most profitable pricing for a product or service can be set.

REASON #9: COMPETITIVE RESPONSE

Using the loyalty data it is easy to link purchases to customers and you can then identify the customers that are likely to move to new competition. They can be lured back by providing customer-specific special offers or by direct outreach. Using loyalty data, it is easy to differentiate between regular shoppers and others and incentivise regular shoppers via mail or electronically when a new competition opens up and starts operating in the area.

REASON #7: SELECT NEW TRADING SITES

REASON #5: WIN BACK CUSTOMERS

It is easier to contact previous customers who have not used your business for a while than it is to attract unknown prospects. Once you have customer information in your database it’s easy to get in touch, either using existing communications channels or finding new platforms to engage with them – options could be email messages with vouchers if postal notifications haven’t worked at getting the customer back to your store.

Poor site selection can be a significant drain on infrastructure, resources and the mojo of the company. Selecting a new store location can be done easily by loyalty card data. It enables you to find the profile and demographics of existing best customers, and then find the demographic and psychographic lookalike for new locations. Additionally, if the addresses of existing customers are known they can be plotted geographically and a new location can be identified where there are large numbers not served by existing stores.

REASON #10: CUSTOMER LIFETIME VALUE ENHANCING

In the simplest terms the profit from each customer should be more than the cost of acquiring them. It is the calculation of net profit from a customer during the entirety of relationship. In mathematical terms it is the net present value of projected future cash flows from business from a given customer. Retaining customers and getting them to keep coming back is part of the game. As an example, if a business loses 30 per cent of its customers each month and does not acquire any new customers, in five months they will have no customers. An enhanced customer lifetime value (or CLV) will increase the value of business.

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Joining the FCA Become a Franchise Council of Australia Member Membership of the FCA is voluntary, and open to any organisation or individual involved in the franchise sector, including franchisors, franchisees, lawyers, accountants, banks, consultants, academics, publishers - plus many others. Benefits of Membership Representation of franchising sector perspectives to government A voice in your association Franchising public relations Excellence in Franchising Awards NextGen in Franchising: International exposure Network and learn at regular industry events Education: Internationally recognised CertiďŹ ed Franchise Executive program National Franchise Convention: Australiaâ&#x20AC;&#x2122;s largest annual franchise event FCA branding Website directory advertising Enquiries and Further Information E info@franchise.org.au W www.franchise.org.au


FRANCHISE BASICS

REASON #11: BEST CUSTOMER MARKETING This concept simply suggests identifying the best customers and then spending energy, time, money and resources on them to maximise return on investment. You can then look at moving the customers who are not best but not far from the best customer criteria into the best customer pool or stop serving them. This might sound like a ruthless approach, however it pays to serve the best customers and make room to invite other best customers in.

REASON #13: RELATIONSHIPS

Most successful businesses reduce the friction between the customer and transaction, irrespective of type of business (online or offline). The reduction in friction simplifies the customer journey, feeding the energy back into relationship building and increased bottom line profits. If the customer tries to move to another provider, the increased friction of transaction elsewhere will bring them back to you. You would have come across the saying “It’s who you know” – the purpose here is to reduce the transactional friction by dealing with someone you may already know. That said, you need to choose who you want to build relationships with. Attempting to partner with all customers, regardless of their characteristics, might not always be the best way forward as you may end up picking dead weight.

REASON #12: EFFECTIVE STOCK SELECTION Keep the stock in line with what the best customers buy frequently and expand on those lines. When you align the stock to the most profitable customers, the entire store becomes more appealing to your best customers and prospects who are similar to your best customers. It is a slow process but is a combination of inviting customer “lookalike”. Self-selection and exclusion of customers who don’t fit your best customer category occurs by using this process. In terms of stocking, you can gradually remove the lines that your best customers don’t prefer and add the lines they do, and gradually your business will be shaped in line with the market you wish to serve. Take an example of a Louis Vuitton shop, with security at the entrance and a queue that only allows a certain number of prospects in the shop. They make you feel elated and privileged to enter the business premises. This works as a filter to keep out those who are unlikely to buy, but the sense of privilege boosts the willingness to pay for those who may be sitting on the fence.

REASON #15: OPTIMISING SPEND ON PROMOTION

Moving to targeted advertising. Instead of sending out thousands of flyers of which a significant chunk is thrown away, or newspaper added that people skip as irrelevant, targeted advertising reaches out to individual customers providing a tailormade offer. This can be done via email based on past sales. The more sophisticated type of loyalty program can target advertising material almost individually to its many millions of members and can accurately measure the response rates to those advertisements. UK supermarket Tesco does this. Its Clubcard magazine, packed with targeted money-off coupons, is mailed to approximately 13 million customers four times a year. Not only does this form of advertising save Tesco money, it earns it money. Should your customers be also online you can use tools from companies like Digital Envoy4 to tailor your entire website based on customer’s preferences and past purchase; further you can use their IP address to identify their location or shopping behaviours. n

LOYALTY CARD DATA

REASON #14: MERCHANDISE PLANNING

When you run a basket analysis for a set of customers you can identify which lines or products are bought at the same time, and in particular which are bought by your best customers. Planograms (placement of products in 3D) can then be planned accordingly to encourage cross-purchasing. Basket analysis without any loyalty program is sufficient for this purpose. However, once you include detailed knowledge of who the customer is, their spend, where they live, work or travel, then you can decide whether it is worth putting a display of items that are bought together by a specific segment of the market on a specific day of the week.

For each loyalty point you award customers, you can collect information about their shopping habits. This can be leveraged in many different ways in addition to providing very targeted offers. You can understand if a particular customer responds better to vouchers or pays by credit, debit card or cash. If your customers are part of loyalty program, you can build up their demographic and psychographic profile, what is bought, how much they spend, where they live. You may just find gaps in the market and market in the gaps using this strategy. Sameer Babbar is CEO of strategic analytics firm SVB Group and works with franchisors on location analysis and analytics.

https://sethgodin.typepad.com/seths_blog/files/2000Ideavirus.pdf The One Number You Need to Grow Frederick F. Reichheld HBR, DECEMBER 2003 3 How to Find Out What Customers Will Pay Rafi Mohammed HBR, SEPTEMBER 07, 2012 4 http://info.digitalelement.com/?gclid=EAIaIQobChMI9Y6sod6i3QIVQj5gCh0r5AGpEAAYAiAAEgJ6XfD_BwE 1 2

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FRANCHISE BASICS

HOW TO GET CUSTOMERS

IN THE DOOR When you get the keys to your franchise business, sourcing customers will be top of mind. KELLI PONTING The Marketing Lab

I

f you were to ask Google for ideas on driving foot traffic to your business, you’d be flooded with suggestions like “run a massive sale” or “hold a VIP event”. Then there’s advice to do a letterbox drop or boost a Facebook post to spread the word.

Sure, from time to time there might be an unexpected change in your business that prompts a more reactive approach to attracting customers. If you have seasonal demands in your business, your franchisor might organise something specific for your brand to drive an increase in foot traffic, but as a whole, getting customers through the door is no longer a discrete or standalone activity. Customers today are overwhelmed with choice so getting a potential customer through your door is no longer the end game: ensuring they buy from you is. Customers travel through a series

of steps before they even set foot inside a local business and every step further defines their buying experience with you. Each part of the journey has a different objective, requires a different message, and uses different marketing channels. If you are focusing your marketing efforts solely on driving foot traffic, you are missing out on opportunities to engage and connect with your customer. The Marketing Lab segments this customer journey into five stages.

1. STIMULUS This is about advertising and helping a potential customer identify their need for your product or service. This covers the brand campaigns that your franchisor is doing on your behalf, it’s the social media paid ads you run, and it’s the bus stop signage and the letterbox drops you do. All of these things contribute to helping a customer realise

they have a need and that your business can meet those needs.

2. SEARCH Once a customer has recognised they have a need, the next step is to look for a business to fulfil that need. This may come days, weeks or months after they’ve seen your (or your competitors!) ad, so your business must be easy to find. The physical location of your business, signage and in-centre directories, and your online presence, all matter here.

3. REPUTATION Once a customer has found you, they are likely to try to validate if you are the best choice for them. We’ve known for a long time that referrals are powerful, but now public consensus can sway a purchase decision and impact your brand. Now

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4. CONVERSION This is the magic that happens at point of purchase. Being a part of a franchise brand, you already have a big head start in this space over non-franchise businesses. Your product and services have been refined and your systems and process facilitate a great transaction. Customer service and how your staff interact with your customers is where you should focus your attention.

5. EXPERIENCE The experience your customer has with your business continues after the purchase itself and the fact is, it costs less to connect with an existing customer than it does to find a new one. Loyalty

programs, VIP events and nurture programs all encourage your customers to come back. Some franchises use a customer service metric that allows customers to score out of 10 – a net promoter score of 8+ equates to a brand advocate. A significant advantage to owning a franchise is you have a powerful brand behind you that immediately builds credibility for your business. Your franchisor is also likely to be taking care of some of your marketing initiatives at each stage of the customer journey, which is fantastic. As you get closer to the customer purchase point, local area marketing becomes more and more about your story, and this where you can really drive results for your business. Build out a marketing plan, align it to your franchisor marketing activities, and start with small steps to improve how you connect with your customers at each stage of their journey. A switched on franchisee will plan their local area marketing to differentiate their business from their friendly fellow franchisee neighbour. Focusing on each step in the customer journey will build stronger relationships

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If you are focusing your marketing efforts solely on driving foot traffic, you are missing out on opportunities to engage and connect with your customer.

and there’s a good chance that you’ll have more than strong foot traffic, you’ll have a strong bottom line. 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 local area marketing, from planning through to activation. Kelli holds an MBA and is an approved advisor with the Advisory Board Centre.

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FRANCHISE BASICS

more than ever, your online reputation is vital. Supporting and engaging with your local community, keeping your social channels fresh and on brand and acknowledging positive and negative reviews are all ways you can improve your potential customer’s opinion of you.


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FRANCHISE BASICS

MARKETING THAT BOOSTS THE BOTTOM LINE Taking the time to get clear on your goals, to know your local area, and to understand how much it costs to acquire and keep a customer will ensure your marketing is a valuable asset to your franchise business.

W

e had the opportunity to sit down with Sara Berry from Marketing Sense to ask her a few questions about marketing your franchise. Berry was responsible for the launch both locally and nationally of the Fly Buys program for a large national travel chain. Berry has worked as a marketing professional for 26 years on both large-scale brand campaigns and local area marketing – so as you can imagine, she has some excellent insights into how brand and local area marketing work together for cost efficient and effective marketing strategies for long term growth. Q: One of the most important aspects for franchisees to understand is whether or not a marketing initiative adds any real value to the business’s bottom line. What is the single most important thing that a franchisee can do to ensure they are getting value from their marketing investment? SB: Any marketing campaign must begin with a clear objective of what you want to achieve – that is a measurable objective. You can relate this back specifically to a “problem” that you wish to solve. For example, increase trial of your offering. If you have a gym, for example, your objective

might be to increase the number of people into your gym. You then need to determine the type of people who get the most value from your gym and who are most likely to buy after they try. Next you need to determine a timeframe for your campaign and how many people you hope to get into your gym. From this exercise you will have set a clear objective – number of trials/sales over XX period with a value of $ to your business. What you also need to build your understanding on for each marketing initiative that you run, is how much it costs to acquire a customer. This will help you to determine your marketing budget for future initiatives – this is your cost per acquisition. The cost per acquisition is a marketing metric that measures

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FRANCHISE BASICS

the cost of a customer taking an action. The action could be a sale, a click, a sign up, or a store visit. So if your marketing campaign cost $1000 and you got 10 sales then your cost per acquisition is $100. If the sale is the purchase of an ice cream for which your profit is $3 – this cost per acquisition is probably way too high! However, to understand the whole picture, you need to have a very clear understanding of the dollar value of each customer, which considers the average profit per customer and the length of time they purchase with you/are a customer – the lifetime value of your customer. So you’ll want to make sure that the lifetime value of your customer and cost per acquisition is correct and that you are not paying more to get a customer than what they are worth to your business! The key takeout here is to be clear on what you want to achieve and both the cost and profit involved. Marketing done right is an investment not a cost. It is also a process, and if you approach it like one you will see the bigger picture of the value of marketing to your business. Q: What is the purpose of local area marketing? SB: The main reason franchises are so valuable is because a great deal of the hard work has already been done. The franchise has already worked out the winning formula and how to create value for the customer. The role of the franchisee is to understand how to leverage from that valuable position in their local market. The branding and large-scale marketing of a franchise group will have been researched and developed by marketing professionals. Over potentially many months and even years, a team of people will have been committed to working out the marketing strategy: the products, the price, the ideal client, the competition, market gaps and opportunities and how to build not just a brand but a relevant, engaging and trustworthy brand that people want to engage with and be a part of. The franchisee’s role is to tap into and leverage from that valuable brand through local area marketing initiatives. Some examples of local area marketing include sponsoring the local footy team, running locally geo-targeted social media campaigns, building a newsletter database of your customers, providing stories for your local press and TV and tapping into local events and community occasions. If your franchise is located in an area that is not familiar to you, make sure you undertake some research into the local community. But don’t forget to keep everything on brand; it’s critical that all your local area marketing should complement the overall branding, so it’s always best to refer to your branding guidelines and use the marketing assets provided. n

What you also need to build your understanding on for each marketing initiative that you run, is how much it costs to acquire a customer.

Sara Berry, founder of Marketing Sense, is an internationally experienced marketing professional with 25 years’ experience. Since opening their doors in 2012, Marketing Sense has worked with businesses to develop cost effective strategies for growth.

NOV/DEC 2018 | 112 | WWW.FRANCHISEBUSINESS.COM.AU


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GETTING YOUR SHARE When it comes to profit, it can often seem like “the grass is greener” and everyone else is getting much more than you. But profit is much more than cheap thrills – it’s the pulse of your business venture. PETER ROWE CEO, ProfiTune

C

heck the annual results for the S&P 500 or ASX 100 public companies and you’ll find their 30-year average net profit before tax hovers around 12 per cent (in 2017 S&P 500 was 10.6 per cent). Ask 20 successful small to medium enterprises (SMEs) operating successfully under fair conditions, and you’ll probably find that they are making from 8 to 25 per cent in net profit, with most of them towards the bottom of that range. To understand what that means, it’s the same as working 11 months of the year for nothing and then being allowed to keep the proceeds of your last month. Well, not really, since you are going to fork over nearly a third of that (10 days’ worth) to the government, in tax, before you can keep the rest. In some people’s thinking, profit is a lot like sex in that they believe there’s a lot more of it than there really is, and that someone else is getting their share!

IT’S REALLY A PULSE

you can’t have a good life without one! So you must have a healthy profit to have a healthy business, and while business is so much more than merely making a profit you can’t have a good business without profit. Keeping a constant eye on the health of your business via your profits guards against the self-delusion of thinking that ‘“doing lots” is enough. Use your profit to check whether you’re “doing lots – of the right things”. You can fool yourself – even about profits – but you can’t fool your piggy bank. It’ll tell you the truth every time.

WHAT IS NET PROFIT? Conceptually, net profit is what’s left after paying all the costs of selling something and running the business. Mathematically, net profit % = (sales revenue – cost of sales) x 100 sales revenue 1. Pragmatically, however, none of those captures the truth quite as

Profit is more like the pulse of a business. You must have a healthy pulse to have a healthy life, and while life is so much more than merely having a pulse,

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FRANCHISE BASICS

PROFIT:


FRANCHISE BASICS

succinctly as, “Sales are vanity. Profits are sanity. But cash is king!” To test the truth of that saying, ask anyone in business whose booming sales have run them hard up against their overdraft limit as they’ve scrabbled to find more and more cash now, to buy more and more stock soon, to sell more and more stock – later! It’s called ‘overtrading’ and it’s one way you can be selling profitably – and still go broke. How does this happen? Often the business owner started with a low-cost, low-profit model that attracted lots of attention fast and built early sales, but those sales did not carry sufficient profit with them to begin to create a pool of cash that might then be used to fund future growth.

THE COST OF CAPITAL To start and run an enterprise you’ll need capital. To grow it you’ll need more capital. Capital from investors (owners included) has a price, either at a fixed rate as “interest” or at a variable rate paid as “dividends”, a percentage of the profits generated by its use. In a balanced market, risk and reward vary in direct proportion: the higher the risk the higher the expected reward, dividend or interest. Investors punting their capital on a new biotech company and respecting the high risk of failure may be drawn to the prospect of very high rewards if successful. Conversely, putting money in the bank has little risk and so earns only very low interest. In a small to medium enterprise the risk of going bust is many times higher than for a major bank and quite a few times higher than most of the listed public companies paying their investors 10 per cent or more in annual dividends. Those same companies may also be providing their shareholders with capital growth in the value of their shares. All for just putting their money in and waiting! So if a public company returns its investors 10 per cent or more a year, what should an at-risk small to medium enterprise be returning its shareholders (its owners), especially when they are probably working long hours in the business? Clearly, several times that, but let’s work on 20 per cent for now.

SEPARATING WORKERS AND SHAREHOLDERS, WAGES AND DIVIDENDS In many a small or medium enterprise (SME) the investors work in the

business and from the beginning may subsidise a lack of working capital (free cash) by drawing unrealistically low wages. We’re not here to preach. You do what you have to at the beginning. But there’s a real danger in not keeping score; in not taking your pulse, regularly and accurately, and thereby risking a “cash attack”. Identifying what’s yours for working in the business (a salary package you’d offer to attract someone capable of and willing to fill your role – say $100,000 p.a.), along with what’s yours for putting your capital at risk (a dividend you’d have to offer an investor to put their capital at risk in your business – say 20 per cent), and separating those from the enterprise’s normal working capital, is essential. If an owner invests $500,000 in a franchise license or in start-up stock then the first $100,000 of profit is owed as a dividend or interest to the investor/owner for use of their capital. Trying to run a business by steering via your bank account (“by the seat of your pants”) can mislead you into seeing free cash in the bank as “profit” when in fact it’s actually your unclaimed wages and your unclaimed dividends both hiding the fact that you are making little or no real profit. In fact, you could well be making a loss. That’s where some clear thinking – and a little basic bookkeeping – comes into the picture. If you draw just $500 a week from your enterprise as the bare minimum you need to live on, then your enterprise is accumulating $1500 a week of debt to you, its best worker, and $2000 a week to you, its investor. Mentally deducting $3500 a week, every week, from your cash holdings ($14,000 a month; $168,000 a year) will give you a truer reading of your pulse and a reality check on the way you are doing business.

WHY THE GRASS ALWAYS LOOKS GREENER If there’s not more than that ever-accumulating figure in cash (or saleable new assets or stock) accumulating in the business, then you are trading at an actual loss. So how come you’re still afloat? That’s easy to answer: you’re personally subsidising your business every day with labour and capital to keep it that way. But if the purpose of your business was to deliver you a reward for labour, risk and entrepreneurial initiative, then are you achieving that? Probably not!

So, it’s time to look for cost savings and time to seek out more ideal, higher-paying customers; and only once those two are in place, then it’s time to sell more.

BUSINESS: AS SIMPLE AS PIE In summary, take one simple step to get yourself on track: pay yourself first and pay yourself a realistic salary and a fair return on capital, in cash. Taking this action will scare you into a never-ending commitment to reduce your costs, increase the value of your business, and protect your cash. And if your enterprise hits a tough patch, you’ll know someone who has the cash to make a short term loan – at reasonable rates, of course – until you’re through it. n Peter Rowe is head coach and CEO of ProfiTune. His sole purpose is applying the world’s most effective systems to move his business clients to success: peter.rowe@ profitune.com

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FRANCHISE BASICS

NAVIGATING FRANCHISING DISPUTES:

A QUICK GUIDE A step-by-step guide to resolving disagreements between a franchisee and franchisor. MICK KEOGH Australian Competition and Consumer Commission

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isagreements between a franchisee and franchisor are never a welcome development; they can be a distraction for both parties, who each have businesses to run. Where issues do arise, a dispute can sometimes follow. In cases like this, knowing what steps you can take to resolve the issue is very important, and can save both parties time and money.

FIRST STEPS FOR DISAGREEMENTS When it comes to disagreements and disputes the old saying holds true: prevention is better than cure. Regular communication between franchisors and franchisees provides the opportunity to raise issues before they become major concerns. If you

have an established relationship with your franchisor or their staff, it will be much easier to raise issues with them and they will be much more likely to respond in a way that suits both parties. You might find your issue is something that can be easily fixed, and you will not know until you try. If you’ve tried this and the problem still isn’t fixed, the next step is to look at your franchise agreement to understand the formal dispute resolution process for your franchise system. This should set out what both parties are required to do if there is a disagreement. If you’ve read your agreement but can’t find this process, the Franchising Code of Conduct (the Code) outlines the steps you can take1. An equally important step at an early stage is to make written notes, including any details of relevant telephone calls or

other communications, and to make sure you retain copies of any documents that are likely to be important.

WHAT HAPPENS IF THE PROBLEM CAN’T BE FIXED? If the two parties cannot resolve the dispute informally, then mediation is the primary way that franchisees and franchisors should attempt to resolve disagreements under the Code. Key steps for dealing with a disagreement under the Code include: • Provide your franchisor with written details of the problem, the outcome you are seeking, and how you think the outcome can be met. • Try to agree with your franchisor about how to resolve the dispute. • If you cannot agree within 21 days, you

The dispute resolution procedure in a franchise agreement must comply with the Code.

1

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FRANCHISE BASICS

An acceptable resolution doesn’t mean that both parties always get everything they want. Mediation often involves negotiation and compromise.

can refer the matter to a mediator. • If you cannot agree on a mediator, you or the franchisor can ask the Office of the Franchising Mediation Adviser (OFMA) to appoint a mediator. • If mediation is initiated, you and your franchisor must attend mediation and try to resolve the dispute. The mediator may decide the time and place for mediation (although it must be conducted in Australia). There is a general obligation imposed on both franchising parties to act in good faith when operating a franchise, and this requirement applies to the entire dispute resolution process as well. Although the Code does not define good faith, it does state that the obligation is reflective of common law. Under common law, good faith requires parties to an agreement to exercise their powers reasonably and not arbitrarily or for some irrelevant purpose. Whether bad faith exists depends on all of the surrounding circumstances.

COMMON AREAS OF DISAGREEMENT OR DISPUTE There are some common issues that can cause tension and disagreements between a franchisor and franchisee that may lead to disputes. These can range from the franchisor not providing adequate support to their franchisees – such as training – to a breakdown in communication, or potential breaches of the Code. Under the Code, dispute resolution procedures must be followed for termination (or attempted termination) of a franchise agreement. It's important that franchisees understand what their franchise agreement says about dispute resolution. In special circumstances outlined in 2 3

the Code, the franchisor has a right to terminate and isn’t required to follow the termination procedures – if this has been agreed in the franchise agreement. These special circumstances include where a franchisee no longer holds a licence that is required, has been convicted of a serious offence or is fraudulent in the operation of their franchised business. The dispute resolution procedure in the Code doesn’t affect a party’s right to take legal action over a franchising dispute.

TIPS FOR MEDIATION The mediation process can be daunting. It is worth remembering that that mediators don’t make binding decisions like judges do. Instead, mediators are there to facilitate a structured discussion and work towards a result that is acceptable to both parties. An acceptable resolution doesn’t mean that both parties always get everything they want. Mediation often involves negotiation and compromise. But mediation does have a number of benefits over court litigation, including that it is likely to be cheaper and faster. OFMA offers services prior to the mediation to explain how to prepare and what to expect in the mediation. The Australian Small Business Family Enterprise Ombudsman or Small Business Commissioners are also able to assist with appointing a mediator. Any costs for mediation must be shared equally between the franchisor and franchisee. Some tips for resolving disputes include: 1. Talk to the other party as a first step and then formally communicate the problem. Record any resolution in writing. 2. Be well prepared when entering mediation. This includes having all the

necessary evidence and records to substantiate any claims. 3. Understand any obligations you have when undertaking mediation, such as any confidentiality obligations that apply during or after the process. 4. Both parties must approach the resolution in a reconciliatory manner (e.g. attending and participating in meetings at reasonable times) and ensure they do not take any action that would damage the reputation of the franchise system (e.g. providing inferior goods or services). 5. Keep an open mind and be willing to make adjustments that can help achieve a timely solution. Remember that an ongoing dispute can be costly, timeconsuming and disruptive to business.

WHAT ELSE CAN I DO? The ACCC has a range of online resources and guides including “The franchisee manual” which contains more information about dispute resolution.2 While we don’t provide dispute resolution services or resolve individual disputes, if you are concerned that a business is not complying with the Code or the Competition and Consumer Act, you can contact the ACCC.3 While it is not possible for the ACCC to pursue all matters reported to it, priority is given to those that have broad impact in terms of persons harmed, commerce affected or conduct that suggests problems across a system. We also encourage you to sign up to our Franchising Information Network to keep up with the latest news and events relevant to the small business and franchising sectors. n Mick Keogh is deputy chair of the ACCC.

Available at www.accc.gov.au/publications/the-franchisee-manual www.accc.gov.au/contact-us/contact-the-accc NOV/DEC 2018 | 120 | WWW.FRANCHISEBUSINESS.COM.AU


LAUNCH PARTY

20 FEBRUARY 2019 | MS COLLINS, MELBOURNE

AND THE WINNERS ARE ... Join us and the stars of franchising at this exclusive, invite-only launch event to find out who are Australia’s Top 30 Franchise Executives! Don’t miss this chance to connect, network and celebrate exceptional individuals changing the franchise industry.

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FRANCHISE FRANCHISE BASICS BASICS

5

REASONS TO

MARKET LIKE MAD The best business ideas still need to be marketed to the customer.

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N

ew franchisees can often be fearful of one key element of running a business – the marketing – and choose to invest in a franchise for the advice and guidance available.

1. MARKETING IS MORE THAN ADVERTISING What is marketing? According to the University of Sydney, “Marketing creates value for customers, organisations and society by understanding market needs and aligning what companies offer based on market insights”. This makes it a crucial tool to running a successful business, and it crosses advertising, branding, customer communications. The goal is increased revenue, whether through a direct message or as a by-product of improved brand awareness. Firstclass marketing appears seamless and integral to the brand.

2. MARKETING IS A SCIENCE Business owners need to apply market knowledge to their customer interactions, and in a data-driven world this is easier than it has ever been. Testing what works is an important step to fine-tuning the processes that a business uses to garner information and increase

revenue, whether that’s achieved through more customers or a bigger spend among existing customers. Data is crucial to successful marketing and any go-ahead franchise will be creating or adopting tools to give franchisees insights into customer behaviours, product preferences, sales trends ...

3. MARKETING IS MEASURABLE It’s vital that any marketing initiatives are not just fully implemented; effectiveness in driving business also needs to be measured and analysed. An ineffective campaign is simply a waste of money. Trials to test what works are valuable, as mentioned, but franchisees need to know when to pull out of a program that isn’t bringing in results so funds can be reassigned. Some campaigns with a call to action are easy to evaluate, while some with more subliminal branding messages are more difficult to monitor so it’s important to learn what can be achieved with different tools and channels, and which suits the type of promotion or campaign you are running.

4. MARKETING STARTS BEFORE YOUR BUSINESS OPENS

about a change of ownership or a brand new business in the neighbourhood is an important part of building up a customer base. And it starts early with, if appropriate, pre-sales marketing. It sounds complicated but it’s just about communicating your new business to potential customers to give yourself the best start.

5. MARKETING BACK-UP Marketing is crucial for any business, and with a franchise some of the hard work is already done through head office. Many franchisors will employ a marketing department to create branded campaigns to promote the business nationally, and franchisees can tap into this expertise to promote their own businesses on a local level. Good franchise systems will also be applying technology to ensure there is plenty of data to help drive marketing and product or service growth. With a franchise marketing team on hand, and franchisees who have tried and tested different methods of marketing willing to share their knowledge, a new franchisee can gain the upper hand when it comes to building a new business. n

When you open the doors to your new franchise operation who will be your customers? Getting the word out

Marketing creates value for customers, organisations and society by understanding market needs and aligning what companies offer based on market insights.

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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 bankâ&#x20AC;&#x2122;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: a business

model with four criteria â&#x20AC;&#x201C; 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.

COMPANY-OWNED UNITS:

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 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.

FRANCHISEE ADVISORY COUNCIL: a structure for

franchisors to seek and receive feedback from their franchisees. Participating franchisees may be elected or chosen by the franchisor.

FRANCHISE FEE: an up-front cost paid to the franchisor. It covers the use of the brand name and business system. 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).

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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.

GREENFIELD SITE: a

brand new site.

GOODWILL: this is a

calculation of the value of trade in an existing business that is likely to continue and benefit the incoming business owner.

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

percentage-based-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:

INFORMATION STATEMENT:

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

LOCAL AREA MARKETING:

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 areas of the business, and should regularly update the information. REGIONAL FRANCHISEE:

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.

similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. RENEWAL: 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.

MAKE AN INQUIRY

CONDUCT DUE DILIGENCE

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 franchiseexperienced professionals can save you money in the long term, so it is a worthwhile investment.

FRANCHISOR RESPONDS 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.

FIND OUT MORE Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.

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.

FIRST MEETING This is the time you will get a much clearer idea of the business, and the franchise team you will be working with.

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.

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.

DONâ&#x20AC;&#x2122;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. CHIEF EXECUTIVE OFFICER/ MANAGING DIRECTOR: : 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 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.

manages its finances, investments, and capital structure and is influential 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 INFORMATION OFFICER : 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. CHIEF MARKETING OFFICER: 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.

CHIEF FINANCIAL OFFICER: This senior executive reports to the CEO but plays a strategic role in the way the company

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 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.

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FRANCHISE BASICS

30

THINGS TO CHECK 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)

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.

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.

Visit: WWW.FRANCHISEBUSINESS.COM.AU

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

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.

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

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.

FRANCHISE COUNCIL OF AUSTRALIA

Visit: WWW.FRANCHISE-ED.ORG.AU

The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia.

THE FAIR WORK COMMISSION

Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees.

Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australiaâ&#x20AC;&#x2122;s workplace relations system but have different roles.

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 also the official directory of the FCA and 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.

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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1300 LOCATE

TM

A-Z LISTINGS

1300 562 283

pipe & cable locators asset protection

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: 1800562283 Contact: Jason Kelly Franchising@1300locate.com.au www.1300locate.com.au Start up costs: Enquire

PROFILE:

Start up costs: $400,000 to $1,000,000

1300LOCATE offers a comprehensive service specialising in Subsurface Utility Locating and Mapping for the Australasian Engineering and Construction industries. As the Business owner you will have three (3) different revenue stream to maximise your income potential covering Underground Utility Locating, Vacuum Excavation and Pipe CCTV Survey. To maximise the growth of your business and creating future stability opportunities cover large areas of metropolitan and/or rural locations around Australia. Business Opportunity numbers are caped around Australia and there are opportunities around the greater Australasian area available upon request.

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: Brett Turner Brett.turner@anytimefitness.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 520,000 members and 490+ 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. We topped our category in Entrepreneur Magazine’s Franchise 500 list, 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: 1800 219 512 Fax: 1800 460 819 Contact: Peter Warwick peter@artofaquaria.com.au www.artofaquaria.com.au

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.aquariumgallery.com.au Start up costs: 300K-400K

Start up costs: $45,000 to $200,000 PROFILE:

PROFILE: Aquarium Gallery is not your traditional pet fish shop. Think of a high standard specialty aquarium. Yes, an “Aquarium Gallery” which includes fish, aquatic plants, corals, natural aqua-scaping materials along with, of course, the best equipment and accessories to enable anyone to enjoy the wondrous beauty of aquatic life in their own home or office. We offer the customer a truly comfortable retail experience, from the moment walk in they begin their journey into the amazing and inspiring aquarium world because we pay specific attention to every detail resulting in healthy, beautiful and sustainable aquarium life. If you love the beauty of aquatic life we will show you how you can turn your passion into a business and be proud of yourself, what you do every day you are at work and make money doing it.

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.

How About A Business Opportunity Which Generates Serious Profits And An Attractive Lifestyle Art of Aquaria are in the process of releasing a number of territories with established client bases so that you can choose to either walk straight into a cash generating business or build up your own greenfield territory. Are you looking for a business that you can operate by yourself with the support of a fun and dedicated team? Are you seeking a growth industry where you can follow your passions and shape your own destiny? If you share our passion for acquaria and think you have what it takes to be part if our team, we want to hear from you!

Phone: 07 5509 0000 Contact: Mark Crapper franchise@australianskinclinics.com.au australianskinclinics.com.au/franchise PROFILE: Australian Skin Clinics was founded in 1996 and is one of Australia’s leading cosmetic clinics focused on Skin Rejuvenation, Cosmetic Injectables, Laser Hair Removal and Fat Reduction. With up to 50 clinics nationally Australian Skin Clinics is empowering people to look and feel proud of their reflection. Franchisee’s gain access to a turnkey operation supported by a nationally recognised brand. All training is provided via The Advanced Skills Academy, owned and operated by Australian Skin Clinics; covering all areas of running a successful clinic. This is your opportunity to join the fastest growing sector in retail!

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.

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Phone: +61 474 278 485 Contact: In Australia: Carsten Brink (Business Development Director for Asia-Pacific) franchise@boconcept.com Boconcept.com/franchise

Phone: 1300 309 759 Contact: Franchise Recruitment Team franchise.recruitment@bakersdelight.com.au www.bakersdelight.com.au/franchise/

Start up costs: Around $600.000 AUD

PROFILE: Bakers Delight are an Australian iconic brand. We’ve been baking bread since 1980 and currently have over 550 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

• Projects • Purchasing

• Information Support • Full Training

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.

PROFILE: BECOME OUR NEW FRANCHISE PARTNER JOIN A GLOBAL FURNITURE DESIGN BRAND, OFFERING A STRONG RETAIL FRANCHISE CONCEPT From Denmark to the world since 1952, BoConcept is the brand name of Denmark’s most global retail furniture chain, specializing in premium quality interior design for the urban-minded customer and creating outstanding modern and sophisticated living spaces at affordable prices. BoConcept has grown its global presence through a unique strategic market positioning.

Phone: 03 9508 4409 Fax: 03 9508 4499 Contact: Boost Franchising boostinfo@retailzoo.com.au www.boostjuice.com.au

Boost Juice has come a long way from its humble beginnings but one thing hasn’t changed – our commitment to health, fun and loving life. Our partners are provided with an abundance of support and we strive to innovate and develop in all facets of the business. Take the steps to join one of Australia’s most loved brands today!

Our business model and core competencies are applied throughout the value chain from design, branding and marketing to production, logistics, sales and customer service, to optimize the overall sales performance in the stores. The strong toolbox and support within all areas of business and retailing makes the setup and management of a BoConcept store straightforward. Therefore, most of our partners own multiple stores.

Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au

Start up costs: $280,000 - $450,000 + GST PROFILE: Boost Juice is an Australian franchise success story. Founded by adventurer and entrepreneur, Janine Allis, the brand has taken its winning combination of healthy fresh fruit, blended and squeezed into delicious smoothies and juices to open over 485 stores across the globe.

With over 25 years of franchise experience, and 265 stores in 65 countries, our franchise model is a proven, strong and award-winning concept.

PROFILE: Cashflow It are the franchise finance experts. With competitive rates and flexible terms from 12 months to 5 years, Cashflow It can provide the funding that franchisors and franchisees need today. We offer flexible rental solutions, traditional leasing and business loans tailored to your requirements. What can we Fund - New equipment / Used equipment / Fit-outs / Store refurbishments / Re-financing from other lenders / Buying an existing franchise / National equipment roll-outs Franchise Accreditation - If you belong to a Cashflow It Accredited Franchise system, you can enjoy pre-approval and other exclusive benefits.

Phone: (02) 4587 6370 Fax: (02) 4587 8733 Contact: Lachlan Mitchell lachlan@chemdry.com.au www.chemdry.com.au

Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos nicka@cheesecake.com.au www.cheesecake.com.au

Start up costs from $19,950

Start up costs: New store - $389,000 + GST

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.

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.

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 8039 9000 08 6146 0100 03 9081 9000 07 3193 9000 Contact: Renz Flores marketing@cloudstaff.com www.cloudstaff.com

Phone: 03 8727 9999 or 13 80 90 Fax: 03 9729 3266 Contact: Dirk Heinert dirk.heinert@clarkrubber.com.au www.clarkrubber.com.au Start up costs:

From $ 420,000 + GST (including stock) Clark Rubber Store From $ 147,500 + GST (including stock) Clark Pool & Spa Shop From $ 49,500 + GST (including stock) Clark Pool Service territories

PROFILE: Cloudstaff offers next-generation outsourcing solutions for franchisees to help them reduce labour costs and extend their service offerings.

PROFILE: Clark Rubber is a well-known and iconic Australian business, and has been a part of the retailing landscape for over 70 years. Clark Rubber commenced franchising in 1995 and since then has grown its store network with 60 locations nationwide. In 2006 Clark Rubber was awarded the prestigious ‘Franchisor of the Year’ honour by the Franchise Council of Australia, and today, Clark Rubber is Australia’s leading foam, rubber and pool retailer. Clark Rubber offers a unique business proposition which includes business development, site selection and fit out assistance, comprehensive training and ongoing local area marketing and IT support.

Based in the Philippines, Cloudstaff provides highly trained, dedicated professionals for a fraction of the cost of hiring locally. Cloudstaff works with the franchisees to find the exact staff they are looking for. Whether they need staff to help with office administration, accounting, payroll, creative services, technical support, or an entire team of developers to create the next big app, Cloudstaff outsourcing solutions are fast to deploy, extremely scalable and tailored to the individual needs of the franchisee.

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A-Z LISTINGS


Phone: 1800 DECKCLEAN (1800 332 525) Fax: 03 9886 3360 Contact: Danielle Burgess admin@deckseal.com.au www.deckseal.com.au

Phone: 0412511630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.thecupcakedesire.com.au

A-Z LISTINGS

Start up costs: $180K-300K

Start up costs: $65,000 + GST (includes franchise fee + equipment) + vehicle

PROFILE: The cupcake Desire was established in 2014 as a premier speciality cupcake and cakes store. Having successfully operated for more than 4 years, we have decided to commence franchising to allow franchise partners to join our business. We believe franchising will add more resources, fresh and innovative ideas and support to constantly grow The Cupcake Desire and create product differentiation in the market. The quality of our cupcakes is what people come back for. They are baked fresh everyday using the finest ingredients. We bake Gluten – free, Vegan cupcakes and cakes. We empower and value our customers as they contribute to an overall success of “the Cupcake Desire”

PROFILE: Leading the way in deck and timber restoration and maintenance services, specialising in the treatment of new and existing timber decks, structures, and features. The DeckSeal Franchisee Package is designed to maximise the opportunity for you to build and expand your own successful business from practical skills to software systems and complete operational manuals, we’ve got you covered. A Franchise with real benefits • industry leaders • niche business • booming growth segment • large territories Becoming a DeckSeal Franchisee doesn’t require a trade, huge financial outlays, or experience in deck and timber restoration. Full training is provided with ongoing support. Call us today!

Phone: (02) 9432 5016 Contact: Felicity Baker FranchiseAdmin@ellabache.com.au Ellabachefranchise.com.au

Phone: 1300 131 888 Contact: Hannah Giang Email: franchise.recruitment@dominos.com.au Web: www.dominosfranchise.com.au

Start up costs: $150,000 - $350,000

Start up costs: $450,000 - $600,000 + GST PROFILE: Domino’s is not just Australia and New Zealand’s leading pizza brand – it’s also one of the world’s most advanced digital retailers and an undisputed leader in online ordering with Australia and New Zealand’s most advanced mobile ordering apps, pizza creation app and only real-time pizza tracker. Being a part of the Domino’s family is a rewarding way to take control of your own personal wealth and be your own boss. You’re not only joining Australia’s largest food chain but a community of passionate, excited entrepreneurs. There has never been a better time to join the Domino’s family. Enquire now to receive your copy of our Domino’s franchise information booklet.

PROFILE: Ella Baché is Australia’s largest skincare franchise network and leaders in Skin Solutions. The brand has been established in Australia for over 65 years and currently boasts over 160 locations nationwide. As a Franchise Owner, you’ll be given all the support you need to grow your business and develop your skincare knowledge. You can expect ongoing innovation, training, guidance and non-stop motivation to create a successful business from day one.

Phone: 02 8845 0100 Contact: Franchise Development Manager franchise@gelatissimo.com.au www.gelatissimo.com.au

Phone: 1300 884 165 Phone: 0421 644 661 Contact: John Stanton john.stanton@fibonaccicoffee.com.au fibonaccicoffeefranchising.com.au

Start up costs from: $280,000

Start up costs: minimum of $100,000 PROFILE: Fibonacci Coffee is a fresh new cafe concept in the Australian coffee landscape. Started as a family business Fibonacci Coffee keeps on building on those traditional family values. Embracing and promoting innovation in the everevolving cafe industry. Encouraging positive community impact, and providing mouthwatering food offering with flexible menus. Designed with a Co-op concept in mind we provide a platform where partners can contribute and share their ideas as well as learn and support others. Fibonacci Coffee is all about helping entrepreneurs to prosper.

A-Z 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: Australia’s leading gelato franchise is looking for outstanding franchisees. Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service. Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

Phone: 07 3357 62 70 Contact: Warren Ballantyne warren@guttervac.com.au www.guttervac.com.au Start up costs: $79,000 + GST + freight PROFILE: Gutter-Vac is an innovative cleaning franchise using revolutionary vacuum equipment to quickly and effectively clean corporate and domestic gutters, roofs, ceiling spaces, rainwater tanks, storm water sumps and much more. Gutter-Vac is now the largest gutter vacuum cleaning network in the world. The Gutter-Vac network includes 80+ franchises across 7 states and territories including Queensland, Victoria, New South Wales, ACT, South Australia, Western Australia and Tasmania. Gutter-Vac now has an international brand “Outback GutterVac” based in Atlanta Georgia, USA. Gutter-Vac is a proven model that provides a lifestyle or entrepreneurial business. A Gutter-Vac franchise is an exciting and promising small business opportunity that is constructed upon a reliable foundation of simple, innovative and effective equipment, systems and procedures.

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Phone: 1300 658 311 Contact: Bill Lockett info@homecaringfranchise.com.au www.homecaringfranchise.com.au

Phone: 1300 097 857 Contact: David Wilkinson sales.au@inxpress.com inxpress.com.au inxpress.com.au/franchising

Start up costs: $75,000 - $150,000

Start up costs: $64,950 + GST

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 140,000 to over 500,000. 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. Home Caring is offering a limited number of locations in a joint venture 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.

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: +61 402 171 399 Contact: Liz Seeto franchising@laserclinics.com.au www.laserclinics.com.au

Phone: 0420 900 382 Contact: Casey Reid casey.reid@theleatherdoctor.net.au www.myleatherdoctor.com.au

Start up costs: $290-$350K +GST approximately

Start up costs: $49,000 - $75,000

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.

PROFILE: Our Mission. “To be the worlds number one mobile franchise”. This is fast becoming a reality as The Leather Doctor is Australia’s leading franchise for mobile home services in leather. Acclaimed by the FCA as one of Australia’s top five franchise systems in 2016 and 2017, The Leather Doctor is an essential home service. Established in 1989 The Leather Doctor now support over 60 Franchisees who earn great income cleaning and repairing goods made from leather, vinyl, plastic and fabric. They service a wide variety of industries including furniture, automotive, marine, retail and hospitality. Work is abundant and these new and established small business opportunities, are some of the best in Australia.

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: 07 55 327071 Contact: Michelle Christensen franchising@lonestarribhouse.com.au lonestarribhouse.com.au

Phone: 02 9651 3444 Contact: Dom Galluccio franchise@lockandroll.com.au www.lockandroll.com.au Start up costs: Circa ($100k) PROFILE: Lock & Roll has a great opportunity for you to secure your future and become a part of an exciting venture with strong rewards and real growth opportunities. We are a specialist window and door repair, maintenance & upgrade service for domestic and commercial property owners and managers.

PROFILE: With smiles as wide as the sky, the Lone Star Rib House offer a stimulating and energetic dining atmosphere, and a taste as big as Texas! With franchise opportunities across Australia, the Lone Star Rib House offers a proven business model with robust operations, training systems and support.

With the increasing demand for our services, Lock & Roll is looking for dedicated and customer focused people to become franchisees. We will be able to show you how you can earn a strong rewarding income and ultimately be your own boss with an opportunity to grow a business that fits into your desired lifestyle.

Phone: 02 8115 9550 Contact: Phillip Blanco franchising@madmex.com.au www.madmex.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!

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


Phone: 1800 625 677 Contact: Sales Enquiries info@majorsgroup.com.au www.majorsgroup.com.au

A-Z LISTINGS

Phone: 03 9604 9400 Fax: 03 9600 3313 robert@mmrb.com.au www.marshmaher.com.au

PROFILE: 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

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

In partnership with our clients and other like-minded professionals we develop, implement, and oversee all aspects of franchising and licensing, from concept to operation. We help with dispute resolution and are regularly involved in mediating Franchise related disputes. In addition, we provide a full range of complimentary services to support your business. Our extensive experience in both Australian and International Franchising makes us the perfect business partner. So, contact us today for a no-obligation consultation and let us support you in your business journey.

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

Phone: (03) 9600 3440 Fax: (03) 8610 2081 Contact: Stefano Del Monaco stefano@monacolaw.co www.monacolaw.co PROFILE: At Monaco Lawyers we develop comprehensive solutions that drive business success.

4. 5. 6. 7. 8.

Phone: 02 9472 8555 Contact: Peter Elligett info@mrsfields.com.au www.mrsfields.com.au Start up costs: From $199,000 + GST

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. 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: Holly Usher holly.usher@nightowl.com.au www.nightowl.com.au

Phone: 0413 564 565 Fax: 8 5095 456 Contact: Marc franchise@nirvanabeauty.com.au www.nirvanabeauty.com.au

Start up costs: $300,000 - $650,000

Start up costs: $250,000 - $550,000

PROFILE:

PROFILE:

NightOwl is a national convenience franchise system established in 1975 as Australia’s first 24 hour trading Convenience retail business.

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.

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.

A-Z We are seeking motivated and hardworking franchisees with a determination to succeed!

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

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. Earn $100K per annum guaranteed salary. What are you waiting for? Contact us today and join in our success.

Phone: 03 8851 4200 Fax: 03 8851 4277 Contact: Michael McNamara franchise@noodlebox.com.au www.noodlebox.com.au/franchise Start up costs: $175,000 - $200,000 PROFILE: At Noodle Box we believe in the power of the mighty wok. To transform a humble kitchen into a fiery theatre. And transform the simplest ingredients into a feast that’s out of this world. Noodle Box started life in 1996 on the back of a vision of two adventurous young Aussies who were amazed by the fiery theatre and the incredible wok-charred flavours of Southeast Asia’s hawker markets. They brought their experience back to Australia and worked with the best wok chefs in the business to bring new life to traditional recipes and satisfy Aussie tastes. Today, Noodle Box restaurant numbers continue to grow, strengthening our position as Australia’s leading Noodle-based franchise system. And while this growth has been fueled by continuous investments in our brand, our products and our systems, our success is due to the ongoing dedication and loyalty of our Franchise Partners. With franchise opportunities available nationwide, there’s never been a better time to join the Noodle Box family. Noodle Box – Wok Inspired, Market Fresh

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Contact: Chrissie Blackadder cblackadder@orangetheoryfitness.com.au www.orangetheoryfitness.com.au

Phone: (07) 3625 400 Contact: Ralph Marks franchising@novusautoglass.com.au www.novusautoglass.com.a

Start up costs: Please enquire

Start up costs: $40,000 PROFILE: Novus Glass invented Windscreen Repair Technology. A Novus Glass franchise enables you to go into business for yourself, but not by yourself. Novus Glass is an international brand with over 55 locally owned and operated franchise territories across Australia. Novus Glass also replace windscreens and all other auto glass components. Novus Glass offers a complete franchise package covering everything from initial Technical Training through to Ongoing Marketing and Operational support. Novus also offers its franchisees access to its unique patented products, equipment and specialty resins. Enquire today about owning your own Novus Glass franchise – The Clear Choice for Windscreen Repair and Replacement.

PROFILE: Orangetheory Fitness is one of the world’s fastest growing franchises with 1000 studios open across 18 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 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au www.questfranchise.com.au

Phone: 1800 245 447 Email: joinourteam@poolwerx.com.au Web: www.poolwerx.com.au

Start up costs: $750,000 upwards 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: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of over 165 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

Phone: 1300 729 900 Contact: Gary Glen franchising@schnitz.com.au www.schnitz.com.au Start up costs: $500k +

PROFILE: We all know the smell of home cooking. The recipe might be different for each of us, but the feeling of experiencing something that’s been made with love and care never leaves us, and brings us back to the table time and time again. Our mission is to extract that feeling via the crumbed goodness of a lovingly prepared Schnitzel. At Schnitz, we’re a franchise family obsessed with schnitzel. To this day each and every schnitzel is obsessively made by hand with fresh, locally sourced, quality ingredients, and crumbed then pan cooked and never (ever) deep fried. It’s food made the right way not the easy way. We’re proud to share the happiness that only a schnitzel cooked with passion can bring.

Phone: 07 54 784 014 Fax: 07 54 777 133 Contact: Leigh Wallis leigh@smithandsonshq.com www.smith-sons.com.au Start up costs: $50,000 - $80,000 PROFILE: We aim to make the world a better place – better businesses mean better families and better communities. Our happy, profitable franchisees own and run their own professional renovation businesses utilising the systems, tools and resources we provide. Smith & Sons is committed to seeing each of our franchisees and master franchisees reach their business and personal goals.

Start up costs: $290,000 - $430,000 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:

NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8224 8370 DAVID.STRONG@OCTOMEDIA.COM.AU

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A-Z LISTINGS


Phone: 03 9830 4166 Fax: 03 9888 6327 Contact: Bettina Davis bettina.davis@snooze.com.au www.snooze.com.au/franchising

Phone: 1300 810 233 Contact: Kevin Lacey klacey@snap.com.au www.snap.com.au

A-Z LISTINGS PROFILE:

PROFILE: Snooze has been giving Australians a better night’s sleep for more than 40 years.

The sophisticated Snap Centre of today is a far cry from the convenience of the corner printer of the 60s, Snap is one of the most recognised brands in Australia with a reputation in its field of quality production and service, and a commitment to people.

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?

Snap continues to evolve its franchise model and is building on its reputation for innovation and embracing change through the introduction of new products and services combining the best of traditional print with online marketing solutions. We are Multiple Award Winning Australian Franchise Success Story that has expanded its successful franchise model into Master Franchises in Ireland, China, New Zealand.

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: 1300 781 735 Fax: (02) 9150 0837 Contact: Stacy Alogdellis info@soccajoeys.com www.soccajoeys.com.au/franchise

Phone: 1800SPLASH (775274) Contact: Kylee Clasper admin@splashswim.com.au www.splashswim.com.au Start up costs: From $150,000

PROFILE: Soccajoeys has been developed by a team of childhood development experts to provide soccer programs to children aged 2.5 to 8 years. We deliver our programs to over 35,000 children annually with over 300 classes in operation across the country. Transform lives, including yours and become a Soccajoeys Franchisee. We offer a unique opportunity for people to become mentors to the next generation of Australian kids, instilling in them a passion to lead healthy and active lives.

• Ongoing training to boost your success • Continuous Head Office support (marketing, operational, financial and systems) • Access to industry leading childhood development programs • Coaching and mentoring workshops • Trusted Australian brand • Become part of a thriving and energetic network of franchisees • Your own business and exclusive franchise zone • Rewarding career in the childhood development industry • Flexible lifestyle.

Splash have their own in house architectural service, project manage and building contractor that are registered in all states of Australia

Phone: 03 9645 4798 Contact: Brad Dekkers franchise@sportingglobe.com.au www.sportingglobe.com.au/franchise

Phone: 1300 372 300 Contact: David Thomson franchises@sportstaracademy.com Sportstaracademy.com

Start up costs: $700,000+

Start up costs: From $25,000

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. 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:

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

CONTACT SENIOR ACCOUNT MANAGER CHARLOTTE REDFERN ON 02 8224 8373 CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU

PROFILE: Sport Star Academy are creating a movement of change for tomorrow’s grassroots leaders. Through our sport academies we empower children to believe in themselves and nurture a love of sport through focused attention, dedication and simply having fun. The multi-award winning Sport Star Academy is Australia’s #1 skill based sport programs providing weekly sessions to over 6500 children across 150 locations nationally. Football Star Academy was awarded “Franchise Business of the Year” in the 2017 Optus My Business Awards. Choose your sport from the following options: Rugby, Netball, Footy (AFL), Football, Basketball, Cricket, Golf, Tennis, Sport Star Performance & Soccer Time Kids. Limited franchise opportunities available.

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 hire car transport (limousine) solutions for both corporate & private clients. With a fleet of luxurious vehicles and accredited drivers, we offer our clients competitive fixed-prices, no meters or tolls. 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: + 61-02-8091-2520 Fax: +1 416 646 0366 Contact: Fiorella Alva 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 590 locations around the world, Tutor Doctor has changed the lives of 270,000+ people by helping them 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 BPO are specialist in Process Consulting, Technology Consulting and Outsourcing. Our Process and Technology Consulting is designed to transform businesses and enhance their competitive advantage. We work with businesses to understand their needs, identify and implement the right mix of technologies customised for their business, resulting in innovative, simplified and efficient business processes. With our outsourcing solutions, we enable hundreds of businesses globally to grow through effective staffing solutions. We ensure that they have the best resources to help relieve bottlenecks, improve expertise, deliver cost-effective and efficient employment solutions. Valenta Franchisees will be able to offer these services to businesses. Their key role is to identify the opportunities and business development while we provide all the services via our operations team.

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: $47,100-00 + 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: Chrissie Blackadder chrissie.blackadder@collectivewellness.com.au www.xtendbarre.com.au Start up costs: From $120,000

PROFILE: Barre is one of the most popular programs in boutique fitness, with a loyal client following that continues to grow. Xtend Barre leads the barre industry with its unique teaching formula, dynamic programs and personalised approach. Founded on pilates, it’s a safe and effective workout that delivers RESULTS. When you invest in Xtend Barre, you’re investing in much more than a barre studio. You’re joining the world’s biggest barre franchise, and an ambitious and supportive community that spans the globe. 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

HOW TO BE A SALES Top business tips from award-winning franchisees Shan and Gerard O’Sullivan.

W

hen you start your own business there is no way to escape sales. It is a function of operations that needs to be one of your priorities. A focus on sales from the owner, through to team members will contribute to the long-term success of any franchise.

The following are sales lessons and philosophies we have adopted during our 12 years as franchise partners. 1. THERE IS NO BUSINESS WITHOUT SALES The word sales scares a lot of people and its common to hear people make light of it with comments like ‘I’m not very good at sales, or I hate sales’. Regardless of what type of business you operate, if you want to be your own boss you need to accept sales is a BIG part of the job. 2. DETERMINE YOUR SALES PROCESS There are so many elements of a business that contribute to the sales process, and in a competitive market a potential sale starts well before you interact with a customer face-to-face. To be successful you need to consider the process. This involves thinking through the sales experience from the perspective of your customer first. Things you might want to work through include: how would you like to be treated, what would you want to know about the product/service; what experience would you want to have from interacting with the company; do you want fast or slow service; would you want the company to be highly knowledgeable and offer advice; how would you want the product /service to be presented, what would you want to see at point of purchase; what would help encourage your regular patronage and loyalty to the business?

Start from the very first moment a person might come across your business to the final step of converting the sale.

and share product information. Again, the type of education you participate in will come from your sales process and identifying what you need to know/do to make it effective.

3. COMMUNITY INVOLVEMENT Brand awareness is a huge part of the sales process, so you need to examine every opportunity to get your business in front of potential clients. Consider who your key target markets are and then research ways to reach them direct within the community. The more engaging your brand can be in their lives, the greater resonance it will have them. Consider supporting local groups, charities or sporting organisations for example. 4. 100% SALES MINDSET As your business grows, so will your team and once other people join your business the need to ensure everyone has the same sales mindset is very important. Every team member needs to be aware of the process and role they play in contributing to a great sales experience. For example, an admin person following up an overdue invoice must always be courteous, a service exec that goes onsite for a job must be punctual and well presented. As the owner and leader of the business you must always lead by example. The values you bring to the sales process will be shared best this way and ensure your team are aware of your standards and expectations of service. 5. TRAINING COUNTS If sales do not come naturally then education is important. Your franchisor may host internal training sessions, or else there are many sales courses available to help improve your skills. We send our staff every year to retail training, and because product knowledge is so important in our business we get suppliers to visit

Shan and Gerard O’Sullivan

6.

LEARNING IS LONG-TERM: The longer you have a business the more you can refine what you do. Sales is something that evolves with your business and you must be willing to examine the process regularly, take feedback onboard and utilise it to improve what you do. The good news is the longer you are in business the easier the sales process becomes because you are more comfortable in business and as a leader. n

Shan and Gerard O’Sullivan own Poolwerx Coffs Harbour and Moonee Beach and are the Poolwerx NSW Franchise Partner of the Year for 2015, 2016, 2017.

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BRETT HAD ALL THE RIGHT INGREDIENTS TO BECOME

A 19 STORE SUPERSTAR 2007 2004

BUYS FIRST STORE

THE HITS ORE T S 0 1 K MAR

2016

FIRST ADDS TIONAL A N R INTE E STOR

Brett Moore Multi-Unit Franchisee

20

05

B T UY ST HIR S O D RE

06 UR 20YS FORE S

RE MO L SEL ZZA E PI OR EM V HA UN! F

O E BU M OR T S

20

18

CU S RR COTO EN U RE T 19 NT

Brett Moore always had the right ingredients to build a successful business: a belief in people, an appetite for hard work, and a hunger to succeed. As a 19 store multi-unit franchisee with stores across Australia and New Zealand, Brett’s shown that by taking the leap, you can reap the rewards.

To start building your Domino’s business, visit dominosfranchise.com.au.


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

Inside Franchise Business - Nov/Dec 2018  
Inside Franchise Business - Nov/Dec 2018  
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